Chapter 7: Overcoming Key Organizational Hurdles

Clete DonovanAndrew MerlinoRachel HarlessJessica Moore

Priscella ConesJoel Hand

Amanda Carey

Four Hurdles1. Walking employees up to the need for a

strategic shift.2. Limited resources3. Motivation4. Politics

Overcoming Key Organizational Hurdles

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

Tipping Point Leadership In Action

The Four Organizational Hurdles To Strategy Execution

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?

Disproportionate Influence Factors

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.”

Break Through the Cognitive Hurdle

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

What NOT to do

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

Tipping Point Leadership

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

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.

Redistribute Resources to Your Hot 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

Redirect Resources from Your Cold Spots

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.

Engage in Horse Trading

Engage in Horse Trading

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?

Jump the Motivational Hurdle

The key influencers in an organization. (natural leaders, well respected, persuasive)

EX: Bratton, zoomed in on the 36,000 officers.

1. Kingpins

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

2. Kingpins in a Fishbowl

Atomization- framing of the strategic challenge.

To make NYC a safer place.

Bratton’s BOS shifted from him to each 36,000 officers.

3. Atomize to get the organization to change itself

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.

Knock over the Political Hurdle

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)

Overcome Political Forces

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

Secure a Consigliere on your Top Management Team

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

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

Leverage your Angels and Silence your Devils

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.

Challenging Conventional Wisdom

Conventional Wisdom Versus 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

Leveraging Tipping Point Leadership