1. Project Scope
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 Objectives {1 of 3}
2. Project Scope
Step 2
5. Possible to have
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 postmortem on Project
Scope Stage
Project Scope Objectives {2 of 3}
See Fair Process (Blue Ocean Strategy)
3. Project Scope
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
Project Scope Objectives {3 of 3}
4.
5.
6.
7.
8. 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
12. 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)
13. Visual Exploration (2 of 4)
Industry
Look across
alternative industries,
break out of own
Strategic
group
Look across strategic
groups within industry,
break out of groups
Buyer
group
Redefines industry
buyer group, who is
the buyer
Offering
scope
Looks across
complementary
offerings
Functional- Rethink functionalemotional orientation
emotional
of industry
Time
Participates in
shaping external
trends over time
14.
15. 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?
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16. 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)
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•
•
17. 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
18. 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
20. 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
21. 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)
22.
23. Blue Ocean Strategy Sequence
Buyer Utility
Price
Cost
Adoption
Is there
exceptional
buyer utility in
your business?
Is your price
easily accessible
to the mass of
buyers?
Can you attain
your cost target
to profit at your
strategic price?
What are the
adoption
hurdles?
28. Location of biggest blocks to
customer utility
• Create form based on previous slide
29. Buyer Utility - Purchasing
Customer
Productivity
How productive is the
customer in this stage?
How moreso can it be?
Simplicity
How simple is this
stage? Can it be made
simpler?
Convenience
How convenient is this
stage? Can it be made
moreso?
Risk
How much risk is there
involved in this stage?
Can risk be reduced?
Fun & Image
How fun and what level
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
30. Buyer Utility - Delivery
Customer
Productivity
How productive is the
customer in this stage?
How moreso can it be?
Simplicity
How simple is this
stage? Can it be made
simpler?
Convenience
How convenient is this
stage? Can it be made
moreso?
Risk
How much risk is there
involved in this stage?
Can risk be reduced?
Fun & Image
How fun and what level
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
31. Buyer Utility - Use
Customer
Productivity
How productive is the
customer in this stage?
How moreso can it be?
Simplicity
How simple is this
stage? Can it be made
simpler?
Convenience
How convenient is this
stage? Can it be made
moreso?
Risk
How much risk is there
involved in this stage?
Can risk be reduced?
Fun & Image
How fun and what level
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
32. Buyer Utility - Supplements
Customer
Productivity
How productive is the
customer in this stage?
How moreso can it be?
Simplicity
How simple is this
stage? Can it be made
simpler?
Convenience
How convenient is this
stage? Can it be made
moreso?
Risk
How much risk is there
involved in this stage?
Can risk be reduced?
Fun & Image
How fun and what level
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
33. Buyer Utility - Maintenance
Customer
Productivity
How productive is the
customer in this stage?
How moreso can it be?
Simplicity
How simple is this
stage? Can it be made
simpler?
Convenience
How convenient is this
stage? Can it be made
moreso?
Risk
How much risk is there
involved in this stage?
Can risk be reduced?
Fun & Image
How fun and what level
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
34. Buyer Utility - Disposal
Customer
Productivity
How productive is the
customer in this stage?
How moreso can it be?
Simplicity
How simple is this
stage? Can it be made
simpler?
Convenience
How convenient is this
stage? Can it be made
moreso?
Risk
How much risk is there
involved in this stage?
Can risk be reduced?
Fun & Image
How fun and what level
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
35.
36. 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
37.
38. Profit Model
• Excel spreadsheet
– Strategic price
– Minus target profit
– Equals target cost
– Partnering
– Plus pricing innovation
– Equals target cost
39.
40.
41.
42. Overcome Organizational Hurdles
Cognitive
Hurdle
Resource
Hurdle
Motivational
Hurdle
Political
Hurdle
An organization
wedded to the
status quo
Limited
resources
Unmotivated
staff
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
43. Organizational Hurdles Forms
• Create forms
– Cognitive hurdles
– Resource hurdles
– Motivational hurdles
– Poltical hurdles
44.
45.
46. Method
Fair Process
Fair Process Method (Description)
(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
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.
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)
47. Method
Fair Process
Fair Process Method (Form)
(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
mechanisms and
timelines for
individual input
Can everyone make
meetings? Have meetings
been given enough time?
Has importance been
clearly communicated?
3. Create process
so that decisions
are understood
Are the meetings
structured for clear flow of
information? Are there
mechanisms for additional
wiki/faq/forums?
4. Set eval criteria,
responsibilities,
and achievement
targets
What are the goals of the
new strategy? What are
the new targets and
milestones? Who is
responsible for what?
48. Fair Process
Engagement
Explanation
Expectation of clarity
“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)
“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)
“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?
49.
50. 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