1. Blue Ocean Strategy Ch 7 Overcome Key Organizational Hurdles
Team III
Cal Wallace
M Isabel Castaneda
Pat McGregor

2. Overcome Key Organizational Hurdles
The challenge of execution exists, and is a steep one.
Managers face four hurdles:
Cognitive: waking employees up to the need for a strategic shift.
Limited Resources
Motivation
Politics

3. The Four Organizational Hurdles to Strategy Execution

4. Tipping Point Leadership in Action
New York City Police Department
Executed a blue ocean strategy in the 1990s in the public sector.
Bill Bratton appointed police commissioner in 1994.  Faced opposition few executives ever faced.
Crime was at an all time high.
Less than two years and without any increases in the budget, Bratton turned NYC into the safest largest city in the US.

5. The Pivotal Lever: Disproportionate Influence Factors
Fundamental changes can happen quickly when the beliefs and energies of a critical mass of people create an epidemic movement toward an idea.
The 20:80 concept.

6. Breaking Through the Cognitive Hurdle
In turnaround, and corporate transformations, the hardest part is making people aware of the need for a strategic change.
Tipping point leadership does not rely on numbers to break through the organization’s cognitive hurdle.

7. Ride the “Electric Sewer”
To break the status quo, employees must face the worst operational problems.
Coming face to face with poor performance is shocking and inescapable.
i.e. NYC Subway in 1990s

8. Meet with Disgruntled Customers
To tip cognitive hurdle, you can not simply just get managers out of the office to witness the operational horror.
Managers must also listen to disgruntled customers firsthand.
i.e. Boston Police

9. Jump the Resource Hurdle
Multiply vale of resources already have
Factors that Exec’s can leverage to free up resources:
Hot Spots
Cold Spots
Horse Trading

10. Jump the Resource Hurdle Cont
Hot Spots- low resources but high potential performance gains
Cold Spots- high resource input but low performance impact
Horse Trading- Trading unit’s excess resources in one area to another’s to fill remaining resources gaps.

11. Jump the Resource Hurdle Cont
Redirect Resources from Your Cold Spots
NY Transit police
Freeing up resources for use in Hot Spots
Redistribute Resources to Your Hot Spot
NY Transit police
Increase profits, increase costs
Target hot spots and force remained constant

12. Jump the Resource Hurdle Cont
Engage in Horse Trading
Skillfully trade resources not needed for those of others do needed.
NY Transit police
Traded not needed excess patrol cars for much needed office space the other department did not need.

13. Jump the Motivational Hurdle
How to motivate quickly and cheaply?
Three factors of disproportionate influence:
Kingpins
Fishbowl Management
Atomization

14. KINGPINS Hone in on your natural leaders!
“Those who are well respected and persuasive.”
 “Those who have ability to use or unlock key resources”
Instead of motivating all to the change, its easier to move fewer.
“Use the ripple effect”
Example:  NYPD motivating 76 precinct heads that have a ripple effect on their departments.

15. Kingpins in a Fishbowl 
Make these kingpins’s actions and non-actions visible to others.
Question them in front of their peers and superiors.
Gives  an opportunity for achievers to gain the recognition.
Use the “fair process”
Engage  and explain to all
Set clear expectations
Levels the playing field for kingpins to advance or demote do to performance.
Chapter 8 goes more in depth with  fair process.

16. ATOMIZATION 
Unless the goal is seen as attainable, it usually is not likely to work.
Make the actions in the vision framed by sections, or sectors.
For example: 
By Department
By Precinct
By Division 

17. Knock Over the Political Hurdle
Politics are everywhere in business related activities!
Influencing factors
Leverage Angels
Silencing Devils
Getting the consigliore on the top management.
CONSIGLIERE:
A politically adept but highly respected insider.
Knows those that will fight you and who will support you.
Example: Timoney knowing the political game in NYPD and reporting to Bratton.

18. Leverage Your Angels and Silence your Devils
Who is an angel and who is a devil?
Don’t fight alone.
“Discourage the war before it begins. Know the angles of attack”
“Anticipate the reaction”

19. Challenge Conventional Wisdom
Transforming the masses uses time and resources.
Execution by using tipping point leaders to use disproportionate influencers.
Figure 7-3 page 169

20. Work Cited 
Kim, Mauborne, W., Renee (2005 ). Blue Ocean Strategy. Boston, Massachusetts: Harvard Business School Press.