NYPD Blue Ocean Strategy Christopher Cook ChelleHillis Lindsey Young Phillip Flick Overcome Key Organizational Hurdles
Four Hurdles • Cognitive: Waking employees up to the need for a strategic shift • Limited Resources: the greater the shift, it is assumed the greater the resources needed • Motivation • Politics Purely Psychological
Tipping Point Leadership in Action • Level 5 leadership? • Bill Bratton – Appointed police commissioner of New York City in 1994. • Murder, muggings, mafia hits, armed robberies at an all time high, department morale at an all time low. • After two years: • Felony crime fell 39% • Murders 50% • Theft 30% • Public confidence in NYPD jumped from 37% to 73% • This was Bratton’s fifth strategic reversal!
The Pivotal Leader • Theory of tipping points • Changes can happen quickly when the beliefs and energies of a critical mass of people create an epidimic movement toward an idea. • People, acts, activities that exercise a disproportionate influence
Breaking through the Cognitive Hurdle(Psychology 101) • Messages communicated through numbers seldom stick with people • The case for change feels abstract and removed from the sphere of the line managers, who are the very people the CEO needs to win over. • Principle of Intensity “seeing is believing” • Internally driven of peoples own accord
Breaking through the Cognitive Hurdle(Psychology 101) • Ride the “Electric Sewer” (New York subway) • Only 3% of the city’s major crimes happened on the subway • Revenues were tumbling, nobody would ride • Bill Bratton made the top brass and middle brass (including himself) ride the subway • Showing the worst reality to superiors and underlings can shift their mindset fast
FedEx Rides the Electric Train • Chelle worked at FedEx • Periodically, middle management would ride along in delivery trucks • Witness the impact of face to face encounters
Breaking through the Cognitive Hurdle(Psychology 101) • Meet with disgruntled customers • Bill Bratton held a meeting in the late 70’s to determine why Boston’s Police District 4 was experiencing a exodus of residents. • Determined there was a gap in perceptions between residents and police.
Strategy • The threat of the internet on the express shipping industry
Riding the “Electric Sewer” • Our Team presentation: Good to Great • Confronting the brutal facts • Avoid the numbers game • Facing the truths • Tucker: The Man and His Dream • RAW MEAT!
Meet with Disgruntled Customers • Do I really have to explain this in detail? • Why waste money on market surveys? • Addressing problems as they arise • Chili’s experience
Hot Spots, Cold Spots, Horse Trading • Hot Spots • Small resources = high output • Now you’re makin’ money! • Cold Spots • High resources = low output • Now you’re losin’ money! • Horse Trading • Trading for useful resources • Trading properties in Monopoly
Similar to: • Growth-Share Matrix
Jump the Motivational Hurdle • Three factors of disproportionate influence in motivating employees: • Kingpins • Fishbowl Management • Atomization
Zoom in on Kingpins • Kingpins are the key influencers in the organization • Natural leaders, well-respected, and persuasive • Have ability to unlock or block access to key resources -How NYPD zoomed in on kingpins
Place Kingpins in a Fishbowl • “Fishbowl Management” • Shines spotlight on their actions in a repeated and highly visible way • Must be based on transparency, inclusion, and fair process • NYPD’s fishbowl management process
Atomize to Get the Organization to Change Itself • Atomization relates to the framing of the strategic challenge • If people do not believe that the strategic challenge is attainable, the change is not likely to succeed • Atomization in NYPD
3 Ways to Knock Over the Political Hurdle • Secure a Consigliere on Your Top Management Teams. • Leverage Your Angels. • Silence Your Devils.
Secure a Consigliere • In Italian, means “adviser” or “counselor.” • Right hand to managers. • Well respected and trusted. • Knows the ins and outs of the game.
Leverage your Angels • Who will align with me? • Who will gain the most?
Silence Your Devils • Who will fight me? • Who will lose the most?
Knock over the Political Hurdle • Do you have a consigliere in your top management? • Do you know who will fight with you? • Do you know who will fight against you?
Challenging Conventional Wisdom • Conventional Theory: Transform the Mass. • Tipping point leaders: Transform the Extremes.
Takeaway • Zoom in on Kingpins, use Fishbowl Management, and Atomize • Confront the issues up close, gain hot spots, avoid cold spots, and trade horses. • Knock Over the Political Hurdle • Consigliere, Angels, and Devils. • Challenge Conventional Wisdom