Lecture on tipping point leadership and fair process in action authors. Chan kim and renee mauborgne tipping point leadershipharvard business theory of tipping pointsin any organization, once the. The book recommends using the approach of tipping point leadership to overcome the 4 key hurdles to change. Blue ocean strategy chapter 7 texas tech university. The belief that blue ocean strategy is the same as innovation. Chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. The blue ocean strategy is a business book that has become mandatory for modern managers by proposing an organized structure to identify and implement differentiation in any industry and help you grow your business faster. A blue ocean strategy perforce represents a departure from the status quo, fair process is required to facilitate both strategy making and execution by mobilizing people for the voluntary cooperation needed to execute blue ocean strategy. This blog article is a overview of some of the key points of the book by w.
Blue ocean strategy is a groundbreaking book on opening up uncontested markets. Furthermore the blue ocean strategy was awarded with. Bratton used tipping point leadership to make unarguable calls for change. The belief that blue ocean strategy is a theory of marketing and a niche strategy. Executing the blue ocean strategy asian productivity organization. The belief that blue ocean strategy sees competition as bad when in fact it can be good for. Tippingpoint leadership this article examines how chan kim and renee mauborgne, the proponents of the bos in their seminal 2015 work, blue ocean strategy, and their 2017 sequel, blue ocean shift, advocate the implementation of a bos.
Bratton first caught our attention in the early 1990s, when we heard about his turnaround of the new york transit police. Your blue ocean strategy book and concept which encourage firms to stop fighting their rivals in bloodyred oceans for a shrinking pool of. Tools and frameworks for creating and capturing blue oceans it is constructed to create a new value curve and when you apply the four actions framework to the strategy canvas of your industry, you get a. Tipping point leadership is about how to execute strategy fast and at low cost. Using the five scenarios participants work in teams as they learn to apply key concepts of tipping point leadership and fair process. Describe your theory of tippingpoint leadership and its relation to achieving blue ocean strategy. The book presents analytical frameworks and tools to foster an organizations ability to systematically create and capture blue oceansunexplored new market. Theory of tipping pointsin any organization, once the beliefs andenergies of a critical mass of people areengaged, conversion to a new idea willspread like an epidemic.
Summary capter 1 4 of blue ocean strategy by lauri di. How to create uncontested market space and make the. A book i just read provides a great framework to figure out when you need to change, and what strategic direction to head. Cognitive hurdles cognitive hurdles are the mental blocks holding back employees from realizing that there is a need for change as is often required by blue ocean strategy.
The blue ocean strategy implementation selfdiagnostic is comprised of a series of probing questions that offer executive participants a practical tool for assessing the level of organizational hurdles that exist in their organization and the effectiveness of past and future strategies to overcome them. They assert that these strategic moves create a leap in value for the company, its buyers, and its employees while unlocking new demand and making the competition irrelevant. Tipping point leadership is a key pillar of blue ocean strategy that is central to overcoming organizational hurdles. Tipping point leadership at a glance leaders like bill bratton use a fourstep. Blue ocean strategy chapter 7 overcome key organizational hurdles ipad in this chapter, professor w. Chan kim and renee mauborgne, professors at insead. Blue ocean strategy highlights the distinct differences between marketcompeting red ocean and marketcreating blue ocean strategy and what it takes to create the new markets of tomorrow. Blue ocean strategy is when an organization breaks away from the conventional approach to facilitate the creation of new uncontested market space thereby making competition irrelevant. To bring a muchneeded change in an organization, a leadership strategy like tipping point leadership is in dire need as well. Implementation lecture blue ocean strategy implementation. In blue ocean strategy, tipping point leadership and fair process are two key frameworks that allow companies to build execution into strategy making and overcome learn more how do you conduct the senior level interviews with the employees.
By that we can see that there is a lot of interest by the business people and academics around the world about that subject. This includes a detailed overview of tipping point leadership and its benefits in bringing about fundamental change quickly and with limited resources, and a discussion on how this is especially important during tough economic conditions. Tipping all four hurdles leads to rapid strategy reorientation and execution. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. Blue ocean strategy is all about finding the right market and taking it, blue ocean. Chan kim and renee mauborgne, by contrast, takes a reverse course. He develops the tipping point leadership to overcome those hurdles. Tipping point leadership underlying such leaps in performance, we have built a database of more than 125 business and nonbusiness organizations.
Chan kim and renee mauborgne a simplified book summary of how to execute a blue ocean strategy. Tippingpoint leadership is reminiscent of malcolm gladwells concept in his eponymous 2000 book, the tipping point. The conventional theory of organizational change rests on transforming the mass. Based on a study of 150 strategic moves spanning more than 100 years and 30 industries, blue ocean strategy addresses this question and provides a systematic approach to drafting and implementing your own blue ocean strategy. This blog article is the third in a series of five blog articles on the book blue ocean strategy by w. Used a blue ocean policing strategy that revolutionized u. Identify and leverage factors with disproportionate influence on the organization to effect change. The cognitive and resource hurdles shown here represent the obstacles that organizations face in reorienting and formulating strategy.
To overcome those hurdles, they suggest a tipping point approach to management. How leaders drive change leadership is about influencing people in a specific direction, but sometimes that direction needs to change. The first part presents key concepts of blue ocean strategy, including value innovation the simultaneous pursuit of differentiation and low cost and key analytical tools and frameworks. My colleagues and i see strategy execution as an integral part of strategy. Nikes blue ocean strategy is representitive of tipping point leadership owing to the dynamic nature of the strategy, and the manner in which it runs congruent with the ambitious and innovative nature of nike as an organisation. Chan kim sums up the hurdles for the company from red oceans to blue oceans. Their description relates to the implementation of a blue ocean. The blue ocean strategy explains how to guide your business across seas with less competition and greater profitability. Tipping point leadership blue ocean tools and frameworks.
Blue ocean strategy, tipping point leadership and the four. Blue ocean shift is the essential follow up to blue ocean strategy, the. The misconception that blue ocean strategy is a lowcost strategy that focuses on low pricing. To create a blue ocean strategy, organizations must be committed to value innovation. Their description relates to the implementation of a blue ocean strategy but in truth it applies equally to any strategy. In this article you will learn how to make your competition irrelevant and have sales and profit.
The concept of blue ocean strategies is new in the business world as it was first published in 2005 in the bookmanual blue ocean strategy, by w. Instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. It provides companies with a specific framework to be used, together with fair process, for overcoming the four key organizational hurdles that block implementation. Blue ocean strategy chapter 14 the four action framework chapter two. He wrote the tipping point in which he tells the story on the new york city police department nypd. The top inspiring quotes from blue ocean strategy you be. Kim and mauborgne recommend to overcome these hurdles by using the tipping point leadership. In their 2017 new york times bestselling book, blue ocean shift. The nypd executed a blue ocean strategy in the 1990s in the public sector. The blue ocean strategy book has been sold over 3,5 million times, was published in 43 languages and is a bestseller across five continents. This allows you to overcome the four hurdles fast and at a low cost, while winning employees backing in executing a break from the status quo.
Often to wake employees up to the need for change, companies point to the numbers and insist that the company must achieve better results. Radical change the idea behind it comes from malcolm gladwell. Chan kim is the codirector of the insead blue ocean strategy institute and a chair professor of strategy and international management at insead. A blue ocean, as used in the title of this book and strategy, is basically uncharted territory in the business world. Blue ocean strategy is a book published in 2005 and written by w. He is best known for coauthoring the book blue ocean strategy and ranked second in the thinkers50 of the most influential management thinkers alive. Chan kim and renee mauborgne describe four organisational hurdles to strategy execution. Tipping point leaders are able to change the core fast and at low cost to execute their new strategy. Blue ocean strategy, tipping point leadership and the four organizational hurdles to strategy execution continuing with our blue ocean strategy basics series, over the course of the next five weeks we will highlight tipping point leadership and the. Blue ocean strategy implementation scenario case harvard. So change efforts are focused on moving the mass, requiring steep resources and long time frames luxuries few executives can afford.
You may face hurdles to strategy execution but all you need is enthusiasm and strategic thinking like bratton to win the title of the ultimate problemsolver. The concept of tipping point leadership claims that great change can be done very fast. Blue ocean strategy is a marketing theory and the title of a book published in 2004 that was written by w. The seminal book blue ocean strategy has sold over 4 million copies globally and is in print in 46 languages. This is a book summary i have written originally as part of the assignment for my harvard innovation and entrepreneurship class. The motivational and political hurdles prevent a strategy s rapid execution. Executing the blue ocean strategy 1 overcome key organizational hurdles because bos represents a huge shift from status quo, the challenge of execution is amplified. In short, the authors are rather vague about the research project which was the basis of the new management innovation strategies they are marketing in this book. It provides companies with a specific framework to be used, together with fair. However if you go the traditional route which is to try to find a market that is filled with competition, the likelihood of you surviving is minimal, red ocean. How does blue ocean leadership differ from tipping point. The blue ocean strategy implementation scenario case offers a set of interactive group scenarios which are designed to deepen the participants understanding of blue ocean strategy implementation principles.