Running Head KOTTER’S STEPS 3 and 41KOTTER’S STEPS 3 and 4.docx

Running Head: KOTTER’S STEPS 3 and 4 1
KOTTER’S STEPS 3 and 4 2
5-2 Final Project Milestone Two: KOTTER’S STEPS 3 and 4
Name: Patricia Vela
Instructor: Dr. Paul Lockwood Brown ED. D, MBA
Alaska Airlines Case Study
What happens in regard to the Kotters step 3 and 4?
The Alaska Airlines case analysis indicates what the group
management had to start off so as to initiate some changes and
corrections so that the company is saved from closing its
operations due to the tribulations that it was going through. The
management was made to address the market reserves that were
dwindling and it also had to come up with mechanisms that
improve the loyalty of the customers so that the customers are
barred from seeking services from other airline operators who
were working day and night to acquire new customers. Looking

keenly at the analysis, it shows that the management made use
of the “Kotters step three and four which remains some of the
critical aspects when you look into how an organization can
embrace change concept (Avolio, Patterson & Baker, 2015)”.
The leadership of the group that was in charge of the change
program showed an awareness on the methodologies to be
developed in the change vision that could provide guideline on
what the first firm must be and what needs to be attained in the
process of planning for the change. The group leadership teams
seems to be aware that in creation of vision for change, you
need to have valuable insight and the direction that everyone
ought to take so as to attain some objectives.
Of importance also t note is that the planning team seems to be
aware in order to develop a vision, includes the facilitation of
different person’s activities in the models that are fast and
efficient. The planning team that was mandated to counter the
challenges depicted the ability for the creation of vision which
outlines the things that need to be covered so that the airline
was assured of the right direction. It outlines that it wants attain
consistency in standards of its services. It also identified the
fact that it needed joint effort from the workers so that they can
come up with solutions for the “problems that came from the
buyers (Avolio, Patterson & Baker, 2015)”.
Ability to communicate the change vision
The leadership team had shown the ability in communicating the
change vision to all the players and the stakeholders who would
take part in the change initiative. In this case, Kotter calls the
team mandated with the planning to shift to step 4 so that it
embraces the efficient ways in the which the communication
and the reaching out is done to all the parties that would
contribute in one or another. Therefore the Alaska Airline
planning team shows the ability to communicate the vision like
the manner in which the executive committee members would
hold meetings with different divisional leaders of the
organization so that they are briefed of the “changes the

leadership was planning to undertake (Avolio, Patterson &
Baker, 2015)”.
The leadership however has demonstrated some kind
inappropriateness in communicating the message to the junior
workers when it must serve many workers serving ramp
operations in absence of prior notification. The team had to on
the solution that the four hundred and seventy baggage handlers
be suspended and some could even denied entry at the check in
point by the security as they were not aware of the termination
(Thompson, 2017)
Establishment of the vision for organizational change effort
The Alaska Airlines management ought to embrace vision and
mission that will help the airline achieve its goals and
objectives in the best way possible. It needs to pay keen
attention to the change vision that is imaginable in the manner
that conveys the true position of how the future is likely to look
like. The vision need to be clear enough and have focus. It
should focus on the application of quality approaches so that the
customer satisfaction is delivered. In this particular scenario,
the focus ought to be on “ramp operations and shortening the
waiting times” (Hughes, 2016).
“The target outcomes” intended
The “vision need to attain particular outcomes to indicate how
the panning team is making some progress towards realization
of the objectives. One of those applications would be increase
the satisfaction levels of the customers of course via the
application of the efficient operations”. The team hopes to add
onto the revenues the moment the buyers are satisfied as it will
build a good image. The planning team also objects to ease up
the ramp operations which are some of the stumbling blocks and
the reason for the performance drop at harder times.
The organizational change requirements for it to be a success
There are many things that need to be considered for the
organizational change to be of value added. The process of
change would only be successful only and only if the
stakeholders dedicate themselves “in their roles towards the

transformation enforcement. Other than that, the change
process” will also gain momentum when they recognize the set
objectives and goals. If not, failure to recognize the set
objectives will deem the Kotters model of change the way it’s
supposed to be (Henry et al., 2017)
Communication of the change
The requirements for the changes needed ought to be
communicated efficiently within the organization. Those
concerned should have some information on how the successful
communication practices should be done. The process of
communication will be more effective if the team leaders know
the different communication styles and the time the team
understands the importance “of maintaining communication
while the setting of the vision” is done.
The organization leader to motivate the idea of two way
communication
The best way in adopting the “two way communication would
be to take up a communication style that gives everyone an
opportunity to contribute something to the change process” of
the organization. The model adopted ought to allow everyone to
freely and equally have chances of reaching out to each other
without any limitation (Day & Shannon, 2015).
Supporting the “supervisors in efforts to communicate with the
employees”
This can best be done through the conducting of the
investigations from different sources on the ways in which the
organization leaders can improve the intended communication
of the “change process to the stakeholders. The supervisors will
acquire” knowledge on the ways that need to be adopted to
change from one state to another (Day & Shannon, 2015).
People who need to be engaged in the succession of the change
effort
This practice ought to involve people who understand the
objective attaining the “best outcome. The most vital group” in
this case would be the “organizational leaders who will provide
guidance on the activity that should be taken on. Other than”

that, the service providers should also be at the fore front in
different station (Day & Shannon, 2015).
Conclusion
Creation of vision allows each and “every stakeholder to
evaluate the efficiency of the initiative from their very own
perspective. Alaska Airlines would be in the best position to
achieve” its goals only and only if it applies the Kotters
ideology on setting of the vision as well as the communication
plan. The airline will therefore increase the satisfaction of the
customer and communication plan be made towards the
achievement of goals.
References
Avolio, B., Patterson, C., & Baker, B. (2015). Alaska Airlines:
Navigating change. London:
Day, G. E., & Shannon, E. (2015). Leading and managing
change. Leading and managing health services: An Australasian
Perspective, 295, 405-412.
Henry, L. S., Hansson, M. C., Haughton, V. C., Waite, A. L.,
Bowers, M., Siegrist, V., & Thompson, E. J. (2017).
Application of Kotter’s theory of change to achieve baby-
friendly designation. Nursing for women's health, 21(5), 372-
382.
Hughes, M. (2016). Leading changes: Why transformation
explanations fail. Leadership, 12(4), 449-469.

Munich Personal RePEc Archive
Should a Government Fiscally Intervene
in a Recession and, If So, How?
Harashima, Taiji
Kanazawa Seiryo University
2 April 2017
Online at https://mpra.ub.uni-muenchen.de/78053/
MPRA Paper No. 78053, posted 31 Mar 2017 09:03 UTC
Should a Government Fiscally Intervene in a Recession and, If
So, How?

Taiji HARASHIMA*
April, 2017
Abstract
The validity of discretionary fiscal policy in a recession will
differ according to the cause and
mechanism of recession. In this paper, discretionary fiscal
policy in a recession caused by a
fundamental shock that changes the steady state downwards is
examined. In such a recession,
households need to discontinuously increase consumption to a
point on the saddle path to
maintain Pareto efficiency. However, they will not “jump”
consumption in this manner and
instead will choose a “Nash equilibrium of a Pareto inefficient
path” because they dislike
unsmooth and discontinuous consumption and behave
strategically. The paper concludes that
increasing government consumption until demand meets the
present level of production and

maintaining this fiscal policy for a long period is the best
option. Consequent government debts
can be sustainable even if they become extremely large.
JEL Classification code: E20, E32, E62, H20, H30, H63
Keywords: Discretionary Fiscal policy; Recession; Government
consumption; Government
debts; Pareto inefficiency; Time preference
*Correspondence: Taiji HARASHIMA, Kanazawa Seiryo
University, 10-1 Goshomachi-Ushi,
Kanazawa-shi, Ishikawa, 920-8620, Japan.
Email: [email protected] or t-harashima[email protected]
mailto:[email protected]
mailto:[email protected]
1
1 INTRODUCTION

Discretionary fiscal policy has been studied from many
perspectives since the era of Keynes
(e.g., Keynes, 1936; Kopcke et al., 2006; Chari et al., 2009;
Farmer, 2009; Alesina, 2012;
Benhabib et al., 2014). An important issue is whether a
government should intervene fiscally in
a recession, and if so, how. The answer will differ according to
the cause and mechanism of
recession. Particularly, it will be different depending on
whether “disequilibrium” is generated.
The concept of disequilibrium is, however, controversial and
therefore arguments continue even
now about the use of discretionary fiscal policy in a recession.
In this paper, the concept of
disequilibrium is not used, but instead the concept of a “Nash
equilibrium of a Pareto inefficient
path” is used.
Recessions are generated by various shocks (e.g., Rebelo,
2005; Blanchard, 2009;
Ireland, 2011; Schmitt-Grohé and Uribe, 2012; McGrattan and
Prescott, 2014; Hall, 2016).
Some fundamental shocks will change the steady state, and if
the steady state is changed
downwards (i.e., to lower levels of production and
consumption), households must change the

consumption path to one that diminishes gradually to the
posterior steady state. Therefore,
growth rates become negative; that is, a recession begins.
However, the explanation of the
mechanism of this type of recession is not perfect because an
important question still needs to
be answered. If households discontinuously increase (“jump
up”) their consumption from the
prior steady state to a point on the posterior saddle path and
then gradually move to the posterior
steady state, Pareto efficiency is held and thereby
unemployment rates do not rise. Therefore,
even in a serious and large-scale recession, unemployment does
not increase. This is a very
unnatural outcome of a serious recession.
Harashima (2004, 2009, 2013a) showed a mechanism by which
households do not
jump up their consumption even if the steady state is changed
downward because they are
intrinsically risk averse and non-cooperative and want to
smooth consumption. The
consumption jump does not give them the highest expected
utility; that is, unsmooth and
discontinuous consumption is not optimal for households.

Hence, instead of choosing the
posterior saddle path, they will choose a “Nash equilibrium of a
Pareto inefficient path” as the
optimal consumption path. Because of its Pareto inefficiency,
unemployment rates will increase
sharply and stay high during a recession. This paper examines
whether discretionary fiscal
policy is necessary, and if it is necessary, how it should be
implemented when an economy is in
a recession and proceeding on such a Pareto inefficient path.
Fundamental shocks that change the steady state basically mean
shocks on deep
parameters. A representative fundamental shock, an upward
shock on the rate of time preference
(RTP), is examined in this paper. Faced with this shock, a
government has three options: (1) do
not intervene, (2) increase government consumption, and (3) cut
taxes. The consequences of
these options are examined and the outcomes are evaluated to
determine which is the best
option. I conclude that increasing government consumption until
the demand meets the present
level of production and maintaining this fiscal policy during the
recession is the best option.

Nevertheless, this option will be accompanied by large and
accumulating government debts, but
these debts can be sustained if the government properly
increases taxes in the future. This option
means that huge government debts will play an essential role as
a buffer against negative effects
of the fundamental shock.
2 A MECHANISM OF RECESSION
2.1 An upward RTP shock
There are various possible sources of recession, but in this
paper, a recession caused by a
fundamental shock, particularly by an upward shift of RTP, is
examined because an upward
shift of RTP seems to be most likely the cause of the Great
Recession (Harashima, 2016). A
2
technology shock was probably not the cause of the Great
Recession because technology does
not suddenly and greatly regress. Frictions on price adjustments
are also unlikely to be the cause
because the micro-foundation of friction does not seem to be

sufficiently persuasive (e.g.,
Mankiw, 2001), particularly the micro-foundation of its
persistence. On the other hand,
Harashima (2016) showed that an upward RTP shock could
explain the occurrence of the Great
Recession and showed evidence that the estimated RTP of the
United States increased in about
2008.
RTP plays an essential role in economic activities, and its
importance has been
emphasized since the era of Irving Fisher (Fisher, 1930). One of
the most important equations in
economics is the steady state condition
where θ is RTP and r is the real rate of interest. This condition
is a foundation of both static and
dynamic economic studies. The mechanisms of both θ and r are
equally important. Particularly,
RTP is an essential element in expectations of economic
activities because RTP is the discount
factor for future utility. In addition, RTP has been regarded as
changeable even over short
periods (e.g., Uzawa, 1968; Epstein and Hynes, 1983; Lucas and

Stokey, 1984; Parkin, 1988;
Obstfeld, 1990; Becker and Mulligan, 1997). Furthermore,
households behave based on the
expected RTP of the representative household (RTP RH)
(Harashima, 2014, 2016). That is,
changes in RTP and the expected RTP RH can be an important
source of economic fluctuations.
2.2 The model
The model in this paper is based on the models in Harashima
(2004, 2009, 2013a) and assumes
non-cooperative, identical, and infinitely long living
households, and that the number of
households is sufficiently large. Each of the households equally
maximizes the expected utility
0
0
exp
subject to

tt
t cA,kf
dt
dk
where yt, ct, and kt are production, consumption, and capital
per capita in period t, respectively;
tt
function; and E0 is the expectations operator conditioned on the
agents’ period 0 information set.
yt, ct, and kt are monotonically continuous and differentiable in
t, and u and f are monotonically
continuous functions of ct and kt, respectively. All households
initially have an identical amount
of financial assets equal to kt, and all households gain the
identical amount of income
tt

t
t
dc
cdu
and
0
2
2
t
t
dc
cud
; thus, households
are risk averse. In addition,
0
,

t
t
k
kAf
and
0
2
2
t
t
k
kf
. Both technology (A) and labor
supply are assumed to be constant; that is, there is no
technological progress or population
increase. It is also assumed that there is no depreciation of

capital.
2.3 A Nash equilibrium of a Pareto inefficient path
3
t
k
The prior steady state
before the shock on θ: W
The posterior steady
state after the shock
θ
dt
dc
t
after the shock on θ
dt
dk
t

Z
Pareto inefficient transition
path
dt
dc
t
before the shock on θ
Pareto efficient
saddle path after
the shock on θ
Pareto efficient saddle
path before the shock
on θ
The effects of an upward shift in RTP are shown in Figure 1.
Suppose first that the economy is
at steady state before the shock. After the upward RTP shock,
dt
dc
t moves

to the left (from the solid vertical line to the dashed vertical
line in Figure 1). To keep Pareto
efficiency, consumption needs to jump immediately from the
steady state before the shock (the
prior steady state) to point Z. After the jump, consumption
proceeds on the Pareto efficient
saddle path (the posterior saddle path) from point Z to the lower
steady state after the shock (the
posterior steady state). As a result, negative economic growth
rates continue for a long period,
but unemployment rates will not increase and resources will not
be destroyed or left idle. Note
that an increase in household consumption means consuming the
part capital indicated by the
gap between the posterior saddle path (the thin dashed curve)
and production (the bold solid
curve) for each kt, which initially is the gap between point Z
and W.
1
Figure 1: An upward RTP shock. All terms are defined in the
text.
t
c

1 If depreciation of capital is assumed to exist, the
“consumption” of excess capital will be achieved by a reduction
of
investments that correspond to depreciated capital and an
increase in consumer goods and services.
0
4
However, this discontinuous jump to Z will be uncomfortable

for risk-averse
households that wish to smooth consumption. Households may
instead chose a shortcut and, for
example, proceed on a path on which consumption is reduced
continuously from the prior
steady state to the posterior steady state (the bold dashed line),
although this shortcut is not
Pareto efficient. The mechanism for why they are very unlikely
to jump consumption is
explained in Harashima (2004, 2009, 2013a) and also in the
Appendix. Because households are
risk averse and want to smooth consumption, and are also
intrinsically non-cooperative, they
behave strategically in game theoretic situations. Because of
these features, when households
strategically consider whether or not the jump is better for them
(i.e., they are in a game
theoretic situation), they will generally conclude that they
obtain a higher expected utility if they
do not jump. Hence, households will not actually choose this
path and instead will choose a
different transition path to the steady state (e.g., the bold
dashed curve). Because this transition
path is not on the posterior saddle path, it is not Pareto efficient

(I call this transition path a
“Nash equilibrium of a Pareto inefficient path” or more simply
a “Pareto inefficient transition
path”). Therefore, the excess resources indicated by the gap
between the posterior saddle path
(the thin dashed curve) and the Pareto inefficient transition path
(the bold dashed curve) for
each kt (initially, the gap between points Z and X) will be
destroyed or left idle. Unemployment
rates will increase sharply and stay high for a long period.
3 SHOULD THE GOVERNMENT FISCALLY
INTERVENE?
3.1 The government’s options
3.1.1 The three options
When households choose a Nash equilibrium of a Pareto
inefficient path, the government
basically has three options: (1) do not intervene, (2) increase
government consumption, and
(3) cut taxes.
If Option (1) is chosen, the gap between the posterior saddle
path and the Pareto
inefficient transition path (initially the gap between points Z
and W) is not filled by any demand.

Therefore, unemployment rates increase sharply and huge
amounts of resources are destroyed or
left idle. High unemployment rates and destruction of resources
will continue until the economy
reaches the posterior steady state.
If Option (2) is chosen, government consumption is increased
to fill the demand gap
between the posterior saddle path and the Pareto inefficient
transition path, where government
consumption is indicated on a per capita basis similar to the
other variables. Suppose for
simplicity that government consumption is zero before the
shock. With increases in government
consumption, the path of the sum of government and household
consumption (hereafter
“combined consumption”) can be equal to the posterior saddle
path.
Conceptually, government consumption is the collective
consumption of households
through government expenditures, for example, spending on
various kinds of administrative
services that households receive. Therefore, increases in
government consumption can be
substituted for decreases in household consumption.
Nevertheless, government consumption

will not directly generate utility in households. In this sense,
increases in government
consumption may be interpreted as forced increases in
household consumption. Even if
households do not want these increases in government
consumption, however, the increases will
work to increase aggregate demand. Option (2) therefore
indicates a measure to compulsorily
fill the gap between aggregate demand and supply, even against
households’ will, when the
economy proceeds on a Pareto inefficient transition path. Notice
that the excess resources
cannot be used for investments because the economy would
otherwise deviate from a path to the
steady state.
5
If Option (3) is chosen, households’ disposable incomes will
increase, but if the
Ricardian equivalence holds, they will still proceed on a Pareto
inefficient transition path.
Because household consumption does not change, high
unemployment rates and destruction of a
huge amount of resources continue as in Option (1). Because

there is a huge amount of excess
capital, no additional investment will be made. Nevertheless, if
the Ricardian equivalence does
not hold, tax cuts may increase household consumption at least
temporarily. Therefore, the
validity of Option (3) depends on the validity of the Ricardian
equivalence. If households are
sufficiently rational, the Ricardian equivalence will basically
hold at least in the long run.
Therefore, even if tax cuts are effective, they will be effective
only in the short run, and these
short run effects will be reversed because the Ricardian
equivalence will hold in the long run.
3.1.2 Financing
In Option (3), tax cuts are financed by borrowing from
households. In Option (2), an increase in
the government consumption is financed by borrowing from or
tax increases on households.
Nevertheless, financing by borrowing will be preferred in
Option (2) because the Ricardian
equivalence may not necessarily hold in the short run. If the
Ricardian equivalence does not
hold, increases in taxes may increase unemployment rates and
thereby the main aim of

Option (2) cannot be fully achieved. Therefore, it is highly
likely that an increase in government
consumption will be financed by government borrowing, and
therefore borrowing is assumed in
this paper. However, financing by borrowing requires tax
increases in the future to pay off the
debt with interest. Options (2) and (3) assume that necessary
future tax increases are fully
implemented by the government.
In addition, it is assumed that a government borrows money
only from its own people,
that is, not from foreigners because foreign borrowing means
that foreigners also intervene in
addition to the government, and such intervention is beyond the
scope of this paper.
3.2 Comparison among options
(1) Economic growth rate
Because production and consumption at the posterior steady
state are lower than those at the
prior steady state, the rate of economic growth is equally
negative during the transition in the
three options except for a subordinate option of Option (2), in
which, as will be shown in

Section 4, it is zero. Nevertheless, there actually still will be
steady technological progress
(remember that no technological progress is assumed in the
model), and thereby the actual rates
of growth will not necessarily be negative or zero and may even
be low but positive.
(2) Household utility
Households choose a Nash equilibrium of a Pareto inefficient
path equally in the three options.
Therefore, the utilities of households are basically same in the
three options.
(3) Unemployment
In Options (1) and (3), unemployment rates will rise sharply and
stay high for a long period. In
contrast, in Option (2), high unemployment rates can be avoided
because the gap of demand is
filled by increases in government consumption and thereby no
resources are destroyed or left
idle.
(4) Government debt

In Option (1), government debt does not increase because the
government does not borrow
additional money, but in Options (2) and (3), government debt
will increase because of
continuous financing by borrowing. However, if taxes are raised
properly to pay off the debt in
the future, government debt will stabilize in some future period.
3.3 Government debt
6
3.3.1 Is the government debt sustainable?
The usual arguments on sustainable government debts (e.g.,
Hamilton and Flavin, 1986; Bohn,
1995) are not applicable to the government debts in Options (2)
and (3) because households
proceed on an “unusual” Pareto inefficient transition path, so an
alternative approach is
necessary. Let dt be per capita “extra” government debts in
period t that are accumulated in
Option (2) or (3). Because all dt are owned by households as
assumed above, dt also indicates
the financial assets of households, and the other household
assets (other than dt) are ignored for
simplicity. In the future, dt is redeemed with interest, but the

redemption takes a long time.
Because the Ricardian equivalence will hold in the long run, it
is assumed that household
consumption is not influenced by dt. Let zt be per capita taxes
to redeem a part of dt in period t
and also let gt be additional government borrowing in Option
(2) or (3) in period t. In Option
(2),
and in Option (3),
for any t because no new investment is made in Options (2) and
(3) and the household assets
other than the government bonds are ignored; yt and ct are per
capita income and consumption
of households in period t. If the condition
tttt
(3)

is satisfied indefinitely in a certain future period, government
debt never explodes; that is, it is
equality (1) and inequality (3), the
condition for sustainability in Option (2) is
tttttt
By inequalities (2) and (3), if inequality (4) is satisfied
indefinitely in a certain future period,
government debt is also sustainable in Option (3).
Because the household assets other than dt are ignored, the sum
of a household’s
income and assets is
If the sum of a household’s income and assets exceeds zt, that
is, if
tttt
then zt can be imposed in the sense that households have
enough resources to fully pay taxes.

Hence, by inequalities (4) and (5), if
7
is satisfied, taxes that satisfy the condition for sustainable debts
can be imposed. Here, because
t
r , then inequality (6) always holds. Therefore, for any dt, there
always exists zt that
satisfies inequality (3) indefinitely in a certain future period.
That is, the government debt can
be sustainable for any dt, and even if dt becomes extremely
large, the debt can be sustainable.
Consider an extreme example. If a government collects taxes
that are equivalent to dt from a
household’s financial assets in a period, the government’s debts
are eliminated completely all at
once. That is, any dt can be sustainable.
Such an extreme tax will not actually be imposed, but if dt
exceeds a certain amount
such that

(i.e., if taxes exceed income), then they need to be collected
from a part of a household’s
holdings of dt. If households well know the possibility of a tax
on dt in the future, they will not
regard their accumulated financial assets corresponding to dt as
their “real” assets in the sense
they can be freely used for consumption even though dt may be
extremely large. In addition,
because any dt can be sustainable, the tax increase can be
started even after all the excess capital
is eliminated. Hence, a huge amount of government debt can
remain even if there is no excess
capital.
Finally, it is important to note that the increased tax revenues
should not be used to
finance increases in government consumption for purposes other
than dealing with the excess
capital. The increased taxes should be used only to pay down dt
(with interest) because the
economy otherwise deviates from the steady state.
3.3.2 How large can government debt be?

Any dt can be sustainable but only if a government properly
satisfied indefinitely in a certain future period. The question
arises, however, when is “a certain
future period”? The time at which taxes are raised is
indeterminate in the discussion in the
previous section. The tax increase can be postponed almost
indefinitely if taxes will certainly be
raised eventually. This indeterminacy may generate a political
struggle because people
intrinsically dislike tax increases, and opposition parties will
utilize people’s anti-tax sentiment
as ammunition to attack the government. Opposition parties will
appeal to people that a tax
increase is not necessary at present and that it will only
generate a recession because the
Ricardian equivalence will not hold in the short run. The
government may not sufficiently refute
this argument and persuade people that the current level of
government debt is unsustainable,
because any dt can be sustainable. The incentive for the
government to raise taxes to reduce dt
will therefore be weak.
Is there a problem, however, if dt becomes extremely large? As
shown in Section 3.2.1,
other things being equal, any dt can be sustainable, but if
something changes and affects the

sustainability as dt becomes larger, a large dt will not actually
be sustainable. One possible
factor that may change as dt becomes larger is uncertainty. If
the tax increase has been
postponed for a long period, questions about the ability of the
government to govern the nation
and run the economy will arise. Faced with an extremely large
dt, people may begin to suspect
that their government cannot do what it should do. Hence,
uncertainty about the ability of the
government will increase, and increased uncertainty about the
government’s ability means that
the government’s performance in the future is no longer a
certainty.
It has been argued that good institutions, including
governments, enhance economic
growth (e.g., Knack and Keefer, 1995; Mauro, 1995; Hall and
Jones, 1999; Acemoglu et al.,
2001, 2002; Easterly and Levine, 2003; Dollar and Kraay, 2003;
Rodrik et al., 2004). Acemoglu
et al. (2005) conclude that differences in economic institutions
are empirically and theoretically
8

the fundamental cause of differences in economic
development.2 It is therefore highly likely
that a government’s ability is an important determinant of total
factor productivity, that is, levels
of production and consumption. Therefore, if uncertainty about
the ability of a government
increases, household’s expected variances of production and
consumption will also increase.
Larger variances of production and consumption mean more
uncertainty about the entire future
economy. That is, as dt increases, household uncertainty about
the entire future economy
increases.
An important consequence of increases in uncertainty about the
entire future economy
is an increase in household RTP. The concept of a temporally
varying RTP has a long history
(e.g., Böhm-Bawerk, 1889; Fisher, 1930; Uzawa, 1968;
Lawrance, 1991; Becker and Mulligan,
1997). In addition, uncertainty has been regarded as a key factor
that changes RTP. Fisher
(1930) argued that uncertainty, or risk, must naturally influence
RTP, and higher uncertainty
tends to raise RTP. Harashima (2004, 2009) showed a
mechanism of how an increase in

uncertainty leads to an increase in RTP by constructing an
endogenous RTP model where
uncertainty is defined by the stochastic dominance of the
distribution of steady-state
consumption. Increases in uncertainty will increase RTP RH. An
increase in RTP RH indicates
an increase in the real interest rate at steady state and
consequently a decrease in production and
consumption at the steady state because RTP RH is equal to the
real interest rate at steady state
in Ramsey-type growth models. That is, it is likely that as dt
increases, long-run production and
consumption will decrease.
Considering the effect of dt on RTP RH and on long run
production and consumption,
therefore, a government will not have to postpone the a tax
increase for a long period and to
accumulate an extremely large dt. Nevertheless, the scale of the
effect of dt on RTP RH is
unclear. It may be small and take a long period before
households clearly recognize the negative
effect of a large dt on RTP RH. Hence, the exact upper limit of
dt is unclear, so there will still be
much room for a government with regard to the timing and scale

of tax increases.
When the long run negative effect of a huge dt on the expected
household utility
becomes larger than the short run effect of deviation from the
Ricardian equivalence on the
expected household utility, taxes should be raised. However, it
may be difficult to judge which
is currently larger. On the other hand, if the negative effect of
the short run deviation from the
Ricardian equivalence can be controlled such that it remains
very small, it will be better to raise
taxes even for small dt. In this sense, it may be a good idea to
raise the tax rate by a very small
percentage point amount in every period, for example, by 0.5%
per year. Because this tax
increase is very small in each period, the negative effect of any
short run deviation from the
Ricardian equivalence can be controlled such that it is also very
small in each period.
There is another relatively minor problem associated with
extremely large dt. As dt
increases, the amount of necessary future tax increases (as
shown in Section 3.3.1) will
eventually exceed income (yt). Therefore, taxes need to be

imposed not only on income but also
on household’s financial assets corresponding to dt. However,
large taxes on financial assets
may be less easy to implement than other types of taxes both
practically and politically.
Nevertheless, an inheritance tax may be relatively easy to
implement, and therefore it will be
important as taxes on household’s financial assets.
3.3.3 Price stability
It has been argued that a large amount of government debt will
result in high inflation (Sargent
and Wallace, 1981). Fiscal theory of price level particularly
emphasizes this mechanism (Leeper,
1991; Sims, 1994, 1998; Cochrane, 2005; Woodford, 2001).
However, Harashima (2006)
showed that the relation between the government debts and
inflation is not simple and presented
a model …
Discussion assignments will be graded based upon the criteria
and rubric specified in the Syllabus.
For this Discussion Question, complete the following.
1. Read the first 13 pages of the attached paper which discusses
the effect of government intervention on recessions.
2. Locate two JOURNAL articles which discuss this topic
further. You need to focus on the Abstract, Introduction,

Results, and Conclusion. For our purposes, you are not expected
to fully understand the Data and Methodology.
3. Summarize these journal articles. Please use your own words.
No copy-and-paste. Cite your sources.
5. During the second week of the Module, you will need to reply
to the posts of two of your peers. Your replies must focus on
increasing knowledge of the class and must advance the
discussion further. Simply affirming your peers does not count
as a substantive reply.
Need replay for this below 2 discussion
Discussion-1
According to the journal article published by Musdholifah,
Hartono and Wulandari (2020), several attempts have been made
over time to determine the actual causes of banking crisis. But
researchers are unable to bring about a full proof list of causes
that lead to the downfall of the banks as a whole. Using the
crisis and default index, the authors of the article have tried to
formalize a series of causes of banking failures and how these
can be avoided in the future. The case of the Indonesian banks
and their problems is taken to know about the main causes that

are leading to their troubles in today’s business environment.
The analysis of the case studies of these banks reveals that the
internal bank processes and actions are the primary source of
the troubles. It is highly essential for banks to use probability
factors and predictions to determine the outcomes of their
actions in the short term and long-term both.
According to the second journal article written by Ramirez and
Shively (2012), a time series model can be used to evaluate the
causes of the bank failures and their contribution towards
economic crisis. The scales of 1920s crisis were taken to review
the banking and economic conditions. Other variables were also
accounted to know the main reasons for the failure and how it
could have been avoided. Bank Failure Channel is the main
agenda used by the authors to distribute causes, analyze them
and emphasize on the things that could have been done right to
achieve stability. Since banks hold the money of the customers
and use them to derive economic profit, they tend to be highly
responsible for the same. Every effort should be made to keep
liquidity and offer stability to the customers and the economy
both. Overall, the banking system is the economic foothold of
an economy within this globalized world.
References:
Musdholifah, M., Hartono, U. and Wulandari, Y. (2020).
Banking Crisis Prediction: Emerging Crisis Determinants in
Indonesian Banks. International Journal of Economics and
Financial Issues, 10, 124-131.
Ramirez, C. D. and Shively, P. A. (2012). The Effect of Bank
Failures on Economic Activity: Evidence from U.S. States in
the Early 20th Century. Journal of Money, Credit and Banking,
44(3), 433-455.

Discussion-2
Sharmila Gundapuneni - Thursday, 4 June 2020, 10:57 AM
Government intervention was considered at the time of
recessions would determine fiscal policy accomplish the steady-
state that describes fundamental shock. State downwards
describe the recession period accomplish the equilibrium would
determine the option. This consists of managing strategy
development consider the long periods to ensure sustainable
development would extremely consider the growth of the
economy. Households consider the recession period to
accomplish the changes and manage the dimensions that consist
of unemployment rates (Horwitz, 2012). Equilibrium states
enhance the economy recession consider an inefficient path to
manage changes over unemployment rates. This process consists
of upward RTP determine technology sources consists of micro-
foundations. It describes the occurrence of the great recession
manage the foundational service will determine the economic
resources. It consists of options that drive better and stabilize
the activities by the government.
Great recession impacts the technology whereas government
intervention accomplishes the essential process consists of
managing resources. It explains evidence considers the
importance of the static and dynamic conditions that would
determine the activities. This process considers the foundation
and RTP consider the model description and manage household
activities (Kaplan, Mitman & Violante, 2016). It consists of
economic fluctuations that would consider the changeable
sources that describe expected RTP. This model considers the
changes in the household activities would determine the income
sources and manage operations that determine better
development. It consists of an inefficient path that would make
effective changes during recession time and manage the tax

rates of government.
The government should fiscally determine the intervention
process that consists of three options that describe cut taxes,
increase government consumptions. This process explains the
transition path that determines household activities consider
consumption. Government interventions describe the gap
between the high employment rates and determine consumption
(Horwitz, 2012). This process explains the collective
consumptions that determine household services will process
systems. Consumption of households would determine the
economy paths that consist of steady-state which describes
external sources. Financing factors consider the household
activities that accomplish tax rates and increase the process
which explains the unemployment rates. The comparison
consists of a progress model that describes negative value
determines economic growth would consider the household
utility determines the process. It consists of stabilizing the
activities that would ensure government debt and manage
resources.
References:
Horwitz, S. (2012). Causes and Cures of the Great Recession.
Economic Affairs, 32(3), 65-69.
Kaplan, G., Mitman, K., & Violante, G. (2016). Consumption
and house prices in the great recession. Working paper.
Running Head: KOTTER’S STEPS 3 and 4 1
KOTTER’S STEPS 3 and 4 2

5-2 Final Project Milestone Two: KOTTER’S STEPS 3 and 4
Name: Patricia Vela
Alaska Airlines Case Study
What happens in regard to the Kotters step 3 and 4?
The Alaska Airlines case analysis indicates what the group
management had to start off so as to initiate some changes and
corrections so that the company is saved from closing its
operations due to the tribulations that it was going through. The
management was made to address the market reserves that were
dwindling and it also had to come up with mechanisms that
improve the loyalty of the customers so that the customers are
barred from seeking services from other airline operators who
were working day and night to acquire new customers. Looking
keenly at the analysis, it shows that the management made use
of the “Kotters step three and four which remains some of the
critical aspects when you look into how an organization can
embrace change concept (Avolio, Patterson & Baker, 2015)”.
The leadership of the group that was in charge of the change
program showed an awareness on the methodologies to be
developed in the change vision that could provide guideline on
what the first firm must be and what needs to be attained in the
process of planning for the change. The group leadership teams
seems to be aware that in creation of vision for change, you

need to have valuable insight and the direction that everyone
ought to take so as to attain some objectives.
Of importance also t note is that the planning team seems to be
aware in order to develop a vision, includes the facilitation of
different person’s activities in the models that are fast and
efficient. The planning team that was mandated to counter the
challenges depicted the ability for the creation of vision which
outlines the things that need to be covered so that the airline
was assured of the right direction. It outlines that it wants attain
consistency in standards of its services. It also identified the
fact that it needed joint effort from the workers so that they can
come up with solutions for the “problems that came from the
buyers (Avolio, Patterson & Baker, 2015)”.
Ability to communicate the change vision
The leadership team had shown the ability in communicating the
change vision to all the players and the stakeholders who would
take part in the change initiative. In this case, Kotter calls the
team mandated with the planning to shift to step 4 so that it
embraces the efficient ways in the which the communication
and the reaching out is done to all the parties that would
contribute in one or another. Therefore the Alaska Airline
planning team shows the ability to communicate the vision like
the manner in which the executive committee members would
hold meetings with different divisional leaders of the
organization so that they are briefed of the “changes the
leadership was planning to undertake (Avolio, Patterson &
Baker, 2015)”.
The leadership however has demonstrated some kind
inappropriateness in communicating the message to the junior
workers when it must serve many workers serving ramp
operations in absence of prior notification. The team had to on
the solution that the four hundred and seventy baggage handlers
be suspended and some could even denied entry at the check in
point by the security as they were not aware of the termination
(Thompson, 2017)
Establishment of the vision for organizational change effort

The Alaska Airlines management ought to embrace vision and
mission that will help the airline achieve its goals and
objectives in the best way possible. It needs to pay keen
attention to the change vision that is imaginable in the manner
that conveys the true position of how the future is likely to look
like. The vision need to be clear enough and have focus. It
should focus on the application of quality approaches so that the
customer satisfaction is delivered. In this particular scenario,
the focus ought to be on “ramp operations and shortening the
waiting times” (Hughes, 2016).
“The target outcomes” intended
The “vision need to attain particular outcomes to indicate how
the panning team is making some progress towards realization
of the objectives. One of those applications would be increase
the satisfaction levels of the customers of course via the
application of the efficient operations”. The team hopes to add
onto the revenues the moment the buyers are satisfied as it will
build a good image. The planning team also objects to ease up
the ramp operations which are some of the stumbling blocks and
the reason for the performance drop at harder times.
The organizational change requirements for it to be a success
There are many things that need to be considered for the
organizational change to be of value added. The process of
change would only be successful only and only if the
stakeholders dedicate themselves “in their roles towards the
transformation enforcement. Other than that, the change
process” will also gain momentum when they recognize the set
objectives and goals. If not, failure to recognize the set
objectives will deem the Kotters model of change the way it’s
supposed to be (Henry et al., 2017)
Communication of the change
The requirements for the changes needed ought to be
communicated efficiently within the organization. Those
concerned should have some information on how the successful
communication practices should be done. The process of
communication will be more effective if the team leaders know

the different communication styles and the time the team
understands the importance “of maintaining communication
while the setting of the vision” is done.
The organization leader to motivate the idea of two way
communication
The best way in adopting the “two way communication would
be to take up a communication style that gives everyone an
opportunity to contribute something to the change process” of
the organization. The model adopted ought to allow everyone to
freely and equally have chances of reaching out to each other
without any limitation (Day & Shannon, 2015).
Supporting the “supervisors in efforts to communicate with the
employees”
This can best be done through the conducting of the
investigations from different sources on the ways in which the
organization leaders can improve the intended communication
of the “change process to the stakeholders. The supervisors will
acquire” knowledge on the ways that need to be adopted to
change from one state to another (Day & Shannon, 2015).
People who need to be engaged in the succession of the change
effort
This practice ought to involve people who understand the
objective attaining the “best outcome. The most vital group” in
this case would be the “organizational leaders who will provide
guidance on the activity that should be taken on. Other than”
that, the service providers should also be at the fore front in
different station (Day & Shannon, 2015).
Conclusion
Creation of vision allows each and “every stakeholder to
evaluate the efficiency of the initiative from their very own
perspective. Alaska Airlines would be in the best position to
achieve” its goals only and only if it applies the Kotters
ideology on setting of the vision as well as the communication
plan. The airline will therefore increase the satisfaction of the
customer and communication plan be made towards the
achievement of goals.

References
Avolio, B., Patterson, C., & Baker, B. (2015). Alaska Airlines:
Navigating change. London:
Day, G. E., & Shannon, E. (2015). Leading and managing
change. Leading and managing health services: An Australasian
Perspective, 295, 405-412.
Henry, L. S., Hansson, M. C., Haughton, V. C., Waite, A. L.,
Bowers, M., Siegrist, V., & Thompson, E. J. (2017).
Application of Kotter’s theory of change to achieve baby-
friendly designation. Nursing for women's health, 21(5), 372-
382.
Hughes, M. (2016). Leading changes: Why transformation
explanations fail. Leadership, 12(4), 449-469.
Running head: KOTTER’S STEPS 5 THROUGH 8
1
Running head: KOTTER’S STEPS 5 THROUGH 8
4

KOTTER’S STEPS 5 THROUGH 8
Name: Patricia Vela
OUR ICEBERG IS MELTING
The “Our Iceberg is Melting” is a simple story that was
authored by Kotter to provide techniques that can be adapted
when dealing with change and uncertainty through eight steps.
The process of change can be very difficult and there are so
many obstacles that can stand in the way. The tale is about
resistance to change, therefore, Kotter provides us with a
framework that can be used in dealing with obstacles. Fred
observes the treads in the icebergs and does not panic and wants
to do something about, however, he is no position to dictate
how other people should act. Fred empowered the other
penguins to act, Fred helped others to see and feel the problem,
(Kotter & Rathgeber, 2006). He removed all the barriers to
make the vision a reality for those who wanted to do so; Alice
understood what they were up against.
Buddy suggested solution is a vision of nomadic life that could
serve as a short-term win for the colony. Prior to the
conclusion, Fred has suggested that the problem could be solved
by freezing the bottle. His ideas put so many people in fear and

more realistic solutions are called for. In the tale, there are
several meetings which are arranged to address a possible
solution for the icebergs. When Buddy decides to make a
presentation of PowerPoint slides it shows that he kept pushing
for change until the solution had become a reality for the rest of
the penguins.
Nono was not pleased with the solution and kept finding faults
which were ignored by most penguins. Amanda believed in the
vision and worked for long hours to make it a reality, (Kotter &
Rathgeber, 2006). Despite Nono resisting, the strategy was
made to stick and a new culture was created to increase the
popularity nomadic life through kindergartens where parents
were also swayed to adapt the change. Today the colony
accepted the reality and move around like nomads and became
more skilled on how to handle anticipated dangers or risks.
Strengths
APL approach was dynamic and therefore, Nokia what they did
right to sustain and push for leadership change was that they
used business simulations to increase popularity and manage
resistance. The transformation was persisted by the leadership
for almost three years and by 2016 over 700 managers had gone
through the programme and finally they accepted. The vision
was made a reality being relentless to initiate change in the
company and with time the new culture was stuck, (Kotter &
Rathgeber, 2006). Leadership development played a very
significant role in Nokia’s journey of success.
Weaknesses
Organizational change can be very difficult to carry out and
most of the corporations avoid it at times. Nokia has over the
years engaged in organizational changes to improve
performance. Leadership and management decisions were
introduced in the company in 2012. Leadership change led to
internal rivalry which sparked disagreements and tension that
had been stirred by a diverse leadership style. What they failed
to address was cultural integration when the company wanted to
transform to Complex Adaptive Leadership (CAL) or Adaptable

Leader Program (ALP) which was done by Obolensky’s and
Kracklauer’s company. Bureaucracy contributed to the failure of
the model in the company, they failed to empower the
employees and senior managers to act so that the change could
be made a reality, (Kotter & Rathgeber, 2006). They failed to
produce a short-term vision for mangers leading to resistance
and disagreements.
References
Kotter, J. P., & Rathgeber, H. (2006). Our iceberg is melting:
Changing and succeeding under any conditions. Macmillan.
Retrieved from
https://pdfs.semanticscholar.org/2810/40cf99b29063fa0b121132
a1382b5273c058.pdf
OL 663 Final Project Guidelines and Rubric
Overview
To be an effective leader, one must be able to lead change
efforts in a way that is collaborative and demonstrates the
culture of the organization. At some point,
all leaders will be tasked with either leading an organizational
change effort or being part of upper-level team planning and
implementation of an organizational
change effort.

Your final project in this course is the development of a change
plan based on a case study. Your plan will utilize Kotter’s
change implementation plan
components for an organization. Kotter’s plan will take you
through steps that demonstrate what should be looked at during
each step of a change effort.
Changes take time to implement, and it is vital that all aspects
of an organization are considered when making these changes.
This project addresses the following course outcomes:
implementing an organizational change effort
targeted goals of change efforts for determining the needs of a
change effort
the roles of employees
to develop a well-informed, effective change plan
involving employees for successfully implementing a change
effort
ce the influence of organizational culture on
organizational change efforts
Prompt
In this project, you will develop a change plan based on a case

study with stated objectives to accomplish an intended goal or
goals. Once the objectives are
established, you will build backward from those goal(s) in order
to develop a timeline for completion in a phase-by-phase
sequence. This change plan will
analyze what is needed for the implementation of a change to be
successful and things to look out for along the way.
Specifically, the following critical elements must be addressed:
I. Analysis and Diagnosis
A. What is the problem in need of addressing at this point in
time? Describe which forces are driving the change effort.
B. How did this problem arise? Determine how this problem is
currently impacting the organization.
C. Identify the specific organizational needs driving the change.
Explain each.
D. Identify specific variables, conditions, issues, individuals,
and other factors that will impact the change effort negatively.
Describe how these
should be handled prior to planning the change effort.
E. What are the underlying causes of the problem? How should
these be addressed?
F. Identify the gap between what the problem’s current situation
is and what the hoped-for targeted outcome will be. Establish
what needs to
occur to build a process to bridge this gap.
II. Developing a Change Plan Using Kotter’s Model for

Implementing Organizational Change
A. Create Urgency
1. Describe a plan to create urgency within the organization and
convince stakeholders that this change needs to take place.
2. What processes currently exist for implementing change?
How will these processes need to be updated for the proposed
change?
3. Describe the strategy you will use to get support from your
employees. How will this strategy be effective?
B. Build a Guiding Coalition
1. Identify who should be involved in this guiding coalition.
Provide rationale for each choice. Kotter likes 50% leaders and
50% managers
with experience, while others prefer the composition to be 33%
leaders, 33% managers, and 33% informal leaders, but you can
assemble
the guiding coalition as you see fit.
2. Determine steps you can take to ensure commitment from
those involved. Describe those steps.
C. Form a Strategic Vision
1. Determine the values that are essential to this change. Why
are these values essential?
2. Establish the vision for this organizational change effort.
How will this vision be effective in promoting your change
effort?
3. Identify your intended targeted outcomes. Defend your
choices.
4. What must occur for the organizational change effort to be
considered a success? Defend your response.
D. Communicate the Change

1. What is required for the change to be communicated
effectively within the organization? Why?
2. Determine actions you will take to encourage two-way
communication for effective feedback loops during
implementation of the change
effort. Explain why these actions will be effective.
3. How will you support the direct supervisors in the
organization in their efforts to communicate with employees
about the change effort?
4. Describe how you will address any concerns or anxieties
regarding this change.
5. Who needs to be involved and in what capacity for this
change effort to be a success?
E. Enable Action by Removing Barriers
1. Identify the forces, barriers, and hindrances to the
organizational change effort, and describe each.
2. How can resistance be recognized? How will you eliminate
resistance or mitigate its impact on the implementation of the
change plan?
3. Describe actions that will enable and empower employees to
help drive the change effort.
F. Generate Short-Term Wins
1. Determine how you will generate short-term wins. How will
you reward these wins?
2. What can be gained from short-term wins? Defend your
response.
G. Sustain Acceleration
1. How will you ensure that the momentum driving the change
effort continues?
H. Institute Change
1. What actions need to occur for this change to become part of

the organizational culture? Defend each action.
2. What infrastructure mechanisms need to be in place to
maintain and sustain the change into the future? Describe the
importance of
each.
Milestones
Milestone One: Kotter’s Steps 1 and 2
In Module Three, you will review the case study “Alaska
Airlines: Navigating Change” and then complete the following:
(a) State what actually occurred in the
case regarding Kotter’s first two steps of establishing a sense of
urgency and creating the guiding team in a change effort and (b)
reflect on what you think
should have been done in the change effort regarding those two
steps. State your reflection as recommendations to implement
steps 1 and 2.
This milestone will help you build Section II parts A and B of
your final project. This milestone is graded with the Milestone
One Rubric.
Milestone Two: Kotter’s Steps 3 and 4
In Module Five, you will review the case study “Alaska
(a) State what actually occurred in the case
regarding Kotter’s steps 3 and 4 of developing a vision and
strategy and communicating the change vision (two to three
paragraphs), and (b) reflect on what you
think should have been done in the change effort regarding
those two steps. State your reflection as recommendations to

implement Kotter’s steps 3 and 4.
This milestone will help you build Section II parts C and D for
Two Rubric.
Milestone Three: Kotter’s Steps 5 and 6
In Module Seven, you will review the case study “Alaska
(a) State what actually occurred in the
case regarding Kotter’s steps 5 and 6 of empowering employees
for broad-based action and generating short-term wins, and (b)
reflect on what you think should
have been done in the change effort regarding those two steps.
State your reflection as recommendations to implement steps 5
and 6.
This milestone will help you build Section II parts E and F for
Three Rubric.
Final Submission: Change Plan
In Module Nine, you will be submitting your final project, a
change plan for the Alaska Airlines case study. Throughout the
course, you have had multiple
opportunities to work on the elements of this proposal and fine-
tune your thinking for the change plan.
Your finalized proposal should incorporate feedback you have
received from your instructor as well as your peers. This
submission is graded with the Final
Project Rubric.

Deliverables
Milestone Deliverable Module Due Grading
One Kotter’s Steps 1 and 2 Three Graded separately; Milestone
One Rubric
Two Kotter’s Steps 3 and 4 Five Graded separately; Milestone
Two Rubric
Three Kotter’s Steps 5 and 6 Seven Graded separately;
Milestone Three Rubric
Final Submission: Change Plan Nine Graded separately; Final
Project Rubric
Final Project Rubric
Guidelines for Submission: Your change plan must be 13–15
pages (not including title page or references), double spaced,
with 12-point Times New Roman font,
and adhere to APA guidelines.
Critical Elements Exemplary (100%) Proficient (90%) Needs
Improvement (70%) Not Evident (0%) Value
Analysis and
Diagnosis: Problem
[OL-663-01]

Meets “Proficient” criteria, and
description is exceptionally
clear and contextualized
Identifies the problem in need
of addressing and describes
which forces are driving the
change effort
Identifies the problem in need
of addressing, but does not
describe which forces are
driving the change effort
Does not identify the problem 3.5
Analysis and
Diagnosis: Impact
[OL-663-01]
response demonstrates a
nuanced awareness of the
organization
Establishes how problem arose
and determines the current
impact of the problem
Establishes how problem
arose, but does not determine
the current impact of the
problem

Does not establish how the
problem arose
3.5
Analysis and
Diagnosis:
Organizational Needs
[OL-663-01]
explanation employs specific
examples
Identifies specific
organizational needs driving
the change and explains each
Identifies specific
organizational needs driving
the change, but does not
explain each
Does not identify
organizational needs
3.5
Analysis and
Diagnosis: Variables
[OL-663-03]
description is well supported

with specific examples
Identifies specific variables,
conditions, issues, and
individuals that may impact
the change effort negatively
and describes how these
should be handled prior to
planning the change effort
Identifies specific variables,
conditions, issues, and
individuals that may impact
the change effort negatively,
but does not describe how
these should be handled prior
to planning the change effort
Does not identify specific
variables, conditions, issues,
and individuals that may
impact the change effort
negatively
3.5
Analysis and
Diagnosis: Underlying
Causes
[OL-663-04]

determination is well
supported and plausible
Identifies underlying causes of
the problem and determines
how these causes should be
addressed
Identifies underlying causes of
the problem, but does not
determine how these causes
should be addressed
Does not identify underlying
causes of the problem
3.5
Analysis and
Diagnosis: Gap
[OL-663-02]
response employs specific
examples to support claims
Identifies the gap between the
current situation and the
targeted outcome and
establishes what needs to
occur to build a process to
address the gap
Identifies the gap between the
current situation and the

targeted outcome, but does
not establish what needs to
occur to build a process to
address the gap
Does not identify the gap
between the current situation
and the targeted outcome
3.5
Change Plan: Urgency
[OL-663-06]
Describes a plan to create
urgency within the
organization and convince
stakeholders that the change
needs to take place
Describes a plan to create
urgency within the
organization and convince
stakeholders that the change
needs to take place, but plan is
misaligned with the problem
Does not describe a plan to
create urgency within the
organization
3.5

Change Plan:
Processes
[OL-663-02]
with examples
Identifies current processes for
implementing change and
describes how processes will
need to be updated for
proposed change
Identifies current processes for
implementing change, but
does not describe how
processes will need to be
updated for proposed change
Does not identify current
processes for implementing
change
3.5
Change Plan: Support
[OL-663-04]
Describes a strategy to gain

support from employees and
describes how the strategy will
be effective
Describes a strategy to gain
support from employees, but
does not describe how the
strategy will be effective
Does not describe a strategy to
gain support from employees
3.5
Change Plan: Guiding
Coalition
[OL-663-06]
rationale demonstrates a
nuanced understanding of the
roles involved in a coalition
Identifies who should be
involved in the guiding
coalition and provides
rationale for each choice
Identifies who should be
involved in the guiding
coalition, but does not provide
rationale for each choice
Does not identify who should
be involved in the guiding

coalition
3.5
Change Plan:
Commitment
[OL-663-04]
Determines steps for ensuring
commitment from those
involved and describes each
step
Determines steps for ensuring
commitment from those
involved, but does not describe
each step
Does not determine steps for
ensuring commitment
3.5
Change Plan: Values
[OL-663-06]
defense is well qualified with
examples
Determines values that are
essential for the change and

defends why the values are
essential
Determines values that are
essential for the change, but
does not defend why the
values are essential
Does not determine values
that are essential for the
change
3.5
Change Plan: Vision
[OL-663-06]
description uses concrete
examples to qualify claims
Establishes the vision for the
organizational change effort
and describes how vision will
be effective in promoting the
change effort
Establishes the vision for the
organizational change effort,
but does not describe how
vision will be effective in
promoting the change effort

Does not establish the vision
for the organizational change
effort
3.5
Change Plan: Targeted
Outcomes
[OL-663-02]
defense employs industry-
specific language to establish
expertise
Identifies intended targeted
outcomes and defends each
choice
Identifies intended targeted
outcomes, but does not defend
each choice
Does not identify intended
targeted outcomes
3.5
Change Plan: Success
[OL-663-02]
Meets “Proficient” criteria and
defense uses industry-specific
language to establish expertise

Determines what must occur
effort to be considered a
success and defends response
Determines what must occur
effort to be considered a
success, but does not defend
response
Does not determine what must
occur for the organizational
change effort to be considered
a success
3.5
Change Plan:
Communication
[OL-663-05]
explanation utilizes industry-
specific language to establish
expertise
Establishes what is required for
change to be communicated
effectively and explains
response
Establishes what is required for
change to be communicated
effectively, but does not

explain response
Does not establish what is
required for effective
communication
3.5
Change Plan: Two-Way
Communication
[OL-663-05]
explanation is well supported
and plausible
Determines actions that will be
taken in order to encourage
two-way communication and
explains why selected actions
will be effective
Determines actions that will be
taken in order to encourage
two-way communication, but
does not explain why selected
actions will be effective
Does not determine actions
that will need to be taken in
order to encourage two-way
communication
3.5

Change Plan: Direct
Supervisors
[OL-663-05]
response is well qualified with
concrete examples
Establishes how direct
supervisors within the
organization will be supported
in their efforts to communicate
with employees regarding the
change effort
Establishes how direct
with employees, but plan is
misaligned with the change
effort
Does not establish how direct
with employees
3.5
Change Plan: Concerns
or Anxieties
[OL-663-05]

Describes how concerns or
anxieties regarding the change
will be addressed
Describes how concerns or
anxieties regarding the change
will be addressed, but
description is cursory or
inaccurate
Does not describe how
concerns or anxieties regarding
the change will be addressed
3.5
Change Plan: Involved
[OL-663-05]
and plausible
Determines who will need to
be involved in a change effort
and describes the capacity in
which they will be involved
Determines who will need to
be involved in a change effort,
but does not describe the
capacity in which they will be
involved

Does not determine who will
need to be involved in a
change effort
3.5
Change Plan: Forces,
Barriers, and
Hindrances
[OL-663-04]
Identifies the forces, barriers,
and hindrances to the
and describes each
Identifies the forces, barriers,
and hindrances to the
organizational change effort,
but does not describe each
Does not identify forces,
barriers, and hindrances to the
3.5
Change Plan:

Resistance
[OL-663-04]
Describes how resistance can
be recognized and determines
how resistance can be
eliminated or mitigated
Describes how resistance can
be recognized, but does not
determine how resistance can
be eliminated or mitigated
Does not describe how
resistance can be recognized
3.5
Change Plan: Enable
and Empower
[OL-663-04]
Describes actions that enable
and empower employees to
help drive the change effort
Describes actions, but lacks

alignment to enabling and
empowering employees
Does not describe actions 3.5
Change Plan: Short-
Term
[OL-663-03]
Meets “Proficient” criteria and
supports response with specific
examples that further illustrate
claims
Determines how short-term
wins will be generated and
establishes how these wins will
be rewarded
Determines how short-term
wins will be generated, but
does not establish how these
wins will be rewarded
Does not determine how short-
term wins will be generated
3.5
Change Plan: Short-
Term Wins
[OL-663-03]
defense employs specific

evidence to support claims
Determines what can be
gained from short-term wins
and defends response
Determines what can be
gained from short-term wins,
but does not defend response
Does not determine what can
be gained from short-term
wins
3.5
Change Plan:
Momentum
[OL-663-03]
Describes how to ensure that
the momentum driving the
change effort continues
Describes how to ensure that
the momentum driving the
change effort continues, but
description contains issues
regarding accuracy or
relevancy
Does not describe how to

ensure that the momentum
driving the change effort
continues
3.5
Change Plan:
Organizational Culture
[OL-663-06]
defense is masterfully
supported with specific
examples
Determines what actions need
to occur for the change to
become part of the
organizational culture, and
defends each action
Determines what actions need
to occur for the change to
become part of the
organizational culture, but
does not defend each action
Does not determine what
actions need to occur for the
change to become part of the
organizational culture
3.5
Change Plan:

Infrastructure
Mechanisms
[OL-663-03]
Establishes infrastructure
mechanisms that need to be in
place to maintain and sustain
the change into the future and
describes the importance of
each
Establishes infrastructure
mechanisms that need to be in
place to maintain and sustain
the change into the future, but
does not describe the
importance of each
Does not establish
infrastructure mechanisms that
need to be in place to maintain
and sustain the change into the
future
3.5
Articulation of
Response

Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented
in a professional and easy-to-
read format
Submission has no major
errors related to citations,
grammar, spelling, syntax, or
organization
Submission has major errors
spelling, syntax, or
organization that negatively
impact readability and
articulation of main ideas
Submission has critical errors
spelling, syntax, or
organization that prevent
understanding of ideas
2
Total 100%

Running Head KOTTER’S STEPS 3 and 41KOTTER’S STEPS 3 and 4.docx

Running Head KOTTER’S STEPS 3 and 41KOTTER’S STEPS 3 and 4.docx

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