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  1. 1. Leading Change John P. Kotter
  2. 2. Transforming Organizations: Why Firms Fail Allowing too much complacency Failing to create a sufficiently powerful guiding coalition Underestimating the power of vision Under-communicating the vision
  3. 3. Transforming Organizations: Why Firms Fail Permitting obstacles to block the new vision Failing to create short term wins Declaring victory too soon Neglecting to anchor changes firmly in the corporate culture
  4. 4. Related 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
  5. 5. Successful Change and The Force that Drives it Globalization of markets & competition The Eight Stage change process The importance of Sequence Projects within projects Management versus Leadership
  6. 6. The Eight Stage Change Process1. Sense of Urgency 5. Empowering Action2. Guiding Coalition 6. Generating Short- Term Wins3. Vision & Strategy 7. Producing More4. Communicating the Change Change Vision 8. Anchoring New Culture
  7. 7. 1. Establishing a Sense of Urgency Examining the market and competitive realities Identifying and discussing crises, potential crises, or major opportunities
  8. 8. 2. Creating the Guiding Coalition Putting together a group with enough power to lead the change Getting the group to work together like a team
  9. 9. 3. Developing a Vision and Strategy Creating a vision to help direct the change effort Developing strategies for achieving that vision
  10. 10. 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
  11. 11. 5. Empowering Broad-Based Action Getting rid of obstacles Changing systems or structures that undermine the change vision Encouraging risk taking and non- traditional ideas, activities, and actions
  12. 12. 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
  13. 13. 7. Consolidating Gains and Producing 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
  14. 14. 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
  15. 15. Management vs. Leadership Planning & budgeting  Establishing direction Organizing & staffing  Aligning people Controlling &  Motivating & problem-solving inspiring
  16. 16. Sources of Complacency Absence of a major & visible crisis Too many visible resources Low overall performance standards Organizational structures with narrow functional goals
  17. 17. Sources of Complacency Internal measurement systems focusing on wrong performance indexes Lack of sufficient external feedback Human nature, with its capacity for denial Too much happy talk from senior management
  18. 18. Establishing a Sense of Urgency Pushing up the urgency level The role of crises The role of middle and lower-level managers How much urgency is enough
  19. 19. Creating a Guiding Coalition Find the Right People  Position power, expertise, & creditability  Strong leadership & management skills Create Trust  Through carefully planned off-site events  With lots of talk and joint activities Develop a Common Goal  Sensible to the head  Appealing to the heart
  20. 20. Why Vision is Essential1. It clarifies the general direction for change2. It motivates people to take action in the right direction3. It helps coordinate the actions of different people
  21. 21. Characteristics of an Effective Vision Imaginable – conveys a picture of what the future will look like Desirable – appeals to the long-term interests of employees & stakeholders Feasible – comprises realistic and attainable goals
  22. 22. Characteristics of an Effective Vision Focused – is clear enough to provide guidance in decision-making Flexible – is general enough to allow individual initiative & alternate responses Communicable – is easy to communicate; can be successfully explained in 5 minutes
  23. 23. Communicating the Change Vision The magnitude of the task Keep it simple Use metaphors, analogies, and examples Use many different forums
  24. 24. Communicating the Change Vision Repeat, repeat, repeat Walk the Talk, or Lead by Example Explicitly address seeming inconsistencies Listen and be listened to
  25. 25. Empowering Employees for Action Removing structural barriers Providing needed training Aligning systems to the vision Dealing with troublesome supervisors Tapping an enormous source of power
  26. 26. The 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
  27. 27. The Role of Short-Term Wins Undermine cynics and self-serve resistors Keep bosses on board Build momentum
  28. 28. A Successful Change Effort More change; not less More help Leadership from senior management Project management and leadership from below Reduction of unnecessary interdependencies
  29. 29. Why Culture is so Powerful Individuals are selected and indoctrinated so well The culture exerts itself through the actions of many, many people All of this happens without much conscious intent and thus is difficult to challenge or even discuss
  30. 30. Anchoring Change in Culture Comes last, not first Depends on results Requires a lot of talk May involve turnover Makes decisions on succession crucial
  31. 31. The Organization of the Future A persistent sense of urgency Teamwork at the top People who can create and communicate vision Broad-based empowerment
  32. 32. The Organization of the Future Delegated management for excellent short-term performance No unnecessary interdependence An adaptive corporate culture Getting from here to there…
  33. 33. Mental Habits that Support Life- Long Learning Risk-taking Humble self-reflection Solicitation of opinions Careful listening Openness to new ideas