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Harvard Business Review
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Tipping Point Leadership
W. Chan Kim and Renée
Mauborgne
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How
can you lead with your hands tied? How can you generate a leap in performance
when everything seems to be, and in effect is, set up against you? Think
limited resources, a demoralized staff, politics, and an organization wedded
to the status quo. The answer rests in applying what we call Tipping Point
Leadership. The theory of tipping points, which has its roots in epidemiology,
hinges on the insight that in any organization, fundamental changes can happen
quickly when the beliefs and energies of a critical mass of people create an
epidemic movement toward an idea. Key to unlocking an epidemic movement is
concentration, not diffusion. Tipping point leadership builds on the reality
that in any organization there are factors that exercise a disproportionate
influence on performance. Hence, contrary to conventional wisdom, meeting a
massive challenge is not about putting forth an equally massive response where
gains in performance are achieved by proportional investments in time and
resources. Rather it is about conserving resources and cutting time by
focusing on identifying and then leveraging the factors of disproportionate
influence in an organization. The key questions Tipping Point Leaders should
answer are: What factors or acts exercise a disproportionately positive
influence on breaking the status quo, on getting the maximum bang out of each
buck of resources, on motivating employees to aggressively move forward with
change, and on knocking down political roadblocks that often trip up even the
best strategies? By focusing on points of disproportionate influence, tipping
point leaders are able to break the performance/cost tradeoff and topple the
four hurdles that block a leap in performance fast and at low cost. The four
hurdles are: the cognitive hurdle that blinds employees from seeing
the that radical change is necessary; the resource hurdle that is
endemic in firms today; the motivational hurdle that discourages and
demoralizes staff; and the political hurdle of internal and external
resistance to change.
| W. Chan Kim is The Boston Consulting Group Bruce D. Henderson Chair
Professor of International Management at INSEAD, France.
Renée Mauborgne is The INSEAD Distinguished
Fellow and a professor of strategy and management at INSEAD, and a Fellow of the World Economic Forum.
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