Fair Process: The Missing Link
Perhaps the book’s most underappreciated insight is the power of fair process—the three E principles:
1. Engagement: Involve affected people in decisions; encourage them to refute ideas
2. Explanation: Help everyone understand why decisions were made
3. Expectation Clarity: State new rules clearly so people know how they’ll be judged
Compelling Example: Elco Manufacturing
Two plants implementing the same cellular manufacturing strategy:
Chester Plant (violated fair process):
- Consultants worked in secret
- No explanation of the strategic shift
- Unclear expectations about new roles
- Result: Rebellion, plummeting performance, employees talked about bringing back the union
High Park Plant (followed fair process):
- Open meetings explaining declining business conditions
- Engaged employees in developing new measures
- Clear goals and expectations
- Result: Smooth transition, employees spoke admiringly of management despite difficult changes
Why This Matters: Fair process addresses the human dimension strategy books typically ignore. When people feel respected intellectually and emotionally, they willingly cooperate beyond mere compliance.
Critical Observation: The fair process discussion is powerful but buried too late in the book (Chapter 8). This should be central to strategy formulation, not just execution. Many blue ocean initiatives fail not because the strategy was wrong but because fair process was violated from the start.