NYPD Blue Ocean Strategy Christopher Cook Chelle Hillis Lindsey Young Phillip Flick Overcome Key Organizational Hurdles

Purely Psychological Four Hurdles Cognitive: Waking employees up to the need for a strategic shift Limited Resources: the greater the shift, it is assumed the greater the resources needed Motivation Politics Purely Psychological

Tipping Point Leadership in Action Level 5 leadership? Bill Bratton – Appointed police commissioner of New York City in 1994. Murder, muggings, mafia hits, armed robberies at an all time high, department morale at an all time low. After two years: Felony crime fell 39% Murders 50% Theft 30% Public confidence in NYPD jumped from 37% to 73% This was Bratton’s fifth strategic reversal!

The Pivotal Leader Theory of tipping points Changes can happen quickly when the beliefs and energies of a critical mass of people create an epidimic movement toward an idea. People, acts, activities that exercise a disproportionate influence

Breaking through the Cognitive Hurdle (Psychology 101) Messages communicated through numbers seldom stick with people The case for change feels abstract and removed from the sphere of the line managers, who are the very people the CEO needs to win over. Principle of Intensity “seeing is believing” Internally driven of peoples own accord

Breaking through the Cognitive Hurdle (Psychology 101) Ride the “Electric Sewer” (New York subway) Only 3% of the city’s major crimes happened on the subway Revenues were tumbling, nobody would ride Bill Bratton made the top brass and middle brass (including himself) ride the subway Showing the worst reality to superiors and underlings can shift their mindset fast

FedEx Rides the Electric Train Chelle worked at FedEx Periodically, middle management would ride along in delivery trucks Witness the impact of face to face encounters

Breaking through the Cognitive Hurdle (Psychology 101) Meet with disgruntled customers Bill Bratton held a meeting in the late 70’s to determine why Boston’s Police District 4 was experiencing a exodus of residents. Determined there was a gap in perceptions between residents and police.

Strategy The threat of the internet on the express shipping industry

Riding the “Electric Sewer” Our Team presentation: Good to Great Confronting the brutal facts Avoid the numbers game Facing the truths Tucker: The Man and His Dream RAW MEAT!

Meet with Disgruntled Customers Do I really have to explain this in detail? Why waste money on market surveys? Addressing problems as they arise Chili’s experience

Jump The Resource Hurdle

Hot Spots, Cold Spots, Horse Trading Small resources = high output Now you’re makin’ money! Cold Spots High resources = low output Now you’re losin’ money! Horse Trading Trading for useful resources Trading properties in Monopoly

Similar to: Growth-Share Matrix

Jump the Motivational Hurdle Three factors of disproportionate influence in motivating employees: Kingpins Fishbowl Management Atomization

Zoom in on Kingpins Kingpins are the key influencers in the organization Natural leaders, well-respected, and persuasive Have ability to unlock or block access to key resources -How NYPD zoomed in on kingpins

Place Kingpins in a Fishbowl “Fishbowl Management” Shines spotlight on their actions in a repeated and highly visible way Must be based on transparency, inclusion, and fair process NYPD’s fishbowl management process

Atomize to Get the Organization to Change Itself Atomization relates to the framing of the strategic challenge If people do not believe that the strategic challenge is attainable, the change is not likely to succeed Atomization in NYPD

Knock Over the Political Hurdle To much office politics? Even the best can be eaten alive by politics, intrigue, and plotting. Organizational politics is an inescapable reality of corporate and public life.

3 Ways to Knock Over the Political Hurdle Secure a Consigliere on Your Top Management Teams. Leverage Your Angels. Silence Your Devils. Vested interests will always resist any impending changes. These are the three keys to knocking over the political hurdle. We talk of these in terms along aligning with everything talked about previously as aspects of a tipping point leader.

Secure a Consigliere In Italian, means “adviser” or “counselor.” Right hand to managers. Well respected and trusted. Knows the ins and outs of the game. Securing a consignliere is what ultimately sets apart tipping point managers from ordinary executives. Consigliere is an adviser or counselor to a mafia boss. The consigliere is a close, trusted friend and confidant. In the movies The Godfather the consigliere to Don Vito Corleone (Marlon Brando)is Tom Hagen (played by Robert Duvall). In the television series The Sopranos Silvio Dante is the consigliere to Tony Soprano This is someone who is going to know the ins and outs of the business you are running and be able to advise you on what decisions to make because they are so well informed. This could be a different person for different operations you are running and not necessarily just one person. For example in the case the book talks about with NYPD chief Bratton who completely changed the way the force was ran and made significant improvements to the force he had appointed John Timoney as his consigliere because he knew the land mines he would face in implementing a new strategy. This is a guy who had been on the force for more than 20 years and knew all of the key players and how they played their political games.

Leverage your Angels Who will align with me? Who will gain the most? Don’t fight alone! Forget the middle man and try to create a win win situation for both. In 2001 the USPS teamed with fedex in shipping express mail. The usps leased out space on fedex planes to ship their overnight and priority mail while fed ex was able to put drop boxes at the post office. ……this is just shear convenience….working in office…blah blah VistaPrint and FedEx Office have developed a new application for the design, order and printing of high-quality business stationery and marketing materials. Customers will be able to design and order their customized products online at fedexoffice.com or in-person at any of the 1,600 FedEx Office Print & Ship Centers in the United States. The printed products can be shipped to any location FedEx serves or picked up at any FedEx Office Print & Ship Center. In addition, FedEx will be a primary express carrier for VistaPrint's orders coming from its production facility in Windsor, Ontario to locations in North America. VistaPrint will have the option of using FedEx Ground, FedEx Express, and FedEx Smart Post to deliver customer orders.

Silence Your Devils Who will fight me? Who will lose the most? It is important to first get a good coalition going with your angels/supporters before you begin to battle your devils/opponents so that you can discourage the war before it even begins. The key to winning over your devils is to know their angels of attack (just as we spoke about 2 weeks ago in the chapter we covered on strategy a view from the top when forming a competitive advantage) it is important to know what moves your competitor is going to make before he even makes them. The alliance between USPS and fedex did ultimatly hurt ups and in the express industry as fedex continues to be the market leader for express shipping.

Knock over the Political Hurdle Do you have a consigliere in your top management? Do you know who will fight with you? Do you know who will fight against you?

Challenging Conventional Wisdom Conventional Theory: Transform the Mass. Tipping point leaders: Transform the Extremes. This conventional theory takes a lot of time and resources with training and just trying to convence people to move to the same page of thinking. This allows changes to the core fast with low cost the execute. By focusign on factors of disproportionate influence. The idea is that by transforming the extremes you will transform the mass. Do not rely on conventional wisdom!!

Takeaway Zoom in on Kingpins, use Fishbowl Management, and Atomize Confront the issues up close, gain hot spots, avoid cold spots, and trade horses. Knock Over the Political Hurdle Consigliere, Angels, and Devils. Challenge Conventional Wisdom