ERRC Grid

The Eliminate-Reduce-Raise-Create (ERRC) Grid developed by W. Chan Kim and Renée Mauborgne is a simple matrix like tool that drives companies to focus simultaneously on eliminating and reducing, as well as raising and creating while unlocking a new blue ocean.

Eliminate
Which factors that the industry has long competed on should be eliminated ?

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

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

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

This analytic tool complements the Four Actions Framework. It pushes companies not only to ask the questions posed in the Four Actions Framework but also to act on all four to create a new value curve (or strategic profile), which is essential to unlocking a new blue ocean. The grid gives companies four immediate benefits:

It pushes them to simultaneously pursue differentiation and low cost to break the value-cost trade off.
It immediately flags companies that are focused only on raising and creating, thereby lifting the cost structure and often over-engineering products and services – a common plight for many companies.
It is easily understood by managers at any level, creating a high degree of engagement in its application.
Because completing the grid is a challenging task, it drives companies to thoroughly scrutinize every factor the industry competes on, helping them discover the range of implicit assumptions they unconsciously make in competing.

Get Blue Ocean Shift to learn the ins and outs of how to put this tool in practice. Try for free our Blue Ocean Studio^™, an online collaborative workspace for applying the blue ocean tools in practice so you can get started today.

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Blue Ocean Strategy & Shift Tools

W. Chan Kim and Renée Mauborgne created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. In their New York Times bestselling book, Blue Ocean Shift (September 2017), Kim and Mauborgne share how to put these practical market-creating tools into practice to move from red to blue oceans and to do so in a way that people own and drive the process.

Brimming with battle-tested lessons and the stories of organizations from around the world that put their ideas into practice, Kim and Mauborgne highlight what works, what doesn’t, the potential pitfalls along the way and how to avoid them to achieve the best results in your organization. Get your copy of Blue Ocean Shift now, and get all these answers plus so much more including exercise templates you can use to apply the tools in your organization. Learn, apply and execute successful blue ocean shifts using the fully interactive and guided Blue Ocean Studio™.

Blue Ocean Strategy & Shift Tools

Don’t just check out the tools. Learn how to put them in practice. Find out what works, what doesn’t, the potential pitfalls along the way and how to avoid them to achieve the best results in your organization. Get your copy of Blue Ocean Shift now, and get all these answers plus so much more including exercise templates you can use to apply each tool in your organization. Learn, apply and execute successful blue ocean shifts using the fully interactive and guided Blue Ocean Studio™.