Masterclass 2

Question 1

The Invincible Company

Answer 1

A company that constantly reinvents itself before it becomes obsolete; the invincible company explores the future, whilst excelling at exploiting the present

Question 2

Layout of the culture map

Answer 2

• Outcomes (The fruit: what we harvest?)
• Behaviours (Behaviours at the heart of the culture)
• Enablers/Blockers (Levers that lead to positive or negative behaviours inside the company)

Question 3

Exploration - VS - Exploitation

Answer 3

High - UNCERTAINTY - Low

Search and breakthrough - FOCUS - Efficiency and growth

Venture-capital style risk taking: expecting few outsized winners - FINANCIAL PHILOSOPHY - Safe haven with steady returns and dividends

Iterative experimentation, embracing speed, failure, learning, and rapid adaptation - CULTURE & PROCESSES - Linear execution, embracing planning, predictability and minimal failure

Explores who excel in uncertainty, are strong at pattern recognition, and can navigate between big picture and details - PEOPLE SKILLS - Managers who are strong at organising and planning and can design efficient processes to deliver on time and budget

Question 4

What is exploration culture?

Answer 4

Exploration culture cultivates the creation, discovery, validation and acceleration of completely new ideas that are foreign to an organisation

Question 5

What is exploitation culture?

Answer 5

Exploitation culture cherishes the management, systematic improvement, and growth of existing businesses

Question 6

The Value Proposition Canvas (VPC)

Answer 6

In the square: (Value proposition)
- Products and services
- Gain creators
- Pain relievers

In the circle: (Customer segment)
- Gains
- Pains
- Customer Job(s)

Question 7

The three tiers of noncustomers

Answer 7

• (Customers of your industry)
  1. Soon-to-be
  Noncustomers who are on the edge of your market waiting to jump ship

2. Refusing
   Noncustomers who consciously choose against your market
3. Unexplored
   Noncustomers who are in markets distant from yours

Question 8

Blue Ocean Strategy

Answer 8

• Produce market segments without competition
• Nuclear factor as competitive free market segments
• Create and attract new demand
• Non-customer acquisition
• Product individuality and low costs
• Create and innovate value
• Breakthroughs in the cost / benefit ratio

Question 9

Red ocean strategy

Answer 9

• Battle for market segments
• Nuclear factor as competitive advantage
• Expand existing demand
• Customer differentiation
• Product individuality or low costs
• Sustain competitive advantage
• Subject to the cost / benefit ratio