Blue Ocean Strategy: Create Uncontested Market Space

Blue Ocean Strategy: Create Uncontested Market Space

The MGRUSH technique encourages different approaches based on whether your project is seeking incremental gain or requires real breakthroughs. Blue Ocean Strategy promotes breakthrough thinking, justified by the higher profits such thinking generates among companies studied by its authors, Kim and Mauborgne.[1]

Blue Ocean Strategy

Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne

The authors note the failures of companies over the past fifteen to twenty years—since the publishing of In Search of Excellence and Built to Last—including Atari, Data General, Fluor, and National Semiconductor. Therefore, the cornerstone of Blue Ocean Strategy is value innovation, defined as “the integrated and simultaneous pursuit of differentiation (i.e., buyer value) AND low-cost (i.e., supplier value).”

Their analytical toolset begins with a strategy canvas that identifies the principle of competitive and investment factors within your industry. With wine as an example (in brief), they might include price, distinction, marketing, aging, vineyard, complexity, and range. Their framework (called Four Actions) relies on facilitating consensual agreement around four questions. Participants’ answers suggest a new value curve that might enable your company to shift from traditional industry factors to uncontested market space. The four questions are:
1. ELIMINATE––Which factors that the industry takes for granted should be eliminated?
2. RAISE––Which factors should be raised well above the industry’s standard?
3. CREATE––Which factors should be created that the industry has never offered?
4. REDUCE––Which factors should be reduced well below the industry’s standard?

Illustrating Blue Ocean Strategy Four Actions Using Cirque du Soleil

For example, they suggest the success of Cirque du Soleil (compared to a traditional circus) accelerated with the following insights:
1. ELIMINATE––Star performers, animal shows, etc.
2. RAISE––Unique venue, type of concession sales, etc.
3. CREATE––Theme, artistic music, and dance, etc.
4. REDUCE––Multiple show arenas, thrill, and danger, etc.

Using the strategy canvas of Southwest Airlines they emphasized the factors of friendly service, speed, and frequent point-to-point departures. Both Cirque du Soleil and Southwest Airlines provide shared focus, divergence, and a compelling tagline. Overall, the authors’ steps for visualizing strategy draw upon group discussions and consensus—aka, excellent facilitation. They also suggest the use of a Pioneer-Migrator-Settler perceptual map that would seem to offer far less benefit than seeking consensus with answers to the Four Actions above.

Blue Ocean Strategy offers additional and valuable questions[2] that challenge each of the life-cycle steps (e.g., MGRUSH’s Plan-Acquire-Operate-Control). These questions seek to identify the biggest blocks faced by value drivers such as productivity, simplicity, convenience, risk, fun/ image, and environmental friendliness.

Blue Ocean Strategy Organizational Hurdles

The authors finish their discussion with four “organizational hurdles” including politics, motivation, resources, and groupthink (i.e., “cognitive”). However, like many academics, they complete their otherwise valuable book by discussing the importance of converting the strategy into execution—missing the importance and significance of building consensual analysis to pave the way. They jump from the WHY to the HOW without a complete understanding of WHAT is required—i.e., the consensual aspects that assure buy-in, confidence, and ownership. They talk about the importance of attitude and behavior but offer little insight into how to acquire a “fair process,”—something that MGRUSH alumni do regularly by building consensus around the analysis framework.

[1] See chart on page 7, “The Profit and Growth Consequences of Creating Blue Oceans.”
[2] See chart on page 123, “The Buyer Experience Cycle.”

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Don’t ruin your career by hosting bad meetings. Sign up for a workshop or send this to someone who should. MGRUSH workshops focus on meeting design and practice. Each person practices tools, methods, and activities every day during the week. Therefore, while some call this immersion, we call it the road to building high-value facilitation skills.

“‘The Strategy’ vs. ‘Strategies’ and ‘Strategic Plans’: A Comparative Analysis”

“‘The Strategy’ vs. ‘Strategies’ and ‘Strategic Plans’: A Comparative Analysis”

“The term ‘strategy,’ much like ‘quality,’ is often overused and should be applied with precision. ‘The strategy’ should only be used unambiguously when it reflects a clearly defined and singular perspective.”

Strategy

The Strategy

It’s important to carefully differentiate between the terms “the strategy,” “a strategy” (or “the strategies”), and “a strategic plan.” For a facilitator attuned to rhetorical precision, each of these terms carries distinct meanings. However, many people tend to use them interchangeably, often leading to confusion.

So, what distinguishes a strategic plan from a department plan, a product vision, a project plan, or a team plan? The primary difference lies in their scope. At its core, a “plan” can be succinctly defined with three words (or preferably five): “who does what” (by when). These components of every plan apply throughout every level of an organization (see Holarchy).

When planning, every group and individual need answers to the questions explained in our “Strategic Planning Agenda.”

  • Mission (why are we here?)
  • Values (who are we?)
  • Vision (where are we going? how do we know if we get there or not?)
  • Success Measures (what are our measurements of progress?)
  • Current Situation (where are we now?)
  • Actions (what should we do?—from strategy through tasks)
  • Alignment (is this the right stuff to do?)
  • Roles and Responsibilities (who does what, by when?)
  • Communications Plan (what should we tell our stakeholders?)

The term “strategy” within an organization or division often refers to a set of initiatives, typically organized as either a program or a portfolio. These initiatives consist of approved projects that receive investment funds and help further define the overarching goals. The program’s “strategy” is shaped by the quantity and type of projects within the portfolio. At the project level, “strategies” focus on the specific tactics needed to ensure the project’s success. Meanwhile, the team’s “strategy” involves the tasks and operations necessary to implement the project and support its ongoing operation and improvement.

The meaning of “strategy” is highly dependent on the perspective it serves. Referring to “the strategy” without clarifying its context provides only a partial understanding. To gain deeper insight into operational differences and to facilitate better alignment, consider the organizational holarchy and how each level contributes to the overall strategic framework.

Organizational Holarchy of Alignment

Holarchy of Who Does What

Prevent Scope Creep During Meetings

Alternative (upside down) View of the Holarchy (shared purpose, scope, and objectives)

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Don’t ruin your career by hosting bad meetings. Sign up for a workshop or send this to someone who should. MGRUSH workshops focus on meeting design and practice. Each person practices tools and methods daily during the week. While some call this immersion, we call it the road that yields high-value facilitation skills.

Go to the Facilitation Training Store to access proven, in-house resources, including full agendas, break timers, forms, and templates. Also, take a moment to SHARE this article with others.

To Help You Unlock Your Facilitation Potential: Experience Results-Driven Training for Maximum Impact    

#facilitationtraining #meeting design

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Facilius Reddo: Simplifying the Path to Success

Facilius Reddo: Simplifying the Path to Success

With this initial blog, we have launched compelling content about the dynamic role of a facilitator in the interactive world of instant communications. This Best Practices site anchors feeds to Google+, Linked-In, Reddit, Twitter, and hundreds of other sites for seekers of improved servant leadership skills — to make easy.

 

 

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facilius reddo — The Modern/ Facilitative Leadership Style to Make Easy

Facilius Reddo: Embracing the Modern Facilitative Leadership Style

The term “facilitaera” first appeared in France in 1611, during the Renaissance, originating from the Latin phrase facilius reddo, which means “easily accomplished” or “attained.” At its core, “facil” translates to “make easy.”

To Make Easy Using Dynamic Content: The Evolving Role of Facilitators in an Age of Instant Communication

We aim to make it easier for you to make it easier for others to explain issues and positions, create and understand options, and make more informed decisions. Our goal supports your facilitative efforts to simplify complex processes, empowering you to make it easier for others to articulate issues, explore and understand options, and make informed decisions.

Purpose: To Make It Easy

At MGRUSH we define “consensus” as a situation where everyone can support the outcome without losing sleep over it. Our mission is to equip you with the tools and techniques to help others achieve true consensus—not by taking the easy way out, but by fostering creativity, innovation, and overcoming barriers like miscommunication, politics, and perceived intolerance.

Your role and attitude are critical. By engaging with this Best Practices series, you’ll cultivate an attitude of continuous learning and improvement. In this millennium, learning and listening have emerged as the most effective attitudes for facilitators. We invite your comments, feedback, and challenges, and encourage you to share this content with session leaders—even those who aren’t MGRUSH-certified facilitators.

Upcoming Topics

In other articles, you can look forward to exploring topics such as: