BOS Term - Fair Process

Fair Process - Blue Ocean Strategy Glossary

Fair Process is the managerial expression of procedural justice in the formulation and execution of strategic decisions. Fair process inspires employees to cooperate voluntarily and to go beyond the call of duty in executing a Blue Ocean Strategy. The implementation of any great strategic vision relies on the support and alignment of all members of an organization. But commitment cannot be commanded: carrots and sticks only bring compulsory cooperation. Fair process inspires employees to use their energy and initiative to execute a strategy to the best of their abilities. There are three mutually reinforcing elements that define fair process:

1. Engagement. Engagement means involving individuals in the strategic decisions that affect them, asking for their input, and allowing them to refute the merit of one another's ideas and assumptions. Engagement communicates management's respect for individuals and their ideas. It sharpens everyone's thinking and builds better collective wisdom. The result is better strategic decisions and greater commitment from the entire organization in executing Blue Ocean Strategy.

2. Explanation. Explanation means that everyone involved and affected should understand why final strategic decisions are made as they are. An explanation of the thinking behind decisions makes people confident that managers have considered their opinions and have made decisions impartially in the overall interests of the company. An explanation allows employees to trust management's intentions even if their own ideas have been rejected. It also serves as a powerful feedback loop that enhances learning.

3. Expectation clarity. Expectation clarity requires that after a strategy is set, managers state clearly the new rules of the game and what is expected of employees. Although the expectations of a Blue Ocean Strategy may be demanding, employees should know up front what standards they will be judged by and the penalties for failure. When people clearly understand what is expected of them, political jockeying and favoritism are minimized, and people can focus on executing the strategy rapidly.

Source : BOS Terms, Fair Process - Blue Ocean Strategy Glossary, Business Strategy at blueoceanstrategy.com