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IS4203 Case Presentation

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We discuss John P. Kotter's paper titled "Leading Change: Why Transformation Efforts Fail" and try to adapt his 8 steps of change to the transformation of Yahoo! by Marissa Mayer.

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IS4203 Case Presentation

  1. 1. IS4203 Case Presentation Leading Change: Why Transformation Efforts Fail Team 1  Kang Jie Min  Tan Jin Xiang  Derek Ang Yi Heng  Thomas Lim Kuo Tao  Ivan Chew Teck Meng by John P. Kotter
  2. 2. Agenda 1. Introduction 2. The 8 Stages of a change process 3. Case study: 4. Key takeaways of change management
  3. 3. Introduction What is transformation? “Adaptation to a more challenging market environment through fundamental reforms to business processes.”
  4. 4. Introduction Why does transformation fail? Management too eager for success.  Flow of change is too fast or has no natural progression.  Deviations from a previously healthy onset of change. Lack of Structurally-Managed Pathway of Change Solution: John P. Kotter’s 8 distinct steps of change.
  5. 5. The 8 Stages of a Change Process 1. Establishing a sense of urgency Change makers are too impatient, want to implement change quickly Underestimate the lack of urgency People do not want to get out of their comfort zones or being paralysed by risk Making an impact to the 75%
  6. 6. The 8 Stages of a Change Process 2. Form a coalition Getting people together for a cause Requires key “leaders” to succeed Powerful Coalition =
  7. 7. The 8 Stages of a Change Process 3. Creating a vision A vision says something that clarifies the direction in which an organisation needs to move. (Kotter, 1995) Developing strategies to achieve that vision Kotter, J. P. (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review OnPoint(March-April), 1-10.
  8. 8. The 8 Stages of a Change Process 4. Communicate the vision Utilise every possible channel to communicate the vision
  9. 9. The 8 Stages of a Change Process 1. Create u _ _ _ _ _ y ! ! ! + 75%
  10. 10. The 8 Stages of a Change Process 2. ____ a _________  5-50
  11. 11. The 8 Stages of a Change Process 3. Create a ______ X
  12. 12. The 8 Stages of a Change Process 4. ___________ the vision
  13. 13. The 8 Stages of a Change Process 5. Empower others to act on the vision Remove Obstacles  Move people out of their comfort zones  Work to sway the opinion of bosses who are reluctant to change; get them to adhere to new initiatives  Align organizational structure/systems with the ebbs and flows of change
  14. 14. The 8 Stages of a Change Process 6. Planning for and creating short-term wins Plan for short-term goals, publicise short-term achievements  Timeframe within 1-2 years  Raise employee morale  Renew urgency and force detailed analysis to refine vision Reasons for failure  Hoping for short-term wins instead of planning for it
  15. 15. The 8 Stages of a Change Process 7. Consolidate improvements and produce still more change Prepare for a Long-Drawn Process  Cultural change can take 5-10 years  Leaders should use the newfound credibility to tackle even bigger problems Avoid Premature Declaration of Successful Change  Kills change momentum  People return to old practices as change not sunk in  Change resistors seize opportunity to reverse change
  16. 16. The 8 Stages of a Change Process 8. Institutionalize new approaches Demonstrate how new approaches, behaviours and attitudes have helped improve performance  Important to let people know the true drivers of change Make the next generation of top management personify the new approach  Lead by example!
  17. 17. The 8 Stages of a Change Process 5. _______ people 
  18. 18. The 8 Stages of a Change Process 6. Plan and publicise _____-____ ____ /
  19. 19. The 8 Stages of a Change Process 7. ___________ improvements and ________ 5-10
  20. 20. The 8 Stages of a Change Process 8. __________________ new approaches +
  21. 21. Case Study: Yahoo! 1. Establishing a sense of urgency  Quantification of Publicly Observable Metrics 2. Forming a powerful guiding coalition  Hiring PhDs to Restore Yahoo!'s Research Unit  Accommodating a C-level Management Shakeup 3. Creating a vision  Reigning in Yahoo!’s Flawed Business Processes 4. Communicating the vision  Weekly “FYI” Meetings on Friday 5. Empowering others to act on the vision  Discontinuation of Work-from-Home Practice 6. Planning for and creating short-term wins  Free Food, Free iPhones, Feedback Forum Mayer@
  22. 22. Case Study: Yahoo! How positively has Yahoo! Changed? 16 July 2012 - Marissa Mayer appointed as CEO Mayer@
  23. 23. What’s the Link? Myths of change  Change is a one-time effort  Change the organization first to carry out change  Systems and technology are mandatory to carry out effective change  If management sees the need for change, then it is evident to everyone  If you know what requires change, just do it  Carry out all changes at one time to avoid disruptions  Change is positive and so it should be widely supported  You only need to involve a limited number of key employees to implement change Plagiarized from IS4203 Lecture 2 slide 18
  24. 24. What’s the Link? Why change fails  Change is not thought through or planned  Outsourcing of organizational change  Failure to address critical shadow systems  Change is driven top-down only  Over-reliance on one leader  Lack of localization of change efforts  Issues and problems surfaced not addressed quickly  Fuzzy measurements to determine success or failure  Change management stops after change is implemented Plagiarized from IS4203 Lecture 2 slide 19
  25. 25. What’s the Link? * Sorted *     (1) Change is positive and so it should be widely supported Backing (1) Change is driven top-down only (1) You only need to involve a limited number of key employees… (2) Over-reliance on one leader     (3) Change is not thought through or planned (3) Carry out all changes at one time to avoid disruptions Vision (4) If management sees the need for change, then it is evident to everyone (4) Lack of localization of change efforts     (5) Issues and problems surfaced not addressed quickly (5) Failure to address critical shadow systems (6) Change is a one-time effort (7, 8) Change management stops after change is implemented Plagiarized from IS4203 Lecture 2 slide 18, 19 Problems Quick hits Sustain
  26. 26. What’s the Link? Business Drivers of Change Vision Organization Structure HR Politics Culture X Strategy UTAUT IS Success Model Technology
  27. 27. Conclusion  Structured framework to change process  Very easy to fail at each stage Meet change resistance  So.. How to persuade people to change? Next Presentation by team 13 Plagiarized from IS4203 Lecture 2 slide 19
  28. 28. IS4203 Case Presentation Any Questions?

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