Virtual ocean  strategy   the way to reset strategies with a purpose driven “industry structure is irrelevant” mindset
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Virtual ocean strategy the way to reset strategies with a purpose driven “industry structure is irrelevant” mindset

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    Virtual ocean  strategy   the way to reset strategies with a purpose driven “industry structure is irrelevant” mindset Virtual ocean strategy the way to reset strategies with a purpose driven “industry structure is irrelevant” mindset Presentation Transcript

    • Virtual Ocean Strategy – the way to reset strategies with a purpose driven“traditional industry structures & resource constraints are irrelevant” mindset? (Draft For Discussion Purposes Only ) Charles Prabakar Executive Global Partner/Managing Director Willis Consulting LLC
    • “Virtual Ocean Strategy ” at a glance… Situation Complication Resolution  While the phrase  Lack of an Integrated systemic  We suggest a contrarian “strategy reset” means mindset within the three purpose Deconstructionanist/ different things to dimensions of leadership, hybrid approach different companies, strategy & innovation. (between Red ocean and most strategy Blue Ocean) with a  Lack of an agreed upon practitioners agree, that “Virtual Ocean” mindset purpose statement. there are not many “–by resetting company’s comprehensive purpose statement (vision,  Lack of the purpose seed not approaches available being germinated properly (in mission, values, codes and within the market place spirit and essence) into an BHAG ), using nature’s designed to reset both organization with a unique Seedal chain principle the strategic plan, and culture with a unique DNA”. (Seed-Season-Sequel), “design of the business with a “traditional industry purpose seed”,  Lack of an approach with a structures and resource simultaneously , with an “tearing down the walls of constraints are irrelevant” industry structures” integrated/systemic mindset along with a mindset”, to meet the multi dimensional  Lack of a multi dimensional ever changing business balancing model, as opposed balancing model in the needs of the 21st century to the traditional 2D “value- five dimensions of value, social media driven cost” balancing model ( i.e. cost, velocity, growth and connected world! tradeoff in ROS and “doing purpose. both” in BOS). Lack of an Integrated systemic mindset within the three purpose dimensions ofleadership, strategy & innovation, is the #1 reason, why most strategy resets, do not yield its intended outcome!
    • How does VOS stack up against BOS and ROS within this MBA framework? MBA Step Red Ocean Blue Ocean Virtual Ocean Compete Dive deeper, in Fly faster into the virtual aggressively in order to tap the space, in order to tap the order to grab untapped value untapped value, by doubling Motivation value from within an existing the size of the value pie, using competitors, value ocean pie. our firm’s VOS, VRE, Capitalism within an existing Plus, Purpose Innovation and value ocean pie. VizPlanet platforms. Beat the Make competition Make traditional Industry Belief competition at irrelevant. structures and resource any cost. constraints irrelevant. Trade-off value Balance value Balance the five dimensional Action and cost. and cost. value cycle i.e. “value-cost- velocity-growth-purpose” using five value stations (4 BSC+ purpose). Stacking strategy frameworks with an MBA lens, not only helps us to diagnose &prescribe effective and efficient strategies, but also, helps us to prioritize, where we need to spend our time & energy (i.e. which step within MBA) to maximize value!
    • Virtual Ocean Strategy (VOS) Using Nature’s Seedal Chain (Seed-Season-Sequel) Principle 1 2 3 Design the Business by Plan using the Integrated Three resetting the Triune Purpose Track Seasonality (Leadership, Execute/Reap with the Triune Strategy and Innovation) driven Shared Value (TSV) driven Seed (vision, mission, values, codes and BHAG) “Industry structure is irrelevant” “collaborative heartbeat” for mindset the best outcome (Sequel) Triune Purpose Frameworks (TPF) creating Triune Shared Value (TSV) TPF’s Purpose Driven Profit Commercializat Triune Purpose Frameworks (TPF) creating Triune Shared Value (TSV) Leadership(PDL) Culture Framework ion/ TPF’s Purpose Driven THE SINUSOIDAL TRIO© – OUR PURPOSE Commodity Leadership(PDL) Culture Framework Financial PDL© IN ACTION DRIVEN LEADERSHIP (PDL©) FRAMEWORK PURPOSE Value- Iterate it Faith/Trust Love/Empathy THE SINUSOIDAL TRIO© – OUR PURPOSE PDL© IN ACTION 1 DRIVEN LEADERSHIP (PDL©) FRAMEWORK Crest 3 Crest PURPOSE Faith/Trust Love/Empathy Mindset/ 4 Service & Heartbeat/ 1 Talent 5 Value Wisdom Crest 3 Crest Mindset/ 4 Service & Heartbeat/ Talent 5 Value Wisdom 2 Know- Trough Inspiration how Hope/Aspire (“BE”) Body Space/Skill (“KNOW”) 2 Know- Trough Inspiration Action how Hope/Aspire (“BE”) Body Space/Skill Drivers (“KNOW”) (“DO”) Action PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”, “DO” focus areas of WestPoint Leadership Framework as well. Shareholder Value= Profit x Drivers (“DO”) CV= (1-g/ROIC)/ (WACC-g) PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”, “DO” focus areas of WestPoint Leadership Framework as well. Leadership Jobs-to-be ROIC= done/Price Leadership (Creator/ Margin x Orchestrator) (Creator/ Velocity Value Orchestrator) TPF’s Purpose Driven “Jobs-To- Customer Portfolio-Thread View TPF’s Purpose Driven Chain TPF’s Purpose Driven (PTV) based Strategic TPF with Innovation Portfolio Be-Done” Theme It Incubator Portfolio-Thread View (PTV) based Strategic TPF with TPF’s Purpose Driven Innovation Portfolio Planning Framework its Triune (PIP) Framework Value – Planning Framework (PIP) Framework Value – Test its Triune 4. The EPP, CPP & PIP 3. The radial orbit with 5 Purpose Purpose Innovation Model Using “Balancing Opposites” Ideate it Purpose Purpose Innovation Model Using “Balancing Opposites” frameworks uncover perspectives and 6 it For More Info – Read On… 4. The EPP, CPP & PIP 3. The radial orbit with 5 the winning paths. dilemmas, take charge. http://strategywithapurpose.b Purpose Innovation frameworks uncover perspectives and 6 For More Info – Read On… Seed logspot.com/2010/10/transfor P6-P9 ming-so-what-opposites-in-to- the winning paths. dilemmas, take charge. http://strategywithapurpose.b Purpose Innovation Seed logspot.com/2010/10/transfor so.html P6-P9 ming-so-what-opposites-in-to- so.html Strategy Innovation 5. Value Strategy Innovation (fruits) are P2-P5 Core Edge 5. Value reaped/ (fruits) are P2-P5 Core Edge 2. Invisible (Redeemer/ (Encourager/ reinvested & reaped/ sub-instructions 2. Invisible (Redeemer/ (Encourager/ the radial reinvested & in the form of sub-instructions orbit flow the radial experience & in the form of orbit flow Sustainer) Disruptor) continues… experience & capability pools Growth Something Sustainer) Disruptor) Something continues… P10 are identified that that capability pools Something Something transforms P10 are identified that that and placed on supports transforms The five invisible instructions the radial orbit rather than rather than and placed on supports 1. Purpose The five invisible instructions rather than rather than that that 1. Purpose the radial orbit /Learning/ Seed grows in P1 framework. supports! that that transforms! Seed grows in P1 framework. Culture to a systemic transforms! supports! Culture to a systemic organization. 1 2 3 4 5 organization. Transforming “So What” opposites in to “So That” Strategy called Purpose 1 2 3 4 5 Transforming “So What” opposites in to “So That” Strategy called Purpose Collaboratio Innovation using the “forces of attraction” based Pull Value Chain is the way to go! Innovation using the “forces of attraction” based Pull Value Chain is the way to go!*WACP= Weighted Average *WACP= Weighted Average Cost of Purpose Vision /Seed n Cost of PurposeLead with the Purpose Culture, Strategize from the Core & Innovate with the Edge! Value – Slot it g Lead with the Purpose Culture, Strategize from the Core & Innovate with the Edge! Purpose manifesting as Purpose resulting in as Energy Purpose manifesting as Triune Shared Value Value Reset the purpose seed with a “seedal chain” spirit, formulate the strategy with an integrated seasonality driven “industry structure is irrelevant” mindset, and execute and reap with a TSV driven “collaborative heartbeat(sequel)”, thus increasing the size of the value pie by multi-fold!
    • 1 Design the Business by resetting the Triune Purpose Seed using leadership, strategy and Innovation Frameworks TPF’s Purpose Driven Leadership(PDL) Culture Framework THE SINUSOIDAL TRIO© – OUR PURPOSE PDL© IN ACTION DRIVEN LEADERSHIP (PDL©) FRAMEWORK PURPOSE Faith/Trust Love/Empathy Crest 1 3 Crest Mindset/ 4 Service & Heartbeat/ Talent 5 Value Wisdom 2 Know- Trough Inspiration how Hope/Aspire (“BE”) Body Space/Skill (“KNOW”) Action Drivers (“DO”) PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”, “DO” focus areas of WestPoint Leadership Framework as well. Leadership (Creator/ Orchestrator) TPF’s Purpose Driven Portfolio-Thread View TPF’s Purpose Driven (PTV) based Strategic TPF with Innovation Portfolio Planning Framework its Triune (PIP) Framework Purpose 4. The EPP, CPP & PIP 3. The radial orbit with 5 Purpose Innovation Model Using “Balancing Opposites” frameworks uncover perspectives and 6 For More Info – Read On… the winning paths. dilemmas, take charge. http://strategywithapurpose.b Purpose Innovation Seed logspot.com/2010/10/transfor P6-P9 ming-so-what-opposites-in-to- so.html Strategy Innovation 5. Value (fruits) are P2-P5 Core Edge reaped/ 2. Invisible (Redeemer/ (Encourager/ reinvested & sub-instructions the radial in the form of orbit flow experience & Sustainer) Disruptor) continues… capability pools Something Something P10 are identified that that and placed on supports transforms The five invisible instructions the radial orbit rather than rather than 1. Purpose that P1 framework. that Seed grows in supports! transforms! Culture to a systemic organization. 1 2 3 4 5 Transforming “So What” opposites in to “So That” Strategy called Purpose Innovation using the “forces of attraction” based Pull Value Chain is the way to go!*WACP= Weighted Average Cost of PurposeLead with the Purpose Culture, Strategize from the Core & Innovate with the Edge!
    • 2 Plan usingwith the TriuneTrack Seasonality driven Cyclical VOS Frameworks Execute Integrated 3 Shared Value (TSV) mindset for the best Sequel Profit 5. Commercialization/ 5.Financi Commodity Value- al Iterate it –(Fertile Land) Shareholder Value= Profit x Cust. Value= (1-g/ROIC)/ (WACC-g) Jobs-to-be ROIC= done/Price 1. Purpose Margin x Velocity 2.Customer 4.Value2. “Jobs-To- Chain Be-Done” Value – 1. Theme It 4. Incubator Ideate it Value – Test it(Hard Land ) – (Weedy Land) 3.Growth 3. Vision Value – /Learning/ Slot it Collaboratio Legend : Green – Leadership Track (Shallow Land) n Purple – Innovation Track g Black – Strategy Track
    • 3 Execute with the Triune Shared Value (TSV) mindset for the best VOS Sequel TPF’s Purpose Driven Leadership(PDL) Culture Framework THE SINUSOIDAL TRIO© – OUR PURPOSE PDL© IN ACTION DRIVEN LEADERSHIP (PDL©) FRAMEWORK PURPOSE Faith/Trust Love/Empathy Crest 1 3 Crest Mindset/ 4 Service & Heartbeat/ Talent 5 Value Wisdom 2 Know- Trough Inspiration how Hope/Aspire (“BE”) Body Space/Skill (“KNOW”) Action Drivers (“DO”) PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”, “DO” focus areas of WestPoint Leadership Framework as well. Leadership (Creator/ TPF’s Purpose Driven Orchestrator) Portfolio-Thread View TPF’s Purpose Driven (PTV) based Strategic Innovation Portfolio Planning Framework TPF with (PIP) Framework its Triune Purpose 4. The EPP, CPP & PIP 3. The radial orbit with 5 Purpose Innovation Model Using “Balancing Opposites” frameworks uncover perspectives and 6 For More Info – Read On… the winning paths. dilemmas, take charge. http://strategywithapurpose.b Purpose Innovation Seed logspot.com/2010/10/transfor P6-P9 ming-so-what-opposites-in-to- so.html Strategy Innovation 5. Value (fruits) are P2-P5 Core Edge reaped/ 2. Invisible (Redeemer/ (Encourager/ reinvested & sub-instructions the radial in the form of orbit flow experience & Sustainer) Disruptor) continues… capability pools Something Something P10 are identified that that and placed on supports transforms The five invisible instructions the radial orbit rather than rather than 1. Purpose that P1 framework. that Seed grows in supports! transforms! Culture to a systemic organization. 1 2 3 4 5 Transforming “So What” opposites in to “So That” Strategy called Purpose Innovation using the “forces of attraction” based Pull Value Chain is the way to go!*WACP= Weighted Average Cost of PurposeLead with the Purpose Culture, Strategize from the Core & Innovate with the Edge!
    • In spite of using these great frameworks, some strategy resets still do not produce its intended outcome? Why? In Porter’s words, the essence of strategy is choosing what not to do, and so, here are five “what not to do’s” ….. •What Not To Do #4->: Do not mix SCA vs.• What Not #1 -> Do not reset with a single capability vs. competency within organic dimensional strategy mindset, as opposed to an and inorganic growth strategies , but follow integrated systemic approach, in the three a portfolio approach in managing dimensions of leadership, strategy and innovation, capabilities – as addressed by our as addressed by our TPF framework within VOS. Capability Pool Portfolio (CPP) Framework• What Not #2-> Do not reset strategy without SCA vs. Competency vs. capability is resetting the purpose seed, as addressed by our equivalent to Grandma’s hand trick of Purpose driven seedal chain/scientific energy sautéing for the right duration with management principle driven Portfolio Thread right temperature vs. Recipe vs. view based strategic planning framework . Ingredient.• What Not #3-> Do not go after an existing market, •What Not To Do #5-> Do not Execute as opposed to going after the virtual ocean without a real time performance visibility -> market and/or experience pools, which do not partly addressed by our big data driven exist today with a motivational momentum real time valuation based Corporate themes creating experience moments or performance management framework. movements-> as addressed by our Experience Pool Portfolio (EPP) framework and our Purpose Innovation.
    • Alright…. How does it then stack up against Red Ocean and Blue Ocean?# Red Ocean Blue Ocean Virtual Ocean (aka TPF)1 Compete in an Create a new market Create a new market by tearing down the artificial existing market, within an existing walls among industry structures and make traditional within an existing industry structure and industry structures and cost constraints irrelevant. industry structure make competition with a unique irrelevant. winning path.2 Beat the Make competition Plan with “competition irrelevant” mindset, but competition. irrelevant. execute with a collaborative mindset as competition will catch up sooner than later, in the 21st century digitally connected virtual world.3 Value-cost trade- Break value-cost Balancing five dimensional “value-cost-velocity- off. trade-off. growth-purpose” using nature’s principle of “balancing opposites using the five value stations (4 BSC+purpose)4 Align the whole Align the whole Align the whole system of firms activities in pursuit of system of firms system of firms low cost, differentiation, talent management, activities with low activities in pursuit of operational velocity and purpose, all simultaneously. cost or low cost and differentiation. differentiation.5 Sourced from a Sourced from two Sourced from three “inside-out” sources of Single dimensional dimensional, “outside- “purpose-energy-value” portfolios, manifesting itself “outside-in” in” strategy and as an integrated/systemic approach (of leadership, Completive value innovation strategy and innovation dimensions), resulting in Strategy mindset. mindset. Triune shared value (shareholder + societal + spiritual/emotional/cultural value), governed by natures seedal chain principle.
    • How does it stack up against Red Ocean and Blue Ocean? Contd…# Red Ocean Blue Ocean Virtual Ocean (aka TPF)6 Success is Success is Value Success is Three dimensional Value Advantage Competitive Innovation driven. driven= Advantage driven market or experience advantage + capability or competency advantage + collaborative cultural/emotional value advantage .7 Structuralistic Reconstructionist Deconstructionist approach where we start with a approach where approach where super design purpose structure of business followed structure decides strategy decides by strategy and then, arriving at the fine grained strategy structure. Triune shared value(TSV) structure.8 Primarily balances Primarily balances Five dimensional balancing of value, profit, growth, value proposition value proposition, velocity and purpose propositions, thus resulting in and value chain profit proposition 18 macro dilemmas as identified in our radial proposition only and people framework. proposition.9 Exploit existing Create and capture Create and capture new demand with a pull demand new demand. mechanism, yet prevent/mitigate and balance it with supply side (i.e. push side) with a balanced CORE-EDGE-FRINGE mindset.10 Primarily shareholder Primarily shareholder Triune Shared Value driven i.e. two “outside-in” value driven with value driven with values of Shareholder and societal value CSR mindset, slowly value innovation complemented by “Inside-out“ value called transforming into mindset. Spirituality/Emotional energy/culture value, which Porter’s emerging makes it sustainable. CSV mindset.