Project Scope

Project Scope Objectives {1 of 3}

Step 1
1. Initial objective
(brand analysis, new
brand, rebranding,
advertising)?

2. Resources
available (time,
people, money)?

3. Maneuverability
(what can and
cannot be changed)?

4. Implementation
(who will and how
will the plan be
implemented)?
 Project Scope
Project Scope Objectives {2 of 3}
Step 2
5. Possible to have See Fair Process (Blue Ocean Strategy)
fair process to build
execution into
strategy?

6. Finalize project
scope with buy-in,
create statement of
objectives

7. Choose the brand

analysis tools;
provide rationale
8. Set up critical
chain timeline and
assign resources
9. Perform post-
mortem on Project
Scope Stage
 Project Scope
Project Scope Objectives {3 of 3}
Step 3
10. Execute analysis
methods as per
project plan

11. Provide input into

methods use for
ongoing improvement

12. Assess and

evaluate plan as each
method provides input
 Visual Awakening (1 of 4)
• Draw strategy canvas for industry or competitors
and self
• Determine which elements of the offering are of
value and rank-order them
– Can ask customers about these as well as industry
insiders
• Analyze by viewing through
– Four Actions framework
– Value Curve goals
– Value Curve litmus test
 Strategy Map
• Excel template
 Visual Exploration (2 of 4)
• Go into the field to explore the 6 paths
– Industry
– Strategic group
– Buyer group
– Scope of product or service offering
– Functional-emotional orientation
– Time
• Observe the distinctive advatages of alternative
products and services
• See which factors you should elminate, create,
or change (the four actions framework)
 Visual Exploration (2 of 4)
Industry Look across
alternative industries,
break out of own

Strategic Look across strategic

group groups within industry,
break out of groups

Buyer Redefines industry

group buyer group, who is
the buyer

Offering Looks across

scope complementary
offerings

Functional- Rethink functional-

emotional emotional orientation
of industry

Time Participates in
shaping external
trends over time
 Four Actions Framework
Reduce •
Which factors should be •
reduced well below •
industry’s standard? •
Eliminate •
Which factors the •
industry takes for granted •
should be eliminated? •
Create •
Which factors should be •
created that the industry •
has never offered? •
Raise •
Which factors should be •
raised well above the •
industry’s standard? •
 Value Curve Goals
No overdelivery without payback •
High levels across all factors should result in •
high profits, otherwise offering too much. •
Which factors to eliminate and reduce? •
Need coherences to the strategy •
Value curve needs to collectively make sense •
and not simply have a lot of disparate highs •
and lows. Functional silos must be bridged. •
Eliminate strategic contradictions •
Sometimes a high factor requires another •
high factor to make good on promise. Does •
each factor have the support it needs? •
Label factors in customers terms •
Insider jargon does not work, but instead •
need outside-in perspective, driven by actual •
demand (and in customers’ terms) •
 Initial Litmus Test for Value Curve
• Focus
– Focus drives cost factors down
– Lack of focus indicates complex business plan
• Divergence
– Value curve diverges from industry standards
– Strategy must deviate from me-too-ism
– Need to stand apart in the marketplace
• Compelling tag line
– Without, it is a sign of innovation for own sake
 Visual Strategy Fair (3 of 4)

• Draw your “to be” strategy canvas based

on insights from field observations
• Get feedback on alternative strategy
canvases from customers, competitors’
customers, and noncustomers
• Use feedback to build the best “to be”
future strategy
 Visual Strategy Fair Feedback
• Feedback form
 Visual Communication (4 of 4)
• Distribute before-and-after strategic
profiles on one page for easy comparison
• Support only those projects and
operational moves that allow your
company to close the gaps to actualize the
new strategy
 Project Evaluation Support Form
• Form including projects, evaluation of
those projects in terms of moving the
strategy forward (closing gap between
current and future value curve)
• Go or no go on projects based on
evaluation
• (Note: not needed for our class project)
 Blue Ocean Strategy Sequence

Buyer Utility Price Cost Adoption

Is there Is your price Can you attain What are the

exceptional easily accessible your cost target adoption
buyer utility in to the mass of to profit at your hurdles?
your business? buyers? strategic price?
 Buyer Experience Grid
• Create form based on previous slide
 Location of biggest blocks to
customer utility
• Create form based on previous slide
 Buyer Utility - Purchasing
Customer How productive is the
Productivity customer in this stage?
How moreso can it be?

Simplicity How simple is this

stage? Can it be made
simpler?

Convenience How convenient is this

stage? Can it be made
moreso?

Risk How much risk is there

involved in this stage?
Can risk be reduced?

Fun & Image How fun and what level

of positive image at this
stage? More fun now!

Environmental How environmentally

Friendliness friendly is this stage?
Make it more green.

purchase delivery use supplements maintenance disposal

 Buyer Utility - Delivery
Customer How productive is the
Productivity customer in this stage?
How moreso can it be?

Simplicity How simple is this

stage? Can it be made
simpler?

Convenience How convenient is this

stage? Can it be made
moreso?

Risk How much risk is there

involved in this stage?
Can risk be reduced?

Fun & Image How fun and what level

of positive image at this
stage? More fun now!

Environmental How environmentally

Friendliness friendly is this stage?
Make it more green.

purchase delivery use supplements maintenance disposal

 Buyer Utility - Use
Customer How productive is the
Productivity customer in this stage?
How moreso can it be?

Simplicity How simple is this

stage? Can it be made
simpler?

Convenience How convenient is this

stage? Can it be made
moreso?

Risk How much risk is there

involved in this stage?
Can risk be reduced?

Fun & Image How fun and what level

of positive image at this
stage? More fun now!

Environmental How environmentally

Friendliness friendly is this stage?
Make it more green.

purchase delivery use supplements maintenance disposal

 Buyer Utility - Supplements
Customer How productive is the
Productivity customer in this stage?
How moreso can it be?

Simplicity How simple is this

stage? Can it be made
simpler?

Convenience How convenient is this

stage? Can it be made
moreso?

Risk How much risk is there

involved in this stage?
Can risk be reduced?

Fun & Image How fun and what level

of positive image at this
stage? More fun now!

Environmental How environmentally

Friendliness friendly is this stage?
Make it more green.

purchase delivery use supplements maintenance disposal

 Buyer Utility - Maintenance
Customer How productive is the
Productivity customer in this stage?
How moreso can it be?

Simplicity How simple is this

stage? Can it be made
simpler?

Convenience How convenient is this

stage? Can it be made
moreso?

Risk How much risk is there

involved in this stage?
Can risk be reduced?

Fun & Image How fun and what level

of positive image at this
stage? More fun now!

Environmental How environmentally

Friendliness friendly is this stage?
Make it more green.

purchase delivery use supplements maintenance disposal

 Buyer Utility - Disposal
Customer How productive is the
Productivity customer in this stage?
How moreso can it be?

Simplicity How simple is this

stage? Can it be made
simpler?

Convenience How convenient is this

stage? Can it be made
moreso?

Risk How much risk is there

involved in this stage?
Can risk be reduced?

Fun & Image How fun and what level

of positive image at this
stage? More fun now!

Environmental How environmentally

Friendliness friendly is this stage?
Make it more green.

purchase delivery use supplements maintenance disposal

 Price Corridor of the Mass
• First form
– Product/service types
– Plot across actual dollar amounts
– Using bar graphs or other types
• Second form
– Levels of protection
– Simple table
 Profit Model
• Excel spreadsheet
– Strategic price
– Minus target profit
– Equals target cost

– Partnering
– Plus pricing innovation
– Equals target cost
 Overcome Organizational Hurdles
Cognitive Resource Motivational Political
Hurdle Hurdle Hurdle Hurdle

An organization Limited Unmotivated Opposition from

wedded to the resources staff powerful vested
status quo interests

• Ride the “electric sewer”

• Meet with disgruntled customers
• Free up resources from cold spots
• Multiply value of resources
• Move resources to hot spots
• Horse trade for resources

• Place kingpins in a fishbowl

• Make fair process pervasive
• Atomization of the larger goal

• Secure consigliere
• Activate angels
• Isolate devils
 Organizational Hurdles Forms
• Create forms
– Cognitive hurdles
– Resource hurdles
– Motivational hurdles
– Poltical hurdles
 Method
Fair Process Method (Description)
Fair Process
(Blue Ocean Strategy) {1 of 2}
Overview Fair process of engagement, explanation, and expectation of
clarity engenders trust and commitment, producing voluntary
cooperation, and enabling superior execution.
Engagement “Involve individuals in the strategic decisions that affect them
by asking for their input and allowing them to refute the
merits of one another’s ideas and assumptions.” (p.175)
Explanation “Everyone involved and affected should understand why final
strategic decisions are made as they are. An explanation of
the thinking that underlies decisions makes people
confident…. And serves as a powerful feedback.” (p.175-6)
Expectation of “After a strategy is set, managers state clearly the new rules
clarity of the game…. Employees should know up front what
standards they will be judged by and the penalties for failure.
What are the goals of the new strategy? What are the new
targets and milestones? Who is responsible for what? To
achieve fair process, it matters less what the new goals,
expectations, and responsibilities are and more that they are
clearly understood.” (p.176)
 Method
Fair Process Method (Form)
Fair Process
(Blue Ocean Strategy) {2 of 2}
1. Communicate the Has an overview of the
fair process so that process been provided and
all understand (3E) that process deemed fair?

2. Set up Can everyone make

mechanisms and meetings? Have meetings
timelines for been given enough time?
individual input Has importance been
clearly communicated?
3. Create process Are the meetings
so that decisions structured for clear flow of
are understood information? Are there
mechanisms for additional
wiki/faq/forums?
4. Set eval criteria, What are the goals of the
responsibilities, new strategy? What are
and achievement the new targets and
targets milestones? Who is
responsible for what?
 Fair Process
Engagement Explanation Expectation of clarity

“Involve individuals in the “Everyone involved and “After a strategy is set,

strategic decisions that affected should managers state clearly
affect them by asking for understand why final the new rules of the
their input and allowing strategic decisions are game…. Employees
them to refute the merits made as they are. An should know up front
of one another’s ideas explanation of the what standards they will
and assumptions.” thinking that underlies be judged by and the
(p.175) decisions makes people penalties for failure… To
confident…. And serves achieve fair process, it
as a powerful feedback.” matters less what the
(p.175-6) new goals, expectations,
and responsibilities are
and more that they are
clearly understood.”
• What are the goals of the new strategy?
(p.176)
• What are the new targets and milestones?
• Who is responsible for what?
 Creating Competitive Advantage

• Sustainable Competitive Advantage (SCA)

– Erect barriers to entry
– Discourage new entrants, especially imitators
• Blue Oceans may have natural barriers
– Competitor brand image may conflict with blue ocean
– Blue ocean may not fit conventional industry logic
– Blue oceans require cultural, operational, political change
• Barriers created by Blue Ocean Strategy
– High degree of loyalty
– High volume may lead to rapid cost advantages
• Other sources
– Natural monopolies (one player in a specific market)
– Legal via patents or contracts