Team 1: Alec Wegmann, Mark Beal, Adrienne Collins,
Jessica Drummond, Mike Sanchez, Spencer Thomas
Mario Santos, & Chad Hensley
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Lengthy industry analysis
Tactics to increase market shares, capture
new segments, and cut costs
A full budget it almost invariably attached
Produced by people in various parts of the
company, often with conflicting agendas.
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Often these plans do not contain strategy at
all
Rather a compilation of tactics that
individually make sense, but collectively do
not add up to a clear unified direction.
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another way to define strategy
focuses on creating a set of measurements for 4
strategic perspectives
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conceptually unclear model with too many
details
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By drawing an effective strategy canvas, a
company and it’s managers can focus on the
big picture rather than emersion in numbers,
jargon, and operational details.
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First, it shows the strategic profile of the
industry
Second, it shows the strategic profile of
current and potential competitors.
Finally, it shows the company’s strategic
profile, or value curve.
As stated before in Chp. 2, a Strategic Profile
needs to have focus, divergence, and a
compelling tagline.
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Maps out what will separate you from your
competition
Red Ocean strategy→Blue Ocean strategy
requires a strong leader or a crisis.
Four steps to complete the Strategy Canvas.
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Find out what the current positioning of the
strategy is.
EFS (European Financial Services) suffered
from ill-defined strategy.
ISQS 3344 (Flamm)
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EFS’s Problem=No Defined Strategy
◦ Management from Europe, North America, Asia, and
Oceania convened and could not agree on its
competitive advantage
◦ It was the belief that regions and demographics
contributed to different strategies
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Contradictions in competitive strategies
◦ Website advanced but slow
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Comparison with Clearskies
◦ Focused, original strategy
◦ Moving away from red ocean
◦ Strategy canvas very different from competitors and
EFS (evidence of a blue ocean)
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A team needs to be sent into the field,
putting managers face-to-face with what
they must make sense of: how people use or
don’t use their products or services.
A company should never outsource its eyes.
There is simply no substitute for seeing for
yourself.
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He is hailed as a
business visionary for
his realization that the
providers of financial
information also
needed to provide
online analytics to help
users make sense of
the data.
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Using business intelligence software called
WebFOCUS from Information Builders, Brinker
restaurants can calculate sales by shift and by
restaurant to determine optimal labor costs.
From there, managers can decide how many
employees are needed at any given site and
time, and adjust workforce levels accordingly,
on a day-by-day basis, to reflect demand.
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The managers were sent into the field for 4
weeks to explore the 6 paths to creating blue
oceans.
Each manager was to interview and observe
10 people involved in corporate foreign
exchange.
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The managers concluded that customers
valued speedy confirmation of transactions
most.
◦ Not account relationship managers, like the
managers first hypothesized.
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Then each team had to propose a new
strategy with 6 new value curves.
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could be helpful in brainstorming new ideas
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Part a: Teams present their newly redrawn
strategy canvases
◦ draw your canvas based on insights from field
observations
◦ show new ideas to a variety of people
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Ex: EFS teams presented their new canvases
to noncustomers, customers of competitors,
and current customers, and corporate
executives.
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Part b: Get feedback on alternative strategy
canvases from customers, competitor’s
customers, and noncustomers
get invitees to explain what they like and
dislike about the different value curve
proposals
Ex: Teams presented their curves, judges
picked their favorites and gave feedback
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Part c: After collecting feedback, determine
the optimal new strategy
◦ should be based criteria you have found that will
create a successful strategy
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Ex: following the strategy fair, the teams were
able to come up with a final value curve that
reduced costs, focused on factors important
to the customer, and had a compelling
tagline
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After future strategy is set, the last step is
to communicate it in a way that can easily
be understood by any employee
A visual layout helps show where the
company currently stands and which areas
it may need improvement in
Eliminate
Relationship
management
Reduce
Account executives
Corporate dealers
Raise
Ease of use
Market
Commentary
Security
Accuracy
Speed
Create
Confirmation
Tracking
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A visual strategy creates more cohesion
among the business and its entities.
◦ Easier communication
◦ Uniformed business
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Value Innovation Program Center
◦ Development Teams of various business units
◦ 40 inch LCD TV
◦ SGH T-100
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Pioneers (Blue Ocean)
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Settlers (Red Ocean)
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Migrators
◦ Offers unprecedented value
◦ Value curve diverges from competition
◦ Most powerful source of profitability growth
◦ “Me too” businesses
◦ Value curve similar to the industry norm
◦ Not a big contributor to future growth
◦ In between the two
◦ Extends value curve
◦ Offer improved value, not innovative value
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Plot current & planned portfolio’s on a PMS
map
Valuable exercise in visualizing future
performance
Portfolio consisting mainly of settlers
◦ Low growth trajectory
◦ Conformed to benchmarking, imitating, and price
competition
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Portfolio with a lot of migrators
◦ Not exploiting growth potential
◦ Are marginalized by value-innovating company’s
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Shift the balance of future portfolio’s
◦ Towards pioneers
◦ Path to profitable growth
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Balance the portfolio of businesses
◦ Between profitable growth & cash flow
◦ Settlers
 Frequently today’s cash generators (Provides liquidity)
◦ Pioneers
 Large growth potential (Investment with high return)
 Require cash at outset
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Strategic planning should be more about
collective wisdom building than top-down or
bottom-up planning
Building the big picture is more important
than number crunching exercises
A creative element is necessary, along with
motivational techniques to invoke willing
commitment, rather than bargaining to
produce negotiated commitment
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Building the process around a picture address
many of managers’ discontents with existing
strategic planning and yields much better
results
“The soul never thinks without an image”
Aristotle
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Focusing on the big picture
◦ -Visualizing a company’s current strategic position
and charting its future strategy
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Drawing your strategy canvas
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1.
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Realizing Current Strategy
Visual Exploration
Visual Strategy Fair
Visual Communication
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Visualizing Strategy at the Corporate Level
◦ Using the Strategy Canvas
◦ Using the PMS Map
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Overcoming the Limitations of Strategic
Planning