Blue Strategy - The
Strategy that Creates Certainty, Embraces Change and Mitigates Risks
Strategy is
understood by its ordinary meaning to refer to a plan of action involving the
mobilization of resources in response to and to engage changes in competitors’
behaviors and happenings in the marketplace(s). Many companies and their
consultants subscribe to this reactive view of strategy and focus most of their
attention to watching their self-defined “competitors”. The common outcome from
this strategic error is their loss of exceptional self-identity in the pursuit
of the goals of other organizations instead of their own.
Blue
leadership is the emergent leadership that is better aligned and aptly
conducive to this era of uncertainty and permanent turbulent change. The “Blue
Leader” emerges from the mountain of literature on leadership, strategy, human
capital management, social responsibility and business excellence. In previous Articles, I have described the discovery
of Blue Leadership that is widely and openly manifested around us.
Strategy is the process
to assure existential survival. Sustainability is the ability to continually
create and re-create adaptively. The primary goal of strategy is therefore the
assurance of sustainability. Leadership is about change. If there were no
change, there is no need for leadership. In the age of uncertainty from
permanent turbulent change, the key Blue Leader role is to engage and foster
change. The intent of Blue Strategy is therefore directed at addressing the
challenges and prospects of change.
Blue Leaders
understand strategy to be a creative rather than a re-active process. And strategy formulation is a decision-making
rather than a problem-solving undertaking. This unique upgraded mindset allows
a mental seismic shift from conventional time-focused strategic action to one that
is change-focused. In formulating their
strategy, Blue Leaders take their cue and direction from the core purpose of
their organization and its ultimate destination goal(s). The emergent Blue
Strategy is a unique design thinking and experiential learning process that
customizes an action roadmap for the journey to the ends of their corporate
vision. For Blue Leaders, the essence of Blue Strategy is to “remember the future in the past”.
Blue
Leaders are driven by 4 passions towards the desired impact outcomes
obtained in goal attainment. The 4 passions are integrated by unique personal
values, and transcribed into the appropriate behaviors and translated into
natural instinctive self-directed social action. Blue strategies are therefore
purposeful, driven by the conscious values of the Blue Leader’s passionate
orientations towards his visionary goals.
The variable
combinations of his passions in decision-making provide the “sense” for his
decisions and executive actions. The
Blue Leader is a continuous experiential learner. The Blue Leader constantly reflects on his
worldly experience to construct and re-construct new social realities that
maintain alignment with his consummate passions.
For the Blue Leader,
what is most important about any event or phenomenon is not what has happened,
but what it means. This defines his overall approach to Blue Strategy in the Terrain
of Opportunity (TOP). The Blue Leader derives meaning from TOP
happenings by using his passions and their orientations to provide a consistent
sense-making worldview to empower conscious reality-learning through “knowing
what I think when I see what I say”. The
Blue
Tao (or “Way”) provides a sense of order and direction which informs
the application of Blue Strategy.
The 9-Steps Flow of Blue Strategy Formulation
is depicted as follows:
Blue Strategy formulation
is a continuous flow of active learning and experiential activities through the
stages of deconstruction, reconstruction
and construction. The Blue Leader’s
mindfulness defines his capacity and
capability to capture holistically the authentic pattern(s) of changing social
realities. Self-mastery in Blue Leaders imbues in them the consciousness of
action through the sense-making process.
It empowers exceptional courage for profoundly insightful reflection to
inform fearless engagement and innovative decision-making. The awaken sharpened
self-awareness in Blue Leaders strengthens their grasp on the relevant patterns
of social reality amidst turbulent change to visualize meaningful coherence of
the emergent trends operating in their terrain(s) of opportunity as they weigh
the long-term impact of possible robust solutions among available decision
options in Blue Strategy formulation.
Deconstruction
Stage [Steps 1, 2 & 3]
1)
Capture Business Model Canvas
|
· Review Value
Proposition, Stake-Holders, Buyers, and Cost Drivers.
|
2)
Re-Design The Main Goal
|
· Re-State The Main
Goal(s) of Desired Buyer Experience.
|
3)
Current Terrain Appreciation
|
· Value-lines
Analysis & Identify Value-Vectors and Value Profiles.
|
Blue Leaders know
insightfully that nothing is absolutely “real”; everything has been socially
constructed or created by people both consciously and unconsciously, and bestow
or embed or associate them with particular symbolic meanings by applying a
variety of behaviors which have come to be assumed as “natural”. During the diagnostic phase in the “Deconstruction”
stage, strategy formulation reviews in 3 steps the active business model canvas
to review and revise its unique value proposition (USP), evaluate the
attractiveness of the USP on stakeholders and buyers, as well as structure of
costs driving its minimum price value levels to assure alignment with the 4
driving passions and The
Tao essence. The buyer experience is examined together with the
6 TOP elements (Shape, Structure, Hazards, Psychometrics, Rules and Value)
whose confluence embodies and defines the situational character of the Terrain. The actual value profile is derived from the
combination and bundle of value vectors psychometrically captured in the buyers’
mind to drive their buying decisions.
Many strategies fail
because they ignore the lessons and knowledge underlying the analytics of the
marketplace by focusing merely on superficial financial and comparative data
without asking the critical questions regarding their historicity and meaning.
Reconstruction
Stage [Steps 4, 5 & 6]
4)
Discover Terrain Value-graphics
|
· Use
Marketplace
Dissonance Matrix to Evaluate Value Vectors.
|
5)
Design Target Value Profile
|
· New Value
Innovation Value-graphs.
|
6)
Construct Target Terrain
|
· Re-configure
Future-scape of Terrain of Opportunities.
|
The “Reconstruction”
stage is the beginning of the planning phase. The experiential learning in the same collective
community during the deconstruction stage can be adapted to reconstruct a new
business model canvas with a USP that is better aligned with the visionary
purpose of the organization. Using a proprietary tool, the Marketplace Dissonance Matrix, the valence of legacy value vectors
associated with existing products are assessed and compared for indifference
and influence in the minds of buyers, for the strategic decision to eliminate,
reduce or enhance for greater buyer attractiveness.
New value vectors
are also created according to feedback analytics and endowed with meaningful
connectedness to create the appropriate equivalence of desirability in new
buyers. At the same time, the 6
TOP elements are reconfigured and recalibrated for a new social reality
more suited to the Blue Strategy outcome to become truly “different from the rest” rather than the delusive “better than the best”. As the Blue
organisation pursues its unique purpose informed by the 4 Blue passions,
competition becomes irrelevant. No one competes
to beat you to the destiny of your own vision!
Construction
Stage [Steps 7, 8 & 9]
7)
Map Target Terrain Profile
|
· Describe new Value
Vectors and Define Desired Value Profiles
|
8)
Describe Value Innovation
|
· New Products with
the new Value Vectors and Love Marks
|
9)
Strategy Execution Protocols
|
· Using the
9-Actions Pathway for Blue Cultural Change Impact.
|
The “Construction”
stage is the prelude to strategic actions. Blue Leaders see the environment, communities
and their surroundings with a unique systems worldview, where everything is related
and/or connected to everything else. The organizing principles of Blue Strategy
are connectivity, complementarity and relativity. To Blue Leaders, change
happens; mostly for no reasons or rational causality. And the only way to
manage change is to embrace it, mitigate its risks and create certainty.
Blue Strategy produces
an intentional action plan towards the creation of some desired realities best
served by new value-laden products of exceptional value vectors. Yet, as soon
as the plan is completed, it would immediately be overtaken by “unforeseen”
change and become obsolete! The
strategic efforts flow now continues into the next never-ending Blue Strategy
formulation cycle.
Unlike conventional
strategy formulation, Blue Strategy does not finish with a thick Strategic Plan
manual. Blue Strategy formulation
incorporates and follows through with Strategy Execution through the 9-Actions
Pathway. Understanding Blue Strategy entails the understanding of its
parts, as the parts are necessary to the understanding of the whole; especially
the connectedness of the 9-Steps Blue Strategy Formulation to the 9-Actions
Pathway, especially in the interaction of the 4
Action Trigons with the Tao
and Passions
of Blue Leadership. In this manner, Blue
Strategy is cooperatively, collaboratively and creatively formulated using
applied adaptive experiential learning.
Next – The Terrain of Opportunity: Value Vectors
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