Decision · Executive leadership team of a SaaS company · 75 min
Strategic Bets: Blue Ocean Portfolio
This highly convergent method forces the executive team to make painful trade-offs. By systematically identifying what standard industry features to eliminate and what new value to create, the team defines a highly differentiated 5-year portfolio. The process concludes with a rigorous consent-based voting mechanism to lock in organizational commitment to a few massive strategic bets.
What participants gain
- Identify industry standards that drain resources without adding competitive value
- Define a differentiated market position that avoids feature-parity wars
- Execute painful strategic trade-offs collectively
- Achieve deep executive alignment through consent-based decision protocols
Materials needed
- Large printed ERRC (Eliminate, Reduce, Raise, Create) grid
- Blue and Red voting tokens (3 of each per person)
- Action prioritization matrix (Impact vs Effort) on A0 paper
- Masking tape for grid lines
- Strategic bet commitment sheets
How to run Strategic Bets: Blue Ocean Portfolio, step by step
- Review the themes extracted from the speculative scenarios exercise.
- Introduce the Blue Ocean ERRC framework and the necessity of strategic trade-offs.
- Instruct individuals to silently write 3 things the company must ELIMINATE to free up resources.
- Group and discuss the eliminations, seeking consent to stop these initiatives.
- Repeat the silent generation and grouping process for REDUCE, RAISE, and CREATE categories.
- Transfer the most critical CREATE and RAISE items to the Prioritization Matrix.
- Distribute 3 Blue tokens (High Priority) and 3 Red tokens (Veto/Risk) to each executive.
- Conduct a silent voting round where participants place tokens on the matrix items.
- Facilitate a Sociocracy-style consent round on the top 4 items, resolving any reasoned objections.
Facilitator tips
- Do not let them skip the ELIMINATE step; strategy is as much about what you stop doing.
- When someone objects during the consent round, ask 'Is this safe enough to try?' rather than 'Do you agree?'.
- Maintain a calm, grounded physical presence, as trade-off discussions often elevate stress levels.
- If the board is too clustered in 'High Impact/Low Effort', challenge their assumptions on technical debt.
- Ensure the CEO speaks last during the consent rounds to avoid anchoring the team's opinions.
Common challenges
- Inability to kill pet projects - Use the 'Eliminate' framework to depersonalize the process, focusing on market value rather than internal effort.
- Everything is rated 'High Priority' - Introduce artificial scarcity by physically limiting the number of items allowed in the top quadrant.
- Consensus paralysis - Strictly enforce the rule that only a 'reasoned objection' (a risk that harms the company) can block a decision.
- CEO overriding the group - Pre-align with the CEO to act as a listener and tie-breaker, not the first speaker.
Running it virtually
Use a digital whiteboard with locked grid backgrounds. Utilize the platform's anonymous voting feature for the token placement, and use a digital 'talking stick' protocol in the video conference for the consent rounds.
Expected results
A finalized, prioritized portfolio of 3-5 massive strategic bets for the next 5 years, accompanied by a clear list of initiatives the company will explicitly stop doing.
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