4. Implementation (who will and how will the plan be implemented)?
3. Maneuverability (what can and cannot be changed)?
2. Resources
available (time, people, money)?
1. Initial objective
(brand analysis, new brand, rebranding, advertising)?
Project Scope Objectives {1 of 3}Project Scope
Step 1
9. Perform post-
mortem on Project Scope Stage
8. Set up critical chain timeline and
assign resources
7. Choose the brand analysis tools;
provide rationale
6. Finalize project scope with buy-in,
create statement of objectives
See Fair Process (Blue Ocean Strategy)5. Possible to have fair process to build
execution into strategy?
Project Scope Objectives {2 of 3}Project Scope
Step 2
12. Assess and evaluate plan as each method provides input
11. Provide input into methods use for
ongoing improvement
10. Execute analysis
methods as per project plan
Project Scope Objectives {3 of 3}Project Scope
Step 3
Visual Awakening (1 of 4)
• Draw strategy canvas for industry or competitors
and self
• Determine which elements of the offering are of
value and rank-order them
– Can ask customers about these as well as industry insiders
• Analyze by viewing through
– Four Actions framework
– Value Curve goals
– Value Curve litmus test
Strategy Map
• Excel template
Visual Exploration (2 of 4)
• Go into the field to explore the 6 paths– Industry– Strategic group
– Buyer group
– Scope of product or service offering– Functional-emotional orientation
– Time
• Observe the distinctive advatages of alternative products and services
• See which factors you should elminate, create, or change (the four actions framework)
Visual Exploration (2 of 4)
Rethink functional-
emotional orientation
of industry
Functional-emotional
Participates in
shaping external
trends over time
Time
Look across
alternative industries,
break out of own
Industry
Looks across
complementary
offerings
Redefines industry
buyer group, who is
the buyer
Look across strategic
groups within industry,
break out of groups
Offering
scope
Buyer group
Strategic group
Four Actions Framework
•
•
•
•
RaiseWhich factors should be
raised well above the
industry’s standard?
•
•
•
•
CreateWhich factors should be
created that the industry
has never offered?
•
•
•
•
EliminateWhich factors the
industry takes for granted
should be eliminated?
•
•
•
•
ReduceWhich factors should be
reduced well below
industry’s standard?
Value Curve Goals
•
•
•
•
Label factors in customers termsInsider jargon does not work, but instead
need outside-in perspective, driven by actual
demand (and in customers’ terms)
•
•
•
•
Eliminate strategic contradictionsSometimes a high factor requires another
high factor to make good on promise. Does
each factor have the support it needs?
•
•
•
•
Need coherences to the strategyValue curve needs to collectively make sense
and not simply have a lot of disparate highs
and lows. Functional silos must be bridged.
•
•
•
•
No overdelivery without paybackHigh levels across all factors should result in
high profits, otherwise offering too much.
Which factors to eliminate and reduce?
Initial Litmus Test for Value Curve
• Focus
– Focus drives cost factors down
– Lack of focus indicates complex business plan
• Divergence
– Value curve diverges from industry standards
– Strategy must deviate from me-too-ism
– Need to stand apart in the marketplace
• Compelling tag line
– Without, it is a sign of innovation for own sake
Visual Strategy Fair (3 of 4)
• Draw your “to be” strategy canvas based on insights from field observations
• Get feedback on alternative strategy canvases from customers, competitors’customers, and noncustomers
• Use feedback to build the best “to be”future strategy
Visual Strategy Fair Feedback
• Feedback form
Visual Communication (4 of 4)
• Distribute before-and-after strategic profiles on one page for easy comparison
• Support only those projects and operational moves that allow your company to close the gaps to actualize the new strategy
Project Evaluation Support Form
• Form including projects, evaluation of those projects in terms of moving the strategy forward (closing gap between current and future value curve)
• Go or no go on projects based on evaluation
• (Note: not needed for our class project)
Blue Ocean Strategy Sequence
Buyer Utility
Is there
exceptional
buyer utility in
your business?
Price
Is your price
easily accessible
to the mass of
buyers?
Cost
Can you attain
your cost target
to profit at your
strategic price?
Adoption
What are the
adoption
hurdles?
Buyer Experience Grid
• Create form based on previous slide
Location of biggest blocks to
customer utility
• Create form based on previous slide
Buyer Utility - Purchasing
How environmentally friendly is this stage? Make it more green.
How fun and what level of positive image at this stage? More fun now!
How much risk is there involved in this stage? Can risk be reduced?
How convenient is this stage? Can it be made moreso?
How simple is this stage? Can it be made simpler?
How productive is the customer in this stage? How moreso can it be?
Environmental Friendliness
Fun & Image
Risk
Convenience
Simplicity
Customer Productivity
purchase delivery use supplements maintenance disposal
Buyer Utility - Delivery
How environmentally friendly is this stage? Make it more green.
How fun and what level of positive image at this stage? More fun now!
How much risk is there involved in this stage? Can risk be reduced?
How convenient is this stage? Can it be made moreso?
How simple is this stage? Can it be made simpler?
How productive is the customer in this stage? How moreso can it be?
Environmental Friendliness
Fun & Image
Risk
Convenience
Simplicity
Customer Productivity
purchase delivery use supplements maintenance disposal
Buyer Utility - Use
How environmentally friendly is this stage? Make it more green.
How fun and what level of positive image at this stage? More fun now!
How much risk is there involved in this stage? Can risk be reduced?
How convenient is this stage? Can it be made moreso?
How simple is this stage? Can it be made simpler?
How productive is the customer in this stage? How moreso can it be?
Environmental Friendliness
Fun & Image
Risk
Convenience
Simplicity
Customer Productivity
purchase delivery use supplements maintenance disposal
Buyer Utility - Supplements
How environmentally friendly is this stage? Make it more green.
How fun and what level of positive image at this stage? More fun now!
How much risk is there involved in this stage? Can risk be reduced?
How convenient is this stage? Can it be made moreso?
How simple is this stage? Can it be made simpler?
How productive is the customer in this stage? How moreso can it be?
Environmental Friendliness
Fun & Image
Risk
Convenience
Simplicity
Customer Productivity
purchase delivery use supplements maintenance disposal
Buyer Utility - Maintenance
How environmentally friendly is this stage? Make it more green.
How fun and what level of positive image at this stage? More fun now!
How much risk is there involved in this stage? Can risk be reduced?
How convenient is this stage? Can it be made moreso?
How simple is this stage? Can it be made simpler?
How productive is the customer in this stage? How moreso can it be?
Environmental Friendliness
Fun & Image
Risk
Convenience
Simplicity
Customer Productivity
purchase delivery use supplements maintenance disposal
Buyer Utility - Disposal
How environmentally friendly is this stage? Make it more green.
How fun and what level of positive image at this stage? More fun now!
How much risk is there involved in this stage? Can risk be reduced?
How convenient is this stage? Can it be made moreso?
How simple is this stage? Can it be made simpler?
How productive is the customer in this stage? How moreso can it be?
Environmental Friendliness
Fun & Image
Risk
Convenience
Simplicity
Customer Productivity
purchase delivery use supplements maintenance disposal
Price Corridor of the Mass
• First form
– Product/service types
– Plot across actual dollar amounts
– Using bar graphs or other types
• Second form
– Levels of protection
– Simple table
Profit Model
• Excel spreadsheet
– Strategic price
– Minus target profit
– Equals target cost
– Partnering
– Plus pricing innovation
– Equals target cost
Overcome Organizational Hurdles
Cognitive Hurdle
An organization
wedded to the
status quo
Resource Hurdle
Limited
resources
Motivational Hurdle
Unmotivated
staff
Political Hurdle
Opposition from
powerful vested
interests
• Ride the “electric sewer”
• Meet with disgruntled customers
• Free up resources from cold spots
• Multiply value of resources
• Move resources to hot spots
• Horse trade for resources
• Place kingpins in a fishbowl
• Make fair process pervasive
• Atomization of the larger goal
• Secure consigliere
• Activate angels
• Isolate devils
Organizational Hurdles Forms
• Create forms
– Cognitive hurdles
– Resource hurdles
– Motivational hurdles
– Poltical hurdles
“After a strategy is set, managers state clearly the new rules
of the game…. Employees should know up front what
standards they will be judged by and the penalties for failure.
What are the goals of the new strategy? What are the new
targets and milestones? Who is responsible for what? To
achieve fair process, it matters less what the new goals,
expectations, and responsibilities are and more that they are
clearly understood.” (p.176)
Expectation of clarity
“Everyone involved and affected should understand why final
strategic decisions are made as they are. An explanation of
the thinking that underlies decisions makes people
confident…. And serves as a powerful feedback.” (p.175-6)
Explanation
“Involve individuals in the strategic decisions that affect them
by asking for their input and allowing them to refute the
merits of one another’s ideas and assumptions.” (p.175)
Engagement
Fair process of engagement, explanation, and expectation of
clarity engenders trust and commitment, producing voluntary
cooperation, and enabling superior execution.
Overview
Fair Process Method (Description)(Blue Ocean Strategy) {1 of 2}
Method
Fair Process
What are the goals of the
new strategy? What are
the new targets and
milestones? Who is
responsible for what?
Are the meetings
structured for clear flow of
information? Are there
mechanisms for additional
wiki/faq/forums?
Can everyone make
meetings? Have meetings
been given enough time?
Has importance been
clearly communicated?
Has an overview of the
process been provided and
that process deemed fair?
4. Set eval criteria, responsibilities,
and achievement targets
3. Create process so that decisions are understood
2. Set up mechanisms and timelines for
individual input
1. Communicate the fair process so that all understand (3E)
Fair Process Method (Form)(Blue Ocean Strategy) {2 of 2}
Method
Fair Process
Fair Process
Engagement
“Involve individuals in the
strategic decisions that
affect them by asking for
their input and allowing
them to refute the merits
of one another’s ideas
and assumptions.”
(p.175)
Explanation
“Everyone involved and
affected should
understand why final
strategic decisions are
made as they are. An
explanation of the
thinking that underlies
decisions makes people
confident…. And serves
as a powerful feedback.”
(p.175-6)
Expectation of clarity
“After a strategy is set,
managers state clearly
the new rules of the
game…. Employees
should know up front
what standards they will
be judged by and the
penalties for failure… To
achieve fair process, it
matters less what the
new goals, expectations,
and responsibilities are
and more that they are
clearly understood.”
(p.176)• What are the goals of the new strategy?
• What are the new targets and milestones?
• Who is responsible for what?
Creating Competitive Advantage
• Sustainable Competitive Advantage (SCA) – Erect barriers to entry – Discourage new entrants, especially imitators
• Blue Oceans may have natural barriers– Competitor brand image may conflict with blue ocean– Blue ocean may not fit conventional industry logic– Blue oceans require cultural, operational, political change
• Barriers created by Blue Ocean Strategy– High degree of loyalty– High volume may lead to rapid cost advantages
• Other sources– Natural monopolies (one player in a specific market)– Legal via patents or contracts