Four Actions Framework
The Four Actions Framework, also known as the ERRC Grid (Eliminate, Reduce, Raise, Create), is a structured creative tool developed by W. Chan Kim and Renée Mauborgne as a companion to the Blue Ocean Strategy Canvas. While the Strategy Canvas visualises the current competitive landscape, the Four Actions Framework drives the practical decisions needed to break out of it. The framework poses four questions to challenge every factor an industry competes on: Which factors should be Eliminated because the industry takes them for granted even though they no longer deliver customer value? Which factors should be Reduced well below the industry standard, freeing up cost? Which factors should be Raised well above the industry standard? And which factors should be Created that the industry has never offered? The genius of the framework is its dual mandate: it simultaneously pursues differentiation (Raise and Create) and low cost (Eliminate and Reduce) — rejecting the traditional trade-off between value and cost. In a workshop setting, the ERRC Grid is an excellent stimulus for breaking strategic groupthink, forcing teams to make explicit choices rather than defaulting to incremental improvement, and creating a coherent strategic logic from which a new value curve can be drawn.
How to run it
- 1
Set up the ERRC Grid on a large whiteboard: four quadrants labelled Eliminate (top-left), Reduce (bottom-left), Raise (top-right), Create (bottom-right).
- 2
Brief the group on the purpose of each quadrant. Emphasise that Eliminate and Reduce are as strategically important as Raise and Create — they are the source of cost savings and simplicity.
- 3
Compile the starting factor list: if you have already run a Strategy Canvas, use the factors from the horizontal axis. If not, spend 15 minutes brainstorming the 8–12 factors your industry competes on.
- 4
Individual silent generation: give each participant sticky notes to place factors into each quadrant independently (10 minutes). Encourage bold thinking — nothing is too radical at this stage.
- 5
Cluster and reveal: bring sticky notes to the board, cluster similar ideas, and reveal where the group converges and diverges.
- 6
Facilitate a structured debate on contested items: for each major disagreement, ask 'What does the target customer actually value here?' and 'What does this cost us to maintain?'
- 7
Converge on a coherent ERRC Grid: prioritise decisions that create a new value curve — check that the Eliminate/Reduce decisions free up enough resources to fund the Raise/Create decisions.
- 8
Sketch the resulting 'to-be' value curve (on the Strategy Canvas if available) and test: Is it focused, divergent from competitors, and summarisable in a compelling tagline?
Tips
Teams almost always over-populate 'Raise' and under-populate 'Eliminate'. Force the group to generate at least 3 genuine Eliminate candidates before moving on.
Watch out for 'Reduce' being used as a safe hedge when the team should be committing to 'Eliminate'. Reducing a factor still costs money.
The 'Create' quadrant is where the real blue ocean lives. Prompt it with: 'What do your non-customers wish existed in this category that they currently get elsewhere?'
Pair the ERRC Grid with customer interview insights rather than internal opinions alone — inside-out biases are the enemy of this exercise.
If the group gets stuck, use Six Paths thinking to generate alternative factor frames before returning to the ERRC Grid.
Variations
For a 30-minute rapid version, pre-load the grid with a draft set of options and use the session only for debate and finalisation. For a product development context, map individual features rather than market factors. Can also be used for process redesign: Eliminate unnecessary steps, Reduce handoffs, Raise quality checkpoints, Create new automated flows.
Where it fits
Frequently asked questions
When should I use Four Actions Framework?â–¾
Use Four Actions Framework when you want to: Redesigning a product or service offering to break from competitive parity; Identifying cost reduction opportunities without sacrificing perceived customer value; Strategic planning sessions following a competitive benchmarking exercise; Innovation sprint framing for new product lines; Refocusing a business model after market disruption.
How long does Four Actions Framework take?â–¾
Four Actions Framework typically takes 60–120 minutes.
How many participants does Four Actions Framework work for?â–¾
Four Actions Framework works best for groups of 3–20 participants.
What materials do I need for Four Actions Framework?â–¾
To run Four Actions Framework you will need: ERRC Grid template (2x2 matrix), Sticky notes, Markers, Strategy Canvas output (if used as companion tool), Dot voting stickers.
How difficult is Four Actions Framework to facilitate?â–¾
Four Actions Framework is rated beginner — straightforward to facilitate even without prior experience.
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Try it freeMethod descriptions on Workshop Weaver are original content written by our team, based on established facilitation practices. This method was inspired by work from W. Chan Kim & Renée Mauborgne.