Leading Change John Kotter

John P.
Kotter
LEADING CHANGE
Dr. V. R. Kesava Ram (P.T.)
May 8, 2012
Why firms failcommon errors

# 1: allowing too much complacency # 2: failing to create a sufficiently powerful guiding coalition # 3: underestimating the power of vision # 4: under communicating the vision # 5: permitting obstacles to block the new vision # 6: failing to create shot term wins # 7: declaring victory too soon # 8: neglecting to anchor changes firmly in the corporate culture
Dr. V. R. Kesava Ram (P.T.) May 8, 2012
Consequences
New strategies arent implemented well Acquisitions dont achieve expected
synergies Reengineering takes too long and costs too much Downsizing doesnt get costs under control Quality programs dont deliver hoped-for results
Economic and social forces driving change

Technological International economic integration Maturation of markets in developed countries Fall of communist and socialist regimes Globalization of markets and competition More competition and increased speed with
Bigger markets and fewer barriers
May 8, 2012
More large scale change in organizations

Reengineering Restructuring Quality programs Mergers and acquisitions Strategic change Cultural change
May 8, 2012
THE EIGHT-STAGE PROCESS OF CREATING MAJOR CHANGE

1. Establishing a sense of urgency

Examining the market and competitive
realities
Identifying and discussing crises, potential
crises or major opportunities
May 8, 2012
2. Creating the guiding coalition

Putting together a group with enough power
to lead the change

Getting the group work together like a team
May 8, 2012
3. Developing a vision and strategy

Creating a vision to help direct the change
effort
Developing strategies for achieving that
vision
May 8, 2012
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
May 8, 2012
5. Empowering broad based action

Getting rid of obstacles Changing systems or structures that
undermine the change vision

Encouraging risk taking and nontraditional
ideas, activities, and actions
May 8, 2012
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
May 8, 2012
7. Consolidating gains and producing more change

Using increased credibility to change all
systems structures and policies that dont fit together and dont 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
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
Leadership
Establishing direction Aligning people Motivating and inspiring Producing change
May 8, 2012
Complacency

The absence of major and visible crisis Too many visible resources Low overall performance standards Narrow functional goals Wrong performance indexes Insufficient feedback Kill the messenger of bad news, low candor, low confrontation culture Denial Too much happy talk from senior management
Effective guiding coalition

Position power Expertise Credibility Leadership
May 8, 2012
Building a coalition that make change happen

Find the right people Create trust Develop common goal
May 8, 2012
Relationship between V-S-P-B

vision LEADERSHIP strategies
plans
MANAGEMENT budgets
May 8, 2012
Characteristics of an effective vision

Imaginable Desirable Feasible Focused Flexible Communicable
May 8, 2012
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
May 8, 2012
Key elements of the effective communication of vision

Simplicity Metaphor Analogy and example Multiple forms Repetition Leadership by example Explanation of seeming inconsistencies
Give and take

Barriers to empowerment
Formal structures Lack of needed skills to action Obstructing personnel and information
systems Bosses discourage actions for the new vision
May 8, 2012
Empowering people to effect change

Communicate a sensible vision to employees Make structures compatible with the vision Provide the training employees need Align information and personnel systems to
the vision Confront supervisors who undercut needed change
May 8, 2012
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 Undermine cynics and self serving resisters Keep bosses on board Build momentum
May 8, 2012
Why culture is powerful

1. Because individuals are selected and
indoctrinated so well 2. Because the culture exerts itself through the actions of hundreds or thousands of people 3. Because all of this happen without much conscious intent and thus is difficult to challenge or even discuss
May 8, 2012
Anchoring change in culture

Comes last, not first Depends on results Requires lot of talk May involve turnover Makes decisions on succession crucial
May 8, 2012
Twenty first century organization

Structure: i. Non bureaucratic ii. Limited to fewer levels iii. Management leads and employees manage iv. Policies and procedures with minimal internal interdependence needed to serve customers
May 8, 2012
Systems: i. Many performance information systems ii. Distribute performance data widely iii. Offer management training and support systems to many people
May 8, 2012
Culture: i. Externally oriented ii. Empowering iii. Quick to make decisions iv. Open and candid v. More risk tolerant
May 8, 2012
The relationship of lifelong learning, leadership skills and the capacity to succeed in future
Personal history Inborn capabilities Childhood experiences Job and educational experiences Competitive drive Level of standards Desire to do well Self confidence in competitive situations
Life long learning Willingness to seek new challenges Willingness to reflect honestly on successes and failures Skills and abilities Knowledge Leadership skills Other skills
Competitive capacity
Capability of dealing with an increasingly
competitive and fast moving economic environment
May 8, 2012
Mental habits that support life long learning

Risk taking- willingness to push oneself out of
comfort zones Humble self reflection- honest assessment of successes and failures especially the latter Solicitation of opinions- aggressive collection of information and ideas from others Careful listening- propensity to listen to others Openness to new ideas- willingness to view life with an open mind
May 8, 2012

Leading Change John Kotter

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John P.

Dr. V. R. Kesava Ram (P.T.)

Why firms failcommon errors

Economic and social forces driving change

Bigger markets and fewer barriers

Dr. V. R. Kesava Ram (P.T.)

More large scale change in organizations

Dr. V. R. Kesava Ram (P.T.)

THE EIGHT-STAGE PROCESS OF CREATING MAJOR CHANGE

1. Establishing a sense of urgency

crises or major opportunities

Dr. V. R. Kesava Ram (P.T.)

2. Creating the guiding coalition

to lead the change

Dr. V. R. Kesava Ram (P.T.)

3. Developing a vision and strategy

Dr. V. R. Kesava Ram (P.T.)

4. Communicating the change vision

communicate the new vision and strategies

behavior expected of employees

Dr. V. R. Kesava Ram (P.T.)

5. Empowering broad based action

undermine the change vision

ideas, activities, and actions

Dr. V. R. Kesava Ram (P.T.)

6. Generating short term wins

Dr. V. R. Kesava Ram (P.T.)

7. Consolidating gains and producing more change

8. Anchoring new approaches in the culture

Dr. V. R. Kesava Ram (P.T.)

Effective guiding coalition

Dr. V. R. Kesava Ram (P.T.)

Building a coalition that make change happen

Dr. V. R. Kesava Ram (P.T.)

Relationship between V-S-P-B

Dr. V. R. Kesava Ram (P.T.)

Characteristics of an effective vision

Dr. V. R. Kesava Ram (P.T.)

Creating an effective vision

Dr. V. R. Kesava Ram (P.T.)

Key elements of the effective communication of vision

Give and take

systems Bosses discourage actions for the new vision

Dr. V. R. Kesava Ram (P.T.)

Empowering people to effect change

the vision Confront supervisors who undercut needed change

Dr. V. R. Kesava Ram (P.T.)

Role of short term wins

Dr. V. R. Kesava Ram (P.T.)

Why culture is powerful

Dr. V. R. Kesava Ram (P.T.)

Anchoring change in culture

Dr. V. R. Kesava Ram (P.T.)

Twenty first century organization

Dr. V. R. Kesava Ram (P.T.)

Dr. V. R. Kesava Ram (P.T.)

Dr. V. R. Kesava Ram (P.T.)

competitive and fast moving economic environment

Dr. V. R. Kesava Ram (P.T.)

Mental habits that support life long learning

Dr. V. R. Kesava Ram (P.T.)

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