STRATEGY & Moving To Blue Ocean Strategy: A Five-Step Process To Make The Shift

by Steve Denning, Forbes Magazine, 7/25/17.

In 2005, Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant, a book by Professors W. Chan Kim and Rénee Mauborgne, launched a revolution in business strategy. After all, which firm would not to be operating in “uncontested market space,” where “competition was irrelevant”? Instead of struggling to survive in the bloody shark-infested “Red Oceans” of vicious competition, why not move to the “Blue Oceans” where there was little or no competition?

What inspired the authors was not “dividing up markets or the globe,” but rather organizations and individuals that created “new frontiers of opportunity, growth, and jobs,” where success was not about fighting for a bigger slice of an existing, often shrinking pie, but about “creating a larger economic pie for all.” The book was a publishing sensation. It sold more than 4 million copies and has been translated into 44 different languages.

Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of Blue Ocean strategy. The book, Blue Ocean Shift: Beyond Competing – Proven Steps to Inspire Confidence and Seize New Growth, is published this week by Hachette. It includes the experience of organizations large and small, for profit, nonprofit and governments.

In their work since the launch of their 2005 book, the authors have found three key components in successful Blue Ocean shifts:

• Mindset: The authors found that, as in the world of Agile management, Blue Ocean strategy is fundamentally a shift in mindset. It involves “expanding mental horizons and shifting understanding of where opportunity lies.”

• Tools: Successful implementers of Blue Ocean strategy have used practical tools to systematically “translate blue ocean thinking into commercially compelling new offerings.” Sporadic, one-off “Blue Ocean strategy” is one thing: systematically adopting Blue Ocean thinking is another.

• Human-ness: Successful implementers exemplify “a humanistic process, which inspires people’s confidence to own and drive the process to own and drive the process for effective execution.”

… The Five Step Process

The book offers a five-step process for systematically reproducing such strategic triumphs, and shows how a Blue Ocean initiative can be successfully launched in even the most bureaucratic organization that is trapped in a bloody Red Ocean. The five steps are:

1. Choosing the right place to start and constructing the right Blue Ocean team for the initiative.

2. Getting clear about the current state of play

3. Uncovering the hidden pain points that limit the current size of the industry and discovering an ocean of non-customers.

4. Systematically reconstructing market boundaries and developing alternative Blue Ocean opportunities.

5. Selecting the right Blue Ocean move, conducting rapid market tests, finalizing, and launching the shift.

Though this process, the organization is able to move from the limitations of competing within the existing industry (“settlers”) to migrate towards greater value improvement (“migrators”) and eventually towards creating new value for people who are not already customers (the “pioneers” of marketing-creating innovation.)

Professors Kim & Mauborgne (Hachette)

From settlers and migrators to pioneers: Image from from Blue Ocean Shift by Professors Kim & Mauborgne

The Trap Of Mere Product Improvement

In the process, the book shows how to move beyond the trap of merely focusing on making things better for existing customers. Thus, usually product improvement doesn’t lead to large new markets of those who were formerly non-customers. If it does, that is a happy accident, rather than the main goal. To get more consistent success in generating market-creating innovations, an explicit focus onattracting non-customers is needed. This includes (a) soon-to-be non-customers; (b) refusing non-customers and (c) unexplored non-customers.

Professors Kim & Mauborgne (Hachette)

Categories of non-customers: Image from Blue Ocean Shift by Professors Kim & Mauborgne

Read more at … https://www.forbes.com/sites/stevedenning/2017/09/24/moving-to-blue-ocean-strategy-a-five-step-process-to-make-the-shift/#5d7740327f11

non-churchgoers innovation adapters

STRATEGY & Why churches need blue-ocean strategies

by Bob Whitesel D,Min., Ph.D, , Biblical Leadership Magazine, 9/18/17.

W. Chan Kim and Renee Mauborgne analyzed 150 years of strategic decision-making and concluded that every strategy could be described as either a “red ocean strategy” or a “blue ocean strategy.” A red ocean strategy is where you go after the same people as your competitors and try to meet the same needs that your competitors are meeting. Therefore you fight over the same fish and, as sharks feeding on the same fish, the water becomes red with blood.

preorder-boshift-ebook.jpg

A blue ocean strategy, however, finds new segments of the market that are not having their needs met and begins to meet those needs. Therefore you are not competing with your competitors, but rather you are meeting needs in a segment of the market that the other competitors have overlooked.

This is very important for the church. Most churches typically try to have a better children’s ministry, a more professional worship team or a more visible/attractive facility in hopes of attracting people to the church. Typically this attracts other Christians looking for a better experience.

And, my observation has been that over the past three decades more and more churches have tried to grow by focusing on attracting other Christians rather than meeting the needs of non-churchgoers.

A red ocean vs. blue ocean strategy for the church means reaching non-churchgoers [need-meeting] rather than just reaching church-goers [attraction]. Take a look at this comparison between the two strategies published by Sage Growth Partners.

Here is a helpful comparison:

 For more insights, see W. Chan Kim and Renee Mauborgne’s Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (Boston: Harvard Business Review Books).

Photo source: istock

Read more at … https://www.biblicalleadership.com/blogs/why-churches-need-blue-ocean-rather-than-red-ocean-strategies/

NEED-MEETING & Why You Want a Blue Ocean, Rather Than a Red Ocean Strategy

by Bob Whitesel D.Min., Ph.D., 10/25/17.

W. Chan Kim and Renee Mauborgne analyzed 150 years of strategic decision-making and concluded that every strategy can be described as either a “red ocean strategy” or a “blue ocean strategy.” A red ocean strategy is where you go after the same people as your competitors and try to meet the same needs that your competitors are meeting. Therefore you fight over the same fish and, as sharks feeding on the same fish, the water becomes red with blood.

A blue ocean strategy however finds new segments of the market that are not having their needs met and begin to meet those needs. Therefore you are not competing with your competitors, but rather you are meeting needs in a segment of the market that the other competitors have overlooked.

This is very important for the church. Most churches typically try to have a better children’s ministry, a more professional worship team or a more visible/attractive facility in hopes of attracting people to the church. Typically this attracts other Christians looking for a better experience.

And, over the past three decades more and more churches have tried to grow by focusing on attracting other Christians rather than meeting the needs of non-churchgoers.

Many years ago when the airline industry was suffering from too much competition, many carriers tried to increase their service to their flying customers. They wound up competing with each other and creating a red ocean of blood over the existing flying public. Stalwart and storied carriers such as Northwest Airlines disappeared.

At the same time a young start up company called Southwest Airlines focused on making flights cheaper along with the customer experience better. Their early motto was “everyone flies first class.” The result was meeting the need that a flying public desired of cheaper flights. This meant that they weren’t competing just for an existing market, but they were reaching out to people who typically didn’t fly to a nearby location. Now low cost meant the non-flying would considering a shorter flight.

A red ocean vs. blue ocean strategy for the church means reaching non-churchgoers [need-meeting] rather than church goers [attraction]. Take a look at this comparison between the two strategies published by Sage Growth Partners.

#PowellChurch #DMin #LEAD558 LEAD558

INNOVATION & A Comparison Between Red Ocean Strategy & Blue Ocean Strategy

by Sage Growth Partners, 3/17/09.

Read more at … https://www.slideshare.net/mobile/SageGrowthPartners/blue-ocean-innovation-bli

creativity need-meeting needs safety needs

EVALUATION & Clearing the Universal Fog Over 2 Types of Goals: Tactical & Strategic

by Bob Whitesel D.Min., Ph.D., 12/11.15.

One of the primarily culprits of goals not being met is not having “measureable” goals.  And, there are two types of goals that should be measured.

TACTICAL GOALS:  Tactical goals (such as “start an  ESL program” or “launch a new small group”) are specific tactical (i.e. planning) goals that support “broader” and “wide-ranging” church goals.

STRATEGIC GOALS:  These broader, more wide-ranging church goals are strategic goals, and they could be something like: “to have more congregants involved in Bible study, fellowship opportunities and prayer meetings than last year.”  These goals are strategic goals, and they can be traced back to metrics Luke described in Acts 2:42-47. Though Luke was not saying every church needed to use these metric, he did use them himself to describe for posterity “how” the church grew after Peter’s sermon.  For more on these metrics click here … https://churchhealthwiki.wordpress.com/2014/10/20/church-growth-a-definition-mcgavran-housedividedbook/

DIFFERENCES:  For more on the differences between tactics and strategies see … https://churchhealthwiki.wordpress.com/2015/06/12/measurement-a-reliable-valid-tool-to-measure-church-growthhealth-organixbook/

Leadership Exercise

Here is a leadership exercise to help you think about and differentiate between these two types of goals.  This exercise will look at how we should measure individual tactical actions (e.g. start a new ministry, etc.) and how we should measure bigger strategic goals (e.g. if the church is growing in maturity, unity and service to the community paralleling the metrics Luke used).

A) Listen.  The audio attachment though prepared for my students, will give leaders ideas about how to undertake this leadership exercise.

 

 

B) Read.  This exercise will make a lot more sense if you read the pdf from “A House Divided” that is provided here:  (It is also provided to my students in their weekly course materials).   So, read the “House Divided – Evaluate Your Success” pdf and then listen to the audio recording and you should be on your way toward dispelling the “universal fog” that surrounds most church leadership (for more on the universal fog, see “A Universal Fog” and “The Facts Needed” in Donald A. McGavran’s Understanding Church Growth [Grand Rapids, Mich.: Eerdmans Publishing Co., 1970], 76-120).

C) Discuss by answering the first two questions, and then one of the following of the following questions for discussion.

1) Share two things you learned about the differences between a tactical goal and a strategic goal.

2) Give an example of a strategic goal and then a tactical goal that might support it.

3) Which is usually easier to measure?

4) Which do leaders usually focus upon?

5) What do you think Dr. McGavran meant by the term: “universal fog?”

AN OVERVIEW of MEASUREMENT METRICS: In four of my books I have updated and modified a church measurement tool.  You will find a chapter on measurement in each of these books:

Cure for the Common Church, (Wesleyan Publishing House), chapter “Chapter 6: How Does a Church Grow Learners,” pp. 101-123.
> ORGANIX: Signs of Leadership in a Changing Church (Abingdon Press), “Chapter 8: Measure 4 Types of Church Growth,” pp. 139-159.
> Growth By Accident, Death By Planning (Abingdon Press), “Chapter 7: Missteps with Evaluation,” pp. 97-108/
> A House Divided: Bridging the Generation Gaps In Your Church (Abingdon Press), “Chapter 10: Evaluate Your Success,” pp. 202-221.

I explain that church growth involves four types of congregational growth.  It is a seriously incorrect assumption to assume church growth is all about numbers.  It is only 1/4 about numbers and 3/4 about the other types of growth mentioned in Acts 2:42-47.  In the New Testament we find…

> Maturation Growth, i.e. growth in maturity,Acts 2:42-43.
> Growth in Unity: Acts 2:44-46.
> Growth in Favor, i.e. among non-Christians, Acts 2:47a.
> Growth in number of salvations, i.e. which God does according to this verse, Acts 2:47b.

For more see … https://churchhealthwiki.wordpress.com/2015/06/12/measurement-a-reliable-valid-tool-to-measure-church-growthhealth-organixbook/

STRATEGIC PLANNING & A Simple QSPM Grid To Assess Which Visionary’s Idea is Best

by Bob Whitesel, D.Min., Ph.D., 9/17/15.

A former student told how a congregant abused the power of “vision” to push through an idea that was not in the best interest of the church.  The student wished there could be a way to prevent persuasive forecasters from selling the church on ideas, that though they may look good in a vision, in reality are not good for the church.

Here is his observation with some comments on how to evaluate such persuasive vision-casters:

Dear Dr. Whitesel, For years ____church name___  has debated two issues. Do we build an elevator or remodel the kitchen?  The elevator ended up being built.  I remember how it all went down.  A board member gave a vision statement of why we needed an elevator and painted a picture of the future of our church and how an elevator would benefit us.  The board unanimously voted in favor and the elevator was built.”  Sincerely, ___Name of Student___

My comments:

I reminded the student about how we learned about a “Quantitative Strategic Planning Matrix” (QSPM).  Basically this is an exercise (via a grid) through which we can measure numerically which of several tactics (e.g. an elevator for a church, a kitchen remodel or teaching English as a second language) will best help a church attain a vision that is based upon a SWOT.

Basically, with a vision statement and accompanying SWOT analysis, the student could then create a Quantitative Strategic Planning Matrix (QSPM) and numerically compared the two strategies (elevator or remodel a kitchen).

See Figure 5.8 (Smith, et. al. 2011, p. 100, click to enlarge) to see a QSPM for a church that was comparing its options of either relocating or starting a new service.

FIGURE ©Whitesel Ch MBA Figure 5.8
From this figure, I think you can see that in the ecclesial world we often lack knowledge about management tools, such as a QSPM, that would allow our leaders to make better choices regarding programming.  Usually churches make decisions about programming based upon the four Ps: Proximity (a church nearby tried this program and it worked), Popularity (a new program is so popular that your church wants to try it), Propensity (a leader in the church has a propensity, or partiality for a program), or Persuasiveness (of the presenter – and what happened in this case).

All of these ways to choose a strategy would be criticized in the business world as nothing more than hunches.  This is why many of our lay leaders, who are successful business people, are bothered by our cavalier attitude to tactic selection.  If they’ve taken business courses in undergrad or graduate school, they are already familiar with a QSPM.  And thus they often wonder how we can lead such an important organization as the church without an understanding a basic principles of planning such as a QSPM.Church Leader's MBA cover

Sometimes students struggle with using a Quantitative Strategic Planning Matrix (QSPM) and think, “this looks too complicated, I don’t think I will use it.”  But, it is a great exercise for a leadership retreat.  A QSPM can give an actual rating (a number) whereby you can compare two worthy ideas and see which one better matches up with your vision.

Now, you don’t need to use a QSPM every time you have a new idea.  But, when there two competing ideas (like in the story by the student above) then it is best to use a QSPM and get an actual numerical comparison.  It can take the emotional vision-persuasion elements out of important decisions and make these decisions more balanced.

STRATEGY & Is Yours Deliberate or Emergent?

Commentary by Dr. Whitesel: Henry Mintzberg, in his classic “Strategic Management Journal” article (see link) pointed out that there are two types of strategies: deliberate & emergent. I explored this difference for the church in my book “Growth by Accident, Death by Planning: How NOT To Kill a Growing Church (Abingdon Press). Here is a brief explanation.

  1. “Deliberate” strategies are based upon analysis of strengths, opportunities, etc. (i.e SWOT).
  2. “Emergent” strategies occur when unforeseen opportunities are taken advantage of, sometimes accidentally. Emergent strategies are almost impossible to replicate. But in the church world this is often when we see rapid church growth.

The lesson from Mintzberg’s classic article is to be prepared to take advantage of opportunities, but to spend the majority of your time making deliberate long-term plants.

Strategic Managemtent Journal, Vol. 6, 25 7-2 72 (1985)

Of Strategies, Deliberate and Emergent

HENRY MINTZBERG
Faculty of Management, McGill University, Montreal, Quebec, Canada

JAMES A. WATERS
Faculty of Administrative Studies, York University, Toronto, Ontario, Canada

Summary
Deliberate and emergent strategies mnay be conceived as twvoends of a continuumn along which real- world strategies lie. This paper seeks to develop this notion, and So?le basic issuies related to strategic choice, by elaborating along this continum various types of strategies uncovered in research. These includclestrategies labelled planned, entrepreneutrial, ideological, umZ1brella, process, uinconnected, consensuts anld im-posed,

Download the journal article here … http://sjbae.pbworks.com/w/file/fetch/93336366/Mintzberg,%20Waters%20(1985).%20Of%20Strategies,%20Deliberate%20and%20Emergent.%20SMJ.pdf