Leading Change

Why Transformation Efforts Fail by John P. Kotter

▪ Introduction
▪ Eight steps to transforming your organization
▪ Conclusion
Introducti
on
Harvard Business School professor published the book “Leading Change” rs for
organizational change.

mental changes in how business is conducted in order to help cope with rket
environment”

successful cases:

ough a series of phases that usually require a considerable length of

only the illusion of speed and never produces a satisfying result.

f the phases can have a devastating impact, slowing momentum and

 ERROR 1: Not Establishing a Great
Enough Sense of Urgency

This step is important because without motivation, people won’t help, and the effort
goes nowhere.

People have to be convinced, that the current state of the organization is not the
appropriate one to face the future.

Over 50% of the companies fail in this first phase because executives either
underestimate or overestimate the situation.

Transformation begin well when an organization has a good leader or change

champions.
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Enough Guiding Coalition
ERROR 2: Not Creating a Powerful
 ERROR 3: Lacking a Vision

Visio Failed Impact of Unclear Thumb

n Transformations
Helps clarify the direction in • Detailed procedures,
which an organization needs goals, deadlines but no
to move. sense of direction
• Complicated or blurry
vision
Vision Rule
• Confusion in the Able to communicate the
organization vision to someone in five
• Incompatible minutes or less and get a
projects reaction that signifies both
• Wasted efforts understanding and interest
 Visio Failed
n Transformations
Helps clarify the direction in • Detailed procedures,
which an organization needs goals, deadlines but no
to move. sense of direction
• Complicated or blurry
vision
Impact of Unclear Thumb
Vision Rule
• Confusion in the Able to communicate the
organization vision to someone in five
• Incompatible minutes or less and get a
projects reaction that signifies both
• Wasted efforts understanding and interest
Error 4: Under communicating the Vision by a
Factor of Ten

3 Patterns of Effective Walk the

Under- Transformation Talk
communication
• Possible through credible Example
• Holding only a single communication Zero Distance- Innovation
meeting or sending out • Incorporate messages Using Design Thinking at
a single communication • Hour-by-hour activities
into Infosys
• Vision captures only • Routine discussions about
.0005% of the speeches business problems
delivered • Regular performance
• Senior executives still appraisals
behave in ways that are • In a routine Q&A with
antithetical to the employees
vision. • Using all communication
channels to broadcast vision
 The Samsung Way
Not creating a powerful enough
Establishing the sense of
guiding coalition:
•urgency:
Lee saw the Samsung products gathering

01 02
• Met with 46 CEOs in Tokyo to
dust and ignored by customers in retail
establish competitive strategies.
stores.
• Lee spread the new
• Chairman Lee called an immediate
management initiatives
meeting of Samsung affiliates’ CEOs in
to 1800 executives and
LA.
produced a

Lacking a vision: Under communicating the vision by a factor

• Lee defined a “world-class company” as “a of 10:
• methods,
Chairman including
Lee unleashed a barrage
lectures that he of
company that contributes to society by

04
providing provided himself, classes, books, and
internal broadcasts.
• The books were translated in many
languages
03 the most competitive goods and services to
and all employees were trained by the
end of 1993. Refresher training was
customers based on high-quality talent and
 ERROR 5: Not Removing Obstacles to New Vision

New Vision + Old systems & Structures = Failure

New Vision +New systems & Structure = Success
• Successful transformations require large number of people
• Communication is key parameter but not sufficient
Types of obstacles:
a. Mental Blockage
b. Organizational structure
c. Performance appraisal system
d. Bosses
 ERROR 6: Not systematically planning for and
creating short term wins

Purpose of short term wins:

o Prove that its worth it
o Reward Efforts
o Fine tune vision & strategies
o Undermine cynics
o Keep executives involved
o Reinvigorate the effort
o Build Momentum
 Error 7: Declaring Victory Too Soon
The initiators become satisfied and
the resistors find the celebration
of premature victory as the end of
change process. The troops are sent
home and they become reluctant
to again participate in change
process.

Managers declare victory of change Successful leaders see achievements

process as soon as they see first in short term as an opportunity to
signs of performance. This can be tackle bigger problems.
catastrophic and may lead to
regression of new change process.

The leaders should further promote,

hire, develop employees and use
change agents who can implement the
vision and understand that renewal
efforts take years not months.
Error 8: Not Anchoring Changes in the Corporate’s Culture

Change sticks in the People should be made aware

organization when it about improvements in
becomes “the way we performance due to new
do things around here”. approaches, behaviors and
attitude.

Sometimes CEOs do not resist

the board’s decision because
they think that it’s impossible
to undo the implemented
culture of change.

It's also important that

Poor succession next generation of
decision happens when company's leaders
board is not an integral continue to support the
part of the renewal change.
effort.