Blue Ocean Success Management

Visual Tools for Comprehensively Assessing, Predicting, Designing, and Managing Blue Ocean Success(… and Red Ocean Failure?) Dr. Rod KingThought Leader on Blue Ocean Success
BLUE OCEAN SUCCESS MANAGEMENT

BLUE OCEAN SUCCESS MANAGEMENTA Seamless Integration of the Best Tools for Strategy, Innovation, and Performance Management
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

PERSONAL SUCCESS TOLLGATESWhat is (Multi-level) Personal Success? What is the Potential of Each Personal Tollgate for Blue Ocean Success?
UNIVERSAL Success
World (International) Success
Society (National) Success
Community (Local) Success
Family Success
Individual Success
Note: Blue Ocean = ‘Above Best-in-class’ = ‘Best Ever’ = ‘Virtually Ideal’

BLUE OCEAN SUCCESS IN BUSINESS

TOOLS OF BLUE OCEAN SUCCESS MANAGEMENT
BUS. SUCCESS VOICE/SCOREBOARD

What is the current business success?
What is the goal or desired/potential business success?
How to track or monitor performance?

BUSINESS SUCCESS GOALS/TOLLGATES

What are (multi-level) business goals/success?
What is the potential of each business goal/tollgate for Blue Ocean Success?

BUSINESS SUCCESS RADAR

How to generally get to the desired business success?

BUSINESS STRATEGY MATRIX

How to more specifically get to desired business success?

TOOLS OF
BLUE OCEAN SUCCESS MANAGEMENT
SCALABLE MARKETS & SCENARIOS

What is the main customer job, activity, and/or value proposition?
What tools/ecosystem do customers currently use to complete customer job?
What is ideal tool for completing job?

BLUE OCEAN RADAR

Where is current business success?
Where is desired business success?
How to generally get to desired business success?
What is customer value proposition?

BLUE OCEAN MAP

Where is current business success?
Where is desired business success?
How to generally get to desired business success?

BLUE OCEAN COMPASS

Where exactly is business success now?
Where exactly is desired success?
How to more specifically get to desired business success?
What is customer value proposition?

11
SIMPLE PROCESS FOR BLUE OCEAN SUCCESS MANAGEMENT
1. For each business success tollgate,

describe the existing and desired degree of success (positives and negatives).
quantify the existing and desired degree of success (positives and negatives).

Identify the most critical or “weakest” business tollgate, that is, the tollgate with the least degree of success.
For the weakest business tollgate, use resources within and across the business network to increase the degree of success to the level required for Blue Ocean Success.
GO TO STEP 2.
OTHERWISE, prepare, execute, and monitor plan of each business tollgate so that desired Blue Ocean Success is comprehensively achieved.
Note:There is a hierarchy of 6 business tollgates (goals, portals, or constraints) in business:
Employees (Team); Product/Service Design; Customer; Business Investor; Value Chain (Business
Model); Ecosystem. Interfaces include Distribution/Channels; Processes; Information Exchange.

HIERARCHY OF BUSINESS SUCCESS GOALSWhat are the Goals for Blue Ocean Success?
ECOSYSTEM (Industry) Success
Value Chain (Bus. Model) Success
Business Investor Success
Customer Success
Product or Service Design Success
Employees (Team) Success

BUSINESS SUCCESS TOLLGATESWhat is (Multi-level) Business Success? What is the Potential of Each Business Tollgate for Blue Ocean Success?
ECOSYSTEM (Industry) Success = Delight/Pain = Advantages/Disadvantages = 1/Degree of Trade-Off
(Ideal Success involves Zero Trade-Off)
Value Chain (Bus. Model) Success = Strengths/Weaknesses = Opportunities/Threats
Business Investor Success = Revenue/Cost = Reward/Risk
Customer Success =
Delightful Immersive Experience/Painful Experience
Product or Service Design Success =
Useful Features/Harmful Features
Employees (Team) Success =
Strengths/Weaknesses

ELEMENTS OF BLUE OCEAN SUCCESS IN A SCALABLE BUSINESS NETWORK
EMPLOYEES (TEAM) SUCCESS
SUPPLIER SUCCESS
MACHINERY/FACILITY SUCCESS
ECOSYSTEM (Industry) SUCCESS
BLUE OCEAN SUCCESS
IN A BUSINESS NETWORK:
BUSINESS MODEL/INVESTOR SUCCESS
DISTRIBUTION/CHANNELS SUCCESS
CUSTOMER SUCCESS
PRODUCT/SERVICE DESIGN SUCCESS

Template for BUSINESS SUCCESS TOOLS(Strategic Questions)
(Logo)
Business/Sector/Ecosystem/Industry: …………………………………………….……………………………………….…………………
Note: Success = Delight (+)/Pain (-)
For a quick evaluation, Success for each tollgate can be rated on an ordinal scale: from 1 (low) to 10 (high)

BUSINESS SUCCESS VOICEWhat is the Current Business Success? What is the Goal or Desired/Potential Business Success?
(Logo)
Business: …………………………………………………………………………….…………………………………………………….…………………

BUSINESS SUCCESS COMPASSWhat is the Current/Desired/Potential Business Success?
(Logo)
Business: …………………………………………………………………………….…………………………………………………….…………………

BUSINESS SUCCESS SCOREBOARD What is the Current Business Success? What is the Desired/Potential Business Success?
(Logo)
Sector/Ecosystem/Industry: …………………………………………….…………………………………………………….…………………

BUSINESS SUCCESS RADARHow to Generally Get to the Desired Business Success?
(Logo)
Name of Business: ………………………………………………………………………………………………………………………………………
Sector/Ecosystem/Industry: ………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
ELEMENTS OF BUSINESS SUCCESS RADAR:
Competitive Advantage Strategies

Employees (Team) Strategy
Product/Service Design Strategy
Customer Strategy
Business Investor Strategy
Value Chain (Business Model) Strategy
ECOSYSTEM (Industry) Strategy

Value Proposition
Targeted Customer Segments (Niches)
(Logo)
Customer Job/Value Proposition: ……………………………………………………………………………………….…………………

BUSINESS STRATEGY MATRIXHow to More Specifically Get to the Desired Business Success?
(Logo)
Name of Business: ………………………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………

(Logo)
BUSINESS STRATEGY MATRIXHow to Get to the Desired Business Success? (Checklist of Generic Strategies)
Name of Business: ………………………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………

SCALABLE MARKETS & SCENARIOSWhat are Alternative Markets, Opportunities, and Tools for Blue Ocean Success?
(Logo)
Name of Business: ………………….…………….…………..…………..……………………………………………………………………………
Sector/Ecosystem/Industry: ………………………….……………………………………………………………………………………………
Main Customer Job/Activity/Value Proposition: …………………………….……………………………………….…………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………

PROGRAM CHART FOR BLUE OCEAN SUCCESS MANAGEMENTHow to Execute Strategies and Monitor Progress Towards the Desired Business Success?
(Logo)
Name of Business: ………………………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………

CASE STUDY ONBLUE OCEAN SUCCESS PLAN
CIRQUE DU SOLEIL (Entertainment Sector)

Business Success Scoreboard
Business Success Radar
Business Strategy Matrix
Program Chart for Blue Ocean Success

BUSINESS SUCCESS SCOREBOARD FOR CIRQUE DU SOLEILWhat is the Current Business Success? What is the Desired/Potential Business Success?
Sector/Ecosystem/Industry: Live Acts/Entertainment
For a quick evaluation, Success at each level can be rated on an ordinal scale: from 1 (low) to 10 (high)

Name of Business: Cirque du Soleil
Mission: “To invoke the imagination, provoke the senses and evoke the emotions of people around the world”

Increase Employees Success to Level 7

Increase Product/Service Success to Level 8

CUSTOMER Strategy

Increase Customer Success to Level 8

Increase Business Investor Success to Level 8

Increase Value Chain Success to Level 7

Increase ECOSYSTEM Success to Level 6.5
Value Proposition
High quality artistic entertainment

Circus-goers
Theater/Live Act-goers

Customer Job/Value Proposition: “High quality artistic entertainment”

YOUTUBE (Technology Sector)

BUSINESS SUCCESS SCOREBOARD FOR YOUTUBEWhat is the Current Business Success? What is the Desired/Potential Business Success?
Sector/Ecosystem/Industry: Video Experience-sharing/Online Social Network/Computing

Name of Business: YouTube
Mission: To easily and quickly share videos on the Internet and online communities

CUSTOMER Strategy

Maintain ECOSYSTEM Success to Level 8
Value Proposition
“Broadcast Yourself”

Hobbyists/Amateur owners of video content
Internet users

Customer Job/Value Proposition: “Broadcast Yourself”

SOUTHWEST AIRLINES (Transportation Sector)

BUSINESS SUCCESS SCOREBOARD FOR SOUTHWEST AIRLINESWhat is the Current Business Success? What is the Desired/Potential Business Success?
Sector/Ecosystem/Industry: Short-haul Airlines/Transportation

Name of Business: Southwest Airlines
Mission: “Dedication to the Highest Quality of Customer Service …”

CUSTOMER Strategy

Maintain ECOSYSTEM Success to Level 7
Value Proposition
“The Speed of a Plane at the Price of a Car …”

Frequent, low-cost traveler

Customer Job/Value Proposition: “The Speed of a Plane at the Price of a Car …”

REFERENCES
Christensen, C.M. (1997) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press.
Kaplan, R.S.; Norton, D.P. (1996) The Balanced Scorecard. Boston: Harvard Business School (HBS) Press.
Kaplan, R.S.; Norton, D.P. (2008) The Execution Premium. Boston: Harvard Business School (HBS) Press.
Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press.
King, R. (2009) The Zoomable Radial Grid: A Simple Visual Tool for Managing and Generating
Ideas in Multi-disciplinary Teams. Fresno, California: Value Quotient Management.
Dr. Rod King

Thought Leader, Consultant, and Trainer on Blue Ocean Success Management
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
http://twitter.com/RodKuhnKing