1. Team 1: Alec Wegmann, Mark Beal, Adrienne Collins, Jessica Drummond, Mike Sanchez, Spencer Thomas Mario Santos, & Chad Hensley

2.  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.

3.  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.

4.  another way to define strategy  focuses on creating a set of measurements for 4 strategic perspectives

5.  conceptually unclear model with too many details

6.  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.

7.  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.

8.  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.

9.  Find out what the current positioning of the strategy is.  EFS (European Financial Services) suffered from ill-defined strategy.  ISQS 3344 (Flamm)

10.  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

11.  Contradictions in competitive strategies ◦ Website advanced but slow  Comparison with Clearskies ◦ Focused, original strategy ◦ Moving away from red ocean ◦ Strategy canvas very different from competitors and EFS (evidence of a blue ocean)

12.  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.

13.  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.

14.  Using business intelligence software called WebFOCUS from Information Builders, Brinker restaurants can calculate sales by shift and by restaurant to determine optimal labor costs.Information Builders  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.

15.  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.

16.  The managers concluded that customers valued speedy confirmation of transactions most. ◦ Not account relationship managers, like the managers first hypothesized.  Then each team had to propose a new strategy with 6 new value curves.

17.  could be helpful in brainstorming new ideas

18.  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  Ex: EFS teams presented their new canvases to noncustomers, customers of competitors, and current customers, and corporate executives.

19.  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

20.  Part c: After collecting feedback, determine the optimal new strategy ◦ should be based criteria you have found that will create a successful strategy  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

22.  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

23. Eliminate Relationship management Raise Ease of use Market Commentary Security Accuracy Speed Reduce Account executives Corporate dealers Create Confirmation Tracking

24.  A visual strategy creates more cohesion among the business and its entities. ◦ Easier communication ◦ Uniformed business

25.  Value Innovation Program Center ◦ Development Teams of various business units ◦ 40 inch LCD TV ◦ SGH T-100

26.  Pioneers (Blue Ocean) ◦ Offers unprecedented value ◦ Value curve diverges from competition ◦ Most powerful source of profitability growth  Settlers (Red Ocean) ◦ “Me too” businesses ◦ Value curve similar to the industry norm ◦ Not a big contributor to future growth  Migrators ◦ In between the two ◦ Extends value curve ◦ Offer improved value, not innovative value

27.  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  Portfolio with a lot of migrators ◦ Not exploiting growth potential ◦ Are marginalized by value-innovating company’s

28.  Shift the balance of future portfolio’s ◦ Towards pioneers ◦ Path to profitable growth  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

30.  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

31.  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

32.  Focusing on the big picture ◦ -Visualizing a company’s current strategic position and charting its future strategy  Drawing your strategy canvas ◦ 1. Realizing Current Strategy ◦ 2. Visual Exploration ◦ 3. Visual Strategy Fair ◦ 4. Visual Communication

33.  Visualizing Strategy at the Corporate Level ◦ Using the Strategy Canvas ◦ Using the PMS Map  Overcoming the Limitations of Strategic Planning