The last parts of the Blue Ocean Strategy book is very different from the first parts. The last parts focus much more into practical aspects of making the strategy change happen. For example…
Strategic planning by pinning
- all managers present their unit strategy for 2 minutes
- => if a strategy can not be expressed in 2 minutes it’s too complex
- => a poster is made of each startegy plan
- => all managers have 5 pins
- => managers can put their pins into one or more of the presented strategy plans they find the most compelling
- => The plan with most pins wins (or at least has a good chance for winning)
How to prepare for strategy change resistance
- When you’re changing strategy there will be resistance, anticipate resistance
<=> make all kingpins to EXPERIENCE the maximally harsh reality of your current products offerings
<=> anticipate the key points and tactics your resistance will express
- make sure you have a consigliere (helpful & influencial adviser) at the board who is both respected and who knows
- who will fight you
- who will support you
When you’re changing a strategy
- be fair and open TO ALL involved parties
<=> or the change will paralyse many and make some even to sabotage your efforts
- To change a strategy you’ll need to shift resources from past activities to future activities
<=> Redirecting from cold spots to hot spots and do so horse trading to overcome the Resource Hurdle
- Place Kingpins (key influenciers) in a Fishbowl(on a spotlight one by one) and atomize the change related actions to a level of single individual/unit
When do you need to create a Blue Ocean
For better profits and brand value you should always have a Blue Ocean. Ok, here the authors finally appear bit more relaxed when they admit that having a Red Ocean is very useful too and especially if the money and resources generated from Red Ocean help creating that Blue Ocean. Also the authors assume that your company already has the basic skills for competing in the Red Ocean. Thus, the information in this book is for training your skills for creating that uncontested new markets – a Blue Ocean.
When do you need to create a NEW Blue Ocean
So, lets assume your company created a Blue Ocean with a revolutionary car the Ford Model T. And just recently a Japanese car manufacturer has started to gain market space with its revolutionary car, the Toyota Prius ZVW35.
How do you know if you should seek to change your strategy and start doing something else? The answer can be found from the strategy canvas. Basically you blot all the relevant customer values within car market and evaluate those against your and your competitor’s product. And if the results show your product offer has still some significant advantages over the competitor’s offer, you should NOT change your product offer or your product strategy.
Unfortunately for the Ford Motor Company the Ford Model T has few advantages over Toyota Prius, and Ford should again invent something fantastic and create itself another Blue Ocean.