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ADVANCED DIPLOMA IN MANAGEMENT. BSBINN601A Manage Organisational Change. Kotter’s 8 Step Change Model. Create urgency Form a powerful coalition Create a vision for change Communicate the vision Remove obstacles Create short term wins Build on the change
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ADVANCED DIPLOMA IN MANAGEMENT BSBINN601A Manage Organisational Change
Kotter’s 8 Step Change Model • Create urgency • Form a powerful coalition • Create a vision for change • Communicate the vision • Remove obstacles • Create short term wins • Build on the change • Anchor the changes in corporate culture
Step 1: Create Urgency What you can do: • Identify threats and their impacts • Identify opportunities • Honest discussions to create urgency • Gain support from customers, stakeholders and industry people to strengthen argument “75% of management have to buy in to change”
Step 2: Form a powerful Coalition What you can do: • Identify true leaders in the organisation • Ask for emotional commitment from these people • Work on team building within your coalition • Check for weak areas, different mix of organisational members
Step 3: Create a vision for change What you can do: • Determine values central to change • Develop a vision that captures what you “see” as the future • Create strategy to execute the change • Ensure that your change coalition can describe the vision • Practice your “vision speech” often
Step 4: Communicate the vision What can you do: • Talk often about your change vision • Openly and honestly address peoples’ concerns • Apply vision to all aspects of operations • Lead by example
Step 5: Remove Obstacles What can you do: identify, hire, change leaders whose main role is to deliver the change Ensure all jds, org structure, performance and compensation systems are in line with the vision Recognise and reward change Identify resisters and help them see what is needed Take action to quickly remove barriers (human or otherwise)
Step 6: Create short term Wins • What can you do: • look for sure fire projects that you can implement • Don’t choose early targets that are expensive • Analyse pros and cons of your targets • Reward the people that help you achieve those targets
Step 7: Build on the change What can you do: • After each win analyse what went right and what can improve • Set goals to continue building the momentum • Learn about Kaizen and continuous improvement • Keep ideas fresh by bringing in new agents and leaders for change
Step 8: Anchor the changes in Corporate culture What can you do: • Talk about progress, tell stories about success • Include change ideals and values when hiring and training • Publically recognise key coalition members • Create plans to replace leaders as they move on