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!
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
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.