Chapter 7 Overcome Key Organizational Hurdles By: Team 4 - Apple Inc. Paulo Santos, Aguinaldo Sebastiao, Ryan Gaddy and Carlos Becerra

Organizational Hurdles Once a blue ocean strategy is developed it needs to be executed Four hurdles that challenges the execution of blue ocean strategies: Cognitive, (limited) resource, motivational, and political hurdle Cognitive hurdle- weking employees up to the need for a strategic shift. Limited resources- Change the idea/perception that the greater the shift in the strategies the greater the amount of resources needed

Organizational Hurdles Motivation: How to motivate key players (to move fast) to carry out a break from the status quo Politics: How to overcome opposition within the organization- internal and external Resistance to Change To overcome the hurdles we need to abandon Perceived Wisdom - which states that great change implies great use of resources and time

Tipping Point Leadership Adapt Tipping Point Leadership- there are people, acts, and activities that exercise a disproportionate influence on performance. Help answer the following questions: What factors or acts exercise a disproportionately positive influence on breaking the status quo? On getting the maximum bang out of each buck of resources ? On motivating key players to aggressively move forward with change? And on knocking down political roadblocks that often trip up even the best strategies?

Tipping Point Leadership By focusing on the points of disproportionate influence and answering these questions managers can successfully overcome the four hurdles and effectively execute the blue ocean strategy

Break Through the Cognitive Hurdle In corporate transformation, the hardest task is to make people aware of the need for a Strategic shift and to agree on its causes. Most CEOs look to numbers Visualization of the worst operational problem EX: Apple, Steve Jobs looks to “precision, commitment, love of design and aesthetics, thinking differently, exactness, and a passion for really great products, among other things”

Meet With Disgruntled Customers Don’t rely on Market surveys Instead meet with the customers Listen to your customers Exemple: Steve jobs https://www.forbes.com/sites/drewhansen/2013/12/19/myth-busted-steve-jobs-did-listen-to-customers/#6e998d6587f3

Jump the Resource Hurdle After people in the organization accept the changes, leaders face limited Resources Do they have the money to spend on the necessary changes? Most of reformist CEOS do the following: Demoralize their workforce Ask for more money from their banks or shareholders The tipping point leadership multiply the value of the existing resources. Hot spots Cold Spots Horse trading

Redirect Resources from your Cold Spots Bust Bus example Apple example

Engage in Horse Trading Police cars vs. office space example

Jump the Motivational Hurdle Zoom in on Kingpins Place Kingpins in a Fishbowl Atomize to Get the Organization to Change Itself

Knock over the Political Hurdle Do you believe youth and skill will win out every time over age and treachery? Organizational politics is an inescapable reality of corporate and public life. Tipping point leaders focus on three disproportionate influence factors Leveraging Angles People who have the most to gain from the strategic shift. Silencing Devils People who have the most to lose from a strategic shift Consigliere highly respected insider who knows in advance all the land mines

Secure a Consigliere on your Management Team Most leaders concentrate on building a top management team having strong functional skills such as marketing, operations and finance. Bratton at NYPD appointed John Timoney as his number two. Timoney was a cop’s cop, respected and feared for his dedication to the NYPD. His twenty years of experience has taught him not only who all the key players were but how they played the political game. Who’s going to fight or silently sabotage the new initiative. Apple CEO Tim Cook appointed Jeff Williams, senior Vice President of operations as his right-hand man.

Leverage your Angels and Silence your Devils Who are my angels? Who will naturally align with me? Who will gain the most by the strategic shift? Who are my devils? Who will fight me? Who will lose the most by the future blue ocean strategy? Key to winning over your devils is knowing all their likely angles of attack and building up counter arguments backed by facts and reason.

Challenging Conventional Wisdom