LEADING CHANGE
John P. Kotter
Transforming
Organization: Why Firms
Fail
•Error #1: Allowing Too Much Complacency
•Error #2: Failing to Create a Sufficiently Powerful Guiding
Coalition
•Error #3: Underestimating the Power of Vision
• Error #4: Under communicating the Vision by a Factor of
10 (or 100 of Even 1,000)
• Error #5: Permitting Obstacles to Block the New Vision
• Error #6: Failing to Create a Short Term Win
• Error #7: Declaring Victory Too Soon
• Error #8: Neglecting to Anchor Changes Firmly in the
Corporate Culture
Successful Change and the Force That Drives It
Technological International Maturation Fall of
change economic of markets in communist
integration developed and socialist
countries regimes
The globalization of markets and competition
Successful Change and the Force That Drives It
1. Useful change tends to be associated with a multistep process that creates power and motivation sufficient to
overwhelm all the sources of inertia
2. This process is never employed effectively unless it is driven by high-quality leadership, not just excellent
management.
Successful Change and the
Force That Drives It
The Eight-Stage Process of
Creating Major Change
I. Establishing a Sense of Urgency
The Eight-Stage Process of Creating
Major Change
II. Creating the Guiding Coalition
The Eight-Stage Process of Creating
Major Change
III. Developing a Vision and Strategy
The Eight-Stage Process of
Creating Major Change
IV. Communicating the Change Vision
IV. Communicating the Change Vision
How to communicate the change vision
Simple Verbal pictures Multiple forums
Repeat3x Walk the Talk
Explicitly Address Seeming Inconsistencies
Listened and Be Listened To
The Eight-Stage Process of
Creating Major Change
V. Empowering Employees for Broad-Based Action
V. Empowering Employees for Broad-Based Action
How to empower broad based action
-Identifying the organizational barriers that will hinder the change effort
-Adjusting organizational processes, structures, procedures, and reward systems to align with the new change vision
-Identifying the necessary behavior, attitudes, and skills that managers and employees need for the desired change
V. Empowering Employees for Broad-Based Action
How to handle resistance
-Investing in trainings that will allow employees and managers to obtain the behavior, attitudes, and skills that they will need for the change effort
-Partnering with your guiding coalition to develop strategies to handle organizational resistance
-Integrating the legitimate concerns of employees and managers into the change effort
The Eight-Stage Process of
Creating Major Change
VI. Generating Short-Term Wins
VI. Generating Short-Term Wins
How to generate short term wins
[Link] must be visible throughout the organization
[Link] must be clearly related to the change effort
[Link] success must be unambiguous
The Eight-Stage Process of
Creating Major Change
VII. Consolidating Gains and Producing More Change
VII. Consolidating Gains and Producing More Change
How to consolidate gains and implement more change?
- Highlighting the success of the short term wins and persuading change stakeholders to commit
To more significant organizational change
-Allocating additional resources to these more difficult organizational improvement projects
-Assigning lower level managers to work with the guiding coalition on the projects
-Reassigning or removing resistant managers and subject matter experts who continue to obstruct change
The Eight-Stage Process of
Creating Major Change
VIII. Anchoring New Approaches in the Culture
The Organization of the Future
Leadership and Lifelong
Learning
Leadership and Lifelong
Learning