THE BLUE OCEAN STRATEGY IS IT FOR YOU ? Some organizations like to think that the Blue Ocean Strategy (BOS) is good in theory only. Why do I say that, its because for all the publicity the BOS has garnered since the authors Chan Kim & Renee Mauborgne first published the concept 2005, not many organizations have really taken it up and fully espoused it. There are some common reasons for failure to execute : 1) Attitude and resistance to change 2) It incurs resources and risks with deployment of such resources 3) non involvement of top management or not every one and every level of organization is involved 4) knowledge and experience in executing strategic change Perhaps different organizations will have their own reasons but execution of strategy change often involves culture change as well as organizational alignment in terms of the Vision cascading down to the practices and behaviour of members of the organization. We post here an interesting interview relevant to this topic. In an interview with Professor Renée Mauborgne by Henrik Ørholst the following was asked. The Blue Ocean Strategy has been criticised for being difficult to work with in practice – why? We regard strategy and implementation as an integrated whole. Businesses often overlook how difficult it is to work to implement their strategy. All types of strategy implementation have to overcome challenges. This is especially true if it involves a significant change in relation to where the business is right now. There are four typical challenges involved in implementing the Blue Ocean Strategy. First and foremost, it is important to prepare your employees for a change of strategy. Even if a Red Ocean is not profitable, the employees know the organisation and know what it takes to run the business. Therefore, the first question they ask will be “Why change the strategy?”. Secondly, it takes a major strategic change and many resources to get it implemented. Thirdly, you have to have key employees – and this does not have to be limited to the executive management – who must be motivated to make a change in relation to the existing strategy. And finally, there may be internal political factors which make it difficult to initiate a change. In this situation, it is important to identify the resistance to change within the business. A strategy is not a sequential process which goes from strategy formulation to strategy implementation. It is a process made up of the intellectual exercise of formulating the strategy, whereas the implementation element is more emotionally oriented. This means that every member of the organisation must support the strategy
Posted on: Thu, 02 Oct 2014 03:08:09 +0000
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