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Leading Change John P. Kotter “The rate of change is not going to slow Down anytime
Leading Change
Leading Change

John P. Kotter

“The rate of change is not going to slow

Down anytime soon. If anything, competition In most industries will probably speed up

Even more in the next few decades.”

Leading the Change Process
Leading the Change Process
Apply Science of Learning & Human Performance Generate solution options and metrics Translate job requirements into
Apply Science of
Learning & Human
Performance
Generate solution
options and
metrics
Translate job
requirements into
competencies
Conduct
effectiveness &
cost analysis
(K, S, A, T)
Performance
Consultants
Make
recommend-
ations
Creating Major Change
Creating Major Change

The 8 Stage Process of Creating Major Change

1. Establishing a Sense of Urgency

  • 2. Creating a Guiding Coalition

  • 3. Developing a Vision & Strategy

  • 4. Communicating the Change Vision

  • 5. Empowering Broad-Based Action

  • 6. Generating Short-Term Wins

  • 7. Consolidating Gains & Producing More Change

  • 8. Anchoring New Approaches in the Culture

Source: Leading Change, John P. Kotter, 1998

Creating Major Change Establishing a Sense of Urgency • • Examining the market & competitive realities
Creating Major Change
Establishing a Sense of Urgency
Examining the market & competitive realities
Identifying & discussing crisis, potential crisis, major
opportunities

Concepts:

Create a crisis: highlight major weaknesses, allow errors to compound

Eliminate obvious examples of excess (company facilities, services,etc

Set goals & targets unrealistically high

Distribute company-wide performance data highlighting deficiencies to

more employees

Force interaction with unsatisfied “customers, suppliers, shareholders.”

Use consultants to force more relevant & honest appraisals

Bombard people with information on future opportunities, rewards for

capitalize on those opportunities, & potential “lost opportunities.”

Source: Leading Change, John P. Kotter, 1998

Creating Major Change
Creating Major Change
Creating a Guiding Coalition • Putting together a group with enough power to lead the change
Creating a Guiding Coalition
• Putting together a group with enough power to lead the
change
• Getting the group to work together like a team

4 Key Characteristics of Guiding Coalition:

Positional Power: Are enough key players on board, especially the

main line managers, so those left out can not easily block progress? Expertise: Are the various points of view, relevant to the tasks at hand,

adequately represented so that informed, intelligent decisions can be made? Credibility: Does the group have enough people, with good reputations, that its pronoucements will be taken serious by the other

employees? Leadership: Does the group include enough proven leaders to be able to drive the change process?

Source: Leading Change, John P. Kotter, 1998

Creating Major Change
Creating Major Change
Developing a Vision & Strategy • Creating a vision to help direct the change effort •
Developing a Vision & Strategy
• Creating a vision to help direct the change effort
• Developing strategies for achieving that vision

Characteristics of an Effective Vision

Imaginable: Conveys a picture of what the future will look like

Desirable: Appeals to the long-term interests of employees,

customers, stakeholders. Feasible: Comprises realistic, attainable goals

Focused: Is clear enough to provide guidance in decision making

Flexible: Is it general enough to allow individual initiative &

alternative responses in light of changing condition. Communicable: Is easy to communicate, can be successfully explained within 5 minutes.

Source: Leading Change, John P. Kotter, 1998

Creating Major Change
Creating Major Change
Communicating the Change Vision • Using every vehicle possible to constantly communicate the new vision &
Communicating the Change Vision
• Using every vehicle possible to constantly communicate the new vision &
strategies
• Having the guiding coalition role model the behavior expected of employees

Key elements in communicating the vision:

Simplicity. All jargon & technobabble must be eliminated. Metaphor, Analogy & Example. A verbal picture is worth a thousand words. Multiple Forums. Big meetings & small, memos, newspapers, formal and informal meetings…. Repetition. Ideas sink in only after they have been heard many times Leadership by Example. Behavior by important people that is inconsistent with the vision overwhelms other forms of

communication. Explanation of Seeming Inconsistency. Unaddressed

inconsistencies undermine the credibility of all communications. Give & Take. Two way communication is always more powerful and one-way communication.

Source: Leading Change, John P. Kotter, 1998

Creating Major Change Empowering Broad-Based Action • Getting rid of obstacles • Changing systems or structures
Creating Major Change
Empowering Broad-Based Action
• Getting rid of obstacles
• Changing systems or structures that undermine the change vision
• Encouraging risk taking & non-traditional ideas, activities & actions

Empowering People to Effect Change

Communicate a sensible vision to employees.

Make sure structures are compatible with the vision.

Provide the training employees need.

Align information and personnel systems to the

vision. Confront supervisors who undercut needed change.

Source: Leading Change, John P. Kotter, 1998

Creating Major Change
Creating Major Change
Generating Short-Term Wins • Planning for visible improvements in performance, or “wins” • Creating those wins
Generating Short-Term Wins
• Planning for visible improvements in performance, or “wins”
• Creating those wins
• Visibly recognizing & rewarding people who made the win possible
  • 1. Provides evidence that sacrifices are worth it.

  • 2. Reward change agents.

  • 3. Helps fine-tune vision & strategies.

  • 4. Undermine cynics and self-serving registers.

  • 5. Keep bosses on board.

  • 6. Build Momentum.

Source: Leading Change, John P. Kotter, 1998

Creating Major Change Consolidating Gains & Producing More Change • Using increased credibility to change all
Creating Major Change
Consolidating Gains & Producing More Change
• Using increased credibility to change all systems, structures & policies that
don’t fit together and don’t fit the transformation strategy
• Hiring, promoting, & developing people who can implement the change vision
• Reinvigorating the process with new projects, themes & change agents

More change, not less. The guiding coalition uses the credibility afforded by

the short-term wins to tackle additional and bigger change projects More Help. Additional people are brought in, promoted and developed to

help with all the changes Leadership from Senior Management. Senior people focus on maintaining

clarity of shared purpose, keeping urgency levels up. People management & leadership from below. Lower ranks in the

hierarchy provide both leadership & management for specific projects. Reduction of unnecessary interdependencies. To make change easier in both short/long-term, managers identify and eliminate unnecessary organizational interdependencies.

Note: Resistance is always waiting to reassert itself!

Source: Leading Change, John P. Kotter, 1998

Creating Major Change
Creating Major Change
Anchoring New Approaches in the Culture • Creating better performance through customer- & productivity oriented behavior,
Anchoring New Approaches in the Culture
• Creating better performance through customer- & productivity oriented
behavior, more and better leadership, & more effective management
• Articulating the connections between new behavior & organizational success
• Developing means to ensure leadership development & succession

Concepts:

Culture changes come last, not first. Most alteration in norms & shared values

come at the end of the transformation process Results matter. New approaches usually sink into a culture only after it is very

clear that they work and are superior to the old methods. Requires a lot of talk. Without verbal instruction and support, people are

reluctant to admit the validity of new practices. May involve turnover. Sometime the only way to change a culture is to change

key people. Makes decision on succession crucial. If promotion processes are not changed to be compatible with the new practices, the old culture will reassert itself

Source: Leading Change, John P. Kotter, 1998