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Leading Change. Group Members. William Osborn Hector Gutierrez Josh Thomas Alfredo Alvarez Dawn Hackett. The Eight-Stage Process of Creating Major Change. Establishing A Sense of Urgency Creating THE Guiding Coalition Developing A Vision AND Strategy Communicating THE Change Vision
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Group Members William Osborn Hector Gutierrez Josh Thomas Alfredo Alvarez Dawn Hackett
The Eight-Stage Process of Creating Major Change Establishing A Sense of Urgency Creating THE Guiding Coalition Developing A Vision AND Strategy Communicating THE Change Vision Empowering Broad-Based Action Generating Short-Term Wins Consolidating Gains AND Producing More Change Anchoring New Approaches IN THE culture
Establishing A sense of Urgency Examining the market and competitive realities. Identifying and discussing crises, or major opportunities.
Crisis Looking foreword to crisis Crises fuels urgency Creating crises
Complacency Majority rules Avoiding change Recipe for complacency
Creating the Guiding Coalition • Major Transformations are usually associated with one highly regarded individual. • Examples • Lee Iacocca in the 80’s of Chrysler • Sam Walton of Wal-Mart • Lou Gerster of IBM
GOING IT ALONE: The Isolated CEO • BETWEEN 1975 AND 1990 • AFTER 1990
THE LOW-CREDIBILITY COMMITTEE • WHAT IS A LOW-CREDIBILITY COMMITTEE • WHAT ARE THE CONSEQUENSES OF ONE.
KEEPING PACE WITH CHANGE THE TEAM • TODAYS BUSINESS ENVIRONMENT • DECISIONS MADE INSIDE THE FIRM • NEW DECISION-MAKING PROCESS
PUTTING TOGETHER THE GUIDING COALITION • POSITION POWER • ENTERPRISE • CREDIBILITY • LEADERSHIP
BUILD AN EFFECTIVE TEAM BASED ON TRUST AND A COMMON GOAL. • FORTY YEARS AGO • TEAM BUILDING TODAY • THE ELEMENT TO TEAMWORK • MAIN REASON FOR LACK OF OVER ALL COMMITMENT
MAKING CHANGE HAPPEN • FIND THE RIGHT PEOPLE • CREATE TRUST • DEVELOP A COMMON GOAL
DEVELOPING A VISION AND A STRATEGY • WHY VISION IS ESSENTIAL • Breaking through resistance w/vision • The Relationship of Vision, Strategies, Plans and Budget • LEADERSHIP CREATES • VISION • STRATEGIES • Management Creates • Plans • Budgets
The Nature of an Effective Vision • Characteristics of an Effective Vision • Imaginable: conveys a picture • Desirable: Appeals to the long-term interests • Feasible: Comprises of realistic, attainable goals • Focused: is clear enough to provide guidance in decision making • Flexible: Allows for individual initiative and alternative responses in changing conditions • Communicable: is easy to communicate; can be successfully explained w/ in 5 minutes
An Imaginable Picture of the Future • STRATEGIC FEASIBILITY • FOCUS, FLEXIBILITY, AND EASE OF COMMUNICATION • EFFECTIVE AND INEFFECTIVE VISIONS: A FEW EXAMPLES.
Creating an Effective Vision • FIRST DRAFT: • ROLE OF THE GUIDING COALITION: • IMPORTANCE OF TEAMWORK: • ROLE OF THE HEAD AND THE HEART: • MESSINESS OF THE PROCESS: • TIME FRAME: • END PRODUCT:
A Word from John P. Kotter • Whenever you leave one of the steps in the eight-stage change process without finishing the work, you usually pay a big price later on • Without a sufficiently strong foundation, the redirection collapses at some point, forcing you to go back and rebuild. For stage three, creating a vision and strategy, this means taking the time to do the process correctly. Think of it as an investment, an important, in creating a better future
Communicating THE Change Vision Lead By Example Keep it Simple Use Metaphors-a picture is worth a thousand words Use Multiple Forums Repetition Explanation of Seeming inconsistencies Listen and Be Listened to
Empowering Employees for Broad-Based Action Remove obstacles that can undermine your Vision Employees may understand your vision however may be boxed in due to company structure Vision Structural Barrier Strict policy on who can communicate with over Seas Clients. Which may cause delay in response time. Direct contact and support for Over Seas Clients
Effects of Not Removing Barriers Employees become Frustrated Less motivated to work toward new vision Give up and revert back to old ways of doing business
Provide Training Be aware of new behavior, skills and possible attitudes when introducing change. Message for training might be “We will be delegating more so we are providing courses to help you with your new responsibilites”
Align the System to the new Vision Review and Update Accordingly Work Performance Appraisals Promotions Compensation HR policies and Procedures
Troublesome Bosses Confront & Deal with Supervisor immediately who undercut needed change Set time frame for new changes Reiterate Vision, new industry trends If they need to be replaced, Replace them If not others see this and may become less motivated & discouraged & discouraged employees do not provide the short term wins needed to build momentum in change.
Empowering people to Effect Change Communicate a Sensible Vision Shared sense of purpose it will be easier to initiate and achieve vision Make Structure compatible with Vision Unaligned structures Block needed action Provide Training Without the right skills people feel disempowered Align System to the Vision Unaligned systems block needed action Confront supervsors who undercut needed change. Nothing Disempowers the way a bad boss can
The Role of Short Term Wins Short-term performance improvements help transformations in at least six ways. Provide evidence that sacrifices are worth it. Reward change agents with a pat on the back. Help fine-tune vision and strategies. Undermine cynics and self-serving resisters. Keep bosses on board. Build momentum. 27
Consolidating Gains Good leadership. Anticipate conflicts. 29
Producing more Change Reduction of Unnecessary Interdependencies More Change,Not Less Leadership From Senior Management Project Management and Leadership From Below MoreHelp 30
Culture is powerful and difficult to manipulate Because individuals are selected and indoctrinated so well. Because the culture exerts itself through the actions of hundreds or thousands of people. Because all of this happens without much conscious intent and thus is difficult to challenge or even discuss.
Comes last, not first Depends on results Requires a lot of talk May involve turnover Makes decisions on succession crucial