Blue Ocean Strategy Chapter 7 Overcoming Key Organizational Hurdles

Blue Ocean Strategy Chapter 7 Overcoming Key Organizational Hurdles Dylan Taylor, Scott Bednorz, Jenny Broussard, Grant MoffettThe Four Organizational Hurdles to Strategy Execution New York Police Department in the Early 1990sMurder-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 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 Tipping Point TheoryBeliefs 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 Key Questions Answered by Tipping Point Leaders What factors or acts exercise a disproportionately positive influence onBreaking 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?Break Through the Cognitive HurdleHardest battle is to make people aware of the need for a strategic shift and to agree on its causesCommon way was to point to numbers and then set and achieve better resultsNot a good ideaTipping point leaders focus on the act of disproportionate influenceMake people experience the need for change in two waysRide the Electric SewerEmployees must come face to face with the worst operational problemBratton ExamplesIn the 1990s, New York subway was being boycotted by citizens who found it unsafeBratton made the high and middle brass ride the subwayMassachusetts Bay Transportation Authority purchased small squad carsBratton invited the MBTAs general manager for a tour of his unit and made him ride in the squad car like a police officerMeet with Disgruntled CostumersNo substitute for meeting and listening to disgruntled customersBratton ExampleBostons District 4 was experiencing a surge in crimeThe police department thought they were doing fine because they performed better than other departmentsBratton arranged town hall meetings between officers and residents

Exxon MobilIT new hires have to work the help desk for a certain amount of time

Jump the Resource HurdleMost leaders face limited resourcesTrim their goals and demoralize the work forceThey fight for more resources from the bank and shareholdersTipping point leaders concentrate on multiplying the value of resources they haveThree factors of disproportionate influence that can be leveraged to free up resources while multiplying valueHot SpotsCold SpotsHorse tradingRedistribute Resources to Your Hot SpotsBefore Bratton, higher ups though that having an officer ride on every line and patrol every entrance would make subways saferBratton achieved sharpest drop in subway crimes by having officers stationed at hot spotsBefore Bratton, the narcotics unite worked only 9-5 on the weekdays and made up 5% of the police forceBratton relocated staff and resources on the hot spot and drug crime declined drastically

Redirect Resources from Your Cold SpotsBratton found processing criminals in court to be a cold spotTook 16 hoursHe brought processing centers to criminalsBust buses outside subway stationsCut processing times down to an hour

Engage in Horse TradingChiefs were unwilling to advertise excess resources or release them for other sectors to useFear of loss of control of resourcesSome organizations were more endowedBratton and EssermanTransit unit needed office space and had an excess of unmarked carsDivision of Parole was short of cars and had an excess of office spaceEsserman and Bratton offered a trade between the two

Engage in Horse Trading

Jumping the Motivational HurdleFor 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: KingpinsFishbowl ManagementAtomization

Zoom in on KingpinsConcentrate your efforts on kingpins, the key influencers in the organization. Natural leadersWell respectedPersuasive

Like bowling, when you hit them straight on, all the other pins come toppling down.

NYPDBratton 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

Place Kingpins in a FishbowlKingpins 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.

NYPDBratton 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.

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

Atomize the OrganizationUnless 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.

Overcoming Politics in the WorkplaceInescapable reality of corporate and public life

Higher chance of change = strings pulled tighter

3 disproportionate influence factors to overcome politics3 Influence factorsAngels- most to gain from strategic shift

Devils most to lose from strategic shift

Consigliere- politically adept and highly respected insiderConsigliereNYPDAngels and DevilsIdentify 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

Exxon and FrackingEducate those willing to learn

http://www.exxonmobilperspectives.com/2011/06/17/facts-hydraulic-fracturing-process/?gclid=CO33hcemhr0CFW9p7Aodv24ALQ&gclsrc=aw.ds

CEO is for frackingsuing for fracking near his land?

Creates a problem: is CEO his own devil?

Challenge Conventional WisdomTraditionally told to convert the mass of people during change

Instead transform the extremes

Focus on acts with disproportionate influence