Ch. 7-Overcoming Key Organizational Hurdles

1. Ch. 7-Overcoming Key Organizational Hurdles Shawn Stults, Chris Hill, Justin Alvarez

2. Thoughts into Actions • Companies like individuals have a hard time turning thoughts into actions, whether they be in red or blue oceans • It hinges on a shift from convergence to divergence in value curves at lower costs. • That raises the execution bar

3. Four Hurdles Companies Face • Cognitive - waking employees up to the need for a strategic change. -Don’t get comfortable with where you are at. • Limited Resources - It is assumed that if you are making an extreme shift you will need more resources. -Not always the case.

4. Four Hurdles Companies Face 3. Motivation- How do you motivate key employees to work fast and tenaciously to carry out a break for the status quo? -Good to great says if you have the right people on the bus motivation won’t be an issue. 4. Politics- How do you get started if you get shot down before you even get started?

5. 5th Principle of Blue Ocean Strategy • Overcoming key organizational hurdles to make blue ocean strategy happen in action. • Flip conventional thinking that bigger changes need more time and resources instead think on the tipping points. • Tipping Point leadership allows you to overcome these hurdles fast and at a low cost, while winning employees to go away from the status quo.

6. Tipping Point • Tipping Point leadership in action • NYPD- Crime was at an all time high, budget was frozen, people were not happy, morale in the police force was low. • Bratton- Police chief 1994-1996 • Turned the police force completely around reducing crime, happy employees, doubled the satisfaction of NYC people. • All done on a frozen budget with limited resources.

7. Break Through the Cognitive Hurdle • Show employees first hand what problems the company is facing. • “Seeing is Believing” • Two Ways of doing this • Ride the electric sewer • Meet with disgruntled customers

8. Riding the Electric sewer • People in NYC were not happy with police patrol in the subway, and people were scared to ride the subway. • Police didn’t pay attention because only 3% of crime happened there • Bratton made the police officers ride to and from work on the subway to get a first hand perspective. • They found out there were major problems that needed to be addressed.

9. Meeting with Disgruntled Customers • You don’t know what moves need to be made or what problems need to be addressed unless you meet with your most disgruntled customers. • Ex. Town hall meetings and the Broken Windows experiment. • Towns people felt much safer and happier.

10. Jump the Resource Hurdle • Does your company have the money to spend on necessary changes? • Tipping point leaders concentrate on multiplying the value of the resources they already have by observing: • Hot spots • Cold spots • Horse Trading

11. Redistribute Resources to Your Hot Spots • Traditionally: Increments in performance could only be achieved with proportional increments in resources. • Bratton – Subway Problem • Realized that the problem wasn’t the amount of police officers put on the subway, but that they weren’t in the targeted hot spots. • Narcotics example: • Narcotics squad only worked Monday-Friday because that was the norm. • Hot spots occurred on the weekends • Bratton reallocated staff and resources to weekends – drug crime plummeted.

12. Redirect Resources from Your Cold Spots • Bratton: found out that one of the biggest cold spots was processing criminals in court. • High cost and time value – low performance impact. • On average it would take an officer sixteen hours to take someone downtown. • Solution: “Bust Buses” • Old buses that were worked into miniature police stations that were parked outside of subway stations • Cut processing time from sixteen hours to just one.

13. Engage in Horse Trading • Tipping Point leaders skillfully trade resources they don’t need for those of other that they do need. • Dean Esserman – Bratton’s policy advisor • Realized that the transit unit – who was lacking office space – had an excess of unmarked cars in it’s unit. • While the Division of Parole was short on cars but had excess office space. • Obvious situation to implement horse trading

14. Jump the Motivational Hurdle • How can you motivate the mass of employees fast and at low cost? • Traditionally – leader’s issue grand strategic visions and turn to massive top-down initiatives. • Costly and time consuming • Tipping point leaders follow a reverse course and seek massive concentration. • Kingpins, Fishbowl Management, and Atomization

15. Zoom in on Kingpins • Leaders must concentrate their efforts on kingpins – big dogs. • People inside the organization who are: • Natural leaders • Well respected and persuasive • Or have the ability to unlock/block access to key resources. • Relates to the trickle down or domino effect.

16. Place Kingpins in A Fish Bowl • Where kingpins actions and inaction are made as transparent to others as are fish in a fish bowl • Raises the stake of their action • Light shined on those lagging behind • Must be based on three things • Transparency • Inclusion • Fair Process

17. Atomize to get change • Unless people believe the strategic challenge is attainable, the change is not likely to succeed. Break the strategy into little goals. Make sure your stores sales are up Make sure your sales are up & customer service is high Make sure your sales are up and you satisfy customers District Manager Manager Salesman

18. Knock over Political Hurdles • There are always powerful vested interests that will resist the impending strategy changes both internal and external • To overcome the political forces, tipping point leaders focus on three influence factors • Leveraging angles • Silencing devils • Getting a consigliere

19. Secure A Consigliere • Find someone that knows the political land mines you will face and can help guide your way through • Someone who is well like • Someone who knows how to play the political game • Someone who is respected • Someone who is experienced

20. Leverage Angels and Silence Devils • Who are my devils? Who will fight me? Who will lose the most by the future blue ocean strategy? • Who are my angles? Who will align with me? Who will gain the most by the shift? • Don’t fight alone. Get the higher and wider voice to fight with you • Move quickly. Know all your devils attack strategies and be ready with facts

21. Challenging Conventional Wisdom • By transforming the extremes, tipping point leaders are able to change the core fast and at low cost to execute there new strategy. To change the mass tipping point leaders focus on transforming the extremes that exercise disproportionate influences on performance: • The people • Acts • activities