Mission, Market or Madness? Mission, Market or Madness? Twenty - PowerPoint PPT Presentation

Mission, Market or Madness? Mission, Market or Madness? “Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover .” – Mark Twain CollegeBoard CollegeBoard CollegeBoard CollegeBoard Colloquium 2011 Colloquium 2011 O. Homer Erekson O. Homer Erekson John V Roach Dean John V Roach Dean John V. Roach Dean John V. Roach Dean Neeley School of Business Neeley School of Business Texas Christian University Texas Christian University

AGENDA AGENDA AGENDA AGENDA • Fundamentals of Organizational Fundamentals of Organizational Change and Strategy Change and Strategy • Quantum Change Quantum Change Q Q Ch Ch • Red Oceans v. Blue Oceans Red Oceans v. Blue Oceans • Blue Ocean Strategy Bl Bl Blue Ocean Strategy O O St St t t Strategy Canvas Strategy Canvas – – Four Actions Framework Four Actions Framework – – Tipping Point Leadership Tipping Point Leadership Tipping Point Leadership Tipping Point Leadership • Case Study: Texas Ranch College Case Study: Texas Ranch College

Organizational Change g Process Product Development D l D Development l Process Product Incremental Change I mprovement I mprovement Process Redirection Product Redirection Disruptive Change

“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. For the reformer has g enemies from all those who profit by the old order, and only lukewarm defenders in all those who would profit from the new order.” Machiavelli, 1516 “If we don’t change what we’re doing, we’re in serious danger of ending up right where we are headed.” Yogi Berra g p g g

Porter’s Fundamental Strategies: Porter’s Fundamental Strategies: g Bloody Red Oceans Bloody Red Oceans Gain Competitive Advantage Gain Competitive Advantage through through Product Differentiation Product Differentiation Product Differentiation Product Differentiation Gain Competitive Advantage Gain Competitive Advantage Th Th Through Through h h Minimizing Costs Minimizing Costs

Types of Change: Breakthroughs Source: Lisa Haneberg, “What is a Breakthrough?”

Quantum Change: What Does It looks Like? Quantum Change: What Does It looks Like? Quantum Change: What Does It looks Like? Quantum Change: What Does It looks Like?

“Strategy is really all about being different.” [ Strategy Bites Back , Mintzberg, et al., 2004] [ Strategy Bites Back Mintzberg et al 2004] “Strategic planning, at best, is about posing questions, more than attempting to answer them . . . The quest for a new business them The q e t fo ne b ine paradigm .” [ Managing on the Edge , Pascale, 1990] Source: Kim, W. Chan and Renee , Mauborgne, Blue Ocean Strategy, 2005 www.blueoceanstrategy.com

Red Ocean Red Ocean vs Red Ocean Red Ocean vs. vs Blue Ocean vs. Blue Ocean Blue Ocean Blue Ocean Red Ocean Strategy Blue Ocean Strategy Compete in existing market space Create uncontested market space Beat the competition p Make the competition irrelevant p Exploit existing demand Create and capture new demand Make the value-cost tradeoff Break the value-cost tradeoff Align the whole system of an Align the whole system of an Align the whole system of an Align the whole system of an organization’s activities with its organization’s activities in pursuit of strategic choice of differentiation or differentiation and low cost low cost Source: Kim, W. Chan and Renee Mauborgne, Blue Ocean Strategy, 2005

Source: Kim, W. Chan and Renee Mauborgne, Blue Ocean Strategy, 2005

Blue Ocean is about Value Blue Ocean is about Value Innovation Breaking the Value-Cost Tradeoff Finding Uncontested Market Space Space

Strategy Canvas: Private Residential Colleges and Strategy Canvas: Private Residential Colleges and Universities Universities Universities Universities High Top Tier Second Tier Third Tier Third Tier Texas Ranch College Texas Ranch College Low L Education Student Life Reputation Faculty/Student Quality Experience Interaction Facilities Faculty Affordability Student Quality Quality

In What World Does The Texas Ranch In What World Does The Texas Ranch College Live? College Live?

Strategy Canvas: Private Residential Colleges and Strategy Canvas: Private Residential Colleges and gy gy g g Universities Universities High S Second Tier Private d Ti P i t Third Tier Private Third Tier Private Texas Ranch College Texas Ranch College Low L Education Student Life Reputation Faculty/Student Quality Experience Interaction Facilities Faculty Affordability Student Quality Quality

Strategy Canvas: Private Residential Colleges and Strategy Canvas: Private Residential Colleges and gy gy g g Universities Universities High Discovery Heritage Process • Ranch Management • Performance Based Sustainability • Student Driven • Athletics • Experiential Theme Theme • • Fine Arts Fine Arts • Building on heritage & • German community performance • Liberal education for “others” Low L Education Student Life Reputation Faculty/Student Heritage Sustainability Quality Experience Interaction Facilities Faculty Affordability Student Discovery Quality Quality Process

Strategy Canvas: Private Residential Colleges and Strategy Canvas: Private Residential Colleges and gy gy g g Universities Universities High L Low Education Student Life Reputation Faculty/Student Heritage Sustainability Quality Experience Interaction Facilities Faculty Affordability Student Discovery Quality Quality Process

Strategy Canvas: Private Residential Colleges and Strategy Canvas: Private Residential Colleges and gy gy g g Universities Universities High L Low Education Student Life Reputation Faculty/Student Heritage Sustainability Quality Experience Interaction Facilities Faculty Affordability Student Discovery Quality Quality Process

Source: Kim W Chan and Renee Source: Kim, W. Chan and Renee Mauborgne, Blue Ocean Strategy, 2005

Tipping Point Leadership Tipping Point Leadership I. Organizational Hurdles a. Cognitive – Organization wedded to status quo q b. Resource – Limited resources c. Motivational – Unmotivated staff d Political – Opposition from powerful d. Political Opposition from powerful vested interests II Id II.Identifying Tipping Point Leaders tif i Ti i P i t L d III.What It Means for your Staff y

References: 1. Kim, W. Chan and Renee Mauborgne, Blue Ocean Strategy , Harvard Business School Press, 2005 2. Lendo, Arthur J., “The Strategic Move of Pierce g College,” Blue Ocean Strategy website. Questions: Questions: O. Homer Erekson Neeley School of Business Texas Christian University h.erekson@tcu.edu 817-257-7526