Change Management

Assignment # 01
SUBMITTED BY: SYEDA UME AIMEN
01-111191-060
BBA-8D
Write a summary of article related to Leading Change - Why Transformation Efforts Fail
by John P. Kotter.

In his paper "Leading Change: Why Transformation Efforts Fail," John P. Kotter highlights the
importance of taking organizational transformation seriously. The author explains why business
decision-makers should take into account every aspect of the planned change. The procedure
should be followed through to the end. Every action should have a time restriction. According to
the author, in order to run a successful company, every leader must adhere to these guidelines.
Current global conditions have an impact on all businesses and organizations. As a result, the
majority of companies understand that in order to survive, change and transformation are
necessary. Technology improvements, the social context brought about by globalization, the pace
of competition, and demands surrounding customer expectations are the main problems
businesses confront. In spite of the numerous papers, books, and publications devoted to the
subject, it is challenging to overcome the challenges associated with change. The old
conventional patterns and approaches are no longer effective; people are naturally reluctant to
major changes and frequently feel frightened by the process.
Below are the errors that Kotter identified for why transformation effort fails;
1. Not establishing a great enough sense of urgency
2. Not creating a powerful enough guiding coalition
3. Lacking a vision
4. Under communicating vision by a factor of ten
5. Not removing obstacles to the new vision
6. Not systematically planning for and creating short-term wins
7. Declaring victory too soon
8. Not anchoring changes in the corporation's culture

False results will ensue if a step is skipped. The post also lists the most common mistakes
businesses make while implementing a suggested change. Some businesses are unable to create
the necessary sense of urgency for the desired change. When the urgency rate is not pumped up
enough, the transformation process cannot succeed, and of the organization is put in jeopardy.
Some businesses fail to develop a guiding principle to ensure the success of the shift. Major
change is supposedly impossible unless the organization's leader is a vocal advocate. No matter
how qualified or devoted the staff head, teams lacking strong line leadership can never succeed.
The author also argues why business leaders should create a grounded vision. Without a clear
vision, a transformation effort can quickly devolve into a collection of perplexing and unrelated
projects that could lead the business in the wrong direction or in the wrong place. The accounting
department's reengineering project, the human resources department's new 360-degree
performance appraisal, the plant's quality program, and the sales force's cultural change project
will all fall short without a strong vision. The employer is responsible for informing the
workforce about the intended vision. The failure to eliminate every obstruction obstructing
vision is the second fault. If job losses are part of the short-term sacrifices, the fourth phase will
be very difficult. It might be difficult to gain acceptance and support when downsizing is a part
of the vision. Because of this, successful visions typically incorporate the promise to treat
everyone who is laid off equitably as well as new growth opportunities. Organizational structure
can often be a barrier because it can substantially impair productivity improvements or make it
very challenging to even consider customers. People may occasionally be forced to choose
between the new vision and their own self-interest via remuneration or performance-appraisal
systems. Bosses that refuse to adapt and make demands that are at odds with the team's efforts
are maybe the worst. One to two years after launching a successful transformation initiative, you
observe quality starting to rise on specific indices or the fall in net income ceasing. You discover
a notable rise in productivity or a statistically significant increase in customer satisfaction. But in
any case, the victory is clear-cut. The outcome is not only a conclusion that those opposed to
change can dismiss. Ironically, the premature victory celebration is frequently the result of a
clash between change initiators and change resistors. The initiators go crazy in their excitement
at a blatant indication of advancement. The resistors, who are ready to seize any chance to halt
change, later join them. The triumph is cited by the protesters as proof that the war has been won
and that the troops should be returned home after the celebration is finished. Troops that are
worn out enable themselves to believe they have won. The foot soldiers are reluctant to board the
ships once they get home. Some executives declare success before reaching their objectives. The
final mistake is not establishing a cultural anchor for the planned transformation.

Business executives can learn from these mistakes and develop best practices for reforming their
companies. Every management has to know what opportunities are available in their company. A
guiding principle should be created by the manager as well. The strategy will make it simpler to
accomplish the intended objectives. A vision should be developed by the leader. The
management must decide which strategies are most effective for achieving the vision. The
business should let its staff know about the new proposal for a change. Business owners ought to
provide their staff members autonomy. Many firms will benefit from this tactic in achieving their
goals. Making every new procedure an essential component of the business is the last phase. This
method will foster new organizational practices. The company needs to create the finest
incentives to empower its workers.
John Kotter discusses in this article why corporate executives shouldn't take organizational
restructuring lightly. Organizations in business run like machines. A machine is made up of
various pieces or elements. Why so many organizations struggle to instill a feeling of urgency is
explained by John Kotter. The author also offers a rationale for why businesses should create
strong teams. Teams of employees will cooperate to accomplish the set objectives. Employers in
the business world hire people with various backgrounds. The author also exhorts business
owners to keep an eye on their workers. The employees will be inspired by this technique.
Humans are constantly interacting with their surrounds. Without the environment, business
enterprises are unable to function. Additionally, workplace interactions between workers will
always occur. The idea of machines is related to this type of interaction. Business executives
should keep an eye on how their organizational teams are doing. The people who work for an
organization are like the gears in a wheel. It is appropriate for business managers to have a
mission and goals that are clearly defined. The appropriate individuals should also be included in
the process. Every management needs to address the problems that are plaguing their business.