This presentation is taken from a talk we given at the 2015 IHRSA International Convention in Los Angeles. This presentation begins by framing the value of organizational change, especially in the fitness industry, and why in today's hyper-competitive and rapidly evolving business climate its essential. The presentation then moves on to present Kotter's Eight Stages of Change along with five essentials for every leader charged with driving change in their organization. Convention

1. LEADING ORGANIZATIONAL CHANGE
IN A DISRUPTIVE BUSINESS CLIMATE
Stephen Tharrett & Mark Williamson
ClubIntel

2. Situations emerge in the process of
CREATIVE DESTRUCTION in which
many firms have to PERISH that
nevertheless would be able to live on
vigorously and usefully if they could
WEATHER a particular storm.”
Joseph Schumpeter
author of “Capitalism, Socialism and
Democracy”

3. Market
Leaders
Embrace Change
Great Businesses
Market
Players
Accept Change
Good Businesses
Market
Ghosts
Waited too Long
to Change
Business
Survivors
Market
Extinction
Failed to Change
Out of Business
“In today’s world, organizations who do not change may find themselves extinct. At the same
time, every organization should have a set of core values that can stand the test of time.”

4. “It’s not the strongest of the species
that survives, not the most
intelligent that survives. It is the one
MOST ADAPTABLE TO CHANGE.”
Charles Darwin

5. The Storms of Organizational Change
Change
Competitive Landscape
Budget Clubs
Boutique Studios
Non-profits
Big Boxes
Virtual Fitness
Technology
Cloud-based enterprise
systems
Social Media
Mobile Applications
Economic Environment
Income inequality
Inflation
Disposable Income
Oil prices Generational Shifts
Baby Boomers
Gen X
Gen Y
Gen Z
Internal Business
Access to Capital
Business Culture
Your People
Policies and Systems

6. Barriers to Organizational Change
“An organization’s capabilities define its disabilities”
Complacency Greed Pride

7. “Endless conversation about
change is the barrier. Actually
committing to something and
then acting on it is what is
required.”
David Jakes

8. The Challenge of Organizational Change
“The secret of change is to focus all of your energy, not on fighting the old, but on
building the new!” Socrates
1
2
3 4
5
6
Denial
Shock
Low Point
Letting Go
Testing New Ways
Acceptance
7
Integration
Looking Back Looking Forward
PsychologicalState
Time

9. Kotter’s Model of Organizational Change

10. Step #1 – Increase Urgency
“The trouble is, you think you have time.” Buddha

11. Step #2 – Build Guiding Teams
“Coming together is a beginning, staying together is progress, and working together is
success.” Henry Ford

12. Step #3 – Get the Vision Right
“Vison without action is a day dream; action without vision is a nightmare.”
Japanese Proverb

13. Step #4 – Communicate for Buy-In
“The single biggest problem in communication is the illusion that it has taken place.”
George Bernard Shaw

14. Step #5 – Enable Action
“The question isn’t who’s going to let me; it’s who is going to stop me.”
Ayn Rand

15. Step #6 – Create Short Term Wins
“Celebrate what you want to see more of.” Tom Peters

16. Step #7 – Don’t Let Up
“The difference in winning and losing is most often…not quitting.” Walt Disney

17. Step #8 – Make it Stick
“It always seems impossible until it’s done.” Nelson Mandela

18. Five Things A Leader Must Do to Drive Change
Hold the Team Accountable
Hold yourself and everyone else
accountable
Empower and Engage Others
Change is like a snowball; once it starts it
pick’s up momentum
Communicate the Why and How
Without the why nothing happens…
Without how nothing moves
Change Yourself First
Start with your attitude, then your behavior
Don’t wait for Urgency…Create it
Make Complacency Uncomfortable

19. ClubIntel
ClubIntel is a consumer, employee and brand insights firm that is focused on helping businesses understand, appreciate and
leverage the needs, wants and personal journeys of customers, employees and members. We have worked as a team for more
than 20 years, spanning multiple brands across the globe.
Stephen Tharrett Co-founder and Principal
Stephen worked both domestically and internationally across nearly every segment, including health,
fitness, golf and country clubs both public and private. From 2008 to 2010 Stephen served as the
Chief Executive Officer for the Russian Fitness Group, a privately held health/fitness club company
that was at the time the largest in Russia. He spent 20 years with ClubCorp, a billion dollar private
club company based in Dallas, Texas, where he served in several roles ranging from director of
athletics to senior vice president for operations, as well as serving on the company’s leadership
cabinet and business planning committee. In addition to co-founding ClubIntel, Stephen is the owner
and president of Club Industry Consulting, a global consulting practice serving the club industry since
2006, and is a former president of the International Health, Racquet and Sportclub Association,
having served as president of the international association from 1996-1997. Stephen is presently on
the advisory board for Club Industry Magazine and the Association of Fitness Studios.
Mark Williamson Co-founder and Principal
Mark has more than 20 years experience in market research, and consumer insights, including 17
years within the club and hospitality industry at ClubCorp, which comprises an elite collection of
private golf, country, business, sports and alumni clubs. He also lead Consumer Insights teams for
industry-leading restaurant brands such as Applebee’s, Chili’s, Maggiano’s, On The Border, Romano’s
Macaroni Grill, and Corner Bakery. Outside of the hospitality industry, Mark led the consumer insights
team at match.com and owns his own small research consulting business, Retention Measurement
Solutions. He is a guest lecturer at national conferences and frequent panelist on a series of webinars.
Mark was part of the team that spearheaded the organizational restructuring efforts at Applebee’s.
http://club-intel.com
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