Blue Ocean Strategy Ch 8 Build Execution into

Blue Ocean Strategy Ch. 8 – Build Execution into Strategy Paige Adams, Laura Freeman, Hayley Jacobs, Dan Lawson, Gage Mitchell, Haley Smith

6 th Principle of Blue Ocean Strategy • Build execution into strategy from the start: • Minimize risk – Distrust – Noncooperation – Sabotage Trust + Commitment + Voluntary Cooperation

Poor Process • Can ruin strategy execution • Lubber example – Doomed strategy • Current event example: Advising at Texas Tech

What is a Fair Process? • Based on theory of procedural justice – “Established that people care as much about the justice of the process through which an outcome is produced as they do about the outcome itself. ” • Implementing a new strategy which inspires employees to cooperate voluntarily and go beyond the call of duty by engaging, explaining and clarifying expectations.

The Three E Principles • Engagement: Involvement in all sectors • Explanation: What we are doing and why • Expectation Clarity: Detailing expected outcomes

Nike’s Use of the Three E Principles • Before: same training at all factories • Now: each factory manager dictates training – Weekly meetings • Engagement: all employees attend and contribute • Explanation: what the goal for the week is and how to achieve it • Expectation Clarity: How a certain goal achieves overall efficiency

Make it… • Intellectual and emotional recognition is: – Respect – Dignity – Appreciation • This leads to…. – – Employee input Sharing of knowledge and ideas Greater motivation Voluntary cooperation

…Or break it. • Violation of fair process – Failure to recognize individuals’ intellectual and emotional worth • “You don’t value my ideas. So I don’t value your ideas, nor do I trust in or care about the strategic decisions you’ve reached. ” • Drag feet and apply counter-efforts

Fair Process and Blue Ocean Strategy • Commitment, trust, and voluntary cooperation = Intangible Capital!!! • Lack of this capital contributes to failure of execution of BOS “This capital allows companies to stand apart in the speed, quality, and consistency of their execution and to implement strategic shifts fast at low cost. ”