Download - Rory_Blue Oceans PART TWO
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Blue OceansPart Three:Executing Blue Ocean Strategy
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Review of last week Part II
What was the focus of last weeks Blue Ocean
Lecture?
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Review of last week Part II
Part Two:Formulating Blue Ocean Strategy
Part Three:Executing Blue Ocean Strategy
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Formulation Principles Risk Factors
Reconstruct market boundaries Lowers Search risk
Focus on the big picture, not the
numbersLowers Planning risk
Reach beyond existing demand Lowers Scale risk
Get the strategic sequence rightLowers Business model
risk
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Reconstructing Market Boundaries
Six Approaches that Look Across:
Alternative Industries
Strategic Groups Within Industries
The Chain of Buyers
Complementary Product and Service Offerings
Functional or Emotional Appeal to BuyersLook Across Time
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Back to This WeekPart Three:Executing Blue Ocean Strategy
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Executiion layout
Chapters 7-8: Turn to the principles that drive
effective execution of blue ocean strategy. Tipping
point leadership, organizational risk, fair process, and
management risk are all addressed as newstrategies.
Chapter 9: Discusses the dynamic aspects of blue
ocean strategy- the issues of sustainability and
renewal.
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Chapter 7Tipping point leadership & conventional wisdom
Conventional wisdom asserts that the greater the
change, the greater the resources and time you will
need to bring about results.
Transforming the extremes will transform the masses.
Leveraging tipping point leadership.
Focus on acts of disproportionate influence.
Align employees actions with the new strategy.
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Overcome Key Organizational
Hurdles
Cognitive Hurdles
Resource Hurdles
Motivational Hurdles
Political Hurdles
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Overcome Key Organizational
Hurdles
Cognitive Hurdles
Ride the Electric Sewer
Meet with Disgruntled Customers
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Overcome Key Organizational
Hurdles
Resource Hurdles
Redistribute resources to your hot spots
Redirect resources from your cold spots
Engage in horse trading
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Chapter 8Fair process and blue ocean strategy
Commitment, trust, and voluntary cooperation are not
merely attitudes or behaviors; they are intangible
capital
Trust brings heightened confidence in one anothersintentions and actions
Commitment enables people to override personal self-
interest in the interest of the company
Align employees actions with the new strategy.
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Overcome Key Organizational
Hurdles
Motivational Hurdles
Zoom in on Kingpins (key influencers)
Place kingpins on a fishbowl
Atomize to get the organization to change itself
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Kingpins
Kingpins: key influencers who are natural leaders;
well respected and persuasive, have an ability to
unlock or
block access to key resources.
When you hit them straight on, all the other comedown.
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Kingpin StrategyPlace Kingpins in a Fishbowl based on transparency,
inclusion, and fair process. An intense performance
culture is created in weeks.
Fair process means engaging all the affected peoplein the process, explaining to them the basis of
decisions and the reasons people will be promoted or
sidestepped in the future, and setting clear
expectations of what that means to employeesperformance.
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Political Hurdles
To knock down the political hurdles, you should also
ask yourself 2 sets of questions:
Who are my devils? Who will fight me? Who will lose
the most
Who are my angels? Who will naturally align with me?
Who will gain the most by the strategic shift?
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Overcome Key Organizational
Hurdles
Political Hurdles
Secure a consigliere on your top management team
Leverage your angels and silence your devils
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Strategy Formulation ProcessFair ProcessEngagement,
Explanation, Expectation clarity
Build Execution Into Strategy
Fair Process of Strategy
AttitudesTrust and CommitmentI feel my opinion counts
Behavior Voluntary CooperationIll go beyond the call of
duty
Strategy ExecutionExceeds Expectationself initiated
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Chapter 8Fair process and blue ocean strategy
Commitment, trust, and voluntary cooperation are not
merely attitudes or behaviors; they are intangible
capital
Trust brings heightened confidence in one anothers
intentions/ actions
Commitment enables people to override personal self-interest Goal: How to create trust, voluntary
cooperation, and commitment deep within the
organization
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