NYPD Blue Ocean Strategy

Overcome Key Organizational HurdlesChristopher CookChelle HillisLindsey YoungPhillip Flick

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 Hot Spots

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 HurdleThree factors of disproportionate influence in motivating employees:

KingpinsFishbowl ManagementAtomization

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

3 Ways to Knock Over the Political Hurdle Secure a Consigliere on Your Top Management

Teams. Leverage Your Angels. Silence Your Devils.

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.

Leverage your Angels Who will align with me? Who will gain the most?

Silence Your Devils Who will fight me? Who will lose the most?

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.

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