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Leading Change

Leading Change. John P. Kotter. Transforming Organizations: Why Firms Fail. Allowing too much complacency Failing to create a sufficiently powerful guiding coalition Underestimating the power of vision Under-communicating the vision . Transforming Organizations: Why Firms Fail.

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Leading Change

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  1. Leading Change John P. Kotter

  2. Transforming Organizations:Why Firms Fail • Allowing too much complacency • Failing to create a sufficiently powerful guiding coalition • Underestimating the power of vision • Under-communicating the vision

  3. Transforming Organizations:Why Firms Fail • Permitting obstacles to block the new vision • Failing to create short term wins • Declaring victory too soon • Neglecting to anchor changes firmly in the corporate culture

  4. Related Consequences • New strategies aren’t implemented well • Acquisitions don’t achieve expected synergies • Reengineering takes too long and costs too much • Downsizing doesn’t get costs under control • Quality programs don’t deliver hoped-for results

  5. Successful Change and The Force that Drives it • Globalization of markets & competition • The Eight Stage change process • The importance of Sequence • Projects within projects • Management versus Leadership

  6. Sense of Urgency Guiding Coalition Vision & Strategy Communicating the Change Vision Empowering Action Generating Short-Term Wins Producing More Change Anchoring New Culture The Eight Stage Change Process

  7. 1. Establishing a Sense of Urgency • Examining the market and competitive realities • Identifying and discussing crises, potential crises, or major opportunities

  8. 2. Creating the Guiding Coalition • Putting together a group with enough power to lead the change • Getting the group to work together like a team

  9. 3. Developing a Vision and Strategy • Creating a vision to help direct the change effort • Developing strategies for achieving that vision

  10. 4. Communicating the Change Vision • Using every vehicle possible to constantly communicate the new vision and strategies • Having the guiding coalition role model the behavior expected of employees

  11. 5. Empowering Broad-Based Action • Getting rid of obstacles • Changing systems or structures that undermine the change vision • Encouraging risk taking and non-traditional ideas, activities, and actions

  12. 6. Generating Short-Term Wins • Planning for visible improvements in performance, or “wins” • Creating those wins • Visibly recognizing and rewarding people who made the wins possible

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

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

  15. Planning & budgeting Organizing & staffing Controlling & problem-solving Establishing direction Aligning people Motivating & inspiring Management vs. Leadership

  16. Sources of Complacency • Absence of a major & visible crisis • Too many visible resources • Low overall performance standards • Organizational structures with narrow functional goals

  17. Sources of Complacency • Internal measurement systems focusing on wrong performance indexes • Lack of sufficient external feedback • Human nature, with its capacity for denial • Too much happy talk from senior management

  18. Establishing a Sense of Urgency • Pushing up the urgency level • The role of crises • The role of middle and lower-level managers • How much urgency is enough

  19. Creating a Guiding Coalition • Find the Right People • Position power, expertise, & creditability • Strong leadership & management skills • Create Trust • Through carefully planned off-site events • With lots of talk and joint activities • Develop a Common Goal • Sensible to the head • Appealing to the heart

  20. Why Vision is Essential • It clarifies the general direction for change • It motivates people to take action in the right direction • It helps coordinate the actions of different people

  21. 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 & stakeholders • Feasible – comprises realistic and attainable goals

  22. Characteristics of an Effective Vision • Focused – is clear enough to provide guidance in decision-making • Flexible – is general enough to allow individual initiative & alternate responses • Communicable – is easy to communicate; can be successfully explained in 5 minutes

  23. Communicating the Change Vision • The magnitude of the task • Keep it simple • Use metaphors, analogies, and examples • Use many different forums

  24. Communicating the Change Vision • Repeat, repeat, repeat • Walk the Talk, or Lead by Example • Explicitly address seeming inconsistencies • Listen and be listened to

  25. Empowering Employees for Action • Removing structural barriers • Providing needed training • Aligning systems to the vision • Dealing with troublesome supervisors • Tapping an enormous source of power

  26. The Role of Short-Term Wins • Provide evidence that sacrifices are worth it • Reward change agents with a pat on the back • Help fine-tune vision and strategies

  27. The Role of Short-Term Wins • Undermine cynics and self-serve resistors • Keep bosses on board • Build momentum

  28. A Successful Change Effort • More change; not less • More help • Leadership from senior management • Project management and leadership from below • Reduction of unnecessary interdependencies

  29. Why Culture is so Powerful • Individuals are selected and indoctrinated so well • The culture exerts itself through the actions of many, many people • All of this happens without much conscious intent and thus is difficult to challenge or even discuss

  30. Anchoring Change in Culture • Comes last, not first • Depends on results • Requires a lot of talk • May involve turnover • Makes decisions on succession crucial

  31. The Organization of the Future • A persistent sense of urgency • Teamwork at the top • People who can create and communicate vision • Broad-based empowerment

  32. The Organization of the Future • Delegated management for excellent short-term performance • No unnecessary interdependence • An adaptive corporate culture • Getting from here to there…

  33. Mental Habits that Support Life-Long Learning • Risk-taking • Humble self-reflection • Solicitation of opinions • Careful listening • Openness to new ideas

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