Chapter 7: Overcome Key Organizational Hurdles

Introduction: Chapter 7 delves into the challenges that organizations may face when adopting and implementing a Blue Ocean Strategy. The authors identify four key organizational hurdles and provide strategies to overcome them successfully.

The Four Key Organizational Hurdles:

1. Cognitive Hurdle: The cognitive hurdle refers to the challenge of breaking away from conventional thinking and industry norms. It involves overcoming mental barriers and ingrained assumptions that prevent employees and leaders from embracing a new strategic direction. Individuals may resist change due to fear of the unknown or uncertainty about the success of the Blue Ocean Strategy.
2. Resource Hurdle: The resource hurdle relates to the allocation of resources required to execute the Blue Ocean Strategy. In many cases, organizations may be reluctant to invest in unproven strategies or allocate resources away from existing business units. There may be concerns about the financial risk or short-term impact on profits.
3. Motivational Hurdle: The motivational hurdle involves engaging and motivating employees to support the Blue Ocean Strategy. As the new strategy may disrupt existing processes and roles, some employees may resist change or feel uncertain about their future in the organization. Motivation is essential to ensure that employees align their efforts with the strategic objectives and enthusiastically contribute to its success.
4. Political Hurdle: The political hurdle refers to the internal power dynamics and politics that can hinder the adoption of the Blue Ocean Strategy. Individuals or groups with vested interests in the current state of affairs may resist change or attempt to maintain the status quo, even if it is not in the best interest of the organization.

Strategies to Overcome Organizational Hurdles: To successfully overcome these organizational hurdles, the authors propose several strategies:

1. Build Awareness and Understanding: To address the cognitive hurdle, it is crucial to build awareness and understanding of the Blue Ocean Strategy among all stakeholders. Effective communication and education can help individuals grasp the rationale behind the new strategy and its potential benefits.
2. Secure Commitment from Top Management: Top management must be fully committed to the Blue Ocean Strategy and communicate this commitment throughout the organization. Their support and endorsement provide the necessary credibility for the strategy and motivate employees to align their efforts.
3. Reallocation of Resources: To address the resource hurdle, companies need to carefully reallocate resources to support the Blue Ocean Strategy. This may involve investing in new capabilities, technologies, or talent. The reallocation should be based on a clear assessment of the strategic priorities and potential return on investment.
4. Create a Sense of Urgency: Creating a sense of urgency around the need for change can help overcome the motivational hurdle. Employees should understand the need for the Blue Ocean Strategy and feel motivated to actively participate in its implementation.
5. Foster a Fair Process: To address the political hurdle, organizations should foster a fair process for decision-making and strategy development. Including key stakeholders in the decision-making process and addressing their concerns can reduce resistance and build support for the new strategy.