Business Strategy
Managing Change Fall 2014 Session 6: Review of Concepts & Blue Ocean Leadership
Bruce F. McKinnon
Change is difficult
8/15/2014
Bruce F. McKinnon
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Analytical view of Organizations
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Bruce F. McKinnon
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Informal view of Organizations
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Bruce F. McKinnon
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Imitation, Incremental, Radical Innovation
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Bruce F. McKinnon
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Different personalities
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7 Stages of Change denial
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Blue Ocean Strategy – Make competition irrelevant
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Blue Ocean – Tipping Point Leadership
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Blue Ocean – Tipping point Leadership for Change
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Conventional theory of organizational change rests on transforming the mass.
Change efforts are focused on moving the mass, requiring steep resources and long time frames — luxuries few executives can afford.
Tipping point leadership, by contrast, takes a reverse course. To change the mass it focuses on transforming the extremes: the people, acts, and activities that exercise a disproportionate influence on performance. By transforming the extremes, tipping point leaders are able to change the core fast and at low cost to execute their new strategy.
By single-mindedly focusing on points of disproportionate influence, tipping point leadership helps managers topple the 4 Hurdles to Execution quickly and at a low cost by answering the following questions:
What factors or acts exercise a disproportionately positive influence on breaking the status quo?
On getting the maximum bang out of each buck of resources?
On motivating key players to aggressively move forward with change?
On knocking down political roadblocks that often trip up even the best strategies?
Blue Ocean – Leadership
8/15/2014
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Blue Ocean Leadership
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Bruce F. McKinnon
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Microsoft Office
PowerPoint Presentation
From Blue Ocean Strategy to Blue Ocean
Leadership
Today’s Speaker
Renée Mauborgne, professor of strategy and
management at INSEAD and co-author of Blue Ocean
Strategy and “Blue Ocean Leadership”
JULY 15, 2014
@HBRexchang e | #HBRwebinar
From
Blue Ocean Strategy
to
Blue Ocean Leadership
Renée Mauborgne
Professor of INSEAD
Blue Ocean Strategy
•
Pursues differentiation and low cost to open an ocean of new
market space.
•
Creates new demand by converting noncustomers into
customers.
•
Offers systematic, reproducible, and visual tools and processes
for the effective formulation and execution of blue ocean
strategies.
blueoceanstrategy.com | @blueoceanstrtgy
© Kim & Mauborgne
The
Ocean
of
Untapped
Talent
and
Energy
© Gallup's 2013 State of the Global Workplace report
Country
Engaged
Not engaged
Actively disengaged
United States
30%
52%
18% ‐ costs 1/2 trillion $
Canada
16%
70%
14%
Germany
15%
61%
24%
France
9%
65%
26%
United Kingdom
17%
57%
26%
South Africa
9%
46%
45%
Australia
24%
60%
16%
Russia
19%
63%
19%
Japan
7%
69%
24%
Korea
11%
67%
23%
China
6%
68%
26%
India
9%
60%
31%
Brazil
27%
62%
12%
Worldwide
13%
63%
24%
Control and
TIME AND EFFORT
HIGH
Play
Safe
AVERAGE
AS-IS LEADERSHIP PROFILE:
CONTROL AND PLAY SAFE
LOW
KEY LEADERSHIP ACTIVITIES
blueoceanstrategy.com | @blueoceanstrtgy
© Kim & Mauborgne
As‐Is Leadership Canvas of BRG’s Midlevel Managers
From
“As‐Is”
to
“To‐Be”:
The
Blue
Ocean
Leadership
Grid
blueoceanstrategy.com | @blueoceanstrtgy
© Kim & Mauborgne
ELIMINATE
RAISE
What acts and activities do leaders invest their time and intelligence in that should be eliminated?
What acts and activities do leaders invest their time and intelligence in that should be raised well above their current level?
REDUCE
CREATE
What acts and activities do leaders invest their time and intelligence in that should be reduced well below their current level?
What acts and activities should leaders invest their time an intelligence in that they currently don’t undertake?
Please the
Boss
Cut
Through to Serve
TIME AND EFFORT
HIGH
TO-BE LEADERSHIP PROFILE: CUT
THROUGH TO SERVE CUSTOMERS
AVERAGE
AS-IS LEADERSHIP
PROFILE: PLEASE THE BOSS
LOW
KEY LEADERSHIP ACTIVITIES
blueoceanstrategy.com | @blueoceanstrtgy
© Kim & Mauborgne
ELIMINATE
REDUCE
RAISE
CREATE
The Leadership Canvas of BRG’s Frontline Managers
Control & Play
Safe
Liberate,
Coach & Empower
TIME AND EFFORT
HIGH
TO-BE LEADERSHIP
PROFILE: LIBERATE, COACH AND EMPOWER
AVERAGE
AS-IS LEADERSHIP PROFILE:
CONTROL AND PLAY SAFE
LOW
KEY LEADERSHIP ACTIVITIES
blueoceanstrategy.com | @blueoceanstrtgy
© Kim & Mauborgne
CREATE
RAISE
REDUCE
ELIMINATE
The Leadership Canvas of BRG’s Midlevel Managers
Focus on Day to Day
Delegate & Chart the Company’s Future
TIME AND EFFORT
HIGH
TO-BE
LEADERSHIP PROFILE: DELEGATE AND CHART THE COMPANY’S FUTURE
AVERAGE
AS-IS LEADERSHIP PROFILE:
FOCUS ON THE DAY TO DAY
LOW
KEY LEADERSHIP ACTIVITIES
blueoceanstrategy.com | @blueoceanstrtgy
© Kim & Mauborgne
CREATE
RAISE
REDUCE
ELIMINATE
The Leadership Canvas of BRG’s Senior Managers
Benefits of Blue
Ocean Leadership
Qualitative Benefits:
Quantitative Benefits:
•
Leadership and market alignment
Turnover & absenteeism
Recruitment & training costs
•
A sense of freedom and ability to perform
•
Boosted motivation
Customer satisfaction scores
Financial performance
•
Talent Pull
blueoceanstrategy.com | @blueoceanstrtgy
© Kim & Mauborgne
Why Blue Ocean Leadership?
•
Is there a gulf between the potential and the realized talent and
energy of your people at work?
If yes, how big do you imagine the gulf is – 10%, 40%, 70% of talent and energy that’s left unrealized?
How much better would your organization likely perform in terms of productivity, creativity, customer service, and employee happiness if you could close the gap?
Do you know how to close the gap? Do you know how to open up new leadership space to unlock this ocean of unrealized talent and energy that is on your organization’s payroll every day?
•
•
•
blueoceanstrategy.com | @blueoceanstrtgy
© Kim & Mauborgne