Leadingchange john kotter

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Leadingchange john kotter

  1. 1. John P. KotterLEADING CHANGE Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  2. 2. Why firms fail…common 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.) August 8, 2012
  3. 3. 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 Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  4. 4. Economic and social forcesdriving 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 Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  5. 5. More large scale change inorganizations Reengineering Restructuring Quality programs Mergers and acquisitions Strategic change Cultural change Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  6. 6. THE EIGHT-STAGE PROCESS OFCREATING MAJOR CHANGE Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  7. 7. 1. Establishing a sense ofurgency Examining the market and competitive realities Identifying and discussing crises, potential crises or major opportunities Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  8. 8. 2. Creating the guidingcoalition Putting together a group with enough power to lead the change Getting the group work together like a team Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  9. 9. 3. Developing a vision andstrategy Creating a vision to help direct the change effort Developing strategies for achieving that vision Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  10. 10. 4. Communicating the changevision Using every vehicle possible to constantly communicate the new vision and strategies Having the guiding coalition role model the behavior expected of employees Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  11. 11. 5. Empowering broad basedaction Getting rid of obstacles Changing systems or structures that undermine the change vision Encouraging risk taking and nontraditional ideas, activities, and actions Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  12. 12. 6. Generating short termwins Planning for visible improvements in performance or wins Creating those wins Visibly recognizing and rewarding people who made the wins possible Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  13. 13. 7. Consolidating gains andproducing 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 Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  14. 14. 8. Anchoring new approachesin 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 Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  15. 15. Leadership Establishing direction Aligning people Motivating and inspiring Producing change Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  16. 16. 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 Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  17. 17. Effective guiding coalition Position power Expertise Credibility Leadership Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  18. 18. Building a coalition thatmake change happen Find the right people Create trust Develop common goal Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  19. 19. Relationship between V-S-P-B visionLEADERSHIP strategies plansMANAGEMENT budgets Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  20. 20. Characteristics of aneffective vision Imaginable Desirable Feasible Focused Flexible Communicable Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  21. 21. 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 Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  22. 22. Key elements of the effectivecommunication of vision Simplicity Metaphor Analogy and example Multiple forms Repetition Leadership by example Explanation of seeming inconsistencies Give and take Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  23. 23. Barriers to empowerment Formal structures Lack of needed skills to action Obstructing personnel and information systems Bosses discourage actions for the new vision Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  24. 24. Empowering people to effectchange 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 Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  25. 25. 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 Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  26. 26. Why culture is powerful1. Because individuals are selected and indoctrinated so well2. Because the culture exerts itself through the actions of hundreds or thousands of people3. Because all of this happen without much conscious intent and thus is difficult to challenge or even discuss Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  27. 27. Anchoring change in culture Comes last, not first Depends on results Requires lot of talk May involve turnover Makes decisions on succession crucial Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  28. 28. Twenty first centuryorganizationStructure:i. Non bureaucraticii. Limited to fewer levelsiii. Management leads and employees manageiv. Policies and procedures with minimal internal interdependence needed to serve customers Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  29. 29. Systems:i. Many performance information systemsii. Distribute performance data widelyiii. Offer management training and support systems to many people Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  30. 30. Culture:i. Externally orientedii. Empoweringiii. Quick to make decisionsiv. Open and candidv. More risk tolerant Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  31. 31. The relationship of lifelong learning, leadership skills and the capacity to succeed in futurePersonal history Inborn capabilities Childhood experiences Job and educational experiencesCompetitive drive Level of standards Desire to do well Self confidence in competitive situations Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  32. 32. Life long learning Willingness to seek new challenges Willingness to reflect honestly on successes and failuresSkills and abilities Knowledge Leadership skills Other skills Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  33. 33. Competitive capacity Capability of dealing with an increasingly competitive and fast moving economic environment Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  34. 34. Mental habits that support lifelong 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 Dr. V. R. Kesava Ram (P.T.) August 8, 2012
  35. 35. Dr. V. R. Kesava Ram (P.T.) August 8, 2012

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