ASHBRIDGE

AUTOMOTIVE PARTS
INC.
Strategic Proposal for Re-Alignment
Wednesday November 26, 2014

Your BCG Team:

Michael Cunningham
Anchel Kumar
Marina Eckart
Ernest Mistica

Executive Summary
Main Issue

Misalignment of
HR & Business
Strategy

Symptoms

Weak
Compensation
System

Recommendation

Link mission
and vision to
HR strategy

Methodology

Implementation

No sense of
ownership

No formal
performance
management
system

7S Model

Balanced
Scorecard

Job Analysis

Staff Budget

Risk
Assessment

Next Steps

Main Issue Are you a cost leader?

Lack of alignment with HR and the business strategy

Department
budgets
Low impact
human
resources
programs

No
department
or individual
accountability
Misaligned
HR &
Business
Strategy

Cause and Effect Diagram

Human Resources Issues

Ineffective use of recruitment

and on-boarding practices

Production/Operation Issues

Ineffective inventory
system

Low employee morale

High turnover rate
Lack of alignment between
management and the
employees

Low production
Poor quality
Outdated Quality
Control process

Talent attraction and

retention issues
Lack of incentive system
Problems
Not anticipating changes in the market, and
adjusting the strategy to meet them.
Organizational strategy not linked to
business units
Influencing the nature of competition
through strategic actions
Lack of accountability for decision
making

Strategic Issues

Significant differences between actual

and projected results
Lack of action on negative variances
from budgets
Reductions in working capital and
cash flow
High departmental cost
Financial Issues

Positive Feedback Loop at Ashridge

Poor
Performance
Management

Ineffective
Compensation
and Incentive
Strategy

Lack of
Ownership

Prioritizing Matrix
Y
E
S

First Importance tasks. You

have to do them now.

U
R
G
E
N
T

Tasks you must plan or

they will become urgent.

N
O

IMPORTANT

Tasks to be delegated.
Not added value tasks

2
Tasks to be eliminated
or they will become 3

7S Model
Structure

Strategy

Systems

Shared
Values
Style

Skills

Staff

Balanced Scorecard
Financial
How do we look to
shareholders?

Business Process
How can we manage what
we have now more
effectively?

Do we have the right people?

What should we be best at?
What are the internal
efficiencies?

How can we improve

financial position?
Reduce cost structure
Improve returns

Customer
How do customers see us?

Vision and
Strategy

How can we increase

customer satisfaction?

Learning and Growth

How can we understand

our customers better

How can we carry on improving,

creating value and modernizing?

Which plans put us in the

difficult situation last time?
Develop strategic skills
Align personal goals

Job Analysis

Staff Budget
Position

Tasks

Budget

Consultant

- Goals
- Financial

$60,000

Analyst

- SWOT
- External Market

$50,000

Project Manager

- Communication
Channel
- Oversee Production

N/A

Administrative

- Support

$40,000

Risks and Mitigation

Financial

What will happen if no action is taken?

- Financial degradation
- Increased attrition
- Loss of clients

People

What if they dont buy into the new

programs?

- Project manager will be the change

agent
- Focus groups to get initial feedback.
- Constant feedback loop

Legal

What are some litigious issues that may

arise? Grievances? Lawsuits?

- Collaboration with the union

- Severance pay implications

Operations

What if there isnt a good culture fit of

new processes to the current workforce?

- Product quality training

- Natural attrition

Reputation

How will our customers react to an

increase in price?

- Communication on product quality

- Better branding to focus on premium
branding

Next Steps
Immediate (Present 4 months)
Intermediate (4 months 1 year)
- Doing job analysis
Long term (1 year+)
- Doing the balanced
- Training
scorecard
- Applying the 7S model
- Strategize new
compensation systems
- Consultation with the
union and stakeholders

- Roll out improved

compensation system
- Roll out new job
descriptions
- Roll out new
performance management
standards

- Gather program
feedback and implement
changes
- Logistics consulting to
create efficiencies
- Leadership development
with current managers to
maintain culture

THANK YOU
We would love to answer any questions you may have.