The Value Quotient (VQ) is a simple metric for designing, evaluating, and managing any type of project. This document presents a generic definition of the VQ and shows it at 60,000ft and 40,000ft levels. Southwest Airlines is used as an example and its VQ is calculated.

1. BLUE OCEAN PROJECT MANAGEMENTA Simple Metric for Designing and Managing Blue Ocean Projects Dr. Rod King Value Quotient (VQ) Management

2. WHAT IS “BLUE OCEAN”? Blue Ocean PLANNING Blue Ocean Strategy Blue Ocean Mission Blue Ocean Plan Blue Ocean Project Blue Ocean Vision Blue Ocean Product (Design) Blue Ocean Goal Blue Ocean Service (Design) Blue Ocean Objective Blue Ocean BUSINESS MODEL Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

3. WHAT IS THE VALUE QUOTIENT?A Universal Metric of Success and Decision-making + - Note Value Quotient = Advantage/Disadvantage = Benefit/Cost = Revenue/Cost = Strength/Weakness = Opportunity/Threat = Reward/Risk = Relevant Content/Noise = Positives/Negatives = Delight/Pain = Good/Bad Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

4. BLUE OCEAN RADAR for Southwest Airlines200,000ft View of the Value Quotient Ideal Value Quotient (Blue Ocean Transportation) Object/Core Job: Aircraft/Cars Ideal VQ = ‘Perfect 10’ Look within and across industries as well as in nature for similar or analogous resolution of trade-off Southwest (VQ = 3.4) Average Airline (VQ = 5.8/6 = 1.0) Car (VQ = 0.9) (Free) COST Value Quotient (VQ) = Benefit/Cost = Revenue/Cost = Reward/Risk = Slope of Value Quotient Line Ideal Value Quotient (Blue Ocean) Ideal Final Result of Continuously Implementing IVQ Decisions Job To Be Done (JBTD) at No Cost & With No Negative Effect Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

6. Reduce meals to level 2.1

10. Cost = 1.3

11. Value Quotient (VQ) = 4.42/1.3 = 3.4Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

13. Niche: Short-haul, low-cost air travel

15. Founder(s): Herb Kelleher; Rollin King (1967 inc.; first flight in 1971)

16. Revenue: $11 Billion (2008)

18. Aircrafts

21. REFERENCES Chesbrough, H. (2006) Open Business Models. Boston: Harvard Business School (HBS) Press. Christensen, C.; Raynor, M.E. (2003) The Innovator’s Solution. Boston: Harvard Business School (HBS) Press. Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press. King, R. (2009) The Zoomable Page for Multi-disciplinary Teams and Projects:How to Better Manage Large Amounts of Information from Diverse Sources. Fresno: Value Quotient Management. Dr. Rod King Speaker, Consultant, and Trainer on Business Model Analysis, Design, and Innovation rodkuhnking@sbcglobal.net & http://businessmodels.ning.com http://twitter.com/RodKuhnKing