Blue Ocean Strategy Chapter 7 – Overcoming Key Organizational Hurdles

1. Blue Ocean Strategy Chapter 7 – Overcoming Key Organizational Hurdles Dylan Taylor, Scott Bednorz, Jenny Broussard, Grant Moffett

2. The Four Organizational Hurdles to Strategy Execution

3. New York Police Department in the Early 1990s Murder-rate at all-time high New Yorkers under siege Frozen police budget Officer moral was at rock bottom Budget cuts, dilapidated equipment, and corruption within the department

4. Tipping Point Leadership in Action Bill Bratton turned NYC into the safest large city in the U.S. Felony crime fell 39% Murder-rate fell 50% Theft-rate fell 35% Public confidence in the NYPD jumped from 37% to 73% Crime rates continued to fall after Bratton left

5. Tipping Point Theory Beliefs and energies of critical mass of people create an epidemic movement toward an idea Concentration, not diffusion Focus on identifying and leveraging the factors of disproportionate influence in an organization

6. Key Questions Answered by Tipping Point Leaders • What factors or acts exercise a disproportionately positive influence on… • Breaking the status quo? • Getting the maximum bang out of each buck of resources? • Motivating key players to aggressively move forward with change? • Knocking down political roadblocks that often trip up even the best strategies?

7. Break Through the Cognitive Hurdle • Hardest battle is to make people aware of the need for a strategic shift and to agree on its causes • Common way was to point to numbers and then set and achieve better results • Not a good idea • Tipping point leaders focus on the act of disproportionate influence • Make people experience the need for change in two ways

8. Ride the “Electric Sewer” • Employees must come face to face with the worst operational problem • Bratton Examples • In the 1990s, New York subway was being boycotted by citizens who found it unsafe • Bratton made the high and middle brass ride the subway • Massachusetts Bay Transportation Authority purchased small squad cars • Bratton invited the MBTA’s general manager for a tour of his unit and made him ride in the squad car like a police officer

9. Meet with Disgruntled Costumers • No substitute for meeting and listening to disgruntled customers • Bratton Example • Boston’s District 4 was experiencing a surge in crime • The police department thought they were doing fine because they performed better than other departments • Bratton arranged town hall meetings between officers and residents

10. Exxon Mobil IT new hires have to work the help desk for a certain amount of time

11. Jump the Resource Hurdle • Most leaders face limited resources • Trim their goals and demoralize the work force • They fight for more resources from the bank and shareholders • Tipping point leaders concentrate on multiplying the value of resources they have • Three factors of disproportionate influence that can be leveraged to free up resources while multiplying value • Hot Spots • Cold Spots • Horse trading

12. Redistribute Resources to Your Hot Spots Before Bratton, higher ups though that having an officer ride on every line and patrol every entrance would make subways safer Bratton achieved sharpest drop in subway crimes by having officers stationed at hot spots Before Bratton, the narcotics unite worked only 9-5 on the weekdays and made up 5% of the police force Bratton relocated staff and resources on the hot spot and drug crime declined drastically

13. Redirect Resources from Your Cold Spots • Bratton found processing criminals in court to be a cold spot • Took 16 hours • He brought processing centers to criminals • “Bust buses” outside subway stations • Cut processing times down to an hour

14. Engage in Horse Trading • Chiefs were unwilling to advertise excess resources or release them for other sectors to use • Fear of loss of control of resources • Some organizations were more endowed • Bratton and Esserman • Transit unit needed office space and had an excess of unmarked cars • Division of Parole was short of cars and had an excess of office space • Esserman and Bratton offered a trade between the two

15. Engage in Horse Trading

16. Jumping the Motivational Hurdle • For a new strategy to become a movement, people must not only recognize what needs to be done, but they must also act on that insight in a sustained and meaningful way. • How can you motivate the mass of employees fast and at low cost? • Focus on three factors of influence in motivating employees: • Kingpins • Fishbowl Management • Atomization

17. Zoom in on Kingpins • Concentrate your efforts on kingpins, the key influencers in the organization. • Natural leaders • Well respected • Persuasive • Like bowling, when you hit them straight on, all the other pins come toppling down.

18. NYPD Bratton zoomed in on the 76 precinct heads as his key influencers and kingpins. Naturally had a ripple effect of touching and motivating the 36,000 NYPD officers and force. Internal surveys showed job satisfaction reaching an all-time high. “We would have marched to hell and back for that guy”

19. Place Kingpins in a Fishbowl Kingpins’ actions and inaction are made as transparent to others as are fish in a bowl of water. Light shines on who is lagging behind, and a fair stage is set for rapid change agents to shine.

20. NYPD Bratton used a biweekly crime strategy review meeting to review the performance of all the commanders. He placed these commanders in the spotlight in front of everyone else and evaluates their performance based off their crime statistics. The commander was responsible for explaining how the new strategy is working and address any issues.

21. NYPD As a result, an intense performance culture was created in weeks. Incompetent commanders could no longer cover up their failings The fishbowl gave an opportunity for high achievers to gain recognition for work in their own precincts.

22. Atomize the Organization Unless people believe that the strategic challenge is attainable, the change is not likely to succeed. Bratton broke it down so officers at different levels could relate. The challenge was to make the streets of New York City safe “block by block.” Officers had specific goals to meet and that was it. They were not to worry about any other challenge.

23. Overcoming Politics in the Workplace • “Inescapable reality of corporate and public life” • Higher chance of change = strings pulled tighter • 3 disproportionate influence factors to overcome politics

24. 3 Influence factors Angels- most to gain from strategic shift Devils – most to lose from strategic shift Consigliere- politically adept and highly respected insider

25. Consigliere NYPD

26. Angels and Devils Identify both Strive for win-win between detractors and supporters Isolate detractors by teaming with angels Build up counter arguments before the original arguments even start

27. Exxon and Fracking Educate those willing to learn http://www.exxonmobilperspectives.com/2011/06/17/facts-hydraulic-fracturing-process/?gclid=CO33hcemhr0CFW9p7Aodv24ALQ&gclsrc=aw.ds CEO is for fracking…suing for fracking near his land? Creates a problem: is CEO his own devil?

28. Challenge Conventional Wisdom Traditionally told to convert the mass of people during change Instead transform the extremes Focus on acts with disproportionate influence