Chapter 7 : Overcoming Key Organizational Hurdles

1. Chapter7: Overcoming Key Organizational Hurdles Clete Donovan Andrew Merlino Rachel Harless Jessica Moore Priscella Cones Joel Hand Amanda Carey

2. Overcoming Key Organizational Hurdles • Four Hurdles • Walking employees up to the need for a strategic shift. • Limited resources • Motivation • Politics

3. Tipping Point Leadership In Action • NYPD • Bill Bratton (police commissioner) from 1994-1996 • Felony crime fell 39%, murder fell 50%, theft fell by 35% • Policemen respected Bratton greatly • Crime rates continue to fall after Bratton’s departure

4. The Four Organizational Hurdles To Strategy Execution

5. Disproportionate Influence Factors • Tipping point leaders answer these questions • What factors/acts exercise a disproportionately positive influence on breaking the status quo? • How to get the most bang for your buck of resources? • How to motivate key players to aggressively move forward with change? • How to knock down political roadblocks that often trip up the best strategies?

6. Break Through the Cognitive Hurdle • In many turnarounds and corporate transformations… • The hardest battle: making people aware of the need for a strategic change. • “There are only two performance alternatives: to make the performance targets or to beat them.”

7. What NOT to do • Insist on improvement on numbers • Figures can be manipulated or misleading • Communicating through numbers • Doesn’t stick with people • Case for change feels abstract • Lack of communication on efforts

8. Tipping Point Leadership • Doesn’t rely on numbers to break through the organization’s cognitive hurdle • “Seeing is believing” • Making people see and experience harsh reality first hand • Builds on this insight to inspire a fast change in mindset that is internally driven of people’s own accord

9. Jump the Resource Hurdle After deciding a strategic shift will be made, leaders must ask: Do we have the money to spend on necessary changes?? Typical leaders do one of two things: -Cut ambitions, also cutting work force morale -Fight for more money, a long, politically focused process Tipping point leaders concentrate on increasing the value of current resources by focusing on three factors: -Hot spots -Cold spots -Horse trading

10. Redistribute Resources to Your Hot Spots • Hot spots are activities that have low resource input but high potential performance gains • NYPD ex: -Sharpest drop in subway crime with officers targeted at hot spots versus increasing police force size. -Major reallocation of staff and resources within the narcotics unit • By simultaneously assessing the NYPD’s cold spots, the resources were available to do this.

11. Redirect Resources from Your Cold Spots • Cold spots are activities that have high costs but low performance impact • NYPD subway ex: • Processing criminals in court was costing the department valuable time officer’s could be using to patrol the subway • Bratton’s creation of “Bust Buses” • Restored buses became mini police stations and brought processing centers to the criminals • Cut processing time from sixteen hours to only one

12. Engage in Horse Trading • Horse Trading involves trading excess resources for another unit’s excess to fill remaining resource gaps. • NYPD ex: Chief of NY Transit Police Dean Esserman played key horse trader along with Bratton • Transit unit needed office space and had an excess of unmarked cars, where as the NY Division of Parole was short of cars, but had excess office space. • Bratton refocused resources and broke out of the red ocean and executed its blue ocean strategy.

13. Engage in Horse Trading

14. Jump the Motivational Hurdle • Executing Blue Ocean Strategy • Alert employees and let them know what can be done. • How to motivate the mass of employees fast and at a low cost?

15. 1. Kingpins • The key influencers in an organization. (natural leaders, well respected, persuasive) • EX: Bratton, zoomed in on the 36,000 officers.

16. 2. Kingpins in a Fishbowl • Fishbowl MGMT- putting them in the “spotlight” • For it to work it must be based on transparency, inclusion, and fair process. • EX: Bratton called a meeting for the ranked officers and “Kingpins” • Motivation

17. 3. Atomize to get the organization to change itself • Atomization- framing of the strategic challenge. • To make NYC a safer place. • Bratton’s BOS shifted from him to each 36,000 officers.

18. Knock over the Political Hurdle • Youth and Skill will win out over age and treachery. FALSE • Even the best and brightest are regularly eaten alive by politics, intrigue, and plotting. • Even if an organization has reached the tipping point of execution, there are powerful interests that will resist the changes. • The more likely change becomes, the more fiercely and vocally these negative influencers will fight to protect their positions.

19. Overcome Political Forces • Leveraging Angels (those who have the most to gain) • Silencing Devils (those who have the most to lose) • Getting a consigliere on top management team (an insider who knows who will fight or support you)

20. Secure a Consigliere on your Top Management Team • Most leaders focus on building a management team that has functional skills such as: • Marketing • Operations • Finance • Tipping point leaders engage a role few other executives think to include: a consigliere

21. Leverage your Angels and Silence your Devils • To overcome political hurdles you should ask yourself: • Who are my devils? Will they fight me? Who will lose the most by the future blue ocean strategy? • Who are my angels? Who will naturally align with me? Who will gain the most buy the strategic shift? • Don’t fight alone. Identify detractors and supporters, and strive to create a win -win outcome for both • Isolate detractors by building a broader coalition with your angels before the battle begins

22. Leverage your Angels and Silence your Devils • The key to winning over your devils (detractors) is by knowing all their likely angles of attack and building up counterarguments with facts and reason

23. Challenging Conventional Wisdom • Tipping point leadership, by contrast, takes a reverse course. • By transforming the extremes, tipping point leaders are able to change the core fast and at low cost to execute their new strategy.

24. Conventional Wisdom Versus Tipping Point Leadership

25. Leveraging Tipping Point Leadership • Execute a strategic shift through leveraging tipping point leadership. • By focusing on factors of disproportionate influence, you can actualize a strategic shift. • Focus on acts of disproportionate influence. • This is a critical conventional leadership component for making blue ocean strategy happen