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Overcome Key

Organisational Hurdles

Build Execution into Strategy

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Overcome Key OrganizationalHurdles

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The Four Organizational Hurdles

to Strategy Execution

Perceptive Hurdle

An organization

wedded to the

status quo

Motivational Hurdle

Unmotivated staff

Political Hurdle

Opposition from

powerful vested

interests

Resource Hurdle

Limited resources

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Tipping Point Leadership in Action

The Strategy Canvas of NY City Transit Police: How Bratton (Head

Police Div Massachusetts) Refocused Resources

Widespread

patrols of subway

system

Arrests of warrant

violators in

daytime

Arrests Focus on

crimes

Use of buses for

processing arrests

Involvement of

officers in

processing arrests

Issuance of desk

appearance tickets

(which violators had

routinely ignored)

Group

arrests

Arrests of warrant

violators during

sleeping hours

Train sweeps

for safe

atmosphere

Low

High

After Brattons Appointment

Before Brattons AppointmentReso

urceallocation

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Conventional Wisdom Versus Tipping Point Leadership

Theory of organization change rests on transforming the mass. So change efforts

are focused on moving the mass, requiring steep resources and long time frames.

To change the mass, focus on the extremes people, acts, and activities that exercise

a disproportionate influence on performance to achieve a strategic shift fast at lowcost.

Extremes Extremes

Mass of Employees

Company

Company

Conventional Wisdom

Tipping Point Leadership

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7/23

The Four Organizational Hurdles

to Strategy Execution

Perceptive Hurdle

An organization

wedded to the

status quo

Motivational Hurdle

Unmotivated staff

Political Hurdle

Opposition from

powerful vested

interests

Resource Hurdle

Limited resources

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The Pivotal Lever:

Disproportionate Influence Factors

The key questions answered by tipping point leaders are as

follows:

What factors or acts exercise a dissaproportionately 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?

By single-mindedly focusing on points of dissaproportionateinfluence, tipping point leaders can topple the fourhurdles that

limit execution of blue ocean strategy. They can do this fast and at

low cost.

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Break through the Perceptive

Hurdle

Ride the sub-way system.

Meet the disgruntled customers.

Jump the Resource Hurdle

Redistribute resources to your hot spots. Redirect resources from your cold spots.

Engage in horse trading. (Trade resources you

dont need for those you do).

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Jump the Motivational Hurdle

Kingpins. Zoom in on them. Place Kingpins in a Fishbowl. Fishbowl

management: transparency; inclusion; and fairprocess.

Atomize to get the organization to change itself.

(Atomize means to frame a realistic strategicchallenge that is attainable).

Knock out the Political Hurdle

Engage a respected professional.

Leverage your Angels and silence your Devils.

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Conventional Wisdom Versus Tipping Point Leadership

Theory of organization change rests on transforming the mass. So change efforts

are focused on moving the mass, requiring steep resources and long time frames.

To change the mass, focus on the extremes people, acts, and activities that exercise

a disproportionate influence on performance to achieve a strategic shift fast at lowcost.

Extremes Extremes

Mass of Employees

Company

Company

Conventional Wisdom

Tipping Point Leadership

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Build Execution intoStrategy

(Why?To build peoples trustand commitment deep in the

ranks and inspire their

voluntary cooperation from the

start)

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What is Fair Process

Execute resulting Fair process is the managerial expression of

procedural justice theory. When fair process is exercised in

the strategy-making process, people trust that a level playing

field exists. This inspires them to cooperate voluntarily in

executing the resulting strategic decisions.

Voluntary cooperation is more than mechanical execution

where people do only what it takes to get by. It involves going

beyond the call of duty, wherein individuals exert energy and

initiative to the best of their abilities even subordinating

personal self-interest to executing resulting strategies.

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How Fair Process Affects Peoples Attitudes and Behavior

Fair Process

*Engagement*Explanation

*Expectation clarity

Trust and

Commitment

I feel myopinion counts.

Voluntary

Cooperation

Ill go beyond

the call of duty

Exceeds

Expectations

Self-initiated

Strategy

FormulationProcess

Attitudes

Behavior

Strategy

Execution

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The Execution Consequences of the Presence

and Absence of Fair Process in Strategy Making

Fair

Process

Intellectual

and Emotional

Recognition

Trust and

Commitment

Voluntary

Cooperation in

Strategy

Execution

Violation of

Fair Process

Intellectual

and Emotional

Indignation

Distrust and

Resentment

Refusal to

Execute

Strategy

(Chester Plant versus High Park Plant)

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Conclusion:

The sustainability and renewal of

Blue Ocean Strategy

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Imitation Barriers to Blue Ocean Strategy

A value innovation move does not make sense based on conventional

strategic logic. (CNN was not imitated for a long time).

Brand image conflict prevents companies from imitating a BOS. (Body ShopsBOS shunned beautiful models, promises of eternal youth, and expensivepackaging. Therefore, BOS ofThe Body Shop, left major cosmetic houses theworld over action less for years because imitation would signal invalidationof their current business models).

Natural monopoly: The market often cannot support a second player. (Sab

Mall; Centre Stage Mall; Great India Place). Patents or legal permits block imitation.

High volume leads to rapid cost advantage for the value innovator,discouraging followers from entering the market. (Economies of sale enjoyedby Wal-Mart discourages others).

Initial on line success discourages imitation. (amazon.com - books).

Imitation often requires significant political, operational, and culturalchanges. (South West Airlines: routing planes, retraining staff, changingmarketing and pricing, changing culture-that politics of few companies canbear).

Companies that value-innovate earn brand buzz, and a loyal customer following, that tends to shun imitators. (Markets inability to beat value ofTatas Nano at present).

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Conclusion: The Sustainability and

Renewal of Blue Ocean Strategy

CREATING BLUE OCEANS is not a static achievement

but a dynamic process. Once a company creates a blue

ocean and its powerful performance consequences are

known, sooner or later imitators appear on the horizon. The

question is, how soon or late will they come? Put differently,

how easy or difficult is blue ocean strategy to imitate?

As the company and its early imitators succeed and

expand the blue ocean, more companies eventually jump in.

This raises a related question: When should a company reachout to create another blue ocean? Hence, the constant need

for the sustainability and renewal of blue ocean strategy.

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Thank You

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Case Studies Done Pertaining to

BOS Ringling Bros. & Barnum & Bailey. Cirque du Soleil.

Tatas (Nano and ACE).

Indian Laundry Soaps and Detergents.

Indian Shampoo Packaging.

Yellow Tail, Premier Wines, Budget Wines. Southwest Airlines, Average Airlines, Car Transport.

NetJets, Private Jet, Commercial Airlines.

Curves, Home Exercise Programmes, Traditional HealthClubs.

Novo Nordisk.

Bloomberg.

NABI and Average Transit Bus.

QB House.

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Case Studies Done Pertaining to

BOS Cisco Systems. CNN.

EFS and Non bank Competitors.

JFS (F-35) versus Air Force F-22.

Fords

Model T.

Crime at New York Transit Police.

ChesterPlant and High Park Plant.

The Automobile Industry.

The Computer Industry.

The Movie Theatre Industry.

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SYNOPSISPart One: Blue Ocean Strategy

1. Creating Blue Oceans2. Analytical Tools and Frameworks

Part Two: Formulating Blue Ocean Strategy

3. Reconstruct Market Boundaries

4. Focus on the Big Picture, Not the Numbers

5. Reach Beyond Existing Demand

6. Get the Strategic Sequence Right

Part Three: Executing Blue Ocean Strategy7. Overcome Key Organizational Hurdles

8. Build Execution into Strategy

9. Conclusion: The Sustainability and Renewal of Blue

Ocean Strategy