Posts Tagged ‘Blue OCcean Strategy’

Senate’s Democratic Health Insurance Reform bill titled the ”Patient Protection and Affordable Care Act”  aims to revolutionize the health insurance system in the United States. The 2074 page document is available for downloading and previewing at Senate Democrats website  http://democrats.senate.gov. Reading through, comprehending and understanding a 2074 page document..? Thats a daunting task not just for the interested general public, but also for the government officials and even the congress men and women. Many of us would only find the time to browse through only a few pages, or maybe the table of contents and then try to find a summary of the document.

Wouldnt it be great if there was a big picture tool to describe in easily comprehendable form the overall structure and strategy the bill proposes? How much better and more effective it would be to communicate the underlying agenda, if instead of a 2074 page document, there were a few strategy canvases that graphically depicted the current strategic landscapes and the action framework.

The strategy canvas, developed by Professors Kim and Mauborgne of INSEAD can  quickly capture, in one simple picture, the value factors an industry (Health care) invests in, the offering level of each factor that buyers ( Citizens of the United States of America) receive, and the strategic profile of the company (Government of United States) across the key value  factors. The “as is” strategy canvas can capture where the Government stands today  and the  “to be” strategy canvas can depict government’s proposed future strategic profile. 

To have a big picture view of the Democratic Health Insurance Reform Bill, it should be described using at least three strategy canvases representing the three critical propositions:

1) the value proposition that provides exceptional new and reformed value for the Citizens;

2)  the profit proposition that enables the Government to lower its cost structure and control the budgetary deficits;

3) the people proposition that motivates all stakeholders that need to work with the Government,  to voluntarily participate and successfully execute the strategy.

It might be necessary to have multiple value, profit and people curves to appropriately depict the strategy and its expected outcomes for all stakeholders. For example, its important to depict separately the value curves for senior citizens, the currently uninsured Americans as well as for insured working class. Similarly, multiple value curves might be needed to depict the people propositons seperately for health insurance companies and  medical care providers.

This set of strategy canvases can quickly show in one “big picture view” whether the proposed strategy is coherent and strong and whether it has the potential to deliver unprecendented value. The canvases need to show what value factors are being eliminated and reduced that bring the industry cost strucutre down for the Government to benefit. They also need to show what  value factors are being raised or new ones being created that offer exceptional value for the Citizens of United States. 

A strategy’s success hinges on whether there is strategic alignment among the three propositions. So…Is the Democratic Health Insurance Reform Strategy upto this challenge? Is it offering a quantum leap in value for the Citizens, the Government and all stakeholders? Is that value being communicated effectively through the 2074 page document?