Change Management

The Perils & Pitfalls of Leading Change :

a Young Manager's Turnaround Journey

Cost Management System

Group 1
Maria Ekrista Oktaviana D. (2206009340)
Dewi Kartika (2206135764)
Putri Ayuningtyas K. (2206136142)
Table of contents

Leading Change Video

01 Why Transformation
Effort Fail
02 Leading Change :
Establish a Sense of
Urgency

Case Overview Questions &

03 The Perils & Pitfalls of
Leading Change
04 Answers
 01
Leading Change
Why Transformation
Effort Fail
 Kotter’s 8 Step for Leading Change

1 2 3 4

Establishing a Sense Forming a Powerful Communicating the

Creating a Vision
of Urgency Guiding Coalition Vision

8 7 6 5
Consolidating
Planning for and
Institutionalizing New Improvements and Empowering Others to
Creating Short-Term
Approaches Producing Still More Act on the Vision
Wins
Change

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Successful Change Efforts

Error 1:
Individu atau kelompok mulai memperhatikan
company’s competitive situation, market Not Establishing
position, technological trends, and financial
performance. a Great Enough Sense
of Urgency
(1)
Find ways to communicate this information

Identify, Requires the aggressive cooperation of many

articulate, individuals
Communicate
the need for
change Without motivation, people won’t help, and the
effort goes nowhere.

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Phase one IS NOT easy!

50/100 Companies Fails

 Pitfalls
What are the reasons for that failure? Error 1:
Not Establishing
1. Executives underestimate how hard it can be to drive
people out of their comfort zones
a Great Enough Sense
of Urgency
2. Excecutives overestimate how successful they have already
been in increasing urgency (2)
3. Executives lack patience

4. Executives paralyzed by the downside possibilities

Comes from having

too many managers and not enough leaders

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Great Leader

Minimize risk & Error 1:

Management Keep the current system operating
Not Establishing
a Great Enough Sense
Change Requires creating a new system of Urgency
(3)
Demands Leadership

Begin well, when an organization has a new

Transformations head who is a good leader & who sees the
need for a major change

Phase one will

go nowhere

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Communicate the Urgency
Error 1:
Frank discussion
new competition shrinking margins
Not Establishing
of potentially
decreasing a Great Enough Sense
unpleasant facts market share
of Urgency
lack of revenue
growth
flat earnings
(4)

Convince company’s
management >75% status quo is
unacceptable

“to make the status quo seem

“Ignite heart & mind” more dangerous than launching
into the unknown.”

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
The guiding coalition is… Error 2:
Not Creating
A Group of stakeholders,
a Powerful Enough
That come together Nerve center of 8-Step process
Guiding Coalition
to Enable the desired change. (1)

The guiding coalition is the first opportunity to engage beyond the

“usual suspects” in your organization. You need more eyes to see, more
brains to think, and more hands to do in order to accelerate your change
efforts.
-Kotter, 2018

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
Guiding Coalition Must Consist :
1. Members from multiple layers of the hierarchy
2. Represent many functions Error 2:
3. Receive information about the organization at all levels and ranks
4. Synthesize that information into new ways of working Not Creating
a Powerful Enough
Guiding Coalition
Coalition Group Members (2)
Senior Board
managers members

Representative
Powerfull union
from a key
leader
customer

Tends to operate
outside of the normal
hierarchy

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
What makes a Great Guiding Coalition?
Error 2:
Not Creating
1. Diversity of the team in terms of level, function, a Powerful Enough
geographic location, tenure, and ideas
Guiding Coalition
2. An ability and a willingness to work across the (3)
hierarchy while also working with people across all
levels and functions (with respect & energy)
3. A commitment to the change initiative at hand

in big companies, the coalition

In both small and large organizations, a
needs to grow to the 20 to 50 range
successful guiding team may consist of
before much progress can be made in
only three to five people
phase three and beyond

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Pitfalls
Error 2:
Not Creating
1. Underestimate the difficulties of producing change a Powerful Enough
and thus the importance of a powerful guiding Guiding Coalition
coalition
(4)
2. They have no history of teamwork at the top and
therefore undervalue the importance of this type of
coalition

3. They expect the team to be led by a staff executive

from human resources, quality, or strategic planning
instead of a key line manager

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Pitfalls
What are the reasons for that failure? Error 3: Lacking a
Vision
1. Without a sensible vision, a transformation effort
can easily dissolve into a list of confusing and
incompatible projects
2. Plenty of plans, directives, and programs but no
vision.
3. Presenting a vision that’s too complicated or vague
to be communicated

organization in the wrong direction

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
Dr. Kotter defines strategic initiatives as targeted and coordinated activities that, if designed and
executed fast enough and well enough, will make your vision a reality

YOUR FOCUS IS ON ACTIONS AND INITIATIVES –CRAFTED BY A DIVERSE SET OF EMPLOYEES, AND
VALIDATED BY SENIOR LEADERS –THAT WILL ADVANCE YOUR OPPORTUNITY

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Pitfalls Error 4:
Undercommunicating
the Vision by a Factor
1. Undercommunicating the vision of Ten
2. Transformation is impossible unless hundreds or
thousands of people are willing to help
3. Behaving in ways antithetical to the vision

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 1. Motivates people to take action.
2. Coordinates and aligns their actions.
3. Without it, strategic initiatives can struggle to get
activity behind them.
4. Clarifies how the future will be different from the
past, and how that future will become a reality.
5. Ties directly to the Big Opportunity

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
How to spot obstacles ?

In order to remove obstacle, you Error 5: Not Removing

must identify them. Think about
why past initiatives have failed. At
Obstacles to the New
what stage? Did they get off the Vision
ground at all? Stall mid-way? Get Barriers can be commonly accepted
completed but then abandoned? statements that, while appearing
helpful, can deter attempts to get past
legacy obstacles. These are
statements like, "It's just not done
that way," or "We tried that before — it
didn't work.”

Common obstacle include: pressure

to hit numbers, complacency, legacy
rules or procedures, and limited
access to key stakeholders and
leaders

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Error 5: Not Removing
Obstacles to the New
By removing barriers such as inefficient processes
and archaic norms, leaders provide the freedom
Vision
necessary for employees to work across boundaries
and create real impact

You have tangible evidence of employee innovations

stemming from collapsed silos and new ways of
working together

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Error 6: Not Systematically
Planning for, and Creating,
Short-Term Wins

Real transformation takes time,

and a renewal effort risks losing
momentum if there are no Most people won’t go on the long
short-term goals to meet and march unless they see compelling
celebrate. evidence in 12 - 24 months that the
journey is producing expected
results. Without short-term wins, too When it becomes clear to people
many people give up or actively join that major change will take a long
the ranks of those people who have time, urgency levels can drop.
been resisting change. Commitments to produce short-term
wins help keep the urgency level up
and force detailed analytical thinking
that can clarify or revise visions.

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Error 7: Declaring
Victory Too Soon
● After a few years of hard work, managers may be tempted to declare victory
with the first clear performance improvement.

● Until changes sink deeply into a company’s culture, a new approaches are
fragile and subject to regression.

● Typically, the problems start early in the process: The urgency level is not
intense enough, the guiding coalition is not powerful enough, and the vision is
not clear enough.

● But it is the premature victory celebration that kills momentum. And then the
powerful forces associated with tradition take over.

● Leaders of successful efforts use the credibility afforded by short-term wins to

tackle even bigger problems.

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
 Error 8: Not Anchoring
Changes in the
Corporation’s Culture
Change sticks when it becomes “the way we do things around here,”

Two factors are particularly important in institutionalizing change in corporate culture:

a conscious attempt to show people taking sufficient time to make sure

how the new approaches, that the next generation of top
behaviors, and attitudes have management really does personify
helped improve performance the new approach

Sumber: Kotter, John P. (1996). Leading Change. Harvard Business School Press.
02 Video
Leading Change :
Establish a Sense of
Urgency
 First step is always getting a sense of urgency up
that there is a need for change.

If you don’t get urgency up first, it is almost like you

don’t creat a solid basis on which you can build
a new different change.

-John Kotter
 03
Case Overview
The Perils & Pitfalls of Leading Change :
a Young Manager's Turnaround Journey
 Tahun 2006
Daniel Oliveira dipromosikan sebagai Store Manager, setelah 1 thn
mengikuti pelatihan.

Oliveira telah mendapatkan pelatihan dari segala aspek bisnis

(menjadi kasir, memimpin departemen kecil, menjadi supervisor
toko, dsb)

Oliveira merasa berhasil dengan pencapaiannya selama pelatihan

dan dia yakin terhadap kemampuannya dalam mengelola orang.
Oliveira ditugaskan untuk mengelola toko Pakaian & Aksesoris
yang terletak di pusat kota Vitória.

Toko tersebut dibangun pada tahun 1983,

Memiliki >100 karyawan

Sejak akhir tahun 1990-an, kinerja toko tersebut terus menurun

dan memburuk secara dramatis dalam lima tahun terakhir.
 Oliveira memiliki 2 Supervisor,
Roberta Santos (10 tahun pengalaman) &
Maria Almeida (18 tahun pengalaman)

Memiliki 2 Operational Leader dengan pengalaman

>10 tahun

Masalah Operasional
- Etalase toko tidak bersih
- Merchandise buruk
- Manekin berbusana tanpa
menggunakan aksesoris
apapun
- Karyawan tidak tersenyum
kepada pelanggan
- Terdapat antrian pada fitting
room & kasir
Permasalahan
Langkah Oliveira
- Realokasi personil Tim
Merchandising untuk
meningkatkan presentasi etalase
dan manekin
- Menginstruksikan agar setiap
orang menghentikan aktivitasnya
dan membantu tim fitting room
dan kasir ketika terjadi antrian.
Masalah Budaya Organisasi
Karyawan merasa Oliveira masih
terlalu muda sehingga mereka tidak
menghormati dan menjalankan
arahan dari Oliviera sebagai Manajer
Toko. Arahan dijalankan hanya ketika
terdapat pengawasan dari Oliveira.
Supervisor dan 2 pemimpin tim
berpindah kepada pesaing.
 04
Questions & Answers
Question 1:
John Kotter mengusulkan Eight-Stage Process dalam
memimpin suatu perubahan dalam organisasi.
Untuk setiap stage, lakukan penilaian tentang sejauh
mana stage tersebut dijalankan atau tidak dijalankan
oleh Oliviera.
1
Stages Action Analysis Result
1. Establishing a Sense Dijalankan 1. Oliveira telah mengamati & 1. Karyawan tidak antusias
of Urgency mengidentifikasi peluang untuk 2. Karyawan hanya mengiyakan, tanpa
peningkatan, namun hanya fokus pada ada eksekusi
internal 3. Perubahan dilakukan hanya ketika
2. Olivier langsung membahas strategi ada pengawasan dari Olivier
perubahan, tanpa membahas urgency
pentingnya perubahan
3. Terburu-buru ingin melakukan perubahan

2. Forming a Powerful Tidak 1. Tidak mengumpulkan orang-orang yang 1. Tidak memiliki cukup kekuatan
Guiding Coalition Dijalankan memiliki komitmen yang sama untuk untuk melakukan perubahan,
melakukan perubahan karena hanya dilakukan sendiri
2. Implementasi tidak bertahan lama
2
Stages Action Analysis Result
3. Creating a Vision Dijalankan Oliveira telah membuat visi & strategi untuk 1. Tidak berjalan dengan baik
memperbaiki kinerja toko. 2. Usulan visi dan strategi telah dibuat
1. Penerapan “urgency code” untuk dengan argumen yang beralasan, namun
staff kasir dan fitting room. tanpa melibatkan diskusi dengan
2. Realokasi personil supervisor dan operasional leader.

4. Communicating the Dijalankan 1. Oliveira telah menyampaikan visi & Tidak berjalan dengan baik, tidak ada antusiasme
Vision strategi untuk mengubah toko dari karyawan
2. Namun tidak menjelaskan mengapa
strategi baru tersebut perlu diambil
3
Stages Action Analysis Result
5. Empowering Others Dijalankan Oliveira melakukan cek terhadap 1. Tidak berjalan dengan baik
to Act on the Vision masing-masing departemen untuk memastikan 2. Implementasi perubahan berjalan hanya
implementasi perubahan dapat berjalan ketika ada Oliveira

6. Planning for and Tidak 1. Tidak ada target jangka pendek (1-2 thn) 1. Karyawan tidak memiliki arah dan tujuan
Creating Short-Term Dijalankan kedepan. yang jelas dari strategi baru yang dibuat.
Wins 2. Tidak ada penjelasan terkait tujuan dari
masing-masing strategi yang diberikan
Oliveira
4
Stages Action Analysis Result
7. Consolidating Tidak 1. Belum ada improvement dari strategi 1. Konsolidasi improvement belum dapat
Improvements and Dijalankan baru yang dijalankan, karena Oliveira dijalankan
Producing Still More masih berjalan pada fase awal. 2. Belum bisa membuat perubahan yang
Change 2. Belum ada karyawan yang dapat baru, karena perubahan yang ada masih
mengimplementasikan visi belum berjalan

8. Institutionalizing Tidak 1. Belum sampai pada fase ini, karena -

New Approaches Dijalankan perubahan baru tersebut belum sampai
pada keberhasilan.
Question 2:
Terkait #1, berikan saran bagaimana Oliveira dapat
menjalankan Eight-Stage Process tersebut lebih baik.
 Stages Action Needed

1. Establishing a Sense of Urgency - Oliveira perlu membangun kesadaran pentingnya perubahan kepada setiap
pegawai.
- Oliveira sebaiknya mengidentifikasi faktor eksternal yang menyebabkan
penurunan.
- Perlu melakukan diskusi dengan karyawan terkait kondisi perusahaan saat ini.

2. Forming a Powerful Guiding Coalition Bekerja sama dengan berbagai level dan divisi yang memiliki kekuatan untuk
melakukan perubahan sehingga implementasi tidak hanya bergantung pada
Oliveira.

3. Creating a Vision Berdiskusi dengan supervisor dan operational leader dalam membuat visi.

4. Communicating the Vision - Oliveira perlu mengkomunikasikan alasan dan motivasi untuk melakukan
perubahan dalam mencapai visi perusahaan.
- Menggunakan setiap sarana yang memungkinkan untuk mengkomunikasikan
visi dan strategi baru.
 Stages Action Needed
5. Empowering Others to Act on the - Oliveira sebaiknya mempekerjakan seorang pengawas untuk memastikan setiap
Vision perubahan dapat berjalan.
- Perlunya kesadaran dari setiap karyawan untuk memperbaiki kondisi perusahaan.

6. Planning for and Creating - Oliveira perlu menyusun target - target kinerja operasional jangka pendek.
Short-Term Wins - Memberikan penghargaan kepada karyawan yang terlibat perubahan.

7. Consolidating Improvements and - Oliveira perlu mengubah sistem, struktur atau kebijakan yang tidak sesuai dengan
Producing Still More Change visi perusahaan.
- Memperkerjakan, mempromosikan, dan mengembangkan karyawan yang dapat
mengimplementasikan visi.

8. Institutionalizing New Approaches - Oliveira sebaiknya membangun pengembangan kepemimpinan.

- Mengkomunikasikan bahwa kebiasaan yang baru dapat mencapai kesuksesan
perusahaan
Question 3:
Jelaskan bagaimana cost management dapat berperan
dalam satu atau lebih dari Eight-Stage Process tersebut.

(Identifikasi stage & ilustrasi hipotesis)

Peran Cost Management dalam Eight-Stage Process

Stages Theory Hypothesis

1. Establishing a Behavioral and Organizational Issues in Management Accounting Dalam membangun rasa
Sense of and Control Systems urgensi, dibutuhkan
Urgency pertimbangan mengenai cara
Salah satu isu sentral dalam desain Management Accounting & memotivasi karyawan,
Control System (MACS) adalah bagaimana memotivasi perilaku yang diantaranya dengan
tepat di tempat kerja. Ketika merancang pekerjaan dan tugas memberikan arahan yang
tertentu, perancang sistem harus mempertimbangkan tiga dimensi jelas, penyampaian mengenai
motivasi berikut: tingkat usaha yang perlu
1. Arahan, atau tugas-tugas yang menjadi fokus perhatian karyawan lakukan dan
seorang pegawai. lamanya waktu dalam proses
2. Intensitas, atau tingkat usaha yang dikeluarkan karyawan. transformasi.
3. Ketekunan, atau lamanya waktu seorang karyawan akan
bertahan dalam suatu tugas atau pekerjaan.

Sumber: AKEM Chapter 9

Peran Cost Management dalam Eight-Stage Process

Stages Theory Hypothesis

6. Planning for and Operational Performance Measurement Dalam menjalankan proses
Creating transformasi yang panjang,
Short-Term Wins Pengendalian operasional: perlu disusun target-target
- berfokus pada kinerja operasional jangka pendek. kinerja operasional jangka
- berfokus proses bisnis dasar yang dilakukan untuk pendek, seperti:
menghasilkan dan menyampaikan output (barang atau jasa) - % peningkatan penjualan,
kepada pelanggan. laba, dan pangsa pasar
- Terdiri atas finansial dan non finansial. - Proses bisnis

Sumber: BSJS Chapter 14-16

Thank you