Joe Grant's Blog

Authentic Hand Tossed Stretched Pizza Anyone?

According to an article in Wednesday's Wall Street Journal, chain pizza makers who advertise "hand-tossed" pizzas, aren't tossing them at all. Instead they're stretching their dough on a table. Imagine a more accurate advertisement "Come get your piping hot authentic hand stretched pizza." Kind of loses some of its appeal, doesn't it? By stretching the truth (no pun intended) pizza makers are attempting to use wordplay to increase sales in a mature, highly competitive, low growth market. The data shows their tactics are not working.

Telling a story to your customers is very important; however, the story must be authentic. More importantly, it has to be more than a fancy new headline on a colorful ad. The chain pizza companies deserve some credit for making the connection - people enjoy and value the experience of watching their pizza dough spinning in the air. Its the other half of the equation where they failed. Rather then delivering the experience, they simply changed the headline to include the words "hand tossed." Sounds a bit like cheating to me.

In the article, Domino's executives recognize the need for more innovation - but in the very next paragraph their idea of innovation boils down to going door to door with coupons. So instead of redesigning the customer experience, increasing the quality of their product, creating more consistency in the delivery, and making competition irrelevant, their plan is to go door to door and hand out more coupons.  Doesn't sound like much of a strategy to me. Maybe their brand promise should be "the company who delivers the most junk mail to my doorstep." Somehow, I don't think this is what their aiming for. Now if they went door to door and handed out free slices and took orders, that's a different story and its one worth talking about.

Like pizza chains, associations need to be more than the words on their website and membership brochures. Writing the words are easy. Delivering the unique value proposition isn't. What story are you telling your members? Is it the right story and are you delivering on your promise? Finally is your story worth talking about?

Being a Purple Cow Pays Off!

I finally had a chance to read Seth Godin's Purple Cow.  It's been sitting on my bookshelf for awhile now and I just couldn't resist the eye catching purple spotted cover any longer.  In Purple Cow, Seth Godin argues that focusing on the traditional 4 p's of marketing - product, price, promotion, and place (distribution) is no longer enough to achieve success.  He introduces a fifth "p" that he so cleverly refers to as the purple cow.

So where did the purple cow idea come from?  Godin describes a scenario where he and his family are driving through France's countryside gazing at its natural beauty. One thing that stood out was the picture perfect cows grazing in the field. Then something interesting happened. Within a relatively short period of time, the cows became boring. They all looked the same and eventually became invisible.

Godin then contemplates the following question. What would happen if while driving past the same pasture, you saw a purple cow? This cow would be so different and so special that you would probably stop to get a closer look and maybe even take pictures? You would probably tell your friends and family and they in turn would tell their friends and family. The cow would be so remarkable, it would be worth talking about and the idea would spread to hundreds maybe even thousands within a short period of time and with very little effort.

My Take: Why should association's be interested in this purple cow metaphor?  Because members (and non members) are faced with so many more choices today than ever before and they have less time to choose. This means that if you're not remarkable you eventually become invisible to your members and prospects.

The definition for remarkable is "being different from the ordinary in a way that causes curiosity or suspicion." The templates you've used for the last 10 years for your communications, meetings, and member experience are no longer remarkable.  They have become ordinary, outdated, and boring. 

When you're not remarkable, you're mediocre and when this happens, the only thing that matters is your price tag. How many times have you heard at renewal time "dues are too expensive?"  Translation: "Your association is no longer special to me and I no longer see the value in joining your organization."  You've become the invisible black and white cow.

Unfortunately, many association's have settled for mediocrity and are learning the hard way that tired old strategies won't convince the hundreds or thousands of non members to join the association, they won't fix the association's membership retention problem, and they won't create an environment where value innovation becomes embedded in the association's culture.

Is your association worth talking about?

The Future of Professional Associations - My Thoughts on Shel's posting

Shel Holtz's blog posting (The Future of Professional Associations ) generated some interesting buzz on ASAE's Listserve.

He makes some interesting points about how social media is becoming more and more of a major threat to associations.

I agree with Shel's points.  I also agree with Ben's comments that this is not the first threat associations will face nor will it be the last. I remember back in the early 90's at the first Digital Now conference - the buzz was that if you didn't change your association's business model by lunch break or have an instantaneous “paradigm shift” you were toast : )

Phew...we made it.

Fast forward to the latest buzz...social media is a serious threat to associations. Without a doubt, social media needs to become a high priority item on the strategic agenda; however, there are others (some interrelated) that are just as important.  For example.

How do you compete with time? I believe this is a huge threat to associations. People have less and less time to volunteer or participate in the traditional offerings. When members ask for a different experience, they’re criticized for rocking the boat. How will associations provide volunteer opportunities and programs that are compelling enough to make the calendar?

Who's really serving your members? Google, Yahoo, Wikipedia and many others have transformed information into a commodity. If your members can find better information about YOUR industry on Google, Yahoo, or any other third party website for that matter, you're in trouble.

Can anyone say information overload? Somewhere in your office or home you have a growing pile of ASAE magazines, newsletters, industry publications, articles, books, newspapers, etc.  A little overwhelming isn't it? You keep saying you're going to read them someday, but that someday never seems to come.  How will associations and other information providers deliver content in bite sized chunks that can be digested on the fly and be compelling enough to avoid joining the pile?

Forgive me for this much overused cliché but associations need to start thinking outside of the box and find ways to turn these threats into opportunities. They need to become more innovative, more creative, act faster, take more risks, invite younger members to the table, start delivering value to these members, synthesize the old with the new, collaborate with other associations and organizations, and communicate the value proposition more effectively.

The biggest threat to associations in my opinion is their own fear of change. It reminds me of the simple but compelling book Who Moved My Cheese.  Sure membership numbers are down, but things are going okay... so let’s keep doing what we've always done. As the story illustrates, this strategy (or lack thereof) will only work for so long.

Happy Endings

Are happy endings part of your association's strategy? They should be. People remember happy endings. They also remember unhappy endings. The difference between the two are raving fans vs. harsh critics.  When mapping out your member experience don't focus solely on the first impression. Even the most elaborate first impression can be spoiled by a weak or negative closing.

Consider the following examples.

Association Meetings: How would your members describe your last conference - exciting, memorable, amazing or would they use words like boring, forgettable and anticlimactic? Does this surprise you? Map out your member's experience like a story or movie with a beginning, middle and end.  Did your meeting start with a great kick off and then fade into a mediocre ending? If attendees leave on a low note, you've missed an opportunity for a happy ending.

Membership Renewal: When members approach their anniversary date, how do you help them see the value in renewing?  Do you send a cold impersonal form letter and invoice or do you strategically deliver the value proposition year round paying particular attention to the months before you ask them to renew?  Again, evaluate your membership experience from a beginning, middle and end perspective. If members view your association as just another vendor and don't quite understand what they're getting for their membership, you've missed an opportunity for a happy ending.

Member Service: When members call association headquarters, are staff ready and willing to serve or do they all play the waiting game to see who will answer first?  How about If they call at 4:50 on a Friday afternoon? Do staff pretend not to be in the office and use (or should I say abuse) the voice mail services? Management is responsible for reminding staff that members are the reason for the association's existence. If members are not being helped in their time of need, you've missed an opportunity for a happy ending.

Member Followup: There's no shame in admitting you don't have an immediate answer to a question or inquiry; however, if you tell the member you will followup...make sure you do.  If members are forced to contact you because you didn't follow through or keep them in the loop, you've missed an opportunity for a happy ending.

Website Experience: Can members visit your website and find timely and relevant information within a few clicks or is it more like a game of "find waldo?"  Is your website accurate and up to date? If Yahoo can provide better information about YOUR industry for free, you've missed an opportunity for a happy ending.

Fixing Mistakes: Mistakes are inevitable. The important thing is how you handle those mistakes.  If you make a mistake, own up to it, apologize and make it right. Remember that ole saying "pick your battles?" When a member calls and is upset, this is not the time to start playing the blame game.  Instead your job is to fix the member's problem and eliminate their pain. If you fail to transform a negative situation into a positive one for the member, once again - you've missed an opportunity for a happy ending.

Think about everyday examples where happy endings influence our moods an attitudes. People like happy endings in movies and books.  How many times have you heard "don't go see that movie, it has an awful ending."  How about when a hotel leaves something special in your room at the end of a long day.

If you're a golfer you will appreciate this next example.  Have you ever played a round of golf and by the 17th hole you're ready to throw your clubs into the nearest pond and declare you'll never step foot on the course again...and then a miracle takes place...the 18th hole.  It's like the storm clouds break open and the angels reach down to hand you a golden club. You hit that ball farther and straighter than you've ever hit the ball before. Everyone stops and stares in wonderment. Suddenly your love of the game returns, the previous 17 holes become a distant memory and you're ready to play some golf. The end becomes the defining moment.

Create happy endings and you will create happy members.

How does your association incorporate happy endings into its strategic discussions?

Share your happy ending stories here?

Experience is Key!

Have you ever stopped to think about why individuals join your association? Why they attend your meetings? Why they volunteer their time to help further the association’s cause? Think about it - bookstores have shelves filled with pages and pages of information relating to self help, hobbies, careers, politics, etc. Combine that with the web, an amazing 24/7 searchable resource to help individuals find just about anything or anyone. Turn on the television and you have over 250 channels of ongoing video content to satisfy just about any taste.

If all these resources exist, why do individuals join your association? The answer is quite simple – for the experience. They're not joining for your newsletter. They're not attending your meeting for the open bar or buffett. They're not volunteering their time because they've got nothing else better to do.

Instead they join for the experience of connecting with something bigger. To reach out to a larger community of peers and colleagues who understand the experiences and challenges they face everyday. They attend meetings for the experience of gathering and networking with colleagues who share a common bond. They volunteer their time for the experience of giving back to the community.

Unfortunately many associations haven’t embraced this idea and still focus on delivering commodities. They focus on the features and never communicate benefits. They worry too much about the tangibles and forget to highlight the intangibles. They have a set structure for their annual conference and wouldn't dare think about changing the template.

It’s time for associations to wake up and create a new experience. If you don’t start delivering THE experience, you will be replaced. As we have already illustrated, members can already get the information they need from many other (free) providers.

If your membership numbers are dwindling, retention rates flat and meeting attendance down, stop what you are doing and evaluate the experience you are delivering.

Movie Theater Experience

Who doesn’t love going to the movie theater to see a good movie, right? Think about it, rather than waiting to rent the DVD for $2 - $3 and sit in the comfort of our own home to watch the movie, we go out of our way to drive to the theater (spending gas money), pay double if not more the cost of renting the DVD, and spend $25 for a small popcorn and soda. Yet we all do it, me included. So why don’t we wait until the movie comes out on DVD? We do it for the experience.

There’s something about walking into a theater lobby and being hit with the smell of freshly buttered popcorn, trying to find your favorite seat in the dimly lit room, looking up at the big screen feeling the thunderous sound effects in the surround sound system. It’s an experience worth paying for.

According to a study conducted by the Motion Picture Association, over 1.4 billion people spent nearly $9 billion dollars in 2005 at the movie theater box offices. These same individuals could have saved over $6 billion dollars had they just waited for the movie to be released on DVD; instead they opted to pay a premium for the experience. In fact the study indicated that over 71% of the respondents agreed that going to the movie theater was the “ultimate movie watching experience.”

Are your members willing to pay a premium for the experience you are providing?

Mom and Pop Italian Restaurants

Recently my wife and I had dinner at a small Italian restaurant in little Italy, Boston. It was an amazing experience. The bill was much higher than if we had dined at the Olive Garden, but this was the real deal – homemade bread and pasta, waitress singing opera at each table, being greeted by the owner (an older Italian man), the small white linen tables, the great wine – you get the picture. Olive Garden is delivering a commodity and the mom and pop Italian restaurants are delivering an experience. If you have a favorite mom and pop restaurant then you know what I am talking about and you also know that chain restaurants don't even come close.

Your Association

So how do you create and deliver a memorable experience for your association members? From membership to meetings sit down and map out what your members experience with your association. What do they experience when they call your association? What do they experience when they send in their renewal check? What do they experience when they arrive at the host hotel for your annual meeting? As you go through this process, you will expose areas that make no sense other than that’s what you have always done in the past.

If you break away from "the way you have always done it," your members will begin to notice a difference. More importantly, they will not want to miss out on the amazing experience you are delivering.

New Feature to My Blog - AnswerTips [removed on 6/10]

[update 6/10/07] I am sad say to report that I was forced to remove AnswerTips from my blog. I really liked this tool, but for some reason, when certain words were clicked, (associations, values, etc.) it would cause the browser to crash. I alerted the AnswerTips team but unfortunately, they were unable to resolve the problem. If it is fixed in the future, I will add it back onto the Blog.

[original posting] I just added a new feature to my blog.  It's called "AnswerTips" and it's such a neat tool.  Double click any word in my blog postings and a pop-up bubble will provide information about that word.  It might be a definition or article in wikipedia.  I'm sure it hiccups every now and then, but I tested it and it seems to do a decent job.

Opportunities for Innovation

As I was reviewing some back issues of Harvard Business Review, I ran across an article written by Rosabeth Moss Kanter entitled - Innovation:The Classic Traps.  In the article Kantor describes four traps that can stifle innovation.  While many of her examples refer to for profit organizations, I think there are some lessons here for association executives as well. 

Associations will benefit by expanding their strategic scope, eliminating processes that stifle innovation, fostering a structure where innovation can thrive, and building leaders who can communicate the value of new ideas.

STRATEGY

• Too often we think of innovation as the next greatest product or service; however, innovation can happen on many different levels that can increase dues and non dues revenue and streamline or reduce costs.  For example, in what ways can your association innovate the distribution channel to reach more members?  How can you innovate internal operations to run more efficiently and deliver more value to members?  What smaller innovations could lead to incremental and continuous improvements?

PROCESS

• Although associations are typically smaller and have the ability to implement new ideas quicker than large for profit organizations, they tend to bog themselves down with policies, processes, and templates.  When an idea comes along that could take the association to the next level, it gets shot down because it doesn't fit within the established process or template or it may threaten a policy that was decreed ten years ago.  Does your association have funds set aside for new ideas that arise mid year (something that will boost your value proposition and better serve your members) or does the idea get put on the shelf until next year's budget meetings - when the opportunity is lost or someone has already gained first mover advantage?  What about staff, do you encourage your staff to be innovative and think creatively or do you reward for conformity?  Yes there are some risks involved here but you can not enjoy rewards unless you're willing to accept some level of risk.

STRUCTURE

• Be careful to integrate a culture of innovation across the entire team otherwise your mainstream employees (the ones bringing in today's revenue) may try to sabotage the efforts of the innovative team.  This often happens in an environment where silos and layers exist.  Competition between silos and management takes precedence over the core objective - to better serve the members and improve the value proposition. Management should be diligent about breaking down the walls and connecting different departments to collaborate as cross functional team members.

SKILLS

• Develop leaders within your association staff who value relationships and communication.  When trying to implement new innovative ideas, be sure the individuals leading the change have the leadership skills to build excitement and buy-in from other team members. 

Associations are facing more and more pressure everyday from other non traditional information resources and service providers.  To remain relevant to current and future members, associations will benefit by embracing innovation as a core value.

How important is innovation to your association? 

How are you building innovation into your association's culture?

BOOK REVIEW: FREAKONOMICS

Freakonomics [Revised and Expanded]: A Rogue Economist Explores the Hidden Side of Everything

Author: Steven D. Levitt and Stephen J. Dubner

Pages: 336

Amazon Average Customer Review: based on 1322 reviews.

Reviewed by: Joe Grant, CAE

My Overall Rating:   

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Who knew economics could be so interesting and entertaining?  Are you having horrible flashbacks of your microeconomics class, don't worry, this is very different. Authors Steven Levitt, an economics professor at the University of Chicago and Stephen Dubner, a New York times columnist and best selling author, avoid lengthy discussions on theories and mathematics. Instead they use real data to peel away the layers of common beliefs and conventional wisdom. 

Levitt has been criticized for not practicing the "traditional" science of economics. While a New York best seller, Freakonomics has also been criticized for being disjointed and for not having a unifying story.  Levitt acknowledges both criticisms in his book.  He humbly accepts his weaknesses in the areas of economic mathematics and theory. 

Levitt believes that "economics is a science with excellent tools for gaining answers but a serious shortage of interesting questions." He asks these questions and has "distilled the so-called dismal science to its more primal aim: explaining how people get what they want."  As for the lack of unifying story in Freakonomics, on May 25, 2005, Levitt writes in a blog entry "more valuable than anything else I or Dubner ever does, perhaps, would be to make the world safe for books that have great stories but no unifying theme."

This is not your average business book. In fact, I'm not even sure Freakonomics qualifies a business book. There is no theme and the authors bounce around from one subject to another. One minute your reading about real estate agents the next the Ku Klux Klan, sumo wrestlers, and crack gangs.  As strange as this sounds, it works.  I found myself not wanting to put the book down. 

Did you know...

• On average, real estate agents hold their own homes on the market ten days longer and sell their them for 3% more than when they sell your home?
• Swimming pools kill more children every year than guns, yet more emphasis is placed on gun control?
• In order to look good and receive bonuses, teachers cheat by fixing wrong answers on standardized tests for students who are performing poorly?
• The dissemination of "secret" information is what brought the Ku Klux Klan to its knees?
• Crack gangs maintain a similar organizational structure as McDonalds?
• Contrary to conventional wisdom, abortion (not gun control laws, creative policing strategies and politics) is the reason for the sharp decline in crime rates since the early 1990s?

The authors provide supporting details and reasoning behind each of these facts and more. 

So what does any of this have to do with anything?  Good question.  Although there is no overarching theme to the entire book, there are a few key takeaways:

• Conventional wisdom is often accepted because it is "convenient, comfortable, and comforting," even if it's untrue.  Step out of your comfort zone, challenge conventional wisdom and ask the right questions to discover the hidden side of everything.   
• In the past, we have relied on experts because they were in control of specialty knowledge. This one sided knowledge is known as "asymmetrical information."  Information asymmetries have been gravely affected by the Internet (see Slot Machines at Funerals blog posting).  Ordinary individuals now have access to the same information that was once controlled (and often misused) by the experts.   
• Individuals are motivated by social, economic and moral incentives both negative and positive. They key is to understand how individual choices, decisions and actions are influenced by these incentives.
• Small and somewhat insignificant actions often have a huge and far reaching impact.
• Just because a so called expert is telling you something, doesn't necessarily make it true.

Movie clip: Charlie Rose interviewing Levitt and Dubner on their new book Freakonomics.  The interview runs for the first 26 minutes of the clip.

MY TAKE
Freakonomics is a fascinating book that explores the hidden side of many things. While conventional wisdom may suggest an overall theme is necessary for a book to be successful, this New York Times Bestseller has proven otherwise. Association and business executives will find it interesting and at times, entertaining.

"Prepare to be dazzled" - Malcolm Gladwell

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Other Links: http://www.freakonomics.com/blog/

Have you read this book? 

What did you think?

Slot Machines at Funerals!

When I read the article in the Sunday's USA TODAY titled Some Funerals Evolving into Life Celebrations, it peaked my interest. The article describes a shift away from the traditional funeral arrangement to more of a celebration for remembering loved ones.

In one case, a funeral home simulated a live casino in the funeral parlor. Apparently, the deceased was fond of gambling so the family wanted to reproduce the sound of a casino. Money dropped into the slot machines was donated to the decedent's favorite charity. Other cases involved campsite themes, powerpoint slides, videos, and armored trucks. 

In another more elaborate case, an event planner took matters into her own hands by renting a ballroom to create a grand celebration for her 54 year old husband who died suddenly of a heart attack.  The celebration included two large tv screens with 3 1/2 minute video to remember his life and three Ferraris parked in front of the stage to honor his love of engineering.  Guests were asked to wear white to symbolize peace, rolling stones played on the loud speakers and tongue stickers were distributed to attendees.

Another significant change in the funeral industry is the ability to purchase your own casket and urn online at a fraction of the funeral home's cost.  By visiting sites like tributedirect.com, casketstore.com or casketxpress.com, you can order a discounted casket with free shipping to your funeral home.  A casket that costs $8,000 in a funeral home, can now be purchased online for $3,595 (Levitt and Dubner 62).

In the book Freakonomics, authors Levitt and Dubner describe the term asymmetrical information.

"We accept as a verity of capitalism that someone (usually an expert) knows more than someone else (usually a consumer).  But information asymmetries everywhere have in fact been gravely wounded by the Internet."

The examples above represent a change in consumer attitudes about death and religion and the ability to access information that was at one time knowledge only to the experts.  Changing consumer attitudes and shifts in asymmetrical information are allowing consumers to push funeral directors and other experts out of the driver's seat and take control.

Is the funeral industry on the endangered species list?  Probably not, but it is being forced to change its business model - perhaps, becoming less funeral director and more event planner to create unique life celebrations.  Funeral home's can no longer rely on the profits from their commodities (caskets and urns). They need to shift their focus to creating a unique and memorable experience for the family and embrace the change as an opportunity, not a threat. 

I believe the association's role is to help identify and communicate these trends to our members before it's too late.  To help them see the new opportunities and become designers of the future rather than victims.

Of course this is easier said than done.  I worked for a funeral association several years ago (hence my peaked interest) and I remember the management team discussing the trends described above. Unfortunately, there was a strong resistance from members to accept the changes because business at the time was doing well.  Still it is our duty to present the facts, help them see the future and prepare them with the tools and resources to succeed.

The USA TODAY article provides examples of funeral homes who are embracing the changes and benefiting. Hopefully funeral association's are reevaluating their offerings to help their members thrive in this new environment.

USA Today Article Link: Some Funerals Evolving Into Life Celebrations

How have shifts in consumer attitudes or asymmetrical information affected your industry?  What are you doing to communicate these changes to your members?  How are you dealing with resistance?

BOOK REVIEW: Blue Ocean Strategy

Blue Ocean Strategy

Author: W. Chan Kim and Renee Mauborgne

Pages: 256

Amazon Average Customer Review: based on 117 reviews.

Reviewed by: Joe Grant, CAE

My Overall Rating:   

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Are you trying to compete within a narrowly defined market space?  Is your organization focused on trying to beat the competition?  Have you made competition your organization's primary benchmark for strategy?  Are you trying to exploit existing demand?  If you answered yes to any of these questions, you're probably in red ocean territory.  Authors Kim and Mauborgne use the red ocean metaphor to describe an overcrowded market space of competitors all fighting for the same piece of the pie.  Blue ocean strategy is when an organization breaks away from the conventional approach to facilitate the creation of new uncontested market space thereby making competition irrelevant.

To create a blue ocean strategy, organizations must be committed to value innovation.  The authors stress that "value" and "innovation" must work together simultaneously in order to develop a blue ocean strategy.  Innovation without value involves technology-driven, market pioneering tactics that often lead to over engineered products your market isn't willing to accept or pay for.  Value without innovation often leads to value creation on an incremental basis which usually is not enough for your organization stand out in the crowd.  A blue ocean strategy focuses on reducing costs and increasing buyer value (differentiation) at the same time.

To successfully utilize the blue ocean strategy methodology, you must first learn the tools.  The primary tools are the Strategy Canvas, the Four Actions Framework, the Eliminate-Reduce-Raise-Create Grid, and the Three Characteristics of Good Strategy.

STRATEGY CANVAS
The x-axis represents the many factors organizations compete on (price, image, support, speed, etc.) and the y-axis illustrates where each company is positioned for each factor.  By plotting your organization out against competitors you have a visual representation of where your strategies are in relation to competitors.  Identical or similar strategy curves are a clear indication that everyone is trying to outdo the other on the same factors and no organization stands out from the crowd.  At the same time, organizations are spending more and more money for competition's sake and profits are eroding away.

In this example, Southwest analyzed alternatives to flying (i.e. the car) and designed a unique strategy from the competition (other airlines).  Their tagline could be "the speed of a plane at the price of a car - whenever you need it."

FOUR ACTIONS FRAMEWORK / GRID

• ELIMINATE factors that no longer add value for the customer; this will eliminate unnecessary costs.
• REDUCE factors that were over designed or features that were added for the sake of competition; reduces unnecessary costs.
• RAISE factors important to the customer that have been compromised; utilize some of the cost savings from the first two actions.
• CREATE factors that have never been offered (a new value proposition).

To create a blue ocean strategy you must change your organization's curve on the strategy canvas and move away from the competition.  This can be accomplished using the eliminate, reduce, raise, and create framework.  It helps to break each section into four quadrants of a grid.

THREE CHARACTERISTICS OF GOOD STRATEGY
Focus, Divergence, and a Tagline - The new strategy FOCUSES on the important areas and not on every single factor, DIVERGES away from the competitors offerings, and has a simple easy to communicate TAGLINE.

The authors identify the following six principles necessary for blue ocean strategy formulation and execution:

BLUE OCEAN FORMULATION PRINCIPLES
1. Reconstructing market boundaries - by analyzing six paths: alternative industries, strategic groups within industries, the chain of buyers, complementary product and service offerings, functional and emotional appeal to buyers, and time (trends).

2. Focusing on the big picture, not on the numbers - Too often, organization's fail to see the big picture because they are so overwhelmed with number crunching.  The four steps to helping leadership focus on the big picture include:

Visual Awakening - visualizing your current strategy (or lack thereof) on a strategy canvas.

Visual Exploration - going into the field to explore the six paths identified above; what alternatives exist for your product or service and what are their advantages; what needs to be eliminated, reduced, raised, or created.

Visual Strategy Fair - taking the results from the visual exploration and drawing new alternative strategy canvases for group feedback, discussion, and observation; be sure to get feedback from different stakeholders; from the feedback, build the best strategy.

Visual Communication - Incorporating and distributing the before and after strategy canvas to your team; going forward, only approve projects and initiatives that will help make the new strategy canvas a reality.

3. Reaching beyond existing demand - Don't limit your thinking to existing customers.  Determine the commonalities of three tiers of non customers and develop strategies to generate mass appeal:

First Tier - soon to be customers who are waiting to jump ship for a better option; find out what that better option is that they are waiting for; look for commonalities.

Second Tier - individuals that refuse to use the product or service because the price or other features are unacceptable; learn more about why they refuse to use your product or service; look for commonalities.

Third Tier - these are truly unchartered waters that competition typically ignores; what possibilities exist?

4. Getting the strategic sequence right - To confirm that you have a blue ocean idea, evaluate it against four criteria in the following sequential order:

1. Buyer Utility - Determine if there is exceptional buyer utility (productivity, simplicity, convenience, risk, fun and image, and environmental friendliness) across the six stages of a buyers experience cycle: purchase, delivery, use, supplements, maintenance, and disposal.

2. Price - Determine the strategic price that will generate the volume necessary for critical mass; price should not be based on the traditional cost plus approach but rather on customer value, form and function, and the ease at which your idea can be copied.  The price calculation should be:  (SP) strategic price - (PM) desired profit margin = targeted costs.

3. Cost - Determine if you can design the product and/or service to meet the targeted cost.  This will allow you to strategically create a profit and cost structure that is difficult to mimic.  Achieving the targeted cost may mean streamlining, costs innovations, partnering or outsourcing, and price innovation (developing a new model).

4. Adoption - Determine the adoption hurdles buyers will go through and address them up front.

If the idea passes through all these steps, you most likely have a blue ocean idea.

5. Overcome key organizational hurdles - Use tipping point leadership to help people understand the need for change.  This isn't accomplished through anecdotal stories or force but instead by going out into the field and facing the realities.  This includes talking to disgruntled customers and letting your team experience and appreciate the need for change. 

Organizations have limited resources so pursuing the blue ocean strategy will require strategically reallocating resources to the most important areas.  The author uses the term hot spots to allocate resources to areas that require low resource input but have the highest potential for performance. 

To increase accountability and motivation, leadership should utilize the concepts of kingpins, fishbowl management, and atomization.

Kingpins - Get the key influencers on board and behind the blue ocean strategy.

Fishbowl - Make strategy progress reporting an open group process where peers are reporting in front of peers.  Not many people enjoy explaining their inaction to a group of peers and colleagues.

Atomization - Don't overwhelm your team by dumping a large and seemingly unattainable strategy in their laps.  Break it down it manageable chunks that are realistic and attainable.

It's important to have a consigliore on your blue ocean strategy team - someone who knows the playing field well and can identify and anticipate the resistors.  This will allow you to take preemptive action and keep the resistors from sabotaging the blue ocean strategy.

Separate resistors into angels - who are in alignment and will gain the most by the strategic changes and devils - who are ready to dig in and battle against the initiative because they have the most to lose.  Anticipate and be prepared to counter devil's attempts to sabotage the plan with facts and reason.    

6. Building execution into strategy - Like any strategic planning initiative, involve all stakeholders in the process early and often including front line staff - the ones who will most likely be implementing the plan. 

Employees will champion the new strategy if the organization has done everything they can to ensure a fair process.  A good way to ensure a fair process is to follow the three E's - engagement, explanation, and clarity of expectation. 

ENGAGE your team as part of the planning process and hear them out.  Make sure they know you have actively listened to their ideas and input.  Be honest and sincere in your actions or you will not gain their trust and support.  EXPLAIN to them why you have chosen the strategy you have chosen and state very clearly what the new EXPECTATIONS will be.  By using this approach, employees will feel respected and will be dedicated to fulfilling the expectations you have established - even if they do not agree with your final decision.

MY TAKE
In Blue Ocean Strategy, the authors take a fresh approach to the strategic planning process.  Kim and Mauborgne do a great job keeping the concepts simple and providing diverse examples to adequately support their ideas.  While the authors retrofit the blue ocean strategy to historical successes, I still believe very strongly that organizations will benefit by incorporating the tools and methods in their strategic planning process.

As with all business concepts, the simpler they sounds, the harder they are to implement.  Blue ocean strategy is no different.  It requires a paradigm shift away from the traditional way (template) of conducting the strategic planning process.

This is a must read for association executives.  As Thomas Friedman so vividly points out in his book The World is Flat - the world has certainly changed; however, I think many associations are stuck doing things "the way they have always done them." 

The following are some blue ocean strategy questions your team should consider in your strategic discussions:

• Identify the alternatives to joining your association.  What alternatives exist for your current and prospect membership base?  If you were to plot the alternatives out on a strategy canvas, how do they compare with your association's offerings?
• Where do the alternatives fall short?  Can you fill this gap more efficiently and effectively?  Where have the alternatives over engineered that your association could simplify to offer more cost effective solutions members?
• Identify organizations (strategic groups) considered to be your closest competition in the industry?  Where do they fall short?  How does their strategy curve compare with yours on the strategy canvas? What opportunities exist to FOCUS, DIVERGE and come up with a unique TAGLINE?
• Identify your chain of buyers.  Distinguish purchasers from users.  Who is actually benefiting from your services?  Are their any individuals or companies down the purchasing chain that you have overlooked?
• Identify complementary product and service offerings.  Are there any untapped opportunities for synthesis and collaboration?
• Identify your product and service emotional and functional appeal.  Are you addressing these areas in the design, pricing, and marketing strategies?
• Identify trends taking place in the association industry, your member's industry and related industries.  Are you proactively shaping the trends over time or are you sitting back passively waiting to react and adapt?
• How much attention are you giving to your first, second and third tier non customers?  What commonalities exist?  What untapped opportunities exist? 
• Are your association's offerings a mish mash of ideas and fads that came down the pike or were they strategically evaluated before they were added to the mix?  What can you ELIMINATE to free up resources and reallocate to more important areas (hot spots)?
• Have you over engineered products and services with features that are not important to your members?  Can you REDUCE some of these features and free up resources to be reallocated to more important areas (hot spots)?
• What member benefits or needs have you had to compromise because of limited resources?  Can you reallocate resources to RAISE the quality in these areas?
• After analyzing alternatives, the chain of buyers, complementary products and services, emotional and functional appeal, trends, and strategic groups what can you strategically CREATE that will expand your market boundaries?
• Are you strategically evaluating your association's programs and services to make sure they have BUYER UTILITY?
• What strategic methods are you using to set the PRICE for your programs or services?  If you're not thinking about price until after the product or service has been created, you're doing things backwards.  By then you have piled on the costs that you now have to recover at a PRICE your members are not willing to pay.  Strategically determine your price first and then determine your targeted costs.
• Are you streamlining and reallocating to achieve the TARGETED COSTS to provide you products and services at a price that is acceptable to your members?
• Are you thinking about your member's adoption hurdles and barriers well in advance and taking action to eliminate them?
• Are you using tipping point leadership to communicate strategic changes?
• Are you engaging, explaining and setting clear expectations for your team?
• Are you using the fishbowl concept to create transparency and accountability for your team?

Many of these concepts have been around for awhile, but by synthesizing them together it creates a powerful message.   

This is a must read for any business leader who is striving to make their organization REMARKABLE.  As the book illustrates, it doesn't matter what industry you're in, how small or large, or the how old or new the organization is - every organization can benefit from the blue ocean strategy. 

Order from Amazon Today, you won't be disappointed!

Have you read this book?  What did you think?  Do you have a Blue Ocean success story from the Association world you would like to share?