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Virtual Ocean Strategy – the way to reset
    strategies with a purpose driven
“traditional industry structures & resource
  constraints are irrelevant” mindset?
              (Draft For Discussion Purposes Only )

                                                   Charles Prabakar
                         Executive Global Partner/Managing Director
                                               Willis Consulting LLC
“Virtual Ocean Strategy ” at a glance…
        Situation                         Complication                            Resolution
  While the phrase                Lack of an Integrated systemic      We suggest a contrarian
   “strategy reset” means           mindset within the three purpose     Deconstructionanist/
   different things to              dimensions of leadership,            hybrid approach
   different companies,             strategy & innovation.               (between Red ocean and
   most strategy                                                         Blue Ocean) with a
                                   Lack of an agreed upon
   practitioners agree, that                                             “Virtual Ocean” mindset
                                    purpose statement.
    there are not many                                                    “–by resetting company’s
    comprehensive                                                         purpose statement (vision,
                                      Lack of the purpose seed not
    approaches available              being germinated properly (in       mission, values, codes and
    within the market place           spirit and essence) into an         BHAG ), using nature’s
    designed to reset both            organization with a unique          Seedal chain principle
    the strategic plan, and           culture with a unique DNA”.         (Seed-Season-Sequel),
    “design of the business                                               with a “traditional industry
    purpose seed”,                 Lack of an approach with a            structures and resource
    simultaneously , with an        “tearing down the walls of            constraints are irrelevant”
                                    industry structures”
    integrated/systemic                                                   mindset along with a
    mindset”, to meet the                                                 multi dimensional
                                   Lack of a multi dimensional
    ever changing business          balancing model, as opposed           balancing model in the
    needs of the 21st century       to the traditional 2D “value-         five dimensions of value,
    social media driven             cost” balancing model ( i.e.          cost, velocity, growth and
    connected world!                tradeoff in ROS and “doing            purpose.
                                    both” in BOS).

 Lack of an Integrated systemic mindset within the three purpose dimensions of
leadership, strategy & innovation, is the #1 reason, why most strategy resets, do
                         not yield its intended outcome!
How does VOS stack up against BOS and ROS within this MBA framework?
     MBA Step       Red Ocean            Blue Ocean               Virtual Ocean
                 Compete              Dive deeper, in      Fly faster into the virtual
                 aggressively in      order to tap the     space, in order to tap the
                 order to grab        untapped value       untapped value, by doubling
    Motivation   value from           within an existing   the size of the value pie, using
                 competitors,         value ocean pie.     our firm’s VOS, VRE, Capitalism
                 within an existing                        Plus, Purpose Innovation and
                 value ocean pie.                          VizPlanet platforms.


                 Beat the             Make competition     Make traditional Industry
    Belief       competition at       irrelevant.          structures and resource
                 any cost.                                 constraints irrelevant.


                 Trade-off value      Balance value        Balance the five dimensional
    Action       and cost.            and cost.            value cycle i.e. “value-cost-
                                                           velocity-growth-purpose”
                                                           using five value stations (4
                                                           BSC+ purpose).



  Stacking strategy frameworks with an MBA lens, not only helps us to diagnose &
prescribe effective and efficient strategies, but also, helps us to prioritize, where we
 need to spend our time & energy (i.e. which step within MBA) to maximize value!
Virtual Ocean Strategy (VOS)
                                                                                     Using Nature’s Seedal Chain (Seed-Season-Sequel) Principle
                                                                                                                       1                                                                                                                                                                       2                                                                                                                                                                                     3
    Design the Business by                                                                                                                                                                                                                             Plan using the Integrated Three
  resetting the Triune Purpose                                                                                                                                                                                                                          Track Seasonality (Leadership, Execute/Reap with the Triune
                                                                                                                                                                                                                                                       Strategy and Innovation) driven       Shared Value (TSV) driven
     Seed (vision, mission,
   values, codes and BHAG)                                                                                                                                                                                                                              “Industry structure is irrelevant” “collaborative heartbeat” for
                                                                                                                                                                                                                                                                     mindset                the best outcome (Sequel)
                    Triune Purpose Frameworks (TPF) creating Triune Shared Value (TSV)
                                                                                              TPF’s Purpose Driven                                                                                                                                                                                  Profit    Commercializat                                          Triune Purpose Frameworks (TPF) creating Triune Shared Value (TSV)
                                                                                       Leadership(PDL) Culture Framework                                                                                                                                                                                           ion/                                                                                                                         TPF’s Purpose Driven
                                                                                            THE SINUSOIDAL TRIO© – OUR PURPOSE
                                                                                                                                                                                                                                                                                                               Commodity                                                                                                                 Leadership(PDL) Culture Framework
                                                                                                                                                                                                                                                                                                Financial
                                                                                                                                            PDL© IN ACTION
                                                                                           DRIVEN LEADERSHIP (PDL©) FRAMEWORK
                                                                                                           PURPOSE

                                                                                                                                                                                                                                                                                                              Value- Iterate it
                                                                                            Faith/Trust                 Love/Empathy                                                                                                                                                                                                                                                                                                          THE SINUSOIDAL TRIO© – OUR PURPOSE              PDL© IN ACTION
                                                                                                    1                                                                                                                                                                                                                                                                                                                                        DRIVEN LEADERSHIP (PDL©) FRAMEWORK
                                                                                          Crest                               3    Crest
                                                                                                                                                                                                                                                                                                                                                                                                                                                             PURPOSE
                                                                                                                                                                                                                                                                                                                                                                                                                                              Faith/Trust                 Love/Empathy
                                                                                             Mindset/     4 Service &     Heartbeat/                                                                                                                                                                                                                                                                                                                  1
                                                                                             Talent        5 Value        Wisdom                                                                                                                                                                                                                                                                                                            Crest                               3    Crest


                                                                                                                                                                                                                                                                                                                                                                                                                                               Mindset/     4 Service &     Heartbeat/
                                                                                                                                                                                                                                                                                                                                                                                                                                               Talent        5 Value        Wisdom
                                                                                                                 2
                                                                                            Know-
                                                                                                                     Trough   Inspiration
                                                                                             how           Hope/Aspire          (“BE”)
                                                                                                          Body Space/Skill
                                                                                          (“KNOW”)                                                                                                                                                                                                                                                                                                                                                                 2
                                                                                                                                                                                                                                                                                                                                                                                                                                              Know-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Trough   Inspiration
                                                                                                             Action                                                                                                                                                                                                                                                                                                                            how           Hope/Aspire          (“BE”)
                                                                                                                                                                                                                                                                                                                                                                                                                                                            Body Space/Skill
                                                                                                             Drivers                                                                                                                                                                                                                                                                                                                        (“KNOW”)
                                                                                                             (“DO”)
                                                                                                                                                                                                                                                                                                                                                                                                                                                               Action

                                                                                            PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”,
                                                                                                “DO” focus areas of WestPoint Leadership Framework as well.
                                                                                                                                                                                                                                                                                        Shareholder Value= Profit x                                                                                                                                            Drivers
                                                                                                                                                                                                                                                                                                                                                                                                                                                               (“DO”)




                                                                                                                                                                                                                                                                CV=                     (1-g/ROIC)/ (WACC-g)
                                                                                                                                                                                                                                                                                                                                                                                                                                              PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”,
                                                                                                                                                                                                                                                                                                                                                                                                                                                  “DO” focus areas of WestPoint Leadership Framework as well.



                                                                                                                 Leadership                                                                                                                                  Jobs-to-be                                                                ROIC=
                                                                                                                                                                                                                                                             done/Price
                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Leadership
                                                                                                               (Creator/                                                                                                                                                                                                              Margin x
                                                                                                              Orchestrator)                                                                                                                                                                                                                                                                                                                                      (Creator/
                                                                                                                                                                                                                                                                                                                                      Velocity
                                                                                                                                                                                                                                                                                                                           Value                                                                                                                                Orchestrator)
         TPF’s Purpose Driven
                                                                                                                                                                                                                                                            “Jobs-To-
                                                                                                                                                                                                                                                                         Customer
        Portfolio-Thread View                                                                                                                                                                TPF’s Purpose Driven                                                                                                          Chain                           TPF’s Purpose Driven
        (PTV) based Strategic                                                                                          TPF with                                                              Innovation Portfolio                                           Be-Done”                             Theme It                           Incubator
                                                                                                                                                                                                                                                                                                                                                          Portfolio-Thread View
                                                                                                                                                                                                                                                                                                                                                          (PTV) based Strategic                                                                                          TPF with
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               TPF’s Purpose Driven
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Innovation Portfolio
         Planning Framework                                                                                            its Triune                                                              (PIP) Framework                                                Value –                                                                                      Planning Framework                                                                                                                                                                    (PIP) Framework
                                                                                                                                                                                                                                                                                                                                   Value – Test                                                                                                                          its Triune
  4. The EPP, CPP & PIP                             3. The radial orbit with 5
                                                                                                                       Purpose                                           Purpose Innovation Model Using “Balancing Opposites”
                                                                                                                                                                                                                                                             Ideate it
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Purpose                                           Purpose Innovation Model Using “Balancing Opposites”
  frameworks uncover                                   perspectives and 6

                                                                                                                                                                                                                                                                                                                                        it
                                                                                                                                                                      For More Info – Read On…
                                                                                                                                                                                                                                                                                                                                                    4. The EPP, CPP & PIP                             3. The radial orbit with 5
    the winning paths.                              dilemmas, take charge.                                                                                            http://strategywithapurpose.b   Purpose Innovation                                                                                                                            frameworks uncover                                   perspectives and 6                                                                                             For More Info – Read On…




                                                                                                                          Seed
                                                                                                                                                                      logspot.com/2010/10/transfor
      P6-P9                                                                                                                                                           ming-so-what-opposites-in-to-
                                                                                                                                                                                                                                                                                                                                                      the winning paths.                              dilemmas, take charge.                                                                                            http://strategywithapurpose.b   Purpose Innovation

                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Seed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        logspot.com/2010/10/transfor
                                                                                                                                                                      so.html
                                                                                                                                                                                                                                                                                                                                                        P6-P9                                                                                                                                                           ming-so-what-opposites-in-to-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        so.html




                                                                                       Strategy                                                  Innovation
    5. Value

                                                                                                                                                                                                                                                                                                                                                                                                                                         Strategy                                                  Innovation
   (fruits) are                                                   P2-P5                                                                                                                  Core                                              Edge                                                                                                       5. Value
    reaped/                                                                                                                                                                                                                                                                                                                                          (fruits) are                                                   P2-P5                                                                                                                  Core                                              Edge
                                                                     2. Invisible

                                                                                     (Redeemer/                                                (Encourager/
 reinvested &                                                                                                                                                                                                                                                                                                                                         reaped/
                                                                 sub-instructions                                                                                                                                                                                                                                                                                                                                      2. Invisible

                                                                                                                                                                                                                                                                                                                                                                                                                                       (Redeemer/                                                (Encourager/
   the radial                                                                                                                                                                                                                                                                                                                                      reinvested &
                                                                   in the form of                                                                                                                                                                                                                                                                                                                                  sub-instructions
    orbit flow                                                                                                                                                                                                                                                                                                                                       the radial
                                                                   experience &                                                                                                                                                                                                                                                                                                                                      in the form of
                                                                                                                                                                                                                                                                                                                                                      orbit flow

                                                                                      Sustainer)                                                  Disruptor)
  continues…                                                                                                                                                                                                                                                                                                                                                                                                         experience &
                                                                 capability pools


                                                                                                                                                                                                                                                                                                  Growth
                                                                                                                                                                                                                                         Something

                                                                                                                                                                                                                                                                                                                                                                                                                                        Sustainer)                                                  Disruptor)
                                                                                                                                                                                    Something                                                                                                                                                       continues…
      P10                                                          are identified                                                                                                       that                                                 that                                                                                                                                                                  capability pools                                                                                                   Something                                            Something
                                                                                                                                                                                                                                          transforms
                                                                                                                                                                                                                                                                                                                                                        P10                                                          are identified                                                                                                       that                                                 that
                                                                 and placed on                                                                                                        supports
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            transforms
                      The five invisible instructions             the radial orbit                                                                                                  rather than                                          rather than                                                                                                                                                               and placed on                                                                                                        supports
      1. Purpose                                                                                                                                                                                                                                                                                                                                                        The five invisible instructions                                                                                                                               rather than                                          rather than
                                                                                                                                                                                        that                                                 that                                                                                                       1. Purpose                                                  the radial orbit


                                                                                                                                                                                                                                                                                                /Learning/
    Seed grows in     P1                                            framework.                                                                                                                                                             supports!                                                                                                                                                                                                                                                                                      that                                                 that
                                                                                                                                                                                    transforms!                                                                                                                                                       Seed grows in     P1                                            framework.


                                                                                                                       Culture
    to a systemic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     transforms!                                            supports!


                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Culture
                                                                                                                                                                                                                                                                                                                                                      to a systemic
    organization.
                          1 2 3 4    5                                                                                                                                                                                                                                                                                                                organization.
                                                                                                                                                                          Transforming “So What” opposites in to “So That” Strategy called Purpose                                                                                                                          1 2 3 4    5                                                                                                                                    Transforming “So What” opposites in to “So That” Strategy called Purpose


                                                                                                                                                                                                                                                                                               Collaboratio
                                                                                                                                                                     Innovation using the “forces of attraction” based Pull Value Chain is the way to go!                                                                                                                                                                                                                                                              Innovation using the “forces of attraction” based Pull Value Chain is the way to go!

*WACP= Weighted Average                                                                                                                                                                                                                                                                                                                           *WACP= Weighted Average
    Cost of Purpose                                                                                                                                                                                                                                                          Vision /Seed           n                                                 Cost of Purpose

Lead with the Purpose Culture, Strategize from the Core & Innovate with the Edge!                                                                                                                                                                                            Value – Slot it        g                                             Lead with the Purpose Culture, Strategize from the Core & Innovate with the Edge!



                             Purpose manifesting as                                                                                                                                                                                                                                                                                                                                  Purpose resulting in as
                                    Energy                                                                                                                                                                                                                        Purpose manifesting as                                                                                              Triune Shared Value
                                                                                                                                                                                                                                                                          Value

              Reset the purpose seed with a “seedal chain” spirit, formulate the strategy with
              an integrated seasonality driven “industry structure is irrelevant” mindset, and
               execute and reap with a TSV driven “collaborative heartbeat(sequel)”, thus
                            increasing the size of the value pie by multi-fold!
1 Design the Business by resetting the Triune Purpose Seed using leadership,
                    strategy and Innovation Frameworks
                                                                                              TPF’s Purpose Driven
                                                                                       Leadership(PDL) Culture Framework
                                                                                            THE SINUSOIDAL TRIO© – OUR PURPOSE              PDL© IN ACTION
                                                                                           DRIVEN LEADERSHIP (PDL©) FRAMEWORK
                                                                                                           PURPOSE
                                                                                            Faith/Trust                 Love/Empathy
                                                                                          Crest     1                         3    Crest


                                                                                             Mindset/     4 Service &     Heartbeat/
                                                                                             Talent        5 Value        Wisdom



                                                                                                                 2
                                                                                            Know-
                                                                                                                     Trough   Inspiration
                                                                                             how           Hope/Aspire          (“BE”)
                                                                                                          Body Space/Skill
                                                                                          (“KNOW”)

                                                                                                             Action
                                                                                                             Drivers
                                                                                                             (“DO”)


                                                                                            PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”,
                                                                                                “DO” focus areas of WestPoint Leadership Framework as well.




                                                                                                                 Leadership
                                                                                                               (Creator/
                                                                                                              Orchestrator)
         TPF’s Purpose Driven
        Portfolio-Thread View                                                                                                                                                                TPF’s Purpose Driven
        (PTV) based Strategic                                                                                          TPF with                                                              Innovation Portfolio
         Planning Framework                                                                                            its Triune                                                              (PIP) Framework
                                                                                                                       Purpose
  4. The EPP, CPP & PIP                             3. The radial orbit with 5                                                                                           Purpose Innovation Model Using “Balancing Opposites”
  frameworks uncover                                   perspectives and 6                                                                                             For More Info – Read On…

    the winning paths.                              dilemmas, take charge.                                                                                            http://strategywithapurpose.b   Purpose Innovation

                                                                                                                          Seed
                                                                                                                                                                      logspot.com/2010/10/transfor
      P6-P9                                                                                                                                                           ming-so-what-opposites-in-to-
                                                                                                                                                                      so.html




                                                                                       Strategy                                                  Innovation
    5. Value
   (fruits) are                                                   P2-P5                                                                                                                  Core                                              Edge
    reaped/
                                                                     2. Invisible

                                                                                     (Redeemer/                                                (Encourager/
 reinvested &
                                                                 sub-instructions
   the radial
                                                                   in the form of
    orbit flow
                                                                   experience &

                                                                                      Sustainer)                                                  Disruptor)
  continues…
                                                                 capability pools                                                                                                   Something                                            Something
      P10                                                          are identified                                                                                                       that                                                 that
                                                                 and placed on                                                                                                        supports                                            transforms
                      The five invisible instructions             the radial orbit                                                                                                  rather than                                          rather than
      1. Purpose                                                                                                                                                                                                                             that
                      P1                                            framework.                                                                                                          that
    Seed grows in                                                                                                                                                                                                                          supports!
                                                                                                                                                                                    transforms!


                                                                                                                       Culture
    to a systemic
    organization.
                          1 2 3 4    5                                                                                                                                    Transforming “So What” opposites in to “So That” Strategy called Purpose
                                                                                                                                                                     Innovation using the “forces of attraction” based Pull Value Chain is the way to go!

*WACP= Weighted Average
    Cost of Purpose

Lead with the Purpose Culture, Strategize from the Core & Innovate with the Edge!
2     Plan usingwith the TriuneTrack Seasonality driven Cyclical VOS Frameworks
       Execute Integrated 3 Shared Value (TSV) mindset for the best Sequel
                                              Profit
                                                        5. Commercialization/
                                        5.Financi         Commodity Value-
                                            al          Iterate it –(Fertile Land)



                                 Shareholder Value= Profit x
    Cust. Value=                 (1-g/ROIC)/ (WACC-g)
     Jobs-to-be                                                                             ROIC=
    done/Price
                                       1. Purpose                                          Margin x
                                                                                           Velocity
               2.Customer
                                                                        4.Value
2. “Jobs-To-                                                             Chain
 Be-Done”
   Value –                               1. Theme It                                  4. Incubator
  Ideate it                                                                          Value – Test it
(Hard Land )                                                                           – (Weedy
                                                                                          Land)



                                         3.Growth
                   3. Vision Value –    /Learning/
                          Slot it      Collaboratio            Legend :
                                                               Green – Leadership Track
                    (Shallow Land)           n                 Purple – Innovation Track
                                             g                 Black – Strategy Track
3 Execute with the Triune Shared Value (TSV) mindset for the best VOS Sequel
                                                                                              TPF’s Purpose Driven
                                                                                       Leadership(PDL) Culture Framework
                                                                                            THE SINUSOIDAL TRIO© – OUR PURPOSE              PDL© IN ACTION
                                                                                           DRIVEN LEADERSHIP (PDL©) FRAMEWORK
                                                                                                           PURPOSE
                                                                                            Faith/Trust                 Love/Empathy
                                                                                          Crest     1                         3    Crest


                                                                                             Mindset/     4 Service &     Heartbeat/
                                                                                             Talent        5 Value        Wisdom



                                                                                                                 2
                                                                                            Know-
                                                                                                                     Trough   Inspiration
                                                                                             how           Hope/Aspire          (“BE”)
                                                                                                          Body Space/Skill
                                                                                          (“KNOW”)

                                                                                                             Action
                                                                                                             Drivers
                                                                                                             (“DO”)


                                                                                            PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”,
                                                                                                “DO” focus areas of WestPoint Leadership Framework as well.




                                                                                                                 Leadership
                                                                                                               (Creator/
           TPF’s Purpose Driven                                                                               Orchestrator)
          Portfolio-Thread View
                                                                                                                                                                                             TPF’s Purpose Driven
          (PTV) based Strategic
                                                                                                                                                                                             Innovation Portfolio
           Planning Framework                                                                                          TPF with                                                                (PIP) Framework
                                                                                                                       its Triune
                                                                                                                       Purpose
  4. The EPP, CPP & PIP                             3. The radial orbit with 5                                                                                           Purpose Innovation Model Using “Balancing Opposites”
  frameworks uncover                                   perspectives and 6                                                                                             For More Info – Read On…

    the winning paths.                              dilemmas, take charge.                                                                                            http://strategywithapurpose.b   Purpose Innovation

                                                                                                                          Seed
                                                                                                                                                                      logspot.com/2010/10/transfor
      P6-P9                                                                                                                                                           ming-so-what-opposites-in-to-
                                                                                                                                                                      so.html




                                                                                       Strategy                                                  Innovation
    5. Value
   (fruits) are                                                   P2-P5                                                                                                                  Core                                              Edge
    reaped/
                                                                     2. Invisible

                                                                                     (Redeemer/                                                (Encourager/
 reinvested &
                                                                 sub-instructions
   the radial
                                                                   in the form of
    orbit flow
                                                                   experience &

                                                                                      Sustainer)                                                  Disruptor)
  continues…
                                                                 capability pools                                                                                                   Something                                            Something
      P10                                                          are identified                                                                                                       that                                                 that
                                                                 and placed on                                                                                                        supports                                            transforms
                      The five invisible instructions             the radial orbit                                                                                                  rather than                                          rather than
      1. Purpose                                                                                                                                                                                                                             that
                      P1                                            framework.                                                                                                          that
    Seed grows in                                                                                                                                                                                                                          supports!
                                                                                                                                                                                    transforms!


                                                                                                                       Culture
    to a systemic
    organization.
                          1 2 3 4    5                                                                                                                                    Transforming “So What” opposites in to “So That” Strategy called Purpose
                                                                                                                                                                     Innovation using the “forces of attraction” based Pull Value Chain is the way to go!

*WACP= Weighted Average
    Cost of Purpose

Lead with the Purpose Culture, Strategize from the Core & Innovate with the Edge!
In spite of using these great frameworks, some strategy resets still do not
                          produce its intended outcome? Why?

    In Porter’s words, the essence of strategy is choosing what not to do, and so,
                          here are five “what not to do’s” …..

                                                         •What Not To Do #4->: Do not mix SCA vs.
•   What Not #1 -> Do not reset with a single
                                                         capability vs. competency within organic
    dimensional strategy mindset, as opposed to an
                                                         and inorganic growth strategies , but follow
    integrated systemic approach, in the three
                                                         a portfolio approach in managing
    dimensions of leadership, strategy and innovation,
                                                         capabilities – as addressed by our
    as addressed by our TPF framework within VOS.
                                                         Capability Pool Portfolio (CPP) Framework

•   What Not #2-> Do not reset strategy without               SCA vs. Competency vs. capability is
    resetting the purpose seed, as addressed by our           equivalent to Grandma’s hand trick of
    Purpose driven seedal chain/scientific energy             sautéing for the right duration with
    management principle driven Portfolio Thread              right temperature vs. Recipe vs.
    view based strategic planning framework .                 Ingredient.

•   What Not #3-> Do not go after an existing market,    •What Not To Do #5-> Do not Execute
    as opposed to going after the virtual ocean          without a real time performance visibility ->
    market and/or experience pools, which do not         partly addressed by our big data driven
    exist today with a motivational momentum             real time valuation based Corporate
    themes creating experience moments or                performance management framework.
    movements-> as addressed by our Experience
    Pool Portfolio (EPP) framework and our Purpose
    Innovation.
Alright…. How does it then stack up against Red Ocean and Blue Ocean?
#       Red Ocean              Blue Ocean                         Virtual Ocean (aka TPF)
1   Compete in an         Create a new market        Create a new market by tearing down the artificial
    existing market,      within an existing         walls among industry structures and make traditional
    within an existing    industry structure and     industry structures and cost constraints irrelevant.
    industry structure    make competition
    with a unique         irrelevant.
    winning path.
2   Beat the              Make competition           Plan with “competition irrelevant” mindset, but
    competition.          irrelevant.                execute with a collaborative mindset as competition
                                                     will catch up sooner than later, in the 21st century
                                                     digitally connected virtual world.

3   Value-cost trade-     Break value-cost           Balancing five dimensional “value-cost-velocity-
    off.                  trade-off.                 growth-purpose” using nature’s principle of
                                                     “balancing opposites using the five value stations (4
                                                     BSC+purpose)
4   Align the whole       Align the whole            Align the whole system of firm's activities in pursuit of
    system of firm's      system of firm's           low cost, differentiation, talent management,
    activities with low   activities in pursuit of   operational velocity and purpose, all simultaneously.
    cost or               low cost and
    differentiation.      differentiation.
5   Sourced from a        Sourced from two           Sourced from three “inside-out” sources of
    Single dimensional    dimensional, “outside-     “purpose-energy-value” portfolios, manifesting itself
    “outside-in”          in” strategy and           as an integrated/systemic approach (of leadership,
    Completive            value innovation           strategy and innovation dimensions), resulting in
    Strategy mindset.     mindset.                   Triune shared value (shareholder + societal +
                                                     spiritual/emotional/cultural value), governed by
                                                     nature's seedal chain principle.
How does it stack up against Red Ocean and Blue Ocean? Contd…
#        Red Ocean              Blue Ocean                       Virtual Ocean (aka TPF)
6    Success is              Success is Value        Success is Three dimensional Value Advantage
     Competitive             Innovation driven.      driven=
     Advantage driven                                market or experience advantage + capability or
                                                     competency advantage + collaborative
                                                     cultural/emotional value advantage .

7    Structuralistic         Reconstructionist        Deconstructionist approach where we start with a
     approach where          approach where          super design purpose structure of business followed
     structure decides       strategy decides        by strategy and then, arriving at the fine grained
     strategy                structure.              Triune shared value(TSV) structure.

8    Primarily balances      Primarily balances      Five dimensional balancing of value, profit, growth,
     value proposition       value proposition,      velocity and purpose propositions, thus resulting in
     and value chain         profit proposition      18 macro dilemmas as identified in our radial
     proposition only        and people              framework.
                             proposition.

9    Exploit existing        Create and capture      Create and capture new demand with a pull
     demand                  new demand.             mechanism, yet prevent/mitigate and balance it
                                                     with supply side (i.e. push side) with a balanced
                                                     CORE-EDGE-FRINGE mindset.

10   Primarily shareholder   Primarily shareholder   Triune Shared Value driven i.e. two “outside-in”
     value driven with       value driven with       values of Shareholder and societal value
     CSR mindset, slowly     value innovation        complemented by “Inside-out“ value called
     transforming into       mindset.                Spirituality/Emotional energy/culture value, which
     Porter’s emerging                               makes it sustainable.
     CSV mindset.

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Virtual ocean strategy the way to reset strategies with a purpose driven “industry structure is irrelevant” mindset

  • 1. Virtual Ocean Strategy – the way to reset strategies with a purpose driven “traditional industry structures & resource constraints are irrelevant” mindset? (Draft For Discussion Purposes Only ) Charles Prabakar Executive Global Partner/Managing Director Willis Consulting LLC
  • 2. “Virtual Ocean Strategy ” at a glance… Situation Complication Resolution  While the phrase  Lack of an Integrated systemic  We suggest a contrarian “strategy reset” means mindset within the three purpose Deconstructionanist/ different things to dimensions of leadership, hybrid approach different companies, strategy & innovation. (between Red ocean and most strategy Blue Ocean) with a  Lack of an agreed upon practitioners agree, that “Virtual Ocean” mindset purpose statement. there are not many “–by resetting company’s comprehensive purpose statement (vision,  Lack of the purpose seed not approaches available being germinated properly (in mission, values, codes and within the market place spirit and essence) into an BHAG ), using nature’s designed to reset both organization with a unique Seedal chain principle the strategic plan, and culture with a unique DNA”. (Seed-Season-Sequel), “design of the business with a “traditional industry purpose seed”,  Lack of an approach with a structures and resource simultaneously , with an “tearing down the walls of constraints are irrelevant” industry structures” integrated/systemic mindset along with a mindset”, to meet the multi dimensional  Lack of a multi dimensional ever changing business balancing model, as opposed balancing model in the needs of the 21st century to the traditional 2D “value- five dimensions of value, social media driven cost” balancing model ( i.e. cost, velocity, growth and connected world! tradeoff in ROS and “doing purpose. both” in BOS). Lack of an Integrated systemic mindset within the three purpose dimensions of leadership, strategy & innovation, is the #1 reason, why most strategy resets, do not yield its intended outcome!
  • 3. How does VOS stack up against BOS and ROS within this MBA framework? MBA Step Red Ocean Blue Ocean Virtual Ocean Compete Dive deeper, in Fly faster into the virtual aggressively in order to tap the space, in order to tap the order to grab untapped value untapped value, by doubling Motivation value from within an existing the size of the value pie, using competitors, value ocean pie. our firm’s VOS, VRE, Capitalism within an existing Plus, Purpose Innovation and value ocean pie. VizPlanet platforms. Beat the Make competition Make traditional Industry Belief competition at irrelevant. structures and resource any cost. constraints irrelevant. Trade-off value Balance value Balance the five dimensional Action and cost. and cost. value cycle i.e. “value-cost- velocity-growth-purpose” using five value stations (4 BSC+ purpose). Stacking strategy frameworks with an MBA lens, not only helps us to diagnose & prescribe effective and efficient strategies, but also, helps us to prioritize, where we need to spend our time & energy (i.e. which step within MBA) to maximize value!
  • 4. Virtual Ocean Strategy (VOS) Using Nature’s Seedal Chain (Seed-Season-Sequel) Principle 1 2 3 Design the Business by Plan using the Integrated Three resetting the Triune Purpose Track Seasonality (Leadership, Execute/Reap with the Triune Strategy and Innovation) driven Shared Value (TSV) driven Seed (vision, mission, values, codes and BHAG) “Industry structure is irrelevant” “collaborative heartbeat” for mindset the best outcome (Sequel) Triune Purpose Frameworks (TPF) creating Triune Shared Value (TSV) TPF’s Purpose Driven Profit Commercializat Triune Purpose Frameworks (TPF) creating Triune Shared Value (TSV) Leadership(PDL) Culture Framework ion/ TPF’s Purpose Driven THE SINUSOIDAL TRIO© – OUR PURPOSE Commodity Leadership(PDL) Culture Framework Financial PDL© IN ACTION DRIVEN LEADERSHIP (PDL©) FRAMEWORK PURPOSE Value- Iterate it Faith/Trust Love/Empathy THE SINUSOIDAL TRIO© – OUR PURPOSE PDL© IN ACTION 1 DRIVEN LEADERSHIP (PDL©) FRAMEWORK Crest 3 Crest PURPOSE Faith/Trust Love/Empathy Mindset/ 4 Service & Heartbeat/ 1 Talent 5 Value Wisdom Crest 3 Crest Mindset/ 4 Service & Heartbeat/ Talent 5 Value Wisdom 2 Know- Trough Inspiration how Hope/Aspire (“BE”) Body Space/Skill (“KNOW”) 2 Know- Trough Inspiration Action how Hope/Aspire (“BE”) Body Space/Skill Drivers (“KNOW”) (“DO”) Action PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”, “DO” focus areas of WestPoint Leadership Framework as well. Shareholder Value= Profit x Drivers (“DO”) CV= (1-g/ROIC)/ (WACC-g) PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”, “DO” focus areas of WestPoint Leadership Framework as well. Leadership Jobs-to-be ROIC= done/Price Leadership (Creator/ Margin x Orchestrator) (Creator/ Velocity Value Orchestrator) TPF’s Purpose Driven “Jobs-To- Customer Portfolio-Thread View TPF’s Purpose Driven Chain TPF’s Purpose Driven (PTV) based Strategic TPF with Innovation Portfolio Be-Done” Theme It Incubator Portfolio-Thread View (PTV) based Strategic TPF with TPF’s Purpose Driven Innovation Portfolio Planning Framework its Triune (PIP) Framework Value – Planning Framework (PIP) Framework Value – Test its Triune 4. The EPP, CPP & PIP 3. The radial orbit with 5 Purpose Purpose Innovation Model Using “Balancing Opposites” Ideate it Purpose Purpose Innovation Model Using “Balancing Opposites” frameworks uncover perspectives and 6 it For More Info – Read On… 4. The EPP, CPP & PIP 3. The radial orbit with 5 the winning paths. dilemmas, take charge. http://strategywithapurpose.b Purpose Innovation frameworks uncover perspectives and 6 For More Info – Read On… Seed logspot.com/2010/10/transfor P6-P9 ming-so-what-opposites-in-to- the winning paths. dilemmas, take charge. http://strategywithapurpose.b Purpose Innovation Seed logspot.com/2010/10/transfor so.html P6-P9 ming-so-what-opposites-in-to- so.html Strategy Innovation 5. Value Strategy Innovation (fruits) are P2-P5 Core Edge 5. Value reaped/ (fruits) are P2-P5 Core Edge 2. Invisible (Redeemer/ (Encourager/ reinvested & reaped/ sub-instructions 2. Invisible (Redeemer/ (Encourager/ the radial reinvested & in the form of sub-instructions orbit flow the radial experience & in the form of orbit flow Sustainer) Disruptor) continues… experience & capability pools Growth Something Sustainer) Disruptor) Something continues… P10 are identified that that capability pools Something Something transforms P10 are identified that that and placed on supports transforms The five invisible instructions the radial orbit rather than rather than and placed on supports 1. Purpose The five invisible instructions rather than rather than that that 1. Purpose the radial orbit /Learning/ Seed grows in P1 framework. supports! that that transforms! Seed grows in P1 framework. Culture to a systemic transforms! supports! Culture to a systemic organization. 1 2 3 4 5 organization. Transforming “So What” opposites in to “So That” Strategy called Purpose 1 2 3 4 5 Transforming “So What” opposites in to “So That” Strategy called Purpose Collaboratio Innovation using the “forces of attraction” based Pull Value Chain is the way to go! Innovation using the “forces of attraction” based Pull Value Chain is the way to go! *WACP= Weighted Average *WACP= Weighted Average Cost of Purpose Vision /Seed n Cost of Purpose Lead with the Purpose Culture, Strategize from the Core & Innovate with the Edge! Value – Slot it g Lead with the Purpose Culture, Strategize from the Core & Innovate with the Edge! Purpose manifesting as Purpose resulting in as Energy Purpose manifesting as Triune Shared Value Value Reset the purpose seed with a “seedal chain” spirit, formulate the strategy with an integrated seasonality driven “industry structure is irrelevant” mindset, and execute and reap with a TSV driven “collaborative heartbeat(sequel)”, thus increasing the size of the value pie by multi-fold!
  • 5. 1 Design the Business by resetting the Triune Purpose Seed using leadership, strategy and Innovation Frameworks TPF’s Purpose Driven Leadership(PDL) Culture Framework THE SINUSOIDAL TRIO© – OUR PURPOSE PDL© IN ACTION DRIVEN LEADERSHIP (PDL©) FRAMEWORK PURPOSE Faith/Trust Love/Empathy Crest 1 3 Crest Mindset/ 4 Service & Heartbeat/ Talent 5 Value Wisdom 2 Know- Trough Inspiration how Hope/Aspire (“BE”) Body Space/Skill (“KNOW”) Action Drivers (“DO”) PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”, “DO” focus areas of WestPoint Leadership Framework as well. Leadership (Creator/ Orchestrator) TPF’s Purpose Driven Portfolio-Thread View TPF’s Purpose Driven (PTV) based Strategic TPF with Innovation Portfolio Planning Framework its Triune (PIP) Framework Purpose 4. The EPP, CPP & PIP 3. The radial orbit with 5 Purpose Innovation Model Using “Balancing Opposites” frameworks uncover perspectives and 6 For More Info – Read On… the winning paths. dilemmas, take charge. http://strategywithapurpose.b Purpose Innovation Seed logspot.com/2010/10/transfor P6-P9 ming-so-what-opposites-in-to- so.html Strategy Innovation 5. Value (fruits) are P2-P5 Core Edge reaped/ 2. Invisible (Redeemer/ (Encourager/ reinvested & sub-instructions the radial in the form of orbit flow experience & Sustainer) Disruptor) continues… capability pools Something Something P10 are identified that that and placed on supports transforms The five invisible instructions the radial orbit rather than rather than 1. Purpose that P1 framework. that Seed grows in supports! transforms! Culture to a systemic organization. 1 2 3 4 5 Transforming “So What” opposites in to “So That” Strategy called Purpose Innovation using the “forces of attraction” based Pull Value Chain is the way to go! *WACP= Weighted Average Cost of Purpose Lead with the Purpose Culture, Strategize from the Core & Innovate with the Edge!
  • 6. 2 Plan usingwith the TriuneTrack Seasonality driven Cyclical VOS Frameworks Execute Integrated 3 Shared Value (TSV) mindset for the best Sequel Profit 5. Commercialization/ 5.Financi Commodity Value- al Iterate it –(Fertile Land) Shareholder Value= Profit x Cust. Value= (1-g/ROIC)/ (WACC-g) Jobs-to-be ROIC= done/Price 1. Purpose Margin x Velocity 2.Customer 4.Value 2. “Jobs-To- Chain Be-Done” Value – 1. Theme It 4. Incubator Ideate it Value – Test it (Hard Land ) – (Weedy Land) 3.Growth 3. Vision Value – /Learning/ Slot it Collaboratio Legend : Green – Leadership Track (Shallow Land) n Purple – Innovation Track g Black – Strategy Track
  • 7. 3 Execute with the Triune Shared Value (TSV) mindset for the best VOS Sequel TPF’s Purpose Driven Leadership(PDL) Culture Framework THE SINUSOIDAL TRIO© – OUR PURPOSE PDL© IN ACTION DRIVEN LEADERSHIP (PDL©) FRAMEWORK PURPOSE Faith/Trust Love/Empathy Crest 1 3 Crest Mindset/ 4 Service & Heartbeat/ Talent 5 Value Wisdom 2 Know- Trough Inspiration how Hope/Aspire (“BE”) Body Space/Skill (“KNOW”) Action Drivers (“DO”) PDL’s “LOVE”,”FAITH”,“HOPE” Portfolios align1:1 with the “BE”, “KNOW”, “DO” focus areas of WestPoint Leadership Framework as well. Leadership (Creator/ TPF’s Purpose Driven Orchestrator) Portfolio-Thread View TPF’s Purpose Driven (PTV) based Strategic Innovation Portfolio Planning Framework TPF with (PIP) Framework its Triune Purpose 4. The EPP, CPP & PIP 3. The radial orbit with 5 Purpose Innovation Model Using “Balancing Opposites” frameworks uncover perspectives and 6 For More Info – Read On… the winning paths. dilemmas, take charge. http://strategywithapurpose.b Purpose Innovation Seed logspot.com/2010/10/transfor P6-P9 ming-so-what-opposites-in-to- so.html Strategy Innovation 5. Value (fruits) are P2-P5 Core Edge reaped/ 2. Invisible (Redeemer/ (Encourager/ reinvested & sub-instructions the radial in the form of orbit flow experience & Sustainer) Disruptor) continues… capability pools Something Something P10 are identified that that and placed on supports transforms The five invisible instructions the radial orbit rather than rather than 1. Purpose that P1 framework. that Seed grows in supports! transforms! Culture to a systemic organization. 1 2 3 4 5 Transforming “So What” opposites in to “So That” Strategy called Purpose Innovation using the “forces of attraction” based Pull Value Chain is the way to go! *WACP= Weighted Average Cost of Purpose Lead with the Purpose Culture, Strategize from the Core & Innovate with the Edge!
  • 8. In spite of using these great frameworks, some strategy resets still do not produce its intended outcome? Why? In Porter’s words, the essence of strategy is choosing what not to do, and so, here are five “what not to do’s” ….. •What Not To Do #4->: Do not mix SCA vs. • What Not #1 -> Do not reset with a single capability vs. competency within organic dimensional strategy mindset, as opposed to an and inorganic growth strategies , but follow integrated systemic approach, in the three a portfolio approach in managing dimensions of leadership, strategy and innovation, capabilities – as addressed by our as addressed by our TPF framework within VOS. Capability Pool Portfolio (CPP) Framework • What Not #2-> Do not reset strategy without SCA vs. Competency vs. capability is resetting the purpose seed, as addressed by our equivalent to Grandma’s hand trick of Purpose driven seedal chain/scientific energy sautéing for the right duration with management principle driven Portfolio Thread right temperature vs. Recipe vs. view based strategic planning framework . Ingredient. • What Not #3-> Do not go after an existing market, •What Not To Do #5-> Do not Execute as opposed to going after the virtual ocean without a real time performance visibility -> market and/or experience pools, which do not partly addressed by our big data driven exist today with a motivational momentum real time valuation based Corporate themes creating experience moments or performance management framework. movements-> as addressed by our Experience Pool Portfolio (EPP) framework and our Purpose Innovation.
  • 9. Alright…. How does it then stack up against Red Ocean and Blue Ocean? # Red Ocean Blue Ocean Virtual Ocean (aka TPF) 1 Compete in an Create a new market Create a new market by tearing down the artificial existing market, within an existing walls among industry structures and make traditional within an existing industry structure and industry structures and cost constraints irrelevant. industry structure make competition with a unique irrelevant. winning path. 2 Beat the Make competition Plan with “competition irrelevant” mindset, but competition. irrelevant. execute with a collaborative mindset as competition will catch up sooner than later, in the 21st century digitally connected virtual world. 3 Value-cost trade- Break value-cost Balancing five dimensional “value-cost-velocity- off. trade-off. growth-purpose” using nature’s principle of “balancing opposites using the five value stations (4 BSC+purpose) 4 Align the whole Align the whole Align the whole system of firm's activities in pursuit of system of firm's system of firm's low cost, differentiation, talent management, activities with low activities in pursuit of operational velocity and purpose, all simultaneously. cost or low cost and differentiation. differentiation. 5 Sourced from a Sourced from two Sourced from three “inside-out” sources of Single dimensional dimensional, “outside- “purpose-energy-value” portfolios, manifesting itself “outside-in” in” strategy and as an integrated/systemic approach (of leadership, Completive value innovation strategy and innovation dimensions), resulting in Strategy mindset. mindset. Triune shared value (shareholder + societal + spiritual/emotional/cultural value), governed by nature's seedal chain principle.
  • 10. How does it stack up against Red Ocean and Blue Ocean? Contd… # Red Ocean Blue Ocean Virtual Ocean (aka TPF) 6 Success is Success is Value Success is Three dimensional Value Advantage Competitive Innovation driven. driven= Advantage driven market or experience advantage + capability or competency advantage + collaborative cultural/emotional value advantage . 7 Structuralistic Reconstructionist Deconstructionist approach where we start with a approach where approach where super design purpose structure of business followed structure decides strategy decides by strategy and then, arriving at the fine grained strategy structure. Triune shared value(TSV) structure. 8 Primarily balances Primarily balances Five dimensional balancing of value, profit, growth, value proposition value proposition, velocity and purpose propositions, thus resulting in and value chain profit proposition 18 macro dilemmas as identified in our radial proposition only and people framework. proposition. 9 Exploit existing Create and capture Create and capture new demand with a pull demand new demand. mechanism, yet prevent/mitigate and balance it with supply side (i.e. push side) with a balanced CORE-EDGE-FRINGE mindset. 10 Primarily shareholder Primarily shareholder Triune Shared Value driven i.e. two “outside-in” value driven with value driven with values of Shareholder and societal value CSR mindset, slowly value innovation complemented by “Inside-out“ value called transforming into mindset. Spirituality/Emotional energy/culture value, which Porter’s emerging makes it sustainable. CSV mindset.