Chase Ward
Zach Hancher
Nathan Leclear
Sarita Fields
Cameron Coffey
Paul Boeker
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“To build people’s trust and commitment
deep in the ranks and inspire their voluntary
cooperation, companies need to build
execution into strategy from the start.”
◦ Attitudes and Behavior
◦ Must appeal to employees “Hearts and Minds” for
strategy to hold.
◦ Risk: Distrust, Noncooperation, Sabotage
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Main idea:
◦ Management must include employees in execution
from the start and allowing them to help
(create/build) the strategy so they will follow it with
their “Hearts & Minds”.
◦ What Fair Process is and its importance.
◦ The Effects of Poor Process.
◦ Incorporating it into Blue Oceans Strategy.
Increase in Customer Value
Decrease in
Complexity Decrease in Cost
Employee
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How does implementing fair process allow for
building execution into strategy?
Based on the principles of procedural justice
as explored in psychology.
◦ Term that explains the phenomenon where the
strict adherence to an outcome determining system
is considered equally as important as the quality of
the ruling reached through said system. Satisfaction
and commitment to the ruling increases when
procedural justice was followed.

Creates confidence and builds people’s trust.
Which principles provide for this?
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These elements must be present for fair process to
emerge. Any combination not including all three is
insufficient.
Engagement- Involving low level employees in the
strategic development process. Allows for the
refinement of strategies and invests the strategy
executors into the strategy itself.
Explanation- Explaining why certain strategic
decisions were made to those involved. Creates
confidence in the strategy by increasing people’s
understanding of it and builds trust in management.
Expectation (clarity)- Setting clear objectives and
milestones, as well as creating a system of evaluation
for strategy executors. The clarity of the objectives
here is more important than their subjective fairness.
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In the late 1980s, sales in the elevator industry
declined.
Elco set out to offer buyers a leap in value while
lowering its
In its quest to create and execute a blue ocean
strategy, the company realized that it needed to
replace its batch-manufacturing system with a
cellular approach that would allow self-directed
teams to achieve superior performance.
1.
2.
It would first install the new system at Elco’s
Chester plant.
Elco would roll out the process to its plant in
High Park, where a strong union was
expected to resist that, or any other, change.

The introduction of the new manufacturing
process at the Chester plant quickly led to
disorder and rebellion.

Within few months, both cost and quality
performance were in free fall.

The new cell design offered tremendous benefits
to employees.
◦ Yet employees could see only its negative side.
◦ began taking out their fear and anger on one another
◦ Fights erupted on the plant floor as employees refused
to help Managers.
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High Park plant abided by all three principles of
fair process when introducing the strategic shift.
Managers concluded that the change to cellular
manufacturing had been a necessary, worthwhile,
and positive experience.
By violating fair process in making and rolling out
strategies, managers can turn their best employees into
their worst, earning their distrust of and resistance to the
very strategy they depend on them to execute.
-It all comes down to Intellectual and
Emotional recognition
-Recognizing individuals ideas that are sought
after and given thoughtful reflection.
-When individuals feel recognized for their
intellectual worth, they are willing to share
their knowledge.
-Treating individuals with full respect and
dignity and appreciating them for their work
-When individuals are treated with emotional
recognition they feel emotionally tied to the
strategy and inspired to give their all.
-If individuals are NOT treated as though their
knowledge is value, they will feel intellectual
indignation and will NOT share their ideas and
expertise.
-They will reject others intellectual worth and work
as well.
-If emotional worth is not recognized will feel angry
and not invest their energy into their actions.
-They will drag their feet and apply counter-efforts,
like sabotage, as in Elco’s Chesters plant.

Blue Ocean Strategy
◦ Commitment, Trust, and Voluntary cooperation
 Why companies have been successful in Blue ocean
industries and why companies have failed

Fair Process
◦ How do we create Commitment, trust and voluntary
cooperation?
◦ People tend to be committed to the strategy even
when the outcome is not certain