Project Scope
Project Scope Objectives {1 of 3}
Step 1
1. Initial objective
(brand analysis, new
brand, rebranding,
advertising)?
2. Resources
available (time,
people, money)?
3. Maneuverability
(what can and
cannot be changed)?
4. Implementation
(who will and how
will the plan be
implemented)?

Project Scope
Project Scope Objectives {2 of 3}
Step 2
5. Possible to have See Fair Process (Blue Ocean Strategy)
fair process to build
execution into
strategy?
6. Finalize project
scope with buy-in,
create statement of
objectives
7. Choose the brand
analysis tools;
provide rationale
8. Set up critical
chain timeline and
assign resources
9. Perform post-
mortem on Project
Scope Stage

Project Scope
Project Scope Objectives {3 of 3}
Step 3
10. Execute analysis
methods as per
project plan
11. Provide input into
methods use for
ongoing improvement
12. Assess and
evaluate plan as each
method provides input

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)
Look across
Industry
alternative industries,
break out of own
Look across strategic
Strategic
groups within industry,
group
break out of groups
Redefines industry
Buyer
buyer group, who is
group
the buyer
Looks across
Offering
complementary
scope
offerings
Functional- Rethink functional-
emotional orientation
emotional
of industry
Participates in
Time
shaping external
trends over time

Four Actions Framework
•
Reduce
•
Which factors should be
•
reduced well below
industry’s standard? •
•
Eliminate
•
Which factors the
•
industry takes for granted
should be eliminated? •
•
Create
•
Which factors should be
•
created that the industry
has never offered? •
•
Raise
•
Which factors should be
•
raised well above the
industry’s standard? •

Value Curve Goals
•
No overdelivery without payback
•
High levels across all factors should result in
•
high profits, otherwise offering too much.
Which factors to eliminate and reduce? •
•
Need coherences to the strategy
•
Value curve needs to collectively make sense
•
and not simply have a lot of disparate highs
and lows. Functional silos must be bridged. •
•
Eliminate strategic contradictions
•
Sometimes a high factor requires another
•
high factor to make good on promise. Does
each factor have the support it needs? •
•
Label factors in customers terms
•
Insider jargon does not work, but instead
•
need outside-in perspective, driven by actual
demand (and in customers’ terms) •

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 Price Cost Adoption
Is there Is your price Can you attain What are the
exceptional easily accessible your cost target adoption
buyer utility in to the mass of to profit at your hurdles?
your business? buyers? strategic price?

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 productive is the
Customer
customer in this stage?
Productivity
How moreso can it be?
How simple is this
Simplicity
stage? Can it be made
simpler?
How convenient is this
Convenience
stage? Can it be made
moreso?
How much risk is there
Risk
involved in this stage?
Can risk be reduced?
How fun and what level
Fun & Image
of positive image at this
stage? More fun now!
Environmental How environmentally
friendly is this stage?
Friendliness
Make it more green.
purchase delivery use supplements maintenance disposal

Buyer Utility - Delivery
How productive is the
Customer
customer in this stage?
Productivity
How moreso can it be?
How simple is this
Simplicity
stage? Can it be made
simpler?
How convenient is this
Convenience
stage? Can it be made
moreso?
How much risk is there
Risk
involved in this stage?
Can risk be reduced?
How fun and what level
Fun & Image
of positive image at this
stage? More fun now!
Environmental How environmentally
friendly is this stage?
Friendliness
Make it more green.
purchase delivery use supplements maintenance disposal

Buyer Utility - Use
How productive is the
Customer
customer in this stage?
Productivity
How moreso can it be?
How simple is this
Simplicity
stage? Can it be made
simpler?
How convenient is this
Convenience
stage? Can it be made
moreso?
How much risk is there
Risk
involved in this stage?
Can risk be reduced?
How fun and what level
Fun & Image
of positive image at this
stage? More fun now!
Environmental How environmentally
friendly is this stage?
Friendliness
Make it more green.
purchase delivery use supplements maintenance disposal

Buyer Utility - Supplements
How productive is the
Customer
customer in this stage?
Productivity
How moreso can it be?
How simple is this
Simplicity
stage? Can it be made
simpler?
How convenient is this
Convenience
stage? Can it be made
moreso?
How much risk is there
Risk
involved in this stage?
Can risk be reduced?
How fun and what level
Fun & Image
of positive image at this
stage? More fun now!
Environmental How environmentally
friendly is this stage?
Friendliness
Make it more green.
purchase delivery use supplements maintenance disposal

Buyer Utility - Maintenance
How productive is the
Customer
customer in this stage?
Productivity
How moreso can it be?
How simple is this
Simplicity
stage? Can it be made
simpler?
How convenient is this
Convenience
stage? Can it be made
moreso?
How much risk is there
Risk
involved in this stage?
Can risk be reduced?
How fun and what level
Fun & Image
of positive image at this
stage? More fun now!
Environmental How environmentally
friendly is this stage?
Friendliness
Make it more green.
purchase delivery use supplements maintenance disposal

Buyer Utility - Disposal
How productive is the
Customer
customer in this stage?
Productivity
How moreso can it be?
How simple is this
Simplicity
stage? Can it be made
simpler?
How convenient is this
Convenience
stage? Can it be made
moreso?
How much risk is there
Risk
involved in this stage?
Can risk be reduced?
How fun and what level
Fun & Image
of positive image at this
stage? More fun now!
Environmental How environmentally
friendly is this stage?
Friendliness
Make it more green.
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 Resource Motivational Political
Hurdle Hurdle Hurdle Hurdle
An organization Limited Unmotivated Opposition from
wedded to the resources staff powerful vested
status quo 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

Method
Fair Process Method (Description)
Fair Process
(Blue Ocean Strategy) {1 of 2}
Overview Fair process of engagement, explanation, and expectation of
clarity engenders trust and commitment, producing voluntary
cooperation, and enabling superior execution.
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 “After a strategy is set, managers state clearly the new rules
clarity 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)

Method
Fair Process Method (Form)
Fair Process
(Blue Ocean Strategy) {2 of 2}
1. Communicate the Has an overview of the
fair process so that process been provided and
all understand (3E) that process deemed fair?
2. Set up Can everyone make
mechanisms and meetings? Have meetings
timelines for been given enough time?
individual input Has importance been
clearly communicated?
3. Create process Are the meetings
so that decisions structured for clear flow of
are understood information? Are there
mechanisms for additional
wiki/faq/forums?
4. Set eval criteria, What are the goals of the
responsibilities, new strategy? What are
and achievement the new targets and
targets milestones? Who is
responsible for what?

Fair Process
Engagement Explanation Expectation of clarity
“Involve individuals in the “Everyone involved and “After a strategy is set,
strategic decisions that affected should managers state clearly
affect them by asking for understand why final the new rules of the
their input and allowing strategic decisions are game…. Employees
them to refute the merits made as they are. An should know up front
of one another’s ideas explanation of the what standards they will
and assumptions.” thinking that underlies be judged by and the
(p.175) decisions makes people penalties for failure… To
confident…. And serves achieve fair process, it
as a powerful feedback.” matters less what the
(p.175-6) new goals, expectations,
and responsibilities are
and more that they are
clearly understood.”
• What are the goals of the new strategy?
(p.176)
• 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