Tipping Point Leadership in Action NYPD Bill Bratton We would
have marched to hell and back for that guy.- Anonymous
Patrolman
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The Pivotal Lever: Disproportionate Influence Factors Dont meet
hurdles with equal energy, work around the problem Unlock an
epidemic movement Key is concentration, not diffusion Questions to
ask to identify disproportionate influence: How to get most bang
for buck? How to motivate key players to start an epidemic
movement? How to knock down political roadblocks?
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Home Depot and the Pivotal Lever Tim Crows New concentration
Create sense of ownership among HDs 330,000 associates Attain
product knowledge customers desire Implement rewards and
recognition programs to boost employee morale Success Sharing
Plan
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Break Through the Cognitive Hurdle Direct experience is more
effective at motivating than numbers Make people see and experience
harsh reality first hand. Internally driven change allows quicker
and more thorough response
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Home Depot and the Cognitive Hurdle Homer Badges Program-
recognizes associates who live Home Depots values Aprons on the
Floor Program- aimed at getting more employees onto the floors of
its stores
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Ride the Electric Sewer One way to tip the cognitive hurdle
Managers need to come face to face with poor performance Show worst
reality to superiors to help them realize the need for change
Undercover Boss
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Meet with Disgruntled Customers Observing the market firsthand
Dont rely on market surveys Bostons Police District 4 Making a
difference Numbers VS Reality
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Home Depot
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Jump the Resource Hurdle Reality of Limited Resources Trim
Ambitions, Discourage Workforce Same mistakes Fight for More
Resources Ineffective Multiplying the Value of Current Resources
Successful strategy
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3 Factors to Leveraging Resources Hot Spots Cold Spots Horse
Trading
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Redistribute resources to hot spots Increase excess resources
to areas where resources are insufficient Bratton Idea: Increments
in performance achieved through increments in resources the same
logic many companies already use Differentiated by identifying the
stations receiving most crimes (hot spots) Crime rate decreased
while the police force remained the same size
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Redirect resources from your cold spots Free up resources in
cold spots and allocate in a more efficient matter Ex: In 2007 the
company sold several underperforming subsidiaries under the name HD
Supply for $8.3 billion. Helped to reestablish retail operations,
management style and customer service
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Engage in Horse Trading In addition to refocusing, engage in
horse trading trading resources you dont need for those you do need
Home Depot acquired 75% interest in Aikenhead's Home Improvement
Warehouse in Canada in 1994 bought the remaining 25% in 1998
Established The Home Depot name internationally
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Jump the Resource Hurdle How do you execute a strategic shift
with limited resources? Multiply the value of resources using: 1.
Hot Spots- activities that have low resource input but high
potential performance 2. Cold Spots- activities that have high
resource input but low performance impact 3. Horse Trading- trading
your units excess resources in one area for another units excess
resources to fill remaining resource gaps.
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How New York Transit Police redistributed resources to hot
spots Police argued that to increase safety on the citys subway
there needed to be an officer riding on every subway line. This
would increase costs greatly and was also impossible given the
current budget. Solution was to target hot spots because the
majority of crime offered at only a few stations and on a few
lines.
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Jump the Motivational Hurdle For 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.
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3 factors to motivate employees: 1. Kingpins 2.Fishbowl
Management 3.Atomization
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Fair Process Fair Process- engaging all the affected people in
the process, explaining to them the basis of decisions and setting
clear expectations of what that means to employees performance.
Signals to employees that there is a level playing field
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Atomize: Get the Organization to Change Itself Change NYC block
by block, precinct by precinct, borough by borough.
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Knock Over the Political Hurdle Angels, Devils, and a
Consigliere Leverage Angels Silence Devils Get Consigliere in Top
Management
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Secure a Consigliere on Your Top Management Team A top
management team must have more than functional skills such as
marketing, operations, and finance. Tipping point leaders engage a
consigliere NYPD: Bratton appointed Timoney as #2
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Leverage Your Angels & Silence Your Devils Who are my
devils? Who will 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 by the strategic shift? Discourage
the war before it has a chance to start
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Angels & Devils in NYPD Brattons policing strategies faced
opposition from New York Citys courts. He pointed out the upside
and the possibility of lower future crime rates. Bratton teamed
with the mayor and the citys leading newspaper to isolate the
courts. Not only did the court system give in to Brattons strategy,
but it also worked and crime rates decreased.
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Leverage Your Angels & Silence Your Devils Key to winning
over your devils is knowing all their likely angles of attack and
building up counterarguments backed by irrefutable facts. Brattons
readiness to combat crime data issues
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Questions a leader should ask himself Do I have a consigliere
in my top management team or just a CFO? Do I know who will fight
me and who will align with my new strategy? Have I built coalitions
with natural allies? Does my consigliere remove the biggest land
mines so I dont have to focus on changing those who cant or wont
change?
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Challenging Conventional Wisdom
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To overcome key organizational hurdles to make blue ocean
strategy happen in action, companies must abandon perceived wisdom
on effecting change. Dont follow conventional wisdom Focus on acts
of disproportionate influenceit aligns employees actions with the
new strategy.
Slide 30
Conclusion The Four Organizational Hurdles: Cognitive, limited
resources, motivation, politics. The Pivotal Lever:
Disproportionate influence factors Breaking through the cognitive
hurdledirect experience is more effective at motivating than
numbers Riding the electric sewer is the first way to top the
cognitive rule Meet with disgruntled customers Redirect resources
from your cold spotsfree up resources in cold spots to allocate in
a more efficient manner Three factors to motivate employees:
Kingpins, Fishbowl Management, Atomization Leverage Your Angels
& Silence Your Devils Dont follow conventional wisdom