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.
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- Avice Stanley
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1 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 Colloquium 2011 O. Homer Erekson John V. Roach Dean Neeley School of Business Texas Christian University
2 AGENDA Fundamentals of Organizational Change and Strategy Quantum Change Red Oceans v. Blue Oceans Blue Ocean Strategy t Strategy Canvas Four Actions Framework Tipping Point Leadership Case Study: Texas Ranch College
3 Organizational Change Incremental Change Disruptive Change Process Development Process Improvement Process Redirection Product Development Product Improvement Product Redirection
4 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 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
5 Porter s Fundamental Strategies: Bloody Red Oceans Gain Competitive Advantage through Product Differentiation Gain Competitive Advantage Through h Minimizing Costs
6 Types of Change: Breakthroughs Source: Lisa Haneberg, What is a Breakthrough?
7 Quantum Change: What Does It looks Like?
8 Strategy is really all about being different. [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 paradigm. [Managing on the Edge, Pascale, 1990] Source: Kim, W. Chan and Renee, Mauborgne, Blue Ocean Strategy,
9 Red Ocean vs. Blue Ocean Red Ocean Strategy Compete in existing market space Beat the competition Exploit existing demand Make the value-cost tradeoff Align the whole system of an organization s activities with its strategic choice of differentiation or low cost Blue Ocean Strategy Create uncontested market space Make the competition irrelevant Create and capture new demand Break the value-cost tradeoff Align the whole system of an organization s activities in pursuit of differentiation and low cost Source: Kim, W. Chan and Renee Mauborgne, Blue Ocean Strategy, 2005
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11 Source: Kim, W. Chan and Renee Mauborgne, Blue Ocean Strategy, 2005
12 Blue Ocean is about Value Innovation Breaking the Value-Cost Tradeoff Finding Uncontested Market Space
13 Strategy Canvas: Private Residential Colleges and Universities High Top Tier Second Tier Third Tier Texas Ranch College Low Education Student Life Experience Reputation Faculty/Student Interaction Facilities Faculty Affordability Student
14 In What World Does The Texas Ranch College Live?
15 High Strategy Canvas: Private Residential Colleges and Universities Second Tier Private Third Tier Private Texas Ranch College Low Education Student Life Experience Reputation Faculty/Student Interaction Facilities Faculty Affordability Student
16 High Strategy Canvas: Private Residential Colleges and Universities Heritage Ranch Management Performance Based Athletics Fine Arts German community Discovery Process Student Driven Experiential Sustainability Theme Building on heritage & performance Liberal education for others Low Education Student Life Experience Reputation Faculty/Student Interaction Heritage Sustainability Facilities Faculty Affordability Student Discovery Process
17 High Strategy Canvas: Private Residential Colleges and Universities Low Education Student Life Experience Reputation Faculty/Student Interaction Heritage Sustainability Facilities Faculty Affordability Student Discovery Process
18 High Strategy Canvas: Private Residential Colleges and Universities Low Education Student Life Experience Reputation Faculty/Student Interaction Heritage Sustainability Facilities Faculty Affordability Student Discovery Process
19 Source: Kim W Chan and Renee Source: Kim, W. Chan and Renee Mauborgne, Blue Ocean Strategy, 2005
20 Tipping Point Leadership I. Organizational Hurdles a. Cognitive Organization wedded to status quo b. Resource Limited resources c. Motivational Unmotivated staff d. Political Opposition from powerful vested interests II.Identifying Id i Tipping i Point Leaders III.What It Means for your Staff
21 References: 1. Kim, W. Chan and Renee Mauborgne, Blue Ocean Strategy, Harvard Business School Press, Lendo, Arthur J., The Strategic Move of Pierce College, Blue Ocean Strategy website. Questions: O. Homer Erekson Neeley School of Business Texas Christian University
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