John P. Kotter's 8 stages of change are summarized as follows: 1. Establish a sense of urgency and gain buy-in from 75% of stakeholders who do not want to leave their comfort zones. 2. Form a powerful coalition of 5-50 key leaders to drive the change. 3. Create a vision to clarify the desired direction of change. 4. Communicate the vision through every available channel. 5. Empower others to act on the vision by removing obstacles and swaying reluctant leaders. 6. Plan for and create short-term wins within 1-2 years to boost morale and refine the vision. 7. Consolidate improvements

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. Agenda
1.
Introduction
2.
The 8 Stages of a change process
3.
Case study:
4.
Key takeaways of change management

3. Introduction
What is transformation?
“Adaptation to a more challenging market environment through
fundamental reforms to business processes.”

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. 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. 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. 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. The 8 Stages of a Change Process
4. Communicate the vision
Utilise every possible channel
to communicate the vision

9. The 8 Stages of a Change Process
1. Create u _ _ _ _ _ y
! ! !
+
75%

10. The 8 Stages of a Change Process
2. ____ a _________

5-50

11. The 8 Stages of a Change Process
3. Create a ______
X

12. The 8 Stages of a Change Process
4. ___________ the vision

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. 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. 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. 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. The 8 Stages of a Change Process
5. _______ people


18. The 8 Stages of a Change Process
6. Plan and publicise _____-____ ____
/

19. The 8 Stages of a Change Process
7. ___________ improvements and ________
5-10

20. The 8 Stages of a Change Process
8. __________________ new approaches
+

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. Case Study: Yahoo!
How positively has Yahoo! Changed?
16 July 2012
- Marissa Mayer appointed as CEO
Mayer@

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. 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. 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. What’s the Link?
Business
Drivers of
Change
Vision
Organization
Structure
HR
Politics
Culture
X
Strategy
UTAUT
IS Success
Model
Technology

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. IS4203 Case Presentation
Any Questions?