The document discusses blue ocean strategy and provides several key concepts:
1. It compares red ocean strategy, which focuses on competition, to blue ocean strategy which creates new market space and makes competition irrelevant.
2. Value innovation, pursuing differentiation and low cost simultaneously to create value for buyers and the company, is the cornerstone of blue ocean strategy.
3. The strategy canvas tool is used to analyze current industry factors and identify which to eliminate, reduce, raise, and create to shift to an uncontested blue ocean.
4. Pioneer-migrator-settler maps are used to plot current and planned business offerings to identify blue ocean strategic moves as pioneers in new markets.
This document discusses key concepts from blue ocean strategy, including:
- Red oceans represent existing market space where companies compete by taking value from competitors, while blue oceans create uncontested market space with new value.
- Six principles of blue ocean strategy help lower risks in formulation and execution, including focusing on the big picture rather than numbers.
- The strategy canvas tool is used to analyze where competitors invest and what customers receive to find new opportunities.
- Reconstructing market boundaries across the six paths can help conceive new market space beyond existing demand and industry assumptions.
Blue Ocean strategy Outguns Red Ocean Strategy - AnshumaliiAnshumali Saxena
This document discusses blue ocean strategy and how it differs from traditional red ocean strategy. It provides examples of companies like Cirque du Soleil that achieved great success by creating new market space rather than competing head-to-head in existing markets. The key aspects of blue ocean strategy are value innovation, which involves raising buyer value and reducing costs, and reconstructing market boundaries to open up new demand. Visual tools like the strategy canvas are recommended to help companies map out blue ocean opportunities and shifts from their current "red ocean" approach. Reaching beyond existing demand by exploring non-customers is also an important part of blue ocean strategy.
This document discusses competitor analysis and competitive strategies. It defines key terms like competitive advantage and outlines the process for analyzing competitors, including identifying them, assessing their strategies and strengths/weaknesses, and selecting which to attack or avoid. It also covers Porter's basic winning strategies of cost leadership, differentiation, and focus. Finally, it discusses different competitive positions like market leader, challenger, follower, and nicher. The overall purpose is to help understand competitors and develop effective competitive strategies.
Summary of Blue Ocean Strategy and tools. To be used as a quick reference of the concepts and tools. Not a replacement to reading the book (www.blueoceanstrategy.com)
The document discusses the concept of blue ocean strategy, which involves creating new market space by changing the boundaries of an existing industry. It outlines key principles such as reconstructing market boundaries, focusing on non-customers, and using a strategy canvas to visualize new opportunities. The strategy aims to make competition irrelevant by creating uncontested market space through eliminating or reducing some industry factors while introducing new ones.
This is the concluding presentation of a two part webinar for Blue ocean strategy.
The presentation introduces the audience to the core principles of Blue Ocean Strategy - which comprise of the six steps viz 1) Reconstructing Market Boundaries 2) Focusing on the Big Picture 3) Reaching Beyond Existing Demand 4) Getting the strategic sequence right 5) Overcoming organizational Challenges 1) Building execution into strategy.
The presentation also focuses on How the Boundaries can be reconstructed with 6 Paths Framework, How one can focus on big Picture by utilizing the visual strategy framework and PMS Maps, How One can reach beyond the existing demand by utilizing the Three tiers of Non Customers framework, How one can get their strategic sequence right by utilizing the buyer utility map, Price corridor of masses and overcoming organization hurdles framework.
The presentation also details on how to overcome the organizational hurdles and ways of building execution into strategy.
This presentation is aimed at explaining the greatness of Blue ocean strategy thinking to general audience through simple means and examples and does not imply distortion of facts and frameworks of the original Authors: Chan Kim, Renee Mauborgne
Kinepolis created a sustainable competitive advantage in the declining Belgian movie theater industry in the 1980s. While other theaters focused on competition, Kinepolis offered unprecedented value through larger screens, seating, and amenities at lower costs. This "value innovation" strategy expanded the market by 40% in Kinepolis' first year. Compaq stayed ahead of competitors in the server industry through successive value innovations like ProSignia and Proliant 1000, which offered more capabilities at lower prices. High-growth companies achieve success not by competing but by making competitors irrelevant through strategic value innovations that create new value curves for customers.
This document discusses key concepts from blue ocean strategy, including:
- Red oceans represent existing market space where companies compete by taking value from competitors, while blue oceans create uncontested market space with new value.
- Six principles of blue ocean strategy help lower risks in formulation and execution, including focusing on the big picture rather than numbers.
- The strategy canvas tool is used to analyze where competitors invest and what customers receive to find new opportunities.
- Reconstructing market boundaries across the six paths can help conceive new market space beyond existing demand and industry assumptions.
Blue Ocean strategy Outguns Red Ocean Strategy - AnshumaliiAnshumali Saxena
This document discusses blue ocean strategy and how it differs from traditional red ocean strategy. It provides examples of companies like Cirque du Soleil that achieved great success by creating new market space rather than competing head-to-head in existing markets. The key aspects of blue ocean strategy are value innovation, which involves raising buyer value and reducing costs, and reconstructing market boundaries to open up new demand. Visual tools like the strategy canvas are recommended to help companies map out blue ocean opportunities and shifts from their current "red ocean" approach. Reaching beyond existing demand by exploring non-customers is also an important part of blue ocean strategy.
This document discusses competitor analysis and competitive strategies. It defines key terms like competitive advantage and outlines the process for analyzing competitors, including identifying them, assessing their strategies and strengths/weaknesses, and selecting which to attack or avoid. It also covers Porter's basic winning strategies of cost leadership, differentiation, and focus. Finally, it discusses different competitive positions like market leader, challenger, follower, and nicher. The overall purpose is to help understand competitors and develop effective competitive strategies.
Summary of Blue Ocean Strategy and tools. To be used as a quick reference of the concepts and tools. Not a replacement to reading the book (www.blueoceanstrategy.com)
The document discusses the concept of blue ocean strategy, which involves creating new market space by changing the boundaries of an existing industry. It outlines key principles such as reconstructing market boundaries, focusing on non-customers, and using a strategy canvas to visualize new opportunities. The strategy aims to make competition irrelevant by creating uncontested market space through eliminating or reducing some industry factors while introducing new ones.
This is the concluding presentation of a two part webinar for Blue ocean strategy.
The presentation introduces the audience to the core principles of Blue Ocean Strategy - which comprise of the six steps viz 1) Reconstructing Market Boundaries 2) Focusing on the Big Picture 3) Reaching Beyond Existing Demand 4) Getting the strategic sequence right 5) Overcoming organizational Challenges 1) Building execution into strategy.
The presentation also focuses on How the Boundaries can be reconstructed with 6 Paths Framework, How one can focus on big Picture by utilizing the visual strategy framework and PMS Maps, How One can reach beyond the existing demand by utilizing the Three tiers of Non Customers framework, How one can get their strategic sequence right by utilizing the buyer utility map, Price corridor of masses and overcoming organization hurdles framework.
The presentation also details on how to overcome the organizational hurdles and ways of building execution into strategy.
This presentation is aimed at explaining the greatness of Blue ocean strategy thinking to general audience through simple means and examples and does not imply distortion of facts and frameworks of the original Authors: Chan Kim, Renee Mauborgne
Kinepolis created a sustainable competitive advantage in the declining Belgian movie theater industry in the 1980s. While other theaters focused on competition, Kinepolis offered unprecedented value through larger screens, seating, and amenities at lower costs. This "value innovation" strategy expanded the market by 40% in Kinepolis' first year. Compaq stayed ahead of competitors in the server industry through successive value innovations like ProSignia and Proliant 1000, which offered more capabilities at lower prices. High-growth companies achieve success not by competing but by making competitors irrelevant through strategic value innovations that create new value curves for customers.
The document summarizes key concepts from the book "Blue Ocean Strategy" by W. Chan Kim and Renée Mauborgne. It discusses how companies can create new market space, or "blue oceans", by focusing on value innovation to increase value for customers and decrease costs. It outlines analytical tools like the strategy canvas and frameworks like eliminate-reduce-raise-create to help companies reconstruct market boundaries. Finally, it discusses how to visualize strategy and understand the different tiers of potential customers, including non-customers, to help actualize a viable blue ocean idea.
This is the first presentation of a two part webinar for Blue ocean strategy.
The presentation introduces to red ocean and blue ocean companies, How blue ocean strategy is a simultaneous pursuit of cost and value.
The presentation provides a quick introduction with new age examples to strategy canvas, 6 paths framework, four actions frame work, buyer utility map, 3 tiers of non customers and PMS maps.
The presentation also utilizes these frameworks in showcasing descriptive case studies of companies like netjets, indochino.com, Zynga and khan academy.
This presentation is aimed at explaining the greatness of Blue ocean strategy thinking to general audience and does not imply distortion of facts and frameworks of the original Authors: Chan Kim, Renee Mauborgne
The document summarizes key concepts from Blue Ocean Strategy, including:
1. Value innovation focuses on making competitors irrelevant by creating value for buyers and the company, opening new market space.
2. The strategy canvas is used to analyze an industry's factors of competition and a company's offerings relative to competitors.
3. Blue ocean strategy aims to reconstruct industry boundaries and break the value-cost tradeoff to drive differentiation and low costs simultaneously.
Value innovation creates favorable impacts on both cost structure and value proposition to buyers. It reduces costs by eliminating unnecessary industry factors and lifts buyer value by creating new elements the industry has never offered before. Over time, costs are reduced further through scale economies generated by superior value. Red ocean strategy competes in existing market space while blue ocean strategy creates uncontested market space to make competition irrelevant. The six principles of blue ocean strategy are reconstructing market boundaries, focusing on the big picture, reaching beyond existing demand, getting the strategic sequence right, overcoming organizational hurdles, and building execution into strategy.
The document provides a book review of "Blue Ocean Strategy" by W. Chan Kim and Renee Mauborgne. It summarizes the key arguments of the book in 3 points: 1) The book claims traditional competitive strategies do not lead to innovation or new markets. It introduces "value innovation" to create uncontested market spaces. 2) Tools like the strategy canvas are presented to help formulate blue ocean strategies that eliminate or reduce existing factors while creating new ones to attract new demand. 3) The book provides frameworks for formulating and executing blue ocean strategies but its claims are not fully supported and it neglects factors like marketing and business cycles.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
This document discusses creativity and innovation for entrepreneurship. It covers several key points:
1) Marketing and innovation are both essential functions for an organization, with the customer as the central focus. Innovation can create new customers or solve problems for existing target markets.
2) Organizations must decide whether to focus on innovation and shaping new markets, following customers' needs, or interacting with customers. The optimal approach depends on factors like management style and the business environment.
3) Creating an effective business model is important for capturing value from innovations. Innovative models look at the value proposition, revenue generation, capabilities, and position in a network. The business model canvas is a new approach discussed.
This document discusses sustainability of competitive advantage. It defines sustainable competitive advantage as a unique position that allows a firm to consistently outperform competitors by possessing valuable processes and positions that cannot be easily duplicated. Sustainable advantages are built over time based on unique competencies like knowledge, innovation, and information. Examples of sustainable advantages include low costs, strong brands, barriers to entry, product differentiation, and outstanding management. Threats include imitation by competitors and dissipation of advantages over time due to changes in a company or customer demands.
The document discusses strategies for transforming an industry through value innovation. It outlines strategies such as expanding industry boundaries, focusing on creating new customer value rather than competing on price, and growing demand by attracting new customer segments. Key elements of the strategy include focusing on a few compelling factors valued by customers, having a unique value proposition, and communicating a clear message of the value offered.
Blue Ocean Strategy - Creating Value Innovationsmelanie_ernst
Why still bothering what the competition is doing? Can you really win the battle? Or wouldn’t it be much nicer to get out and create your own market, where YOU are the only supplier. Blue Ocean Strategy leads you to uncontested market space, making the competition irrelevant by creating and capturing new demand, breaking the value-cost-trade off and aligning the whole system of a firm's activities in pursuit of differentiation and low cost.
Blue Ocean Strategy - Making Competition Irrelevant - Part 1Regalix
Every company today is in search of sustained profitable growth and competitive advantage; companies are competing hard amongst each other for customers, market share, cost leadership, value leadership etc. Despite best efforts no one’s winning because it’s still a zero – sum game for the industry because the size of the market is fixed and everybody is doing same or similar things resulting in negligible differentiation or innovation.
The Blue Ocean Strategy is the art and science of making the competition irrelevant by creating uncontested market spaces. It is the mantra for winning in the marketplace without fighting the war. It argues that the best business strategy is to stop competing against competitors and create a blue ocean opportunity – a marketplace without any competition. Blue Ocean Strategy focuses on value innovations and lifting buyer values that could result in making conventional competition irrelevant and extend the industry boundaries and thereby creating un contested market space by tapping the untapped market space or by creating demand.
In this first of the two part webinar series - you would be introduced to the following concepts and frameworks through interactive and latest case studies:
Red Oceans and Blue Oceans
Creating Strategy Canvas
The Four Actions Framework
The Three Tiers Of Non Customers
This presentation series is derived from the most acknowledged best seller “The Blue Oceans Strategy” published in 2005, by Prof. Chan Kim and Renee Mauborgne of INSEAD.
Between 1975 and 1995, 60% of Fortune 500 companies were replaced, showing that markets and competitors are constantly changing. Industries and companies continuously rise and fall, so there are no permanently dominant players. Strategic moves that continuously create new value for customers allow companies to stay at the top. Value innovation aims to substantially raise customer value rather than focus only on new technologies. By identifying and serving overall customer needs through an unparalleled value proposition, companies can dominate their market.
This document provides an introduction to blue ocean strategy concepts including:
1) It describes the difference between red and blue oceans, with red oceans representing crowded, competitive markets and blue oceans representing new market spaces with opportunities for highly profitable growth.
2) It introduces the concepts of value innovation and creating blue oceans by aligning innovation with utility, price, and cost positions to break the value-cost trade-off and create new market demand.
3) It outlines the key analytical tools for formulating a blue ocean strategy including the strategy canvas to map the current competitive landscape, and the four actions framework of eliminate, reduce, raise, and create to reconstruct buyer value and shift the strategy canvas to open new blue ocean
1) Value innovation is created when a company's actions favorably affect both its cost structure and value proposition to buyers, eliminating factors on which the industry competes while raising and creating new elements.
2) It focuses on making competition irrelevant by creating a leap in value for buyers and the company, opening new uncontested market space.
3) Value innovation aligns innovation with utility, price, and cost positions to break the value-cost trade-off and drive costs down while raising buyer value.
The document provides an overview of Part 1 of a session on strategy in strategic human resource management. Part 1 aims to provide an understanding of organizational strategy, including the role of strategy, different types of strategy, value propositions, and organizational lifecycles. It discusses key strategy concepts and tools such as Porter's five forces analysis and the generic business strategies of cost leadership, differentiation, and focus. Examples are provided of companies like Walmart, Krispy Kreme, and Kodak to illustrate different strategic approaches. The document emphasizes aligning HR practices with business strategy to achieve organizational goals.
Closing the Gab between Blue Ocean Strategy and Execution by W.Chan Kim and R...Hossam Ghoneim
The document provides an overview of blue ocean strategy (BOS). It defines BOS as creating a market without competition by innovating in a way that makes existing competitors irrelevant. It discusses how to formulate a BOS through tools like reconstructing market boundaries and focusing on value innovation over competition. It also emphasizes the importance of execution, noting keys like overcoming organizational hurdles, building execution into the strategy, and maintaining sustainability. The document uses the example of Comic Relief, a UK charity, to illustrate how aligning the value, people, and profit propositions can create differentiation and low costs to achieve a successful BOS.
The document provides an overview of blue ocean strategy, including definitions of red ocean and blue ocean strategies, why companies get trapped in red oceans, the importance of value innovation, how to analyze a value curve using a strategy canvas, the six principles and four-action framework for creating a blue ocean strategy, overcoming organizational hurdles to execution, building a robust business model, and the life cycle of a blue ocean strategy.
Value innovation creates value for both buyers and the company by reducing costs through eliminating unnecessary factors while also increasing buyer value by introducing new elements. It aims to break the trade-off between low costs and differentiation.
Blue ocean strategy seeks to create new market space by making competitors irrelevant and capturing new demand rather than competing head-to-head in existing markets. It breaks the value-cost tradeoff through eliminating, reducing, raising and creating factors compared to industry standards.
The buyer utility map outlines six stages of the buyer experience and six levers companies can use to deliver exceptional utility at each stage from purchase to disposal.
Red ocean strategy involves competing in existing market space against competitors, while blue ocean strategy creates new market space without competition. Key tools for blue ocean strategy include the strategy canvas, which visually captures current and future strategic positioning; the 4 Actions framework for reconstructing buyer value; and the ERRC grid for eliminating/reducing and raising/creating factors. Fair process builds execution into strategy through engagement, explanation, and clarity of expectations.
The document discusses the key concepts of blue ocean strategy, which involves creating new market space and making competition irrelevant by focusing on value innovation. It provides an overview of the 6 principles of blue ocean strategy, which are reconstructing market boundaries, focusing on the big picture rather than numbers, reaching beyond existing demand, getting the strategic sequence right, overcoming organizational hurdles, and building execution into strategy. Finally, it discusses various frameworks like the strategy canvas that can be used to analyze a company's strategy and identify opportunities to create new blue oceans.
2011 will bring significant changes to a wide variety of industries. While many organization believe they are innovating for a better tomorrow in reality they are only making modification of today's familiar territory.
Blue Ocean Strategy challenges leaders to work through a meticulous set of frameworks that flesh out opportunities that are not obvious using yesterday's tool kits. Blue Ocean Strategy requires a responsible imagination. That is, the ability to dream and see beyond today while applying analytical tools that assist in risk reduction and genuine breakthrough thinking and valid value innovations.
This document summarizes key concepts from Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne. It discusses how blue ocean strategy aims to create uncontested market space and make competition irrelevant by breaking the value-cost tradeoff. Key frameworks covered include the strategy canvas, four actions framework, buyer utility map, and sequence for validating blue ocean ideas. Overall, the document provides an overview of blue ocean strategy and the tools used to identify and capture new demand in unexplored market spaces.
The document summarizes key concepts from the book "Blue Ocean Strategy" by W. Chan Kim and Renée Mauborgne. It discusses how companies can create new market space, or "blue oceans", by focusing on value innovation to increase value for customers and decrease costs. It outlines analytical tools like the strategy canvas and frameworks like eliminate-reduce-raise-create to help companies reconstruct market boundaries. Finally, it discusses how to visualize strategy and understand the different tiers of potential customers, including non-customers, to help actualize a viable blue ocean idea.
This is the first presentation of a two part webinar for Blue ocean strategy.
The presentation introduces to red ocean and blue ocean companies, How blue ocean strategy is a simultaneous pursuit of cost and value.
The presentation provides a quick introduction with new age examples to strategy canvas, 6 paths framework, four actions frame work, buyer utility map, 3 tiers of non customers and PMS maps.
The presentation also utilizes these frameworks in showcasing descriptive case studies of companies like netjets, indochino.com, Zynga and khan academy.
This presentation is aimed at explaining the greatness of Blue ocean strategy thinking to general audience and does not imply distortion of facts and frameworks of the original Authors: Chan Kim, Renee Mauborgne
The document summarizes key concepts from Blue Ocean Strategy, including:
1. Value innovation focuses on making competitors irrelevant by creating value for buyers and the company, opening new market space.
2. The strategy canvas is used to analyze an industry's factors of competition and a company's offerings relative to competitors.
3. Blue ocean strategy aims to reconstruct industry boundaries and break the value-cost tradeoff to drive differentiation and low costs simultaneously.
Value innovation creates favorable impacts on both cost structure and value proposition to buyers. It reduces costs by eliminating unnecessary industry factors and lifts buyer value by creating new elements the industry has never offered before. Over time, costs are reduced further through scale economies generated by superior value. Red ocean strategy competes in existing market space while blue ocean strategy creates uncontested market space to make competition irrelevant. The six principles of blue ocean strategy are reconstructing market boundaries, focusing on the big picture, reaching beyond existing demand, getting the strategic sequence right, overcoming organizational hurdles, and building execution into strategy.
The document provides a book review of "Blue Ocean Strategy" by W. Chan Kim and Renee Mauborgne. It summarizes the key arguments of the book in 3 points: 1) The book claims traditional competitive strategies do not lead to innovation or new markets. It introduces "value innovation" to create uncontested market spaces. 2) Tools like the strategy canvas are presented to help formulate blue ocean strategies that eliminate or reduce existing factors while creating new ones to attract new demand. 3) The book provides frameworks for formulating and executing blue ocean strategies but its claims are not fully supported and it neglects factors like marketing and business cycles.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
This document discusses creativity and innovation for entrepreneurship. It covers several key points:
1) Marketing and innovation are both essential functions for an organization, with the customer as the central focus. Innovation can create new customers or solve problems for existing target markets.
2) Organizations must decide whether to focus on innovation and shaping new markets, following customers' needs, or interacting with customers. The optimal approach depends on factors like management style and the business environment.
3) Creating an effective business model is important for capturing value from innovations. Innovative models look at the value proposition, revenue generation, capabilities, and position in a network. The business model canvas is a new approach discussed.
This document discusses sustainability of competitive advantage. It defines sustainable competitive advantage as a unique position that allows a firm to consistently outperform competitors by possessing valuable processes and positions that cannot be easily duplicated. Sustainable advantages are built over time based on unique competencies like knowledge, innovation, and information. Examples of sustainable advantages include low costs, strong brands, barriers to entry, product differentiation, and outstanding management. Threats include imitation by competitors and dissipation of advantages over time due to changes in a company or customer demands.
The document discusses strategies for transforming an industry through value innovation. It outlines strategies such as expanding industry boundaries, focusing on creating new customer value rather than competing on price, and growing demand by attracting new customer segments. Key elements of the strategy include focusing on a few compelling factors valued by customers, having a unique value proposition, and communicating a clear message of the value offered.
Blue Ocean Strategy - Creating Value Innovationsmelanie_ernst
Why still bothering what the competition is doing? Can you really win the battle? Or wouldn’t it be much nicer to get out and create your own market, where YOU are the only supplier. Blue Ocean Strategy leads you to uncontested market space, making the competition irrelevant by creating and capturing new demand, breaking the value-cost-trade off and aligning the whole system of a firm's activities in pursuit of differentiation and low cost.
Blue Ocean Strategy - Making Competition Irrelevant - Part 1Regalix
Every company today is in search of sustained profitable growth and competitive advantage; companies are competing hard amongst each other for customers, market share, cost leadership, value leadership etc. Despite best efforts no one’s winning because it’s still a zero – sum game for the industry because the size of the market is fixed and everybody is doing same or similar things resulting in negligible differentiation or innovation.
The Blue Ocean Strategy is the art and science of making the competition irrelevant by creating uncontested market spaces. It is the mantra for winning in the marketplace without fighting the war. It argues that the best business strategy is to stop competing against competitors and create a blue ocean opportunity – a marketplace without any competition. Blue Ocean Strategy focuses on value innovations and lifting buyer values that could result in making conventional competition irrelevant and extend the industry boundaries and thereby creating un contested market space by tapping the untapped market space or by creating demand.
In this first of the two part webinar series - you would be introduced to the following concepts and frameworks through interactive and latest case studies:
Red Oceans and Blue Oceans
Creating Strategy Canvas
The Four Actions Framework
The Three Tiers Of Non Customers
This presentation series is derived from the most acknowledged best seller “The Blue Oceans Strategy” published in 2005, by Prof. Chan Kim and Renee Mauborgne of INSEAD.
Between 1975 and 1995, 60% of Fortune 500 companies were replaced, showing that markets and competitors are constantly changing. Industries and companies continuously rise and fall, so there are no permanently dominant players. Strategic moves that continuously create new value for customers allow companies to stay at the top. Value innovation aims to substantially raise customer value rather than focus only on new technologies. By identifying and serving overall customer needs through an unparalleled value proposition, companies can dominate their market.
This document provides an introduction to blue ocean strategy concepts including:
1) It describes the difference between red and blue oceans, with red oceans representing crowded, competitive markets and blue oceans representing new market spaces with opportunities for highly profitable growth.
2) It introduces the concepts of value innovation and creating blue oceans by aligning innovation with utility, price, and cost positions to break the value-cost trade-off and create new market demand.
3) It outlines the key analytical tools for formulating a blue ocean strategy including the strategy canvas to map the current competitive landscape, and the four actions framework of eliminate, reduce, raise, and create to reconstruct buyer value and shift the strategy canvas to open new blue ocean
1) Value innovation is created when a company's actions favorably affect both its cost structure and value proposition to buyers, eliminating factors on which the industry competes while raising and creating new elements.
2) It focuses on making competition irrelevant by creating a leap in value for buyers and the company, opening new uncontested market space.
3) Value innovation aligns innovation with utility, price, and cost positions to break the value-cost trade-off and drive costs down while raising buyer value.
The document provides an overview of Part 1 of a session on strategy in strategic human resource management. Part 1 aims to provide an understanding of organizational strategy, including the role of strategy, different types of strategy, value propositions, and organizational lifecycles. It discusses key strategy concepts and tools such as Porter's five forces analysis and the generic business strategies of cost leadership, differentiation, and focus. Examples are provided of companies like Walmart, Krispy Kreme, and Kodak to illustrate different strategic approaches. The document emphasizes aligning HR practices with business strategy to achieve organizational goals.
Closing the Gab between Blue Ocean Strategy and Execution by W.Chan Kim and R...Hossam Ghoneim
The document provides an overview of blue ocean strategy (BOS). It defines BOS as creating a market without competition by innovating in a way that makes existing competitors irrelevant. It discusses how to formulate a BOS through tools like reconstructing market boundaries and focusing on value innovation over competition. It also emphasizes the importance of execution, noting keys like overcoming organizational hurdles, building execution into the strategy, and maintaining sustainability. The document uses the example of Comic Relief, a UK charity, to illustrate how aligning the value, people, and profit propositions can create differentiation and low costs to achieve a successful BOS.
The document provides an overview of blue ocean strategy, including definitions of red ocean and blue ocean strategies, why companies get trapped in red oceans, the importance of value innovation, how to analyze a value curve using a strategy canvas, the six principles and four-action framework for creating a blue ocean strategy, overcoming organizational hurdles to execution, building a robust business model, and the life cycle of a blue ocean strategy.
Value innovation creates value for both buyers and the company by reducing costs through eliminating unnecessary factors while also increasing buyer value by introducing new elements. It aims to break the trade-off between low costs and differentiation.
Blue ocean strategy seeks to create new market space by making competitors irrelevant and capturing new demand rather than competing head-to-head in existing markets. It breaks the value-cost tradeoff through eliminating, reducing, raising and creating factors compared to industry standards.
The buyer utility map outlines six stages of the buyer experience and six levers companies can use to deliver exceptional utility at each stage from purchase to disposal.
Red ocean strategy involves competing in existing market space against competitors, while blue ocean strategy creates new market space without competition. Key tools for blue ocean strategy include the strategy canvas, which visually captures current and future strategic positioning; the 4 Actions framework for reconstructing buyer value; and the ERRC grid for eliminating/reducing and raising/creating factors. Fair process builds execution into strategy through engagement, explanation, and clarity of expectations.
The document discusses the key concepts of blue ocean strategy, which involves creating new market space and making competition irrelevant by focusing on value innovation. It provides an overview of the 6 principles of blue ocean strategy, which are reconstructing market boundaries, focusing on the big picture rather than numbers, reaching beyond existing demand, getting the strategic sequence right, overcoming organizational hurdles, and building execution into strategy. Finally, it discusses various frameworks like the strategy canvas that can be used to analyze a company's strategy and identify opportunities to create new blue oceans.
2011 will bring significant changes to a wide variety of industries. While many organization believe they are innovating for a better tomorrow in reality they are only making modification of today's familiar territory.
Blue Ocean Strategy challenges leaders to work through a meticulous set of frameworks that flesh out opportunities that are not obvious using yesterday's tool kits. Blue Ocean Strategy requires a responsible imagination. That is, the ability to dream and see beyond today while applying analytical tools that assist in risk reduction and genuine breakthrough thinking and valid value innovations.
This document summarizes key concepts from Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne. It discusses how blue ocean strategy aims to create uncontested market space and make competition irrelevant by breaking the value-cost tradeoff. Key frameworks covered include the strategy canvas, four actions framework, buyer utility map, and sequence for validating blue ocean ideas. Overall, the document provides an overview of blue ocean strategy and the tools used to identify and capture new demand in unexplored market spaces.
This document provides an overview of blue ocean strategy concepts. It discusses drivers for pursuing a blue ocean strategy like technological advances, globalization, and increasing competition. It outlines analytical tools like the strategy canvas and four actions framework to analyze markets and identify opportunities to create new demand. It also discusses six paths to reconstruct market boundaries and how to focus on non-customers. The document then covers how to properly sequence strategy elements like buyer utility, price, costs, and adoption barriers. Finally, it discusses how to execute blue ocean strategy by overcoming organizational hurdles, using tipping point leadership, building fair process into strategy, and sustaining strategy through imitation barriers and renewal.
The document summarizes key concepts from Blue Ocean Strategy. It discusses value innovation as creating value for both the company and buyers by eliminating or reducing competition factors and raising or creating new elements. It contrasts red ocean strategy of competing within existing industry boundaries versus blue ocean strategy of creating new market space without competition. The six principles of blue ocean strategy aim to reconstruct market boundaries, reach beyond existing demand, and overcome organizational hurdles to strategy execution. Tools like the strategy canvas, four actions framework, and profit model are presented to help visualize and implement blue ocean strategies.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
The document summarizes several key concepts from Blue Ocean Strategy:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers by eliminating/reducing competition factors and raising/creating new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy pursues differentiation or low cost within existing industry boundaries.
3. Tools like the strategy canvas, four actions framework, and buyer utility map help analyze industries and identify factors to eliminate, reduce, raise or create for blue ocean opportunities.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
The document summarizes several key concepts from Blue Ocean Strategy:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers by eliminating/reducing competition factors and raising/creating new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy pursues differentiation or low cost within existing industry boundaries.
3. Tools like the strategy canvas, four actions framework, and buyer utility map help analyze industries and formulate blue ocean strategies.
The document provides an overview of competitive strategy and competitive advantage. It discusses key concepts such as strategy, competitive positioning, resources and capabilities, and building competitive advantage. Some main points covered include:
1) A strategy integrates an organization's goals, policies and actions into a cohesive whole. Competitive strategy guides decisions around marketing, finance and operations.
2) Competitive positioning involves differentiating a company from competitors based on how it provides value. Types of positioning include cost leadership, differentiation, and focus.
3) Resources and capabilities underlie competitive advantage. Core competencies are knowledge-based and central to competitiveness, while distinctive competencies are activities performed better than rivals.
4
How to beat the competition with smart market positioning
What is a competitive advantage? What is positioning? Cost leadership/ differentiation. How can you assess the competition?
The document discusses the concepts of blue ocean strategy from the book by W. Chan Kim and Renee Mauborgne. It provides details on:
1. The difference between red ocean and blue ocean strategies, where red oceans refer to competing in existing markets and blue oceans create new market space.
2. The core principles of blue ocean strategy including reconstructing market boundaries, reaching beyond existing demand, and getting the strategic sequence right by focusing on value innovation first.
3. An example of a double degree MBA-JD program between De La Salle University and Far Eastern University that created a new blue ocean by eliminating unnecessary subjects and reducing time/costs to complete both degrees.
Blue Ocean Strategy outlines how companies can create new market space, or "blue oceans", by focusing on value innovation rather than competing head-on in existing markets or "red oceans". To create a blue ocean, companies should reconstruct market boundaries by eliminating or reducing some factors and introducing new ones. They should also look beyond existing customers to non-customers and focus on commonalities rather than differences. Combining exceptional value, strategic pricing and low costs allows companies to attract large new groups of customers and make imitation difficult for competitors.
This document discusses market segmentation strategies. It defines segmentation as identifying customer groups that respond differently to offerings. A successful segmentation strategy couples identified segments with tailored offerings. Key factors for evaluating segmentation strategies are whether a competitive offering can be developed and maintained for the target segment, and if the resulting business is worthwhile given investment costs. Successful segmentation creates a dominant market position that is difficult for competitors to challenge. The document then provides examples of segmenting by customer characteristics like demographics, and product-related factors like usage and benefits sought. It stresses the importance of developing profiles for identified segments.
SM Unit 5 - Blue and red Ocean Strategy.pptxHemantPawar71
1. The document discusses key concepts from blue ocean strategy including the strategy canvas, value curve, four actions framework, and business model.
2. It explains the strategy canvas is used to visualize the current competitive landscape by plotting key factors against customer needs. The value curve similarly shows where value is created for customers compared to competitors.
3. The four actions framework poses questions to challenge industry assumptions and find new market spaces through eliminating, reducing, raising, or creating factors.
4. A business model identifies the value proposition, target market, revenue streams, activities in the value chain, and long-term competitive strategy. It is the company's plan for making a profit.
Emerging markets already offer a wide range of business opportunities
and the number of attractive business cases is growing at a rapid
pace. Population growth, urbanization, industrialization, improved
governance structures and the massive development in modern ICT
technology are making the markets even more attractive and accessible
for foreign companies...
Developing Marketing Strategies and Plans / Marketing Management By Kotler K...Choudhry Asad
The document discusses various marketing strategies and planning tools including the value chain, core business processes, core competencies, holistic marketing, marketing plans, corporate planning activities, strategic business units, and business unit strategic planning. It provides examples of mission statements and describes dimensions that define a business, product orientation vs market orientation, characteristics of strategic business units, assessing growth opportunities using Ansoff's matrix, conducting a SWOT analysis, market opportunity analysis, goal formulation, Porter's generic strategies, strategic alliances, typical marketing plan contents, and criteria for evaluating a marketing plan.
The document discusses social "wave" strategy for businesses to capitalize on opportunities created by social waves of demand and innovation. It provides frameworks for analyzing buyer intentions, social value, and developing a strategy to create new social waves through eliminating, reducing, raising, and creating new factors that fulfill buyer needs in a way that reduces costs. The goal is to differentiate through social innovation, make existing competition irrelevant, and capture new demand through understanding buyers' perspectives.
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.pptHenry Hollis
The History of NZ 1870-1900.
Making of a Nation.
From the NZ Wars to Liberals,
Richard Seddon, George Grey,
Social Laboratory, New Zealand,
Confiscations, Kotahitanga, Kingitanga, Parliament, Suffrage, Repudiation, Economic Change, Agriculture, Gold Mining, Timber, Flax, Sheep, Dairying,
A Free 200-Page eBook ~ Brain and Mind Exercise.pptxOH TEIK BIN
(A Free eBook comprising 3 Sets of Presentation of a selection of Puzzles, Brain Teasers and Thinking Problems to exercise both the mind and the Right and Left Brain. To help keep the mind and brain fit and healthy. Good for both the young and old alike.
Answers are given for all the puzzles and problems.)
With Metta,
Bro. Oh Teik Bin 🙏🤓🤔🥰
Andreas Schleicher presents PISA 2022 Volume III - Creative Thinking - 18 Jun...EduSkills OECD
Andreas Schleicher, Director of Education and Skills at the OECD presents at the launch of PISA 2022 Volume III - Creative Minds, Creative Schools on 18 June 2024.
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
🔥🔥🔥🔥🔥🔥🔥🔥🔥
إضغ بين إيديكم من أقوى الملازم التي صممتها
ملزمة تشريح الجهاز الهيكلي (نظري 3)
💀💀💀💀💀💀💀💀💀💀
تتميز هذهِ الملزمة بعِدة مُميزات :
1- مُترجمة ترجمة تُناسب جميع المستويات
2- تحتوي على 78 رسم توضيحي لكل كلمة موجودة بالملزمة (لكل كلمة !!!!)
#فهم_ماكو_درخ
3- دقة الكتابة والصور عالية جداً جداً جداً
4- هُنالك بعض المعلومات تم توضيحها بشكل تفصيلي جداً (تُعتبر لدى الطالب أو الطالبة بإنها معلومات مُبهمة ومع ذلك تم توضيح هذهِ المعلومات المُبهمة بشكل تفصيلي جداً
5- الملزمة تشرح نفسها ب نفسها بس تكلك تعال اقراني
6- تحتوي الملزمة في اول سلايد على خارطة تتضمن جميع تفرُعات معلومات الجهاز الهيكلي المذكورة في هذهِ الملزمة
واخيراً هذهِ الملزمة حلالٌ عليكم وإتمنى منكم إن تدعولي بالخير والصحة والعافية فقط
كل التوفيق زملائي وزميلاتي ، زميلكم محمد الذهبي 💊💊
🔥🔥🔥🔥🔥🔥🔥🔥🔥
2. • It is “a consistent pattern of strategic thinking behind the creation of
new markets and industries where demand is created rather than
fought for and the rule of competition is irrelevant”
• The Strategy and related concepts are developed by W. Chan Kim and
Renée Mauborgne in 2004.
• This strategy advocates that competition does not lead to success but
rather the Desire to Dare to be different.
Explore the Unknown!!!
3.
4. I] RED OCEAN VS. BLUE OCEAN STRATEGY
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space. Create uncontested market space.
Beat the competition. Make the competition irrelevant.
Exploit existing demand. Create and capture new demand.
Make the value-cost trade-off. Break the value-cost trade-off.
Align the whole system of a firm’s activities
with its strategic choice of differentiation
or low cost.
Align the whole system of a firm’s activities
in pursuit of differentiation and low cost.
5.
6. Elements of
Development
Head-to-Head Competition Blue Ocean Creation
Industry Focuses on rivals within its industry Looks across alternative
industries
Strategic Group Focuses on competitive position
within strategic group
Looks across strategic
groups within industry
Buyer Group Focuses on better serving the
buyer group
Redefines the industry
buyer group
Scope of Product or
Service Offering
Focuses on maximizing the value of
product and service offerings
within the bounds of its industry
Looks across to
complementary product
and service offerings
Functional-emotional
Orientation
Focuses on improving the price
performance within the functional-
emotional orientation of its
industry
Rethinks the functional-
emotional orientation of
its industry
Time Focuses on adapting to external
trends as they occur
Participates in shaping
external trends over time
7. • Value Innovation is the simultaneous
pursuit of differentiation and low cost,
creating a leap in value for both buyers
and the company.
• It is the cornerstone of market-creating
strategy.
• Because value to buyers comes from the
offering’s utility minus its price, and
because value to the company is
generated from the offering’s price minus
its cost, value innovation is achieved only
when the whole system of utility, price,
and cost is aligned.
Cost savings are made by eliminating and reducing
the factors an industry competes on.
Buyer value is lifted by raising and creating
elements the industry has never offered.
II] Value Innovation
8. The strategy canvas is a
central diagnostic tool for
getting clear on the current
state of play and making
your blue ocean move. It
graphically captures, in one
simple picture, the current
strategic landscape and the
future prospects for an
organization.
9. STRATEGY CANVAS
• The strategy canvas serves two purposes:
1)To capture the current state of play in the known market space, which allows
users to clearly see the factors that the industry competes on and where the
competition currently invests
2)To propel users to action by reorienting their focus
from competitors to alternatives and from customers to noncustomers of the
industry
• The horizontal axis on the strategy canvas captures the range of factors that
an industry competes on and invests in, while the vertical axis captures the
offering level that buyers receive across all of these key competing factors.
• The value curve or strategic profile is the basic component of the strategy
canvas. It is a graphic depiction of a company’s relative performance across its
industry’s factors of competition. A strong value curve has focus, divergence as
well as a compelling tagline.
10. It is a simple matrix like tool that drives companies to focus simultaneously
on eliminating and reducing, as well as raising and creating while unlocking
a new blue ocean.
• Eliminate : Which factors that the industry has long competed on should
be eliminated ?
• Raise : Which factors should be raised well above the industry’s standard?
• Reduce : Which factors should be reduced well below the industry’s
standard?
• Create : Which factors should be created that the industry has never
offered?
12. PIONEER-MIGRATOR-SETTLER (PMS) MAP
• A useful exercise for a corporate management team pursuing
profitable growth is to plot the company’s current and planned
portfolios on the Pioneer-Migrator-Settler Map.
• Settlers are defined as me-too businesses, migrators are business
offerings better than most in the marketplace, and a
company’s pioneers are the businesses that offer unprecedented
value.
• These are a company’s blue ocean strategic moves, and are the most
powerful sources of profitable growth. They are the only ones with a
mass following of customers.
13. • Customers of your industry.
• “Soon-to-be” noncustomers
who are on the hedge of your
market waiting to jump ship
• “Refusing” noncustomers
who consciously choose
against your market.
• “Unexplored” noncustomers
who are in markets distant
from yours.
VI] THREE TIERS OF NONCUSTOMERS
14. • Typically, to grow their share of a market, companies strive to retain and
expand their existing customer base.
• Although the universe of noncustomers typically offers blue ocean
opportunities, few companies have keen insight into who noncustomers are
and how to unlock them. To convert this huge latent demand into real
demand in the form of new customers, companies need to deepen their
understanding of the universe of noncustomers.
• The first tier of noncustomers is closest to the current market, sitting just on
the edge. They are buyers who minimally purchase an industry’s offering out
of necessity but are mentally noncustomers of the industry.
• The second tier of noncustomers is people who refuse to use an industry’s
offering. These are buyers who have seen the current offering as an option to
fulfill their needs but have decided against participating.
• The third tier of noncustomers is farthest from the market. They are
noncustomers who have never considered the market’s offering as an option.
• By focusing on key commonalities across these noncustomers and existing
customers, companies can understand how to pull them into their new
market.
15. VII] SEQUENCE OF BLUE OCEAN
STRATEGY
Buyer Utility
Is there exceptional buyer utility in your business idea?
Price
Is your price easily accessible to the mass of buyers?
Cost
Can you attain your cost target to profit at your strategic price?
Adoption
What are the adoption hurdles in actualizing your business idea?
Are you addressing them upfront?
A Commercially Viable Blue Ocean Idea
16. • Here Kim and Mauborgne articulate the strategic sequence of creating a commercially viable blue
ocean idea. The starting point is buyer utility. Does your offering unlock exceptional utility? Is there
a compelling reason for the mass of people to buy it?
• Second, is your offering priced to attract the mass of target buyers so that they have a compelling
ability to pay for your offering? If it is not, they cannot buy it. Nor will the offering create irresistible
market buzz.
• These first two steps address the revenue side of a company’s business model. They ensure that you
create a leap in net buyer value. To secure the profit side you need to assess the third element: cost.
The cost side of a company’s business model ensures that it creates a leap in value for itself in the
form of profit—that is, the price of the offering minus the cost of production. The key question here
is: Can you produce your offering at the target cost and still earn a healthy profit margin? You should
not let costs drive prices. Nor should you scale down utility because high costs block your ability to
profit at the strategic price. When the target cost cannot be met, you must either forgo the idea
because the blue ocean won’t be profitable, or you must innovate your business model to hit the
target cost.
• The last step in the sequence is to address adoption hurdles. What are the adoption hurdles in
rolling out your idea? Have you addressed these up front? The formulation of blue ocean strategy is
complete only when you can address adoption hurdles in the beginning to ensure the successful
actualization of your idea
17.
18. • It helps to get managers thinking from a demand-side perspective. It outlines all the
levers companies can pull to deliver exceptional utility to buyers as well as the various
experiences buyers can have with a product or service. This mindset helps managers
identify the full range of utility spaces that a product or service can potentially fill. It
has two dimensions: The Buyer Experience Cycle (BEC) and the Utility levers.
• The Buyer Experience Cycle (BEC): A buyer’s experience can usually be broken into a
cycle of six stages, running more or less sequentially from purchase to disposal.
• Utility levers: Cutting across the stages of the buyer’s experience are what we
call utility levers – the ways in which companies unlock utility for their customers.
• By locating a new offering on one of the spaces of the buyer utility map, managers
can clearly see how, and whether, the new idea creates a different utility proposition
from existing offerings but also removes the biggest blocks to utility that stand in the
way of converting noncustomers into customers. In our experience, managers all too
often focus on delivering more of the same stage of the buyer’s experience. This
approach may be reasonable in emerging industries, where there is plenty of room for
improving a company’s utility proposition. But in many existing industries, this
approach is unlikely to produce a market-shaping blue ocean strategy.
19. IX] THE PRICE CORRIDOR OF THE
MASS
Specify a
price level
within the
price
corridor
Three
alternative
product or
service types
Identify
the price
corridor of
the mass.
Same/Different Form, Function or Objective
Size of circle is proportional to number of
buyers that product/service attracts
20. Cognitive
Waking employees up to the need for a
strategic shift.
Resource
the greater the shift in strategy, the greater
the resources it requires for execution
Motivational
: How do you motivate key players to move
fast and tenaciously to carry out a break
from the status quo?
Political
As one manager put it, “In our
organization you get shot down before
you stand up.”
Hurdles
21. Conventional Wisdom
XI] Tipping Point Leadership
The theory of organizational change rests on
transforming the mass and these efforts require steep
resources and long timeframes.
To achieve a strategic shift at low cost, focus on the
extremes – the people, acts, and activities that
exert a disproportionate influence on performance
22. XII] FAIR PROCESS
Engagement Explanation
Expectation
Clarity
Engagement means
involving individuals in
the strategic decisions
that affect them by
soliciting their input and
allowing them to refute
the merits of one
another’s ideas and
assumptions. Engagement
communicates
management’s respect for
individuals and their point
of view. The result is
better strategic decisions
by management and
genuine commitment
from everyone involved in
execution.
Explanation means that
everyone involved and
affected should
understand why final
strategic decisions are
made. An explanation of
rationale engenders
confidence among
employees that managers
have considered their
opinions and have made
decisions impartially in the
overall interest of the
company, even if their
own ideas have been
rejected. It also serves as a
powerful feedback loop to
enhance learning.
Expectation clarity
requires that after a
strategy is set, managers
clearly state the new rules
of the game. Although the
expectations may be
demanding, employees
know up front the
standards by which their
work will be judged and
the consequences of
failure. When people
clearly understand
expectations, political
jockeying and favoritism
are minimized, and people
can focus on executing the
strategy rapidly.
24. 4 Underpinning Principles of BOS
1. How to create uncontested market space by
reconstructing market boundaries.
2. Focusing on the big picture.
3. Reaching beyond the existing demand.
4. Getting the strategic sequence right.