A short presentation focussing on the building blocks of excellence in organisations and the key principles for success. (ref. In search of excellence, Blue Ocean Strategy). Author: Remi ADESEUN.2007. Adapted for Rodot kick-off meeting. January 2008.
8. Four Actions Framework + Eliminate/Reduce/Raise/Create Grid The four actions framework offers an technique that breaks the trade-off between differentiation and low cost and to create a new value curve. It answers the four key questions of what industry takes for granted and needs to be eliminated; what factors need to be reduced below industry standards; what factors need to be raised above industry standards; and what should be created that the industry has never offered. The eliminate-reduce-raise-create grid pushes companies not only to ask all four questions in the four actions framework but also to act on all four to create a new value curve. By driving companies to fill in the grid with the actions of eliminating, reducing, raising, and creating, the grid provides four immediate benefits: it pushes them to simultaneously pursue differentiation and low costs; identifies companies who are only raising and creating thereby raising costs; makes it easier for managers to understand and comply; and it drives companies to scrutinize every factor the industry competes on. A New Value Curve Reduce Eliminate Create Raise Which factors should be reduced well below industry standards? Which factors should be created that the industry has never offered? Which factors should be raised well above the industry’s standard? Which of the factors that the industry takes for granted should be eliminated ? Eliminate Enological terminology and distinctions Aging qualities Above-the-line marketing Raise Price versus budget wines Retail Store involvement Reduce Wine complexity Wine range Vineyard prestige Create Easy drinking Ease of selection Fun and adventure
9. Four Actions Framework + Eliminate/Reduce/Raise/Create Grid Four Actions Framework A New Value Curve Reduce Eliminate Create Raise The Eliminate-Reduce-Raise-Create Grid Eliminate Raise Reduce Create