rory_blue oceans part two

8/14/2019 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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Hurdles

Cognitive Hurdles

Ride the Electric Sewer

Meet with Disgruntled Customers


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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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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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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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rory_blue oceans part two

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