Blue Ocean Strategy Glossary : Eliminate-Reduce-Raise-Create Grid (ERRC Grid)

Eliminate-Reduce-Raise-Create Grid (ERRC Grid)

Eliminate-Reduce-Raise-Create Grid (ERRC Grid) forces managers to systematically pursue differentiation and low cost by answering the following questions based on noncustomers insights gained using the Six Paths Framework:

Eliminate. Which of the factors that the industry takes for granted should be eliminated?

Reduce. Which factors should be reduced well below the industry's standard?

Raise. Which factors should be raised well above the industry's standard?

Create. Which factors should be created that the industry has never offered?

Filtering insights through the ERRC grid forces managers to simultaneously pursue differentiation and low costs. It drives one to robustly scrutinize every factor their industry competes on, helping them discover the range of implicit assumptions they make unconsciously in competing. It immediately flags if they are focused only on raising and creating and thereby lifting their cost structure by over-engineering their offering―a common plight in many companies. Finally, because it is easily understandable by managers at any level, the ERRC grid creates a high level of engagement throughout the organization.

Source: Blue Ocean Strategy Glossary : Eliminate-Reduce-Raise-Create Grid (ERRC Grid), Business Strategy Terms at www.blueoceanstrategy.com