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How can you embed change in your

organization’s DNA?

‫إرادة التغيير و إدارة التغيير‬

Ossama Mossallam
Kotter’s Model

Eight Steps to Be Completed


or Eight Possible Errors !

Takes 3 - 5 Years or More for Major Changes

Explains Why Many Change Efforts Fail

Even Experienced People Usually Make At


Least One Major Mistake
Ossama Mossallam
Kotter’s Model
Kotter has watched more than 100 companies try to
remake themselves into significantly better competitors

They have included large organizations (Ford) and small


ones (Landmark Communications)

Companies based in USA (General Motors) and elsewhere


(British Airways)

Corporations that were on their knees (Eastern Airlines)


and companies that were earning
Ossama Mossallam good money (Bristol
Kotter’s Model
 These transformation efforts have gone under many
banners:
 Reengineering
 Right sizing
 Six Sigma
 Total Quality Management
 Restructuring
 Turnaround

Ossama Mossallam
Kotter’s Model
 The general lessons to be learnt from the more successful
cases:
 The change process goes through a series of phases that ,in total,
usually require a considerable length of time.
 Skipping steps creates only illusion of speed and never produces
satisfying result.
 Critical mistakes in any of the phases can have a devastating
impact, slowing momentum and negating hard-won gains.

Ossama Mossallam
Error #1:
Not Establishing A Great Enough
Sense of Urgency

 It is Hard To Drive People Out of Their Comfort Zones

 The Status Quo Must Be Made to Appear More Dangerous


Than Moving Into the Unknown

Ossama Mossallam
Error #1:
Not Establishing A Great Enough
Sense of Urgency

 A paralyzed senior management often comes from having


many managers and not enough leaders

 Management’s mandate is to minimize risk to keep the


current system operating

 Change, by definition, requires creating a new system,


which in turn always demands leadership.

Ossama Mossallam
Error #1: Not Establishing A Great
Enough Sense of Urgency (cont.)

 Try Using Outsiders To Bring the “Bad News” –


(Consultants?, Wall Street Analyst?, customers?)
 Manufacturing a crisis
 One CEO deliberately engineered the largest
accounting loss in the company’s history, by creating
huge pressure from Wall Street Journal

Ossama Mossallam
Error #1: Not Establishing A Great
Enough Sense of Urgency (cont.)

 Try Using Outsiders To Bring the “Bad News” –


(Consultants?, Wall Street Analyst?, customers?)
 Manufacturing a crisis
 One division president commissioned first-ever
customer-satisfaction surveys, knowing full well that
the results would be terrible. He then made these
results public
Such moves can look risky but it is more risky in playing
it too safe.

Ossama Mossallam
Error #1: Not Establishing A Great
Enough Sense of Urgency (cont.)

 Some executives underestimate how hard it can


be to drive people out of their comfort zones.

 Must Put Leaders (Risk-Takers, Change


Champions) in Positions of Power

 Must Move Managers (Risk-Minimizers) Out of


Positions of Power
Ossama Mossallam
Error #1: Not Establishing A Great
Enough Sense of Urgency (cont.)

 When is the urgency rate high enough?


 The answer is when about 75% of a

company’s management is honestly


convinced that business-as-usual is
totally unacceptable.
 Anything less can produce very serious

problems later on in the process.


Ossama Mossallam
Error #1: Not Establishing A Great
Enough Sense of Urgency (cont.)

 Compared with other steps in the change


process, phase one can sound easy.

NOT.
It is

More than 50% of the companies that has been
watched fail in this first phase.

Ossama Mossallam
Error #2:
Not Creating a Powerful Enough
Guiding Coalition

Need the President or Senior Manager.

Also Need a “Critical Mass” of Other


Senior Staff

Ossama Mossallam
Error #2:
Not Creating a Powerful Enough
Guiding Coalition

 Without A Powerful Guiding Coalition The


Opposition Will Eventually Fight Back

Ossama Mossallam
Error #3:
Lacking a Vision

 A “Dream” of the Future

 Clarifies the Direction the Organization


Needs to Move

 Easy to Communicate

Ossama Mossallam
Error #3
Lacking a Vision

 Failed Efforts Often Have Many Plans and


Programs, but No Vision

 Can you Communicate the Vision in 5 Minutes?

 Do People Respond With Genuine Interest And


Understanding?

Ossama Mossallam
Error #4: Under-communicating the
Vision
 Need to Communicate the Vision in ALL Types
of Meetings and Settings
 Need to Communicate with all Channels
 Planning Meetings
 Operations Meetings
 Newsletters
 Training Program Curriculums

Ossama Mossallam
Error #4
Under-communicating the Vision
“WALK THE TALK”
 Executives consciously attempt to become
a living symbol of the new corporate
culture
 Nothing undermines change more than
behavior by important individuals that is
inconsistent with their words.
Error #3
Lacking a Vision

 Failed Efforts Often Have Many Plans and


Programs, but No Vision

 Can you Communicate the Vision in 5 Minutes?

 Do People Respond With Genuine Interest And


Understanding?

Ossama Mossallam
Error #4: Under-communicating the
Vision
 Need to Communicate the Vision in ALL Types
of Meetings and Settings
 Need to Communicate with all Channels
 Planning Meetings
 Operations Meetings
 Newsletters
 Training Program Curriculums

Ossama Mossallam
Change Without Pain

 Did you know that an estimated


70% of all change efforts fail?

 Why?
 Because managers lose focus.

Ossama Mossallam
Error #4
Under-communicating the Vision

“WALK THE TALK”


‫ ُسئلت السيدة عائشة عن ُخٍلق النبي‬
:‫صلى اهلل عليه و سلم فقالت‬

“‫”كان ُخلُقُه القُران‬


Ossama Mossallam
Error #5
Not Removing Obstacles
To the New Vision
 Compensation Systems
 Not rewarding the unconventional ideas called for in
the vision (TOYOTA - JIT)
 Lower level managers concluded that senior
management had lied to them about commitment to
change, cynicism grew and whole effort collapsed

Ossama Mossallam
Error #5
Not Removing Obstacles
To the New Vision
 Compensation Systems
 Not rewarding the unconventional ideas called for in
the vision (TOYOTA - JIT)
 Lower level managers concluded that senior
management had lied to them about commitment to
change, cynicism grew and whole effort collapsed

Ossama Mossallam
Error #6
Not Systematically Creating
Short-Term Wins

 Most People Need to See Some


Positive Results in 1-2 Years

 Otherwise They Give Up (Or Join the Resistors!)

 Wins Should be “Created”, Not “Hoped For”

Ossama Mossallam
Error #6
Not Systematically Creating
Short-Term Wins

 Most People Need to See Some


Positive Results in 1-2 Years

 Otherwise They Give Up (Or Join the Resistors!)

 Wins Should be “Created”, Not “Hoped For”

Ossama Mossallam
Error #7
Declaring Victory Too Soon

 Don’t Let Everyone “Relax” too Soon


 Urgency is Lost and Staff Representing the
“Old Ways” Can Reassert Themselves
 Tackle Larger Problems After The First Short-
Term Wins (Other Systems and Structures)
 Focus on Who is Hired and Who is Promoted

Ossama Mossallam
Error #7
Declaring Victory Too Soon

 Don’t Let Everyone “Relax” too Soon


 Urgency is Lost and Staff Representing the
“Old Ways” Can Reassert Themselves
 Tackle Larger Problems After The First Short-
Term Wins (Other Systems and Structures)
 Focus on Who is Hired and Who is Promoted

Ossama Mossallam
Error #8
Not embedding Changes in The
Corporate Culture
 Change Must Be Rooted in Shared Values of the
Organization

 Show People How the New Behaviors and


Methods Have Improved Performance

 Ensure That The Next Generation of Senior Staff


Really Does Personify The New Approach

Ossama Mossallam
Error #8
Not embedding Changes in The
Corporate Culture
 Change Must Be Rooted in Shared Values of the
Organization

 Show People How the New Behaviors and


Methods Have Improved Performance

 Ensure That The Next Generation of Senior Staff


Really Does Personify The New Approach

Ossama Mossallam
UN - FREEZING CHANGE RE - FREEZING
Commitment Vision

Powerful Re
Creating sense of Commu Move Short-term Not Embedding
Guiding nicate Obstacles Wins Victory Change
Urgency Coalition Vision Yet

“Survival Anxiety” “Critical “Walk


Mass” The
Talk”.

MORALE

Time
‫بسم اهلل الرحمن الرحيم‬

‫”إن اهلل ال يغير ما بقوم‬


‫حتى يغيروا ما بأنفسهم“‬
‫صدق اهلل العظيم‬
‫‪Ossama Mossallam‬‬

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