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}

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)

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}

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)
Industry
Look across alternative industries, break out of own Look across strategic groups within industry, break out of groups Redefines industry buyer group, who is the buyer Looks across complementary offerings

Strategic group Buyer group Offering scope

Functional- Rethink functionalemotional orientation emotional

of industry

Time

Participates in shaping external trends over time

Four Actions Framework

Reduce
Which factors should be reduced well below industrys 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 industrys 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
Is there exceptional buyer utility in your business?

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?

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

Customer Productivity Simplicity
How productive is the customer in this stage? How moreso can it be? How simple is this stage? Can it be made simpler? How convenient is this stage? Can it be made moreso? How much risk is there involved in this stage? Can risk be reduced? How fun and what level of positive image at this stage? More fun now!

Convenience

Risk

Fun & Image

Environmental How environmentally friendly is this stage? Friendliness

Make it more green.

purchase

delivery

use

supplements

maintenance

disposal

Buyer Utility - Delivery

Customer Productivity Simplicity
How productive is the customer in this stage? How moreso can it be? How simple is this stage? Can it be made simpler? How convenient is this stage? Can it be made moreso? How much risk is there involved in this stage? Can risk be reduced? How fun and what level of positive image at this stage? More fun now!

Convenience

Risk

Fun & Image

Environmental How environmentally friendly is this stage? Friendliness

Make it more green.

purchase

delivery

use

supplements

maintenance

disposal

Buyer Utility - Use

Customer Productivity Simplicity
How productive is the customer in this stage? How moreso can it be? How simple is this stage? Can it be made simpler? How convenient is this stage? Can it be made moreso? How much risk is there involved in this stage? Can risk be reduced? How fun and what level of positive image at this stage? More fun now!

Convenience

Risk

Fun & Image

Environmental How environmentally friendly is this stage? Friendliness

Make it more green.

purchase

delivery

use

supplements

maintenance

disposal

Buyer Utility - Supplements

Customer Productivity Simplicity
How productive is the customer in this stage? How moreso can it be? How simple is this stage? Can it be made simpler? How convenient is this stage? Can it be made moreso? How much risk is there involved in this stage? Can risk be reduced? How fun and what level of positive image at this stage? More fun now!

Convenience

Risk

Fun & Image

Environmental How environmentally friendly is this stage? Friendliness

Make it more green.

purchase

delivery

use

supplements

maintenance

disposal

Buyer Utility - Maintenance

Customer Productivity Simplicity
How productive is the customer in this stage? How moreso can it be? How simple is this stage? Can it be made simpler? How convenient is this stage? Can it be made moreso? How much risk is there involved in this stage? Can risk be reduced? How fun and what level of positive image at this stage? More fun now!

Convenience

Risk

Fun & Image

Environmental How environmentally friendly is this stage? Friendliness

Make it more green.

purchase

delivery

use

supplements

maintenance

disposal

Buyer Utility - Disposal

Customer Productivity Simplicity
How productive is the customer in this stage? How moreso can it be? How simple is this stage? Can it be made simpler? How convenient is this stage? Can it be made moreso? How much risk is there involved in this stage? Can risk be reduced? How fun and what level of positive image at this stage? More fun now!

Convenience

Risk

Fun & Image

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 Hurdle
An organization wedded to the status quo

Resource Hurdle
Limited resources

Motivational Hurdle
Unmotivated staff

Political Hurdle
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

Organizational Hurdles Forms

Create forms
Cognitive hurdles Resource hurdles Motivational hurdles Poltical hurdles

Method Fair Process Overview

Fair Process Method (Description)

(Blue Ocean Strategy) {1 of 2} Fair process of engagement, explanation, and expectation of clarity engenders trust and commitment, producing voluntary cooperation, and enabling superior execution. Involve individuals in the strategic decisions that affect them by asking for their input and allowing them to refute the merits of one anothers 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. 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)

Engagement

Explanation

Expectation of clarity

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 3. Create process so that decisions are understood Can everyone make meetings? Have meetings been given enough time? Has importance been clearly communicated? Are the meetings structured for clear flow of information? Are there mechanisms for additional wiki/faq/forums? What are the goals of the new strategy? What are the new targets and milestones? Who is responsible for what?

4. Set eval criteria, responsibilities, and achievement targets

Fair Process
Engagement
Involve individuals in the strategic decisions that affect them by asking for their input and allowing them to refute the merits of one anothers 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 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?

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