00:06 William Bratton: Let me share with you before I close and open up the questions from the book, "Collaborate or Perish!", the eight ideas that basically form the book. Good thing about the book, if you don't like to read from cover to cover, you can go to page five of the introduction, and these eight points are on page five. So, you don't have to get any further into the book [chuckle] In the eight tests of readiness, if you will, for collaboration in this network world. And think of this network world, 800 million people on Facebook, within the next several years could be over a billion. The idea that you can reach a billion people almost instantaneously. We tell the story in the book about the Egyptians, the Arab Spring, about how through the ability to use the web and other forms of interaction that revolution actually took hold.
01:01 Bratton: The eight types of readiness are, number one, vision, leadership. Leadership with a vision, always starts with that. You and your companies, many of you the founders of your company, whatever you do has started with you in an idea. It doesn't happen without leadership whether it's an individual or a group. Steve Jobs, Apple, those three or four guys in the garage creating Google, it all starts with that idea. Second element is right-size the problem. I'll use the New York experience I just talked about to emphasize these eight points. Vision, I've already talked about Rudy Giuliani and I, the vision we had, that cops could work to prevent crime rather than just respond to it. And that by preventing it, we could reduce it. Secondly, right-size the problem. Couldn't do everything all at the same time, but we needed to begin a momentum. So, what was the momentum that I began as chief in the NYPD, an achievable victory very early on? And what did I go after? 75 squeegee pests. I had 38,000 cops, took us a day or two to resolve that problem but once we focused on it, we solved it.
02:13 Bratton: Newspapers reported on us significantly. There were 500,000 people that drove in every day, noticed something's different. We went after fare evasion. So, those 250,000 fare evaders, we reduced the fare evasion by going after them and arresting them and prosecuting them. We reduced that problem down to a point where the transit authority no longer bothered to spend money counting them 'cause fare evasion had become so much a smaller problem, Malcolm Gladwell's Tipping Point. We also had beneficial side effects. From every activity you wanna get side effects, if you will, beneficial side effects. Going after fare evaders, we found out that one out of every seven we arrested had been arrested before. There was an outstanding warrant for them. So, it was like a Cracker Jacks bar, so going in, you get the prize. One arrest basically was getting somebody else who would fail to show up for previous arrest. One out of every 21 was found to be carrying a weapon, ranging from a box cutter on up to Uzi submachine guns. These are people who were coming into the subway to commit crimes. We were stopping them before they got in, so it was a way of helping to prevent crime, going forward.
03:21 Bratton: So, right-size the problem. Basically, you can't do everything all at once. Understand what resources you have and what you need to prioritize to go after. Thirdly, create a platform. And that's what the internet effectively, Facebook, Google, all of them. It's a platform that can attract people that you can magnify the platform you're trying to create as a business person is customers. How do you attract customers to your website, to your product, to your store, to your business? And the idea is to create a platform. In New York City, the platform I created was public safety. The cops wanted to be seen as successful reducing crime, the public certainly wanted crime to go down. The business community needed it to go down so their investments could be paid, and the politicians needed it and the media wanted it, because the media as much as they like to report the blood and gore, also can celebrate as they did in New York that, the city was changing and was becoming something that they could celebrate.
04:23 Bratton: So, we found a common platform. Your platform is for your employees, your platform is to attract new customers, your platform is to attract potential collaborators, who might want to buy a company, who might want to partner up with you, but you need that common platform. The fourth element is to make it pay for everyone, and in New York City, everybody got paid. Crime went down, cops got credited with it, businesses were able to invest, jobs were created, tax revenue was raised. The image of the city improved, 28 million tourists in 1993, '94 in New York City, this year they'll be over 50 million tourists coming to New York City, spending on average, $1,500 a piece. New York City now has several 100 more hotels than they had back in the '90s, and in the midst of the recession, have in fact reclaimed all the jobs that were lost at the height of the recession because, again, the safety of the city continues to keep it attractive.
05:29 Bratton: Number five, have the right people with you. In your business, if your team does not share your vision, your passion, if they're not motivated appropriately, they're not gonna deliver. That's the reality of it. You need to have the right people, you need to have them in the right spot. Number six, deliver on performance. Each of you probably sets a sales goal each year. In Kroll, we certainly have a very ambitious revenue goal issue, a stretch goal. But it's the idea that we believe we can obtain it. It's been developed with inclusion from all the various elements of our company. In the NYPD, that 10% goal, well it was a goal that I had in mind. I didn't talk about that 10% goal till I started listening to others. And those one-star chiefs who told me, "We think we can do 10% or 15%" that's who I surrounded myself with because they had ideas about how they were going to do it. Similarly in Kroll, we have people internationally around the world who have ideas about how we're gonna be able to meet our double-digit growth and revenue projections for this year.
06:37 Bratton: Number seven, mind your political support. That was where I failed miserably at, mind your political support. In the case of the public sector, that's my Mayor. I'm appointed by a Mayor, I work for that Mayor. In the case of New York City, Mayor Giuliani and I, within a year, we were not getting along, within two years I was gone. When I went to the LAPD in 2002, I married my two mayors. You couldn't see daylight between the two of us. I stayed in their political headlights 'cause I could not ultimately succeed if I did not effectively stay partnered with them.
07:16 Bratton: So, I learned a lot from that issue with Giuliani that I did not wanna leave the NYPD, but it just was not working out between the two of us. And lastly, eight, you must have the passion in the playbook, going back to the initial vision in leadership. Vision needs to basically be translated into goals of playbook, but the vision also has to have the passion that you can do it. And that last issue, passion. I talked to you earlier about the companies I've been involved with. A significant failure for me was in the late 1990s. I was the president of a small company out in Long Island, 300 employees about 25 million a year, and I was a total failure at that assignment. I had a three-year contract. Two years in, I was bought out 'cause it wasn't working out for me, and the owner of the company, it wasn't working out for him clearly. We were not meeting our goals, we were not meeting our numbers, and the principle reason was me.
08:15 Bratton: I did not have a passion for that business. I was in the wrong place. I needed to get off the bus. I didn't need to just change my seat on the bus, I needed to get off that bus. And I remember that so critically because if I'm not having fun, and if I'm not passionate about what I'm doing, I'm gonna get off the bus 'cause it just doesn't work out. One, doesn't work out for me personally, or doesn't work out for the people that I'm working with, that I'm being paid by or being paid with. That issue of passion, whether it's in your companies, relatively small companies versus some of the larger ones, if you are not passionate about it, if the people around you aren't passionate about it, you are not gonna succeed. You're gonna be a miserable bunch and life is too short to be miserable. In my case, I always seek to go into organizations that are in crises. I don't wanna come in behind a superstar, I wanna basically come into something that's not working, have the fun of turning it around. My particular style, I'm not a good maintenance leader.
09:19 Bratton: I'm all about change and making change, but... It's kind of like the Lone Ranger, when he used to come into town and solve the problem that him and Tonto at the end of the show would ride off, that's me. I don't have an interest in staying in an organization that's just going to be in a maintenance situation. LAPD, after seven years, it was their time to move on. Let somebody else who has the passion, who has the ideas to take over. Similarly, with Kroll, one of the great things for Kroll for me, is the company is so large, it's constantly churning, constantly changing, so I'm never in a maintenance capacity as chairman of that company. It is constantly, as in your world, seeking new customers, seeking new opportunities.
09:59 Bratton: And about that, let me close with this, about the importance of that platform that I talked about, number three, and the idea of collaboration. Who do you have to collaborate with, most importantly? Certainly your employees, with your customers. If you are not... And particularly in today's world, the network world, if you are not reading where you're going to get customers or why your customers come to your platform, you're going to fail. The previous presenter had... It was interesting. He had up, at the beginning of his presentation, a number of companies up on the board that included Borders, included Palm, included Kodak. Borders, no longer in business. Blockbuster, no longer in business. Why? They didn't build the right platform. Customers were no longer coming to them.
10:48 Bratton: Borders... Barnes & Noble. Barnes & Noble is still in business, hanging on by its fingernails, but why is it still in business? Because a few years ago, it understood that its customers were changing. The customers didn't necessarily wanna come into the stores all the time to buy books, so what did they develop? They developed their own Kindle-type product, an electronic platform to attract people into the stores which would track people into their virtual store. Borders didn't do that. Borders kept a platform that would require people to come into their store. They're now gone, Barnes & Nobles are still out there. Kodak. Kodak, one of the largest companies in the world, in the world of photography, just didn't read what the customers wanted. Kept emphasizing film, not digital, missed the boat. Kodak, whoop! Palm, I still remember affectionately, Palm, with the little stylus poking away on that thing. Gone, why? Because they didn't keep up with the idea of people were changing, their customer base was changing.
11:52 Bratton: Collaboration to succeed, Missoni and Target. If you ever think of two totally different organizations, Missoni, appealing high-end fashion, Target definitely middle income, middle of the road. Missoni understood, even with the one percenters controlling 40% of the wealth, there was still not enough customers for them to grow. They collaborated and partnered with Target. And what did they end up with? A phenomenal success. The first day Missoni teamed up with Target on their web and in their stores, the stores sold out immediately and they crashed the website 'cause the demand from that middle-class customer for a high-end product that had been remodeled for that middle-class customer. A very successful collaboration.
12:43 Bratton: And lastly, Barack Obama, his last election, what propelled his success? The fact he was able to outspend George Bush by about three to one. And where did he get a significant part of his money? He built a new platform. He used Facebook. He was befriended by three and-a-half million people who gave him smaller donations than those 30 or 40,000-a-plate donations from the fat cats, but he had three and-a-half million people who he could network with who shared his vision, who shared his passion, and he found a platform to gather them in. Collaboration, it's what it's all about, without it you are just not going to succeed. Vision, passion, collaboration.