Focus on The Big Picture, Not The NumbersBlue Ocean Strategy – Ch. 4 Kelsey Combest Katie Ficken Ryan Lacy
Chapter Focus • How to align strategic planning process to focus on the big picture in order to arrive at a blue ocean strategy. blueoceanstrategy.com
The Typical Strategic Planning Process • Followed by numerous goals and initiatives • Full budget with graphs and spreadsheets (large amounts of data) • Starts with lengthy description of industry and competitive situation • Increase market share, capture new segments, cut costs www.cyclelicio.us
Strategy Canvas • Shows a strategic profile of an industry by depicting the factors that affect competition • Shows the strategic profile of current and potential competitors by identifying which factors they invest in strategically • Shows the company’s strategic profile (value curve), depicting how it invests in the factors of competition now and in the future
European Financial Services (EFS) • Visual Awakening • 2 Teams: Value curve production and emerging online foreign exchange business • Pictures revealed defects in the company strategy • Curves were similar to competitors • Visual Exploration • Sent mgrs into field for four weeks to interview • Propose a new strategy, new value curve, and a compelling tagline.
European Financial Services (EFS) • Visual Strategy Fair • Presented strategy canvases to senior executives and other representatives. • Visual Communication • Distributed a one-page picture showing new and old profiles. • All investment decisions had to fit this picture
Visualizing Strategy at a Corporate Level • When business units present their strategy canvases to one another, they deepen their understanding of the other businesses and the corporate portfolio.
Pioneer-Migrator-Settler (PMS) Map • Helps visualize, plan, and predict a company’s future growth and profit. • Pioneers • Migrators • Settlers my-ticketstation.com
Takeaways • Create a strategy canvas to focus on the big picture and formulate your own blue ocean strategy. • Strategic planning should be more about collective wisdom building than top-down or bottom-up planning. mccallum.com.au
References • Kim, W. Chan., and RenéeMauborgne. Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston, MA: Harvard Business School, 2005. Print. p. 82-99. • http://uxplanner.com/strategy-and-value-curve-for-the-ipad