Running head LEADING CHANGE1LEADING CHANGE3.docx

Running head: LEADING CHANGE 1
LEADING CHANGE 3
Leading Change: An Analysis of the necessary leadership
strengths to implement Kotter’s Eight-Step Heart of Change
Introduction
When someone is asked to think of a great leader and the
strengths that individual posses, there are many different
descriptions that may come to mind. The research conducted by
Gallup Scientists which was reported in Strengths Based
Leadership by Tom Rath and Barry Conchie, suggests four main
areas to describe leadership strengths: executing, influencing,
relationship building, and strategic thinking which have thirty-
four total combined sub-descriptors (24). As change is
becoming a common practice among all businesses around the
world, we must find and utilize these strengths in all leadership
teams. So we know we need leaders and that we need change,
the question is, what types of strengths do we need in a
leadership team and how must they go about implementing

change?
Thesis: The four main strengths of leadership, according to the
SBL StrengthsFinder research, are all necessary to implement
Kotter’s eight-step change process in an organization.
Historical Background
Change
The world we live in today is evolving faster than ever
among people, places, products, markets, etc. You name it, it’s
changing. In order to keep pace with competition and new
technology in the evolving world, organizational change is
inevitable if an organization wishes to survive. Organizational
change is defined as the modification of leadership structures
and business processes (Basu). Both external and internal
factors together contribute to the need for various types of
changes. Common changes in an organization range from a
change of employee job roles, changing locations, and even
entire reconstructions in an organization (Mavromatis and
Oloffson 1).
Based on previous research, we can break down the various
rational and importance of change into three general categories.
The first is the population ecology theory, which suggests that
change stems from the development of new organizations and
those that replace existing structures. The second theory,
rational adaptation theory, focuses on strategic changes along
with individual organization changes developing from changes
in the environment, threats, and opportunities. The final general
theory, random transformation theory, proposes that
organizations change in response to internal processes (Hannan
and Freeman 150). Because change has become so prevalent
around the world, having effective leadership teams in place is
crucial to having a successful change process if an organization
wishes to survive.
Strength Based Leadership
Strength Based Leadership was created and based on a 30-
year research project conducted by Gallup scientist about 10
years ago. The research consisted of “20,000 in-depth

interviews with leaders, 50 years of Gallup Polls about the
worlds most admired leaders, and interviews with more than
10,000 followers around the world.” (Gallup). After the
research was conducted, Authors Tom Rath and Barry Conchie
put together the book, Strengths Based Leadership to share the
results. Broadly speaking, there are three main findings from
the research. First is that effective leaders always invest in their
strengths. The second suggests that surrounding yourself with
the right people leads to effective leaders. And the third,
understanding followers’ needs is critical to being an effective
leader (Gallup).
The research lead to the development of the
StrengthsFinder assessment, of which the goal is to find the
areas an individual thrives and has the ability to strengthen.
Since creating the StrengthsFinder assessment, more than 7
million people have used the tool to find out more about their
strengths (Gallup).The assessment consists of nearly 200 self-
descriptors of which participants must respond to by deciding
which item best describe themselves. For example, the
descriptor may say, “I like to help people” on one side and
“When things get tough and I need things done perfectly, I tend
to rely on the strengths of the people on my team and don’t try
to do it all myself”. Then, the participant would select which
item best describes them. In addition, they must select the
degree they believe it represents them on a scale from “Strongly
describes me” to “neutral” (Asplund, Lopez, Hodges, and Harter
3). After completion of the assessment, participants receive a
ranking of their strongest “Themes”. The researchers define a
theme as, “a category of talents, which are defined as recurring
and consistent patterns of thought, feeling, or behavior”
(Asplund, Lopez, Hodges, and Harter 4). Total they have
identified 34 themes of which each fall under four broader
domains of leadership: executing, influencing, relationship
building, and strategic thinking.
The research does not stop there. There is still one big
question to be answered: Why do people follow? To answer

this, Gallup conducted a study to find out what people need in a
leader in order for them to want to follow that individual. They
sampled more than 10,000 followers and asked them to list three
words that described a leader in their lives. As a result of this
study, they found there are four basic needs of followers: Trust,
Compassion, Stability, and Hope (Rath and Conchie).
The executing domain describes leaders who know how to
get things done/make things happen. Nine themes fall under the
executing domain including achiever, arranger, belief,
consistency, deliberative, discipline, focus, responsibility, and
restorative (Rath and Conchie). As described by the Strength
Based Leadership resources, the achiever is someone who has
stamina and likes to work hard. An individual who scores high
on the achiever strength enjoys being busy and productive. The
arranger is typically very organized. They will search for a way
to arrange resources to maximize time and efficiency. A score
high in the belief theme indicates an individual that has strong
core values and a purpose in life. A believer is deeply
connected to their values and beliefs. Consistency represents
individuals who understand the importance of treating everyone
the same. These individuals are generally rule followers and
predictable. If an individual is very careful in their decision-
making, they may be defined as deliberative. Deliberative
individuals are careful decision makers. They look for and
prepare for obstacles they anticipate will occur. The discipline
theme describes people who are very structured and often tend
to create order. These individuals like and prefer routine daily
schedules. Many of these individuals will follow a strict
schedule. The focus area describes those who take direction and
follow through. These individuals are great at prioritizing and
then completing the tasks as necessary. Responsibility typically
applies to anyone who takes ownership for his or her actions
and values honesty and loyalty. The last theme under the
executing domain is restorative. The restorative theme is one in
which people are problem solvers. Specifically, they succeed at
uncovering a problem and fixing it (Rath and Conchie). An

individual does not need to possess all of these traits in order to
fall under the executing domain. However, the more you
exhibit, the more likely you are to be an executer.
The next domain stemming from the StrengthsFinder
results is Influencing. Rath and Conchie describe the
influencing domain by stating, “People with strength in this
domain are always selling the team’s ideas inside and outside
the organization” (Rath and Conchie 25). Someone who ranks
high in the influencing domain is a good person to look toward
to take charge and assure that the group’s vision is heard. Eight
themes fall under the influencing domain: Activator, Command,
Communication, Competition, Maximizer, Self-Assurance,
Significance, and Woo (Rath and Conchie).
The activator is someone who has the ability to get things
done and make things happen. They are able to do this by
turning thoughts into action. Often times, activators are
described as impatient. An individual who is said to have
command is likely to have control of the situation. These
individuals are usually the ones to make decisions for a group
or team. As for the communication theme, these individuals in
simplistic terms are good at communicating. It is easy for these
individuals to express their thoughts in words. Competition,
another theme under influencing, is the idea that individuals
compare themselves to others in hopes of being the best. The
maximizer is one who looks for the strengths of the group and
utilizes them to help the team grow. They find something the
group is good at and strive to make them the best at it. Self-
assurance is the theme that discusses confidence in ones own
life decisions. Significance is the concept in which an
individual desires to be important to others. These individuals
want others to recognize them. Finally, the Woo theme in this
domain represents those who enjoy meeting new people, making
a connection with them by breaking the ice, and ‘winning them
over’. Someone who is good a “wooing” can be characterized as
a “charmer” (Rath and Conchie).
The third domain proposed from the Gallup poll findings is

Relationship Building. Relationship building is defined as,
those individuals who “have the ability to create groups and
organizations that are much greater than the sum of their parts”
(Rath and Conchie 25). Adaptability, Developer,
Connectedness, Empathy, Harmony, Includer, Individualization,
Positivity, and Relator are the nine themes that make up the
Relationship Building domain. To begin, adaptability is a theme
that is similar to flexibility. Those who are adaptable tend to
“go with the flow” and handle things as they come at them. The
developer is able to see the potential of those around them.
These individuals genuinely are happy for other people’s
success and growth. Most of us know someone who believes
that “everything happens for a reason” and that there is no such
thing as a coincidence. Based on the strength based leadership
approach, these individuals fit into the connectedness theme.
Empathy is a characteristic that many people strive to develop
in order to grow a relationship. Empathy is having the ability to
put yourself in someone else’s shoes and imagine feeling the
way they do. Conflict is something that can be both helpful and
harmful to relationships. From the research conducted by the
Gallup poll, they have defined the harmony theme as if conflict
is not good for relationships. The harmony theme describes
those who avoid conflict and look for areas in which they can
agree on with others. The includer is another theme that
describes individuals that are strong in building relationships.
An includer does not like to see people left out and will go out
of their way to include them. Although relationship builders
want to include everyone, they also accept the differences
among the group. This concept is defined as individualization.
This is when someone enjoys the unique differences among
people and wants to use them to their advantage. Most people
enjoy being around optimistic rather than pessimistic people.
Someone who is optimistic is likely to have great positivity.
Positivity is the idea of contagious enthusiasm and ability to
excite others around them. In turn, this positivity encourages
others to work. A relator, the final theme under the relationship

building domain, is one who likes working with friends and
desires close relationships (Rath and Conchie).
The importance of building relationships is not surprising.
In fact, it has been suggested that “humans are wired for social
connection” (Umberson, Crosnoe, & Reczek 15). We, as a
human species, both desire and actually need healthy
relationships with others.
The forth and final domain established from the Gallup
Poll is Strategic Thinking. Strategic thinkers are those who,
“keep us all focused on what could be… they are constantly
absorbing and analyzing information and helping the team make
better decisions” (Rath and Conchie 26). The last eight themes
all fall into the strategic thinking domain. They are Analytical,
Context, Futuristic, Ideation, Input, Intellection, Learner, and
Strategic. Analytical people are those who are able to identify
all factors that affect a situation. Cause and affect is the way of
thinking for analytical minds. The context theme portrays
individuals that are fascinated by the history and background
and using it to understand the current situation. Another theme
of strategic thinking, futuristic, are those who have the ability
to look into the future and create a vision. These people are also
able to use their own vision of what is ahead to motivate others
to look into the future. Not all strategic thinking is analytical
with simple cause and affect. Another theme of strategic
thinkers is ideation. Ideation individuals are able to come up
with creative ideas with their imagination. They are able to
think outside the box and develop ideas when others cannot.
Critical thinking is assumed to be very important to successful
leaders. Along with critical thinking comes the desire to know
more and want to know all the information possible or in other
words, input. Intellection is another feature of those who engage
in critical thinking. Intellectual individuals are often the
‘thinkers’ of the group and like to have highly intellectual
conversations with others. Many times when we use the term
learner, we associate it with the word follower. However, these
terms are not exactly the same. A follower is someone who

takes after a leader. While on the other hand, a learner is
someone who constantly seeks out ways to improve and learn
new skills or methods. The most unsurprising theme of them all,
strategic, also falls under the strategic thinking domain.
Strategic describes individuals who find new solutions or
alternative methods to move forward with a task when an
obstacle arises. In addition, those who score high in the
strategic theme notice patterns and issues and use them to find
new ways to proceed with a task (Rath and Conchie).
Strategic thinking is another crucial element for a
successful organization. According to the Harvard Business
Review, “a strategic approach to leadership was, on average, 10
times more important to the perception of effectiveness”
(Kabacoff). With that being said, it is not by any means an easy
skill to master. Therefore, having this skill in your organization
is something to look for, hold on to, and utilize to your
advantage in order to grow a successful organization.
Kotter’s Eight Step Change Process
John Kotter originally wrote a book in 1996, Leading
Change, that discusses why people often failed in their effort to
implement change (Cohen). In the original book, Kotter
presented an eight-step model for successful change in an
organization. Although the book was a success, many people
wanted more research and more advice. Because of a suggestion
by Deloitte Consulting, Kotter collaborated with Dan Cohen to
uncover stories from large-scale organizational changes by
interviewing about 100 organizations. The results of their
finding were published in their book, The Heart of Change, in
2002 (Cohen). Below is the visual representation of the Eight-
step process for leading successful change: The Heart of Change
model.
Source: Cohen, 2009, The Heart of Change Field Guide
Kotter and Cohen have broken the eight steps into three
phases: creating a climate for change, engaging and enabling
the whole organization, and implementing and sustaining the

change. Within those phases are eight steps of change: Increase
urgency, build guiding teams, get the vision right, communicate
for buy-in, enable action, create short-term wins, don’t let up,
and make it stick.
The first phase of the process, creating a climate for
change, focuses on creating the necessary energy to foster
change (Cohen). The first step, which falls into this phase, is
creating a sense of urgency. In this step, the leaders must
energize their followers with a “lets-go” attitude. There are
several ways to create urgency among followers. One, show
them why there is a need for change by displaying something
they can see and feel. Two, provide outside evidence that
change is necessary. Three, be cautious and look for alternatives
to complacency and fear (Kotter and Cohen). The second step is
to build a guiding team. A CEO simply cannot successfully
implement change on their own. Rather, a team of the ‘right
people’ and teamwork are required to create a successful
guiding team. The right people are those who have the
necessary skills, leadership, and credibility. A guiding team is
composed of the appropriate knowledge, credibility, internal
understanding of the organization, and formal authority coupled
with managerial skills such as planning, organizing, and
control. In addition, a guiding team will have visionary,
community, and motivational leadership skills (Kotter and
Cohen). An example provided by Kotter and Cohen of a
successful guiding team was made up of representatives from
each area of the organization including finance, human
resources, corporate affairs, IT, regional leaders, and asset
managers. The third step is to get the vision right. This step in
the heart of change process is where a “clear, inspiring, and
achievable picture of the future” is created (Cohen).
Engaging and enabling the whole organization is the
second phase of the heart of change model. This second phase,
centers around involving stakeholders through a demonstration
of leadership (Cohen) and includes steps four, five, and six of
the model. Step four is to communicate the vision for buy in. In

this step, the vision and change strategies are communicated to
as many people as possible in order to gain buy in and followers
to act in ways that move toward the vision. The most successful
messages of change are simple and heart-felt rather than
complex. The fifth step is to empower or enable action. In order
to obtain the required action, the barriers must be removed from
the process. Barriers often times can include a boss who is stuck
in their ways, poor evaluation and reward systems, and lack of
information (Kotter and Cohen). By removing each of these
obstacles, we are able to empower and enable action. The sixth
step, creating short-term wins, is critical to gaining the
involvement of stakeholders. Creating short-term wins, helps
maintain, “faith in the change effort, emotionally rewards hard
workers, keeps the critics at bay, and builds momentum” (Kotter
and Cohen). Short-term wins, such as providing feedback to
leaders to validate their vision, giving hard workers a ‘pat on
the back’, and taking power away from critics, will help keep
the change efforts strong (Kotter and Cohen).
The third and final phase, implementing and sustaining the
change, suggests, “Insuring that the change is lasting by leaders
being tenacious” (Cohen). The final two steps, seven and eight,
are in this phase. The seventh step is to not give up and
maintain momentum. The key in this step is not to celebrate a
successful win too early. Many organizations simply reduce
urgency when they see the first sign of a completed change
process. A simple rational for this is that change is exhausting
and an organization is likely to move on to the next task as soon
as possible. In order to insure the continued success of a
change, the urgency, energy level, vision, leaders, and its
followers all must remain strong (Kotter and Cohen). The eighth
and final step in the heart of change is to make the change stick.
Although it is the last step, it can arguably be the most
important because of the difficulty that comes along with it. In
order to make the change stick, an organization must change
their deeply rooted culture and shared values. In order to do so,
“leaders must recognize, reward, and model the new behavior in

order to embed it in the fabric of the organization and make the
change ‘the way we do business here’” (Cohen). In addition to
rewarding the new culture among followers, people in power
should be those who have embraced the new culture.
By following the Heart of Change model, an organization
can implement a change effectively. However, in today’s fast
pace and evolving world, change is inevitable and sooner or
later organizations will have to go through change again
whether it be because of external or internal forces. Therefore,
we know that in today’s world, change is happening and it
happens more often than many would like. We also know that
there are certain leadership domains and themes that describe
successful leaders. In addition, we have the tool necessary to
effectively implement change, Kotter and Cohen’s Heart of
Change model. To have the most effective implementation of
the Heart of Change model, each domain of the Strength Based
Leadership must play a role in the process.
Analysis
Each step in Kotter’s Heart of Change Model requires at
least one domain of leadership identified in the Strengths Based
Leadership. The first step, urgency, focuses on creating a “lets
go” attitude. The Influencing domain of Strengths Based
Leadership is demonstrated in this step. Specifically, the
activator theme, which describes those who are able to get
things done by turning thoughts into action (Rath and Conchie).
An example of this can be demonstrated from a company that
motivated their employees to change. The company videotaped
their customers complaining about the craftsman’s work and the
manager played the video in front of the craftsman (Kotter and
Cohen). Because the craftsman were able to physically see and
hear the customers complaints first hand instead of by word of
mouth from the manager, the sense of urgency and desire to
change was elevated. The manager engaged in the activator
theme by using a physical tool to turn words into action.
The second step, building guiding teams, relates heavily to
the relationship building domain in the Strengths Based

Leadership. Both of these concepts focus on the importance of
developing strong relationships between leaders, followers, and
peers. Developer, includer, and individualization are three
themes required to complete the second step of the Heart of
Change model. One CEO was able to put together a successful
team to focus on organic growth. His tactic was to choose a
member from each major section of the organization such as
“finance, HR, corporate affairs, IT, regional leaders, and asset
managers” by doing this, he was able to ensure that each area of
the company was represented (Kotter and Cohen). In this
example, the CEO utilized all three themes. He was a developer
because he was able to identify the potential of bringing these
individuals together. The CEO was also an includer by making
sure to include a representative from each area of the
organization. In addition, he utilized individualization because
he realized that each member was unique with different
perspectives and by bringing them all in, demonstrated how he
valued each one of their opinions.
During the third step of the change process, getting the
vision right, both executing and strategic thinking domains are
necessary for proper implementation. Kotter and Cohen used an
example of a real estate agent and a buyer to demonstrate
getting the vision right. The real estate agent suggested the
buyer make a list of everything they wanted to fix and to get it
done in the first six months. However, the buyer wanted to take
five years and slowly get everything done. The real estate agent
said they recommended completing everything in the first six
months or it wont get done because buyers simply get used to
how things are and don’t end up fixing it. In the end, five years
later, the buyer admitted that anything that wasn’t completed in
the first six months never got finished (Kotter and Cohen). The
executing themes played a crucial role in order to getting the
vision right by inspiring an ‘achievable picture of the future’.
The achiever role is someone who has stamina and works hard
to get things done. In the agent-buyer example, stamina and
hard work are required in order to complete the changes. The

arranger and discipline themes are required because one must
organize their time and priorities to make the fixes in six
months. Also, the focus theme is crucial in this example
because the buyer needs to prioritize, complete the tasks, and
follow through with the plan. The domain of strategic thinking
is also necessary to create a vision. Specifically, an individual
needs to be futuristic if they wish to look into the future and
create a vision of the finished project. In the example provided
by Kotter and Cohen, the buyer needed to be able to imagine
what the finished project will look like.
Communicating for buy-in is the forth step in the Heart of
Change model and also requires an element from Strengths
Based Leadership. With the influencing domain, leaders should
utilize the communication theme to gain buy-in. Kotter and
Cohen suggest that in order for effective communication the
“the message communicated to employees must be simple and
heartfelt, not complex and technocratic”. Those who are strong
in the Strength Based Leadership Communication theme are
therefore good people to communicate the change efforts
because they are able to express their complex thoughts in
simplified words that are easy for followers to understand.
Enabling action, the fifth step in the Heart of Change
model, requires elements of both the relationship building and
strategic thinking domain. Within the relationship building
domain, positivity should be utilized to help enable action.
There was a company whose managers only received direction
when something was wrong and needed fixing. Because of all
the negative feedback, the employees agreed to have meetings
in which they discuss areas of improvement. However, these
meetings turned into a time for employees to complain about
different aspects of the job. Because of all the negativity,
employee moral is down and nothing is improving. The
company decided to record a couple of employees going about
their jobs. The employers were able to watch the tape back,
identify areas that could be improved, and implement ways to
make work better (Kotter and Cohen). From this example, we

can see that without positivity it is difficult to identify realistic
solutions and foster improvement as a team. With contagious
positivity, employees are motivated to improve. This example
also demonstrates the benefits of strategic thinking. The
company utilized the strategic theme by coming up with
alternative methods to approach team meetings and searching
for new solutions.
The sixth step, creating short-term wins, involves the
arranger and achiever themes from the executing domain as well
as the woo theme from the influencing domain. In the example
from Kotter and Cohen, a transportation department was looking
to make several changes in order to create better service for
their clients. They knew the senator, who also happened to own
a tucking company, could be of potential help. So, they
approached him and asked for recommendations as to what can
be improved. They were not thrilled with his answer but knew
that if they resolved his issue, he would be satisfied and, in
turn, be of assistance to them on bigger projects later on.
Therefore, winning over the senator was a short- term win. The
trucking company utilized the arranger and achieve themes by
staying organized and looking for ways to be efficient. They
realized that helping the senator now, will make things more
efficient long term and maximize their resources to get things
done. The company utilized the Woo theme from the influencing
domain by winning over the senator in hopes of him returning
the favor later.
The seventh step, don’t let up, centers around the strategic
domain of Strengths Based Leadership. The most common
example of giving up starts when an organization prematurely
declares a successfully completed change. As a result, urgency
declines. In order to avoid this, the company should activate the
learner and futuristic themes. A learner is someone who
constantly searches for area of improvement and ways to do
better. They are always finding new skills and methods to
implement. This theme is crucial because during the seventh
step it is important to continuously look for areas that need

improvement. Since today’s world is continuously changing,
companies need to always look for ways to learn more. The
futuristic approach also ties in here. It is important to always
keep focused on the vision and to not let up when parts of the
vision start to take shape.
The eighth and final step in the Heart of Change model is
to make it stick. This step requires command, maximizer, and
woo themes from the influencing domain. A company that is
able to make the change stick, puts people in power that have
absorbed and embraced the new culture. The people in power
during and after a change process need to command the
situation with their control. If those in power do not take
control of the situation, the followers are going to resist the
change and revert to their old ways. Also, the leaders need to
utilize the maximizer theme. Kotter and Cohen suggest that
those in power should value the new culture. Therefore, the
maximizer theme is exhibited because those in power are
selected as the individuals who have strong shared cultural
values that mirror the organizations values. They then use this
to help the followers grow and accept the new culture. And
finally, if leaders are able to win over their followers by getting
them to embrace the new culture, they are one step closer to
making the change stick.
Conclusion
After reviewing each of the four domains of Strengths
Based Leadership, the 34 supporting themes, and Kotters Eight-
Step Heart of Change Model it is evident that all four domains
of leadership are necessary to implement the change process in
an organization. Change is becoming inevitable in todays world.
It is almost as if we must stay in a continuous change effort in
order to survive among the competition. It is not necessary or
even feasible for an individual to possess and thrive in all four
domains of leadership, however developing a team of
individuals who, as a whole, represent each domain can help
lead an organization through change. Rath and Conchie said it
best, “Although individuals need not be well-rounded, teams

should be” (23). Teams that identify their members’ strengths
and follow the Heart of Change Model are on their way to
successful change.
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Influence of Digital Technology on Roadmap
Development for Digital Business Transformation
Iryna Strutynska
Department of Computer Science
Ternopil Ivan Puluj National Technical
University
Ternopil, UKRAINE
[email protected]
Galina Kozbur

University
Ternopil, UKRAINE
[email protected]
Lesia Dmytrotsa
University
Ternopil, UKRAINE
[email protected]
Olena Sorokivska
Department of Management and Administration
Ternopil Ivan Puluj National Technical University
Ternopil, UKRAINE
[email protected]
Liliya Melnyk
Department of Management and Administration
Ternopil Ivan Puluj National Technical University
Ternopil, UKRAINE
[email protected]
Abstract—In a highly competitive information economy,
business structures require continuous introduction of
innovation, effective information technology to ensure
sustainable long-term market benefits, as well as their rational
functioning. The implementation of the digital business model
is
one of the promising areas, which makes it possible to realize
the
activity of enterprises even more productively. The digital
business model allows businesses to react more responsibly to

the needs of potential buyers and customers, and also helps
adapt and optimize business processes over a certain period of
time to certain market conditions. That is why, the purpose of
the article is to identify the peculiarities of the influence of
digital technology on the transformation of existing business
models of organizations. In view of this, an in-depth analysis of
the main stages of the development of a roadmap for the digital
transformation of business has been carried out; business
process management software products and the most suitable
ones have been examined. The article studies digital
technologies
in the context of enterprise business groups and reflects how
relevant technologies affect the transformation of the existing
linear business model into the digital business model and
reflects
the most significant effects for business.
Keywords—information technology, digital economy, digital
technologies, information management system, digital business
model, business processes, BPM, business process management,
CRM, ERP.
I. INTRODUCTION
In this digital era, the pace of change is extremely
frustrating and each organization encounters existential
threats from new and existing competitors. In the era of the
Industrial Revolution 4.0, technology is the right of any
company to change its own business model so as to
differentiate itself from the entire world market.
The competitiveness of business structures is shaped by
the use of digital technologies, the application of the
information management system, reengineering and the
transformation of existing business processes into new digital
business models.

Digitalization is the use of digital technologies to change
the business model and provide new revenue and value-
producing opportunities; it is the process of moving to a
digital business [1-7].
The problem of the development of the digital economy
and the transformational processes taking place in society
under the influence of digitization has received a lot of
attention among both foreign authors [1-2, 10-12] and
Ukrainian researchers [3, 5-6], etc.
Fig. 1. The evolution Digital Business Development Path
(Source: Author’s interpretation based on: Gartner)
Despite numerous scientific studies on the development
of information and communication technologies and the
digital economy, we consider that the issues of the impact of
digital technology on the transformation of existing business
models of the organization are insufficiently examined.
II. PROBLEM ANALYSIS AND MARKET TRENDS
On the one hand, in the market of information
technologies and services, there are already a lot of software
products (world and domestic) that are largely able to fill the
gaps in information technology companies. Domestic
business is in search of suitable technologies for business
automation, is familiar with the best European and world
practices of digital transformation.
The development of information technology (systems) of
management for a particular business is a project for the
development of a roadmap for the digital transformation of
business. This is a very important project that requires
significant financial support, highly trained specialists and

knowledge-intensive technology, knowledge in many areas,
namely, project management, digital development
management and others (fig. 2).
978-1-7281-0450-8/19/$31.00 ©2019 IEEE 333
Fig. 2. Relationships Computer Science, Information Systems
with Business World
Before deciding on the use of any information technology
in business, it is necessary to analyze the current business
model (fig. 3) and the business processes of the organization,
to understand the problems that are encountered by the
relevant stakeholders, and only then integrate into the digital
transformation.
Fig. 3. Elements of the business model canvas
(Source: Author’s interpretation based on: Osterwalder, 2010)
In general, modern business solves the triple strategic task
for strengthening their competitive positions:
first, it is necessary to establish closer relations with
suppliers and clients (the sector of work with clients, increase
sales);
second, to increase the level of own operational
efficiency (the sector of effective operational activity of the
organization);
third, to increase the competitiveness of products
produced (consolidation of certain sectors of the business
model).

The fulfilment of all these tasks is impossible without the
integration of information systems and technologies into the
business sphere.
We offer to consider achievement of these three tasks
through the prism of business processes of the organization
using certain information technologies (digital instruments)
(Table 1).
TABLE I. GROUPS OF BUSINESS-PROCESSES OF
ORGANIZATION AND DIGITAL TECHNOLOGIES OF THEIR
TRANSFORMATION
# Groups of business-
processes of organization
Digital instruments
(systems, products, digital
decisions)
Task 1. Establishing closer relations with suppliers and
customers
1 Interaction with suppliers
Management)
2 Interaction with customers
(consumers)
Systems CRM (Customer
Relationships Management)
Task 2. Increase the level of own operational efficiency
3 Resources management ERP (Enterprise Resources

Planning)
4 Management of Business
Process
BPM-system (Business process
management)
5 Analytical component
management (data analysis)
Technologies Big Data, Data
mining, OLAP-cube, cloud
computing,
6 Providing modern
technologies to employees
of the company to
effectively carry out daily
work
Office 365, Google doc, use of
CRM system, dashboards for
evaluation of key indicators
Task 3. Increase the competitiveness of products
7 Product management
(control, storage and
provision of necessary
information)
Systems PLM (Product Lifecycle
Management) and PDM (Product
Data Management), digital
sensors, GIS technology and

others.
8 Marketing activity,
including:
New ways to attract
customers;
Search for effective sales
channels for a particular
consumer;
Changing products or
services using technology.
Digital Internet Marketing Tools
Google Analytics, Google
AdWords; SEO and SMM
Using chat bots to communicate
with customers;
Forming funnel sales;
Connecting a virtual or
complementary reality to a
shopping mall, collecting
customer data.
One of the possible options for an effective and efficient
organizational information support system for the enterprise
is a system that is integrated with the technology of
operational management of business processes.
334
III. SOFTWARE TOOLS FOR MODELING BUSINESS
PROCESS
It is necessary to use informational products that enable

us to simulate business business processes, the so-called "As
Is" model (the “How It Is” Business Processes Model), which
will allow you to see “weak areas” in business, build a new
business model of business-processes, that is, model “To Be”.
These information products will allow you to structure and
automate business processes (reengineering business
processes) of the enterprise.
In the IT market there is a differentiated set of BPM
systems. That is why as the basis for the study «Gartner magic
quadrant bpm tools, 2018» [13] was considered and other
researches [11, 14]. All the information is systematized in
table 2 where TOP 10 BPM-systems are listed and their
characteristics are provided.
TABLE II. 10 BPM-SYSTEMS AND THEIR
CHARACTERISTICS
BPM
Systems Vendor Details
Easy to use Standards support License and cost
Integration with
other corporate
applications
Ability to
dynamically
change the
business
process

ELMA BPM
Founded 2007
Luxembourg
Cloud, SaaS, Web Installed
- Mac
Installed - Windows
Mobile - Android Native,
Mobile - iOS Native
BPMN
Paid,
Free Demo and
free version for five
jobs
Ability to integrate
with "1 C: Enterprise" Yes
Bizagi BPM
Founded 1989
United
Kingdom
Cloud, SaaS, Web
Installed - Windows
Mobile - Android Native,
Mobile - iOS Native

BPMN,
XPDL
Paid,
Free Demo and
free version
Wide possibilities of
integration with CRM
and ERP systems Yes
Bitrix24 Founded 1998 United States
Cloud, SaaS, Web
Installed - Mac
Installed - Windows
Mobile - Android Native
Mobile - iOS Native
IDEF, BPMN
Paid (Starting Price
$39.00/month),
Over 10,000
intranets created
already! Up to 12
users free!
Wide possibilities of
integration with CRM

and ERP systems Yes
Oracle BPM
Founded 1977
United States Convenient and simple, realization of violin tasks
BPMN,
BPEL
Paid,
Free Demo
Wide integration
possibilities Yes
erwin
Business
Process
Founded 1988
United States
Deployment Cloud, SaaS,
Web
Installed - Windows
IDEF0,
IDEF3, DFD
Paid,
Free Demo, free
version

Wide integration
possibilities Yes
Appian Founded 2004 United States
Convenient and simple,
realization of violin tasks BPMN
Paid (Starting Price
$75.00/month), Free
Demo
To store ARIS models,
an object database is
used
No
IBM
Blueworks
Live
IBM Cloud-based BPM
platform. Simple and
straightforward
BPMN Paid,
Free Demo
Wide integration
possibilities
Yes

Bpm’online Founded 2011
Ukraine, United
States
Is ideal for middle-sized
companies and enterprises BPMN Paid, Free Demo
Wide integration
possibilities
Yes
Bonita BPM Founded 2001
France
realization of violin tasks BPMN Bonita open solution
Wide integration
possibilities
Yes
Pegasystems Founded 1983
United States
developed on Java and
OOP concepts
BPMN
Paid,
Free Demo and

free version
Wide integration
possibilities
Yes
Each of the above systems deserves attention. However,
we offer in practical examples a more detailed analysis of the
most suitable software products. The following perspectives
are taken into account: the features of the system, prices and
simplicity of its use (Erwin Business Process, Bitrix24,
Bizagi BPM, ELMA BPM, Pegasystems, Bonita BPM).
(Erwin Business Process, Bitrix24, Bizagi BPM, ELMA
BPM, Pegasystems, Bonita BPM).
IV. PRACTICAL RESULTS
After the practical use of these six BPM systems, we have
chosen two systems that are cost-effective, the most simple
and easy to use.
The advantages of BPM system Erwin Business
Process:
1. Clear, standard, and concise representation of the
elements. To ensure the unity of representing elements of data
models in ERwin, standardized representations of object
names, standardized data types, and standard model samples
(reference models) are used. Visual representation of large
data arrays. Due to the powerful graphic system and
navigation system (IDEF0, IDEF3, DFD);
2. The ability to interact with users. ERwin provides
various opportunities for sharing information among all
members within an organization. Collaborative work with

Depositary Users. ERwin provides automatic version control,
access control, conflict management, and model modification
to work together effectively. At the expense of the web portal,
business analysts, technical specialists and others can access
data models in understandable configurations for them;
335
3. Application of open architecture. ERwin provides
extensive integration opportunities with other process
modeling and information system development tools (more
than 120 different tools).
Fig. 4. BPM for Agroholding Mriya (IDEF0, IDEF3)
BPM ELMA system has a sophisticated yet clear
interface. It is distributed in three versions intended for
organizations with different needs and staff numbers. In
addition, there is a free version for five jobs, which makes it
possible to use it fully in the activities of small businesses
(Fig. 5).
When an enterprise establishes the necessary
configuration of all business processes and coordinates it with
the organizational system, it is at this stage that makes it
possible to decide on the application of certain digital
technologies in the context of different groups of business
processes.
Fig. 5. BPM «Receiving an order from a client» (Agroholding
Mriya»
(system BPM ELMA, BPMN)
It is precisely the implementation of certain information

management systems in the existing business model that will
lead to data transformation and the emergence of a new
digital business model (Fig. 6).
Fig. 6. Digital focus areas are drivers for transforming existing
business models
(Source: structured by the authors on the basis of the conducted
in-depth analysis)
336
With the use of modern information technology business
transforms into a new business model and receives significant
benefits:
- access to new markets;
- added value of the product through technology
- intensification and automation of existing business
processes;
- consolidation of key resources (6), key activities (5),
customer relationships (4) and sales channels (3) in integrated
digital business processes based on certain digital systems
(platforms);
- change of business culture;
- formation of a single ecosystem;
- intelligent analytics and forecasting;
- effective cooperation with clients, customers and
partners;
- optimization of system management (including

reduction of funds);
- acceleration of economic cycles;
- efficient use and release of production and warehouse
capacities as a result of reduction.
V. CONCLUSIONS
It is determined that the emergence of the digital economy
has opened new opportunities for the development of
business structures.
New digital technologies have affected the transformation
of existing business models of organizations. Digital business
models have begun to penetrate large and small companies in
different sectors.
That is why in the article the features of application of
modern information technologies in the context of groups of
business. That is why in the article the features of application
of modern information technologies in the context of groups
of business processes and components of business models of
the organization are explored. In view of this, an in-depth
analysis of the main stages of the development of a roadmap
for the digital transformation of business has been carried out;
business process management software products and the most
suitable ones have been examined. The research reflects how
relevant technologies affect the transformation of the existing
linear business model into the digital business model and
discovers the most significant effects for business.
In a future version of this article, we intend to propose to
consider current models and methodologies for calculating
the digital transformation index of EU countries and the
world. We will analyze the general structure of the indicators,

we will pay special attention to the analysis of indicators of
the index of digital transformation of business structures and,
based on this, we will work towards adapting and developing
our own methods and methodologies for digital
transformation for the domestic economy and business
structures.
REFERENCES
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economy.pdf
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ekonomika-tse-realno-1001102.html
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stanovlennia v Ukrain u sv t / S. V. Koliadenko. // Ekonom
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[8] [Osterwalder and Pigneur, 2010] Osterwalder, A. and
Pigneur, Y.
(2010). Business Model Generation: A Handbook for
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Game Changers, and Challengers. John Wiley and Sons Inc.
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Leading Digital:
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management-bpm
337
MGMT 56056 – Leadership Theory
Introduction
In 2003, Head Coach Roy Williams, after leading the Kansas
Jayhawks to the finals of the NCAA tournament, left the
University of Kansas to return to his alma mater, the University
of North Carolina at Chapel Hill. In the subsequent search for
new head coach, one candidate was quickly identified as the
target of the University: University of Illinois Head Coach Bill
Self. At the time of his selection, Self was still a relative
newcomer to head coaching, having only 10 years’ experience
as a head coach, with just three years at a power conference
school. Despite this concern by some of the alumni, Coach Self
has performed in an exemplary manner winning 13 straight Big

12 conference titles, making two Final Fours, and winning the
National Championship in 2008.
Thesis Statement
Bill Self, head coach of Kansas Jayhawks men’s basketball team
and 2017 inductee into the Naismith basketball Hall of Fame,
has achieved much of his success through use of many of the
practices presented in The Leadership Challenge and
embodiment of the theories presented in Fiedler’s Contingency
Theory.Background on Coach Self
Collegiate Playing Career
Assistant Coaching
Head Coaching Prior to KansasBackground and Explanation of
Leadership Theories Examined
TLCModel the WayInspire a Shared VisionChallenge the
ProcessEnable Others to ActEncourage the Heart
Fiedler’s Contingency TheoryRelationship-Oriented
LeadershipTask-Oriented LeadershipExamples of Coach Self
Use of Leadership Theories
0. TLCModel the WayInspire a Shared VisionChallenge the
ProcessEnable Others to ActEncourage the Heart
Fiedler’s Contingency TheoryRelationship-Oriented
LeadershipTask-Oriented LeadershipConclusions
Running head: LEADING CHANGE 1
LEADING CHANGE 3

Leading Change: An Analysis of the necessary leadership
strengths to implement Kotter’s Eight-Step Heart of Change
Introduction
When someone is asked to think of a great leader and the
strengths that individual posses, there are many different
descriptions that may come to mind. The research conducted by
Gallup Scientists which was reported in Strengths Based
Leadership by Tom Rath and Barry Conchie, suggests four main
areas to describe leadership strengths: executing, influencing,
relationship building, and strategic thinking which have thirty-
four total combined sub-descriptors (24). As change is
becoming a common practice among all businesses around the
world, we must find and utilize these strengths in all leadership
teams. So we know we need leaders and that we need change,
the question is, what types of strengths do we need in a
leadership team and how must they go about implementing
change?
Thesis: The four main strengths of leadership, according to the
SBL StrengthsFinder research, are all necessary to implement
Kotter’s eight-step change process in an organization.
Change

The world we live in today is evolving faster than ever
among people, places, products, markets, etc. You name it, it’s
changing. In order to keep pace with competition and new
technology in the evolving world, organizational change is
inevitable if an organization wishes to survive. Organizational
change is defined as the modification of leadership structures
and business processes (Basu). Both external and internal
factors together contribute to the need for various types of
changes. Common changes in an organization range from a
change of employee job roles, changing locations, and even
entire reconstructions in an organization (Mavromatis and
Oloffson 1).
Based on previous research, we can break down the various
rational and importance of change into three general categories.
The first is the population ecology theory, which suggests that
change stems from the development of new organizations and
those that replace existing structures. The second theory,
rational adaptation theory, focuses on strategic changes along
with individual organization changes developing from changes
in the environment, threats, and opportunities. The final general
theory, random transformation theory, proposes that
organizations change in response to internal processes (Hannan
and Freeman 150). Because change has become so prevalent
around the world, having effective leadership teams in place is
crucial to having a successful change process if an organization
wishes to survive.
Strength Based Leadership
Strength Based Leadership was created and based on a 30-
year research project conducted by Gallup scientist about 10
years ago. The research consisted of “20,000 in-depth
interviews with leaders, 50 years of Gallup Polls about the
worlds most admired leaders, and interviews with more than
10,000 followers around the world.” (Gallup). After the
research was conducted, Authors Tom Rath and Barry Conchie
put together the book, Strengths Based Leadership to share the
results. Broadly speaking, there are three main findings from

the research. First is that effective leaders always invest in their
strengths. The second suggests that surrounding yourself with
the right people leads to effective leaders. And the third,
understanding followers’ needs is critical to being an effective
leader (Gallup).
The research lead to the development of the
StrengthsFinder assessment, of which the goal is to find the
areas an individual thrives and has the ability to strengthen.
Since creating the StrengthsFinder assessment, more than 7
million people have used the tool to find out more about their
strengths (Gallup).The assessment consists of nearly 200 self-
descriptors of which participants must respond to by deciding
which item best describe themselves. For example, the
descriptor may say, “I like to help people” on one side and
“When things get tough and I need things done perfectly, I tend
to rely on the strengths of the people on my team and don’t try
to do it all myself”. Then, the participant would select which
item best describes them. In addition, they must select the
degree they believe it represents them on a scale from “Strongly
describes me” to “neutral” (Asplund, Lopez, Hodges, and Harter
3). After completion of the assessment, participants receive a
ranking of their strongest “Themes”. The researchers define a
theme as, “a category of talents, which are defined as recurring
and consistent patterns of thought, feeling, or behavior”
(Asplund, Lopez, Hodges, and Harter 4). Total they have
identified 34 themes of which each fall under four broader
domains of leadership: executing, influencing, relationship
building, and strategic thinking.
The research does not stop there. There is still one big
question to be answered: Why do people follow? To answer
this, Gallup conducted a study to find out what people need in a
leader in order for them to want to follow that individual. They
sampled more than 10,000 followers and asked them to list three
words that described a leader in their lives. As a result of this
study, they found there are four basic needs of followers: Trust,
Compassion, Stability, and Hope (Rath and Conchie).

The executing domain describes leaders who know how to
get things done/make things happen. Nine themes fall under the
executing domain including achiever, arranger, belief,
consistency, deliberative, discipline, focus, responsibility, and
restorative (Rath and Conchie). As described by the Strength
Based Leadership resources, the achiever is someone who has
stamina and likes to work hard. An individual who scores high
on the achiever strength enjoys being busy and productive. The
arranger is typically very organized. They will search for a way
to arrange resources to maximize time and efficiency. A score
high in the belief theme indicates an individual that has strong
core values and a purpose in life. A believer is deeply
connected to their values and beliefs. Consistency represents
individuals who understand the importance of treating everyone
the same. These individuals are generally rule followers and
predictable. If an individual is very careful in their decision-
making, they may be defined as deliberative. Deliberative
individuals are careful decision makers. They look for and
prepare for obstacles they anticipate will occur. The discipline
theme describes people who are very structured and often tend
to create order. These individuals like and prefer routine daily
schedules. Many of these individuals will follow a strict
schedule. The focus area describes those who take direction and
follow through. These individuals are great at prioritizing and
then completing the tasks as necessary. Responsibility typically
applies to anyone who takes ownership for his or her actions
and values honesty and loyalty. The last theme under the
executing domain is restorative. The restorative theme is one in
which people are problem solvers. Specifically, they succeed at
uncovering a problem and fixing it (Rath and Conchie). An
individual does not need to possess all of these traits in order to
fall under the executing domain. However, the more you
exhibit, the more likely you are to be an executer.
The next domain stemming from the StrengthsFinder
results is Influencing. Rath and Conchie describe the
influencing domain by stating, “People with strength in this

domain are always selling the team’s ideas inside and outside
the organization” (Rath and Conchie 25). Someone who ranks
high in the influencing domain is a good person to look toward
to take charge and assure that the group’s vision is heard. Eight
themes fall under the influencing domain: Activator, Command,
Communication, Competition, Maximizer, Self-Assurance,
Significance, and Woo (Rath and Conchie).
The activator is someone who has the ability to get things
done and make things happen. They are able to do this by
turning thoughts into action. Often times, activators are
described as impatient. An individual who is said to have
command is likely to have control of the situation. These
individuals are usually the ones to make decisions for a group
or team. As for the communication theme, these individuals in
simplistic terms are good at communicating. It is easy for these
individuals to express their thoughts in words. Competition,
another theme under influencing, is the idea that individuals
compare themselves to others in hopes of being the best. The
maximizer is one who looks for the strengths of the group and
utilizes them to help the team grow. They find something the
group is good at and strive to make them the best at it. Self-
assurance is the theme that discusses confidence in ones own
life decisions. Significance is the concept in which an
individual desires to be important to others. These individuals
want others to recognize them. Finally, the Woo theme in this
domain represents those who enjoy meeting new people, making
a connection with them by breaking the ice, and ‘winning them
over’. Someone who is good a “wooing” can be characterized as
a “charmer” (Rath and Conchie).
The third domain proposed from the Gallup poll findings is
Relationship Building. Relationship building is defined as,
those individuals who “have the ability to create groups and
organizations that are much greater than the sum of their parts”
(Rath and Conchie 25). Adaptability, Developer,
Connectedness, Empathy, Harmony, Includer, Individualization,
Positivity, and Relator are the nine themes that make up the

Relationship Building domain. To begin, adaptability is a theme
that is similar to flexibility. Those who are adaptable tend to
“go with the flow” and handle things as they come at them. The
developer is able to see the potential of those around them.
These individuals genuinely are happy for other people’s
success and growth. Most of us know someone who believes
that “everything happens for a reason” and that there is no such
thing as a coincidence. Based on the strength based leadership
approach, these individuals fit into the connectedness theme.
Empathy is a characteristic that many people strive to develop
in order to grow a relationship. Empathy is having the ability to
put yourself in someone else’s shoes and imagine feeling the
way they do. Conflict is something that can be both helpful and
harmful to relationships. From the research conducted by the
Gallup poll, they have defined the harmony theme as if conflict
is not good for relationships. The harmony theme describes
those who avoid conflict and look for areas in which they can
agree on with others. The includer is another theme that
describes individuals that are strong in building relationships.
An includer does not like to see people left out and will go out
of their way to include them. Although relationship builders
want to include everyone, they also accept the differences
among the group. This concept is defined as individualization.
This is when someone enjoys the unique differences among
people and wants to use them to their advantage. Most people
enjoy being around optimistic rather than pessimistic people.
Someone who is optimistic is likely to have great positivity.
Positivity is the idea of contagious enthusiasm and ability to
excite others around them. In turn, this positivity encourages
others to work. A relator, the final theme under the relationship
building domain, is one who likes working with friends and
desires close relationships (Rath and Conchie).
The importance of building relationships is not surprising.
In fact, it has been suggested that “humans are wired for social
connection” (Umberson, Crosnoe, & Reczek 15). We, as a
human species, both desire and actually need healthy

relationships with others.
The forth and final domain established from the Gallup
Poll is Strategic Thinking. Strategic thinkers are those who,
“keep us all focused on what could be… they are constantly
absorbing and analyzing information and helping the team make
better decisions” (Rath and Conchie 26). The last eight themes
all fall into the strategic thinking domain. They are Analytical,
Context, Futuristic, Ideation, Input, Intellection, Learner, and
Strategic. Analytical people are those who are able to identify
all factors that affect a situation. Cause and affect is the way of
thinking for analytical minds. The context theme portrays
individuals that are fascinated by the history and background
and using it to understand the current situation. Another theme
of strategic thinking, futuristic, are those who have the ability
to look into the future and create a vision. These people are also
able to use their own vision of what is ahead to motivate others
to look into the future. Not all strategic thinking is analytical
with simple cause and affect. Another theme of strategic
thinkers is ideation. Ideation individuals are able to come up
with creative ideas with their imagination. They are able to
think outside the box and develop ideas when others cannot.
Critical thinking is assumed to be very important to successful
leaders. Along with critical thinking comes the desire to know
more and want to know all the information possible or in other
words, input. Intellection is another feature of those who engage
in critical thinking. Intellectual individuals are often the
‘thinkers’ of the group and like to have highly intellectual
conversations with others. Many times when we use the term
learner, we associate it with the word follower. However, these
terms are not exactly the same. A follower is someone who
takes after a leader. While on the other hand, a learner is
someone who constantly seeks out ways to improve and learn
new skills or methods. The most unsurprising theme of them all,
strategic, also falls under the strategic thinking domain.
Strategic describes individuals who find new solutions or
alternative methods to move forward with a task when an

obstacle arises. In addition, those who score high in the
strategic theme notice patterns and issues and use them to find
new ways to proceed with a task (Rath and Conchie).
Strategic thinking is another crucial element for a
successful organization. According to the Harvard Business
Review, “a strategic approach to leadership was, on average, 10
times more important to the perception of effectiveness”
(Kabacoff). With that being said, it is not by any means an easy
skill to master. Therefore, having this skill in your organization
is something to look for, hold on to, and utilize to your
advantage in order to grow a successful organization.
Kotter’s Eight Step Change Process
John Kotter originally wrote a book in 1996, Leading
Change, that discusses why people often failed in their effort to
implement change (Cohen). In the original book, Kotter
presented an eight-step model for successful change in an
organization. Although the book was a success, many people
wanted more research and more advice. Because of a suggestion
by Deloitte Consulting, Kotter collaborated with Dan Cohen to
uncover stories from large-scale organizational changes by
interviewing about 100 organizations. The results of their
finding were published in their book, The Heart of Change, in
2002 (Cohen). Below is the visual representation of the Eight-
step process for leading successful change: The Heart of Change
model.
Source: Cohen, 2009, The Heart of Change Field Guide
Kotter and Cohen have broken the eight steps into three
phases: creating a climate for change, engaging and enabling
the whole organization, and implementing and sustaining the
change. Within those phases are eight steps of change: Increase
urgency, build guiding teams, get the vision right, communicate
for buy-in, enable action, create short-term wins, don’t let up,
and make it stick.
The first phase of the process, creating a climate for
change, focuses on creating the necessary energy to foster

change (Cohen). The first step, which falls into this phase, is
creating a sense of urgency. In this step, the leaders must
energize their followers with a “lets-go” attitude. There are
several ways to create urgency among followers. One, show
them why there is a need for change by displaying something
they can see and feel. Two, provide outside evidence that
change is necessary. Three, be cautious and look for alternatives
to complacency and fear (Kotter and Cohen). The second step is
to build a guiding team. A CEO simply cannot successfully
implement change on their own. Rather, a team of the ‘right
people’ and teamwork are required to create a successful
guiding team. The right people are those who have the
necessary skills, leadership, and credibility. A guiding team is
composed of the appropriate knowledge, credibility, internal
understanding of the organization, and formal authority coupled
with managerial skills such as planning, organizing, and
control. In addition, a guiding team will have visionary,
community, and motivational leadership skills (Kotter and
Cohen). An example provided by Kotter and Cohen of a
successful guiding team was made up of representatives from
each area of the organization including finance, human
resources, corporate affairs, IT, regional leaders, and asset
managers. The third step is to get the vision right. This step in
the heart of change process is where a “clear, inspiring, and
achievable picture of the future” is created (Cohen).
Engaging and enabling the whole organization is the
second phase of the heart of change model. This second phase,
centers around involving stakeholders through a demonstration
of leadership (Cohen) and includes steps four, five, and six of
the model. Step four is to communicate the vision for buy in. In
this step, the vision and change strategies are communicated to
as many people as possible in order to gain buy in and followers
to act in ways that move toward the vision. The most successful
messages of change are simple and heart-felt rather than
complex. The fifth step is to empower or enable action. In order
to obtain the required action, the barriers must be removed from

the process. Barriers often times can include a boss who is stuck
in their ways, poor evaluation and reward systems, and lack of
information (Kotter and Cohen). By removing each of these
obstacles, we are able to empower and enable action. The sixth
step, creating short-term wins, is critical to gaining the
involvement of stakeholders. Creating short-term wins, helps
maintain, “faith in the change effort, emotionally rewards hard
workers, keeps the critics at bay, and builds momentum” (Kotter
and Cohen). Short-term wins, such as providing feedback to
leaders to validate their vision, giving hard workers a ‘pat on
the back’, and taking power away from critics, will help keep
the change efforts strong (Kotter and Cohen).
The third and final phase, implementing and sustaining the
change, suggests, “Insuring that the change is lasting by leaders
being tenacious” (Cohen). The final two steps, seven and eight,
are in this phase. The seventh step is to not give up and
maintain momentum. The key in this step is not to celebrate a
successful win too early. Many organizations simply reduce
urgency when they see the first sign of a completed change
process. A simple rational for this is that change is exhausting
and an organization is likely to move on to the next task as soon
as possible. In order to insure the continued success of a
change, the urgency, energy level, vision, leaders, and its
followers all must remain strong (Kotter and Cohen). The eighth
and final step in the heart of change is to make the change stick.
Although it is the last step, it can arguably be the most
important because of the difficulty that comes along with it. In
order to make the change stick, an organization must change
their deeply rooted culture and shared values. In order to do so,
“leaders must recognize, reward, and model the new behavior in
order to embed it in the fabric of the organization and make the
change ‘the way we do business here’” (Cohen). In addition to
rewarding the new culture among followers, people in power
should be those who have embraced the new culture.
By following the Heart of Change model, an organization
can implement a change effectively. However, in today’s fast

pace and evolving world, change is inevitable and sooner or
later organizations will have to go through change again
whether it be because of external or internal forces. Therefore,
we know that in today’s world, change is happening and it
happens more often than many would like. We also know that
there are certain leadership domains and themes that describe
successful leaders. In addition, we have the tool necessary to
effectively implement change, Kotter and Cohen’s Heart of
Change model. To have the most effective implementation of
the Heart of Change model, each domain of the Strength Based
Leadership must play a role in the process.
Analysis
Each step in Kotter’s Heart of Change Model requires at
least one domain of leadership identified in the Strengths Based
Leadership. The first step, urgency, focuses on creating a “lets
go” attitude. The Influencing domain of Strengths Based
Leadership is demonstrated in this step. Specifically, the
activator theme, which describes those who are able to get
things done by turning thoughts into action (Rath and Conchie).
An example of this can be demonstrated from a company that
motivated their employees to change. The company videotaped
their customers complaining about the craftsman’s work and the
manager played the video in front of the craftsman (Kotter and
Cohen). Because the craftsman were able to physically see and
hear the customers complaints first hand instead of by word of
mouth from the manager, the sense of urgency and desire to
change was elevated. The manager engaged in the activator
theme by using a physical tool to turn words into action.
The second step, building guiding teams, relates heavily to
the relationship building domain in the Strengths Based
Leadership. Both of these concepts focus on the importance of
developing strong relationships between leaders, followers, and
peers. Developer, includer, and individualization are three
themes required to complete the second step of the Heart of
Change model. One CEO was able to put together a successful
team to focus on organic growth. His tactic was to choose a

member from each major section of the organization such as
“finance, HR, corporate affairs, IT, regional leaders, and asset
managers” by doing this, he was able to ensure that each area of
the company was represented (Kotter and Cohen). In this
example, the CEO utilized all three themes. He was a developer
because he was able to identify the potential of bringing these
individuals together. The CEO was also an includer by making
sure to include a representative from each area of the
organization. In addition, he utilized individualization because
he realized that each member was unique with different
perspectives and by bringing them all in, demonstrated how he
valued each one of their opinions.
During the third step of the change process, getting the
vision right, both executing and strategic thinking domains are
necessary for proper implementation. Kotter and Cohen used an
example of a real estate agent and a buyer to demonstrate
getting the vision right. The real estate agent suggested the
buyer make a list of everything they wanted to fix and to get it
done in the first six months. However, the buyer wanted to take
five years and slowly get everything done. The real estate agent
said they recommended completing everything in the first six
months or it wont get done because buyers simply get used to
how things are and don’t end up fixing it. In the end, five years
later, the buyer admitted that anything that wasn’t completed in
the first six months never got finished (Kotter and Cohen). The
executing themes played a crucial role in order to getting the
vision right by inspiring an ‘achievable picture of the future’.
The achiever role is someone who has stamina and works hard
to get things done. In the agent-buyer example, stamina and
hard work are required in order to complete the changes. The
arranger and discipline themes are required because one must
organize their time and priorities to make the fixes in six
months. Also, the focus theme is crucial in this example
because the buyer needs to prioritize, complete the tasks, and
follow through with the plan. The domain of strategic thinking
is also necessary to create a vision. Specifically, an individual

needs to be futuristic if they wish to look into the future and
create a vision of the finished project. In the example provided
by Kotter and Cohen, the buyer needed to be able to imagine
what the finished project will look like.
Communicating for buy-in is the forth step in the Heart of
Change model and also requires an element from Strengths
Based Leadership. With the influencing domain, leaders should
utilize the communication theme to gain buy-in. Kotter and
Cohen suggest that in order for effective communication the
“the message communicated to employees must be simple and
heartfelt, not complex and technocratic”. Those who are strong
in the Strength Based Leadership Communication theme are
therefore good people to communicate the change efforts
because they are able to express their complex thoughts in
simplified words that are easy for followers to understand.
Enabling action, the fifth step in the Heart of Change
model, requires elements of both the relationship building and
strategic thinking domain. Within the relationship building
domain, positivity should be utilized to help enable action.
There was a company whose managers only received direction
when something was wrong and needed fixing. Because of all
the negative feedback, the employees agreed to have meetings
in which they discuss areas of improvement. However, these
meetings turned into a time for employees to complain about
different aspects of the job. Because of all the negativity,
employee moral is down and nothing is improving. The
company decided to record a couple of employees going about
their jobs. The employers were able to watch the tape back,
identify areas that could be improved, and implement ways to
make work better (Kotter and Cohen). From this example, we
can see that without positivity it is difficult to identify realistic
solutions and foster improvement as a team. With contagious
positivity, employees are motivated to improve. This example
also demonstrates the benefits of strategic thinking. The
company utilized the strategic theme by coming up with
alternative methods to approach team meetings and searching

for new solutions.
The sixth step, creating short-term wins, involves the
arranger and achiever themes from the executing domain as well
as the woo theme from the influencing domain. In the example
from Kotter and Cohen, a transportation department was looking
to make several changes in order to create better service for
their clients. They knew the senator, who also happened to own
a tucking company, could be of potential help. So, they
approached him and asked for recommendations as to what can
be improved. They were not thrilled with his answer but knew
that if they resolved his issue, he would be satisfied and, in
turn, be of assistance to them on bigger projects later on.
Therefore, winning over the senator was a short- term win. The
trucking company utilized the arranger and achieve themes by
staying organized and looking for ways to be efficient. They
realized that helping the senator now, will make things more
efficient long term and maximize their resources to get things
done. The company utilized the Woo theme from the influencing
domain by winning over the senator in hopes of him returning
the favor later.
The seventh step, don’t let up, centers around the strategic
domain of Strengths Based Leadership. The most common
example of giving up starts when an organization prematurely
declares a successfully completed change. As a result, urgency
declines. In order to avoid this, the company should activate the
learner and futuristic themes. A learner is someone who
constantly searches for area of improvement and ways to do
better. They are always finding new skills and methods to
implement. This theme is crucial because during the seventh
step it is important to continuously look for areas that need
improvement. Since today’s world is continuously changing,
companies need to always look for ways to learn more. The
futuristic approach also ties in here. It is important to always
keep focused on the vision and to not let up when parts of the
vision start to take shape.
The eighth and final step in the Heart of Change model is

to make it stick. This step requires command, maximizer, and
woo themes from the influencing domain. A company that is
able to make the change stick, puts people in power that have
absorbed and embraced the new culture. The people in power
during and after a change process need to command the
situation with their control. If those in power do not take
control of the situation, the followers are going to resist the
change and revert to their old ways. Also, the leaders need to
utilize the maximizer theme. Kotter and Cohen suggest that
those in power should value the new culture. Therefore, the
maximizer theme is exhibited because those in power are
selected as the individuals who have strong shared cultural
values that mirror the organizations values. They then use this
to help the followers grow and accept the new culture. And
finally, if leaders are able to win over their followers by getting
them to embrace the new culture, they are one step closer to
making the change stick.
Conclusion
After reviewing each of the four domains of Strengths
Based Leadership, the 34 supporting themes, and Kotters Eight-
Step Heart of Change Model it is evident that all four domains
of leadership are necessary to implement the change process in
an organization. Change is becoming inevitable in todays world.
It is almost as if we must stay in a continuous change effort in
order to survive among the competition. It is not necessary or
even feasible for an individual to possess and thrive in all four
domains of leadership, however developing a team of
individuals who, as a whole, represent each domain can help
lead an organization through change. Rath and Conchie said it
best, “Although individuals need not be well-rounded, teams
should be” (23). Teams that identify their members’ strengths
and follow the Heart of Change Model are on their way to
successful change.

References
Asplund, J., Lopez, S., Hodges, T., & Harter, J., (2007). The
Clifton StrengthsFinder 2.0 Technical Report: Development and
Validation. The Gallup Organization. Princeton, NJ. Retrieved
from
http://strengths.gallup.com/private/Resources/CSFTechnicalRep
ort031005.pdf
Basu, C. (n.d.). What is the Meaning of Organizational Change?
http://smallbusiness.chron.com/meaning-organizational-change-
35121.html
Cohen, D. (2009). The heart of change field guide: tools and
tactics for leading change in your organization. Boston, MA:
Harvard Business School Press.
Gallup Organization (n.d.). Strengths Dashboard. Retrieved
February 02, 2017, from
httpa://strengths.gallup.com/110251/Gallups-Leadership-
Research.aspx
Hannan, M., & Freeman, J. (1984). Structural Inertia and
Organizational Change. American Sociological Review,49(2),
149-164. Retrieved from http://www.jstor.org/stable/2095567
Kabacoff, R. (2014, February 07). Develop Strategic Thinkers
Throughout Your Organization. Harvard Business Review.
http://hbr.org/2014/02/develop-strategic-thinkers-throughout-
your-organization
Kotter, J., & Cohen, D. (2002). Real-Life Stories of How People
Change Their Organizations: The Heart of Change. Executive
Book Summaries. Retrieved from
https://www.cu.edu/sites/default/files/ExecSummaries-
Heart_of_Change.pdf

Mavromatis, M. & Olofsson, J. (2013). Leading organizational
change. Chalmers University of Technology. Retrieved from
http://publications.lib.chalmers.se/records/fulltext/183830/1838
30.pdf.
Rath, T., & Conchie, B. (2008). Strengths based leadership:
great leaders, teams, and why people follow. New York: Gallup
Press.
Umberson, D., Crosnoe, R., & Reczek, C. (2010). Social
Relationships and Health Behavior Across the Life
Course. Annual Review of Sociology,36, 139-157. Retrieved
from http://www.jstor.org/stable/25735072
MGMT 56056
Leadership Research Paper
Introduction:
Ginni Rometty became the first female CEO of IBM in 2011.
During these six years as the leader of one of the largest
technology companies in the world, Rometty has faced
significant challenges as she shifted the company’s focus away
from hardware and into cloud computing and artificial
intelligence. This paper will discuss “The Leadership
Challenge” principles she practices including examples of how
she applies these principles into the culture of IBM and how
these practices have contributed to the innovation of the
company. The specific “TCL” practices she displays include:
“inspire a shared vision”, “challenge the process”, and
“enabling others to act”. Rometty is quoted as saying, “Never
protect your past, never define yourself by a single product, and
always continue to steward for the long-term. Keep moving
towards the future”. This paper will demonstrate how Rometty
puts these words into action at IBM and how under her
leadership, IBM is paving the way for future technology.
Thesis: Ginni Rometty, IBM CEO, demonstrates “The

Leadership Challenge” practices of “inspire a shared vision”,
“challenge the process”, and “enabling others to act” and these
behaviors have impacted the innovation at IBM.
The Shaping of a Leader
Ginni was born on July 29, 1957 and grew up in what she
describes as “a very middle class, average” family in the
Chicago area (Bort, 2015). The eldest of four, her parents
divorced when she was 15 and this greatly impacted her family
dynamic. Up until the divorce her mother stayed home with the
children. After the divorce, her mother had no choice and was
forced to work multiple jobs in order to support her family.
Even though these were challenging times, her mother
persevered and went to college, attending classes during the day
and working during the night. Ginni spent a lot of time
babysitting her siblings during these years. Ginni speaks fondly
about her mother and the role model she was saying, “she
sacrificed everything, she got her degree, and never complained.
She set out and made it all OK for us.” Ginni describes how her
mother’s example impacted her in a profound way saying, “from
that I saw that there’s no problem that can’t be solved” (Bort,
2015). Ginni says from this situation her mother also taught her
that, “you do not let someone else redefine you” (Gurdus,
2017).
Ginni attended Northwestern University on a scholarship
from General Motors and graduated in 1979 with honors and
dual degrees in Computer Science and Electrical Engineering
(Bloomberg, 2017). While attending college and completing an
internship at the age of 19, Ginni met Mark Anthony Rometty.
Three years later they would be married. Ginni gives credit to
her husband Mark for his support in her rising career. An
investor for an oil company, Mark avoids the spotlight even
though he’s married to a high-profile female executive who has
been named on both Fortune and Forbes lists of “most powerful
women in the world” for numerous consecutive years.
Ginni began her career after graduation at General Motors

in 1979. She didn’t stay long, however, and accepted a position
at IBM as a systems’ engineer in 1981 and has been there ever
since. During her tenure at IBM her role has evolved and
grown in her rise to Chairman and CEO. While there is not
much written about her early years with IBM, there is evidence
that even then, Ginni realized that just improving your technical
skills wasn’t enough to move forward in business; that it’s
important to look outward beyond technical issues in order to
truly understand the client and their challenges. It was this
client centered focus that was the foundation of Ginni’s
reputation as a leader who looks outward for innovation. Ginni
believes in the importance of one word, “inclusion”. She
describes inclusion as reaching out beyond your usual scope to
find diversity of thought which leads to bolder and more
creative ideas. And it is through this “inclusion” that
innovation happens.
Ginni transitioned from systems’ engineer to manage and
lead in various other areas of the company. These include
General Manager of Insurance Industry Group, General Manager
of Americas for Global Services, supervisor of operations for
IBM’s Insurance Research Centers in locations around the globe
and “was in charge of IBM’s insurance solutions development
worldwide” (Bloomberg, 2017).
In 2002, IBM looked to Rometty to head the integration of
PriceWaterHouseCoopers Consulting into IBM’s giant services
business unit. The leadership team believed that Ginni’s ability
to lead a diverse group effectively would be a huge asset as they
faced a potential culture clash that often happens in an
acquisition. It was during these years that Ginni successfully
built and blended these teams using their differences and talents
as fuel for high performance. Rometty didn’t want the central
question to be “my way” or “your way” (Forte Foundation,
2015). Rather, guiding the team toward a new possibility to
develop and provide a new level of value for clients that hadn’t
existed before. This transition required management and
leadership focused on individual respect in order to grow and

transform. Today, this sector of IBM’s business known as IBM
Global Business Services, is an industry leading consultancy
unit that employs more than 100,000 consultants and experts
worldwide. During her time in this sector of IBM, Ginni served
as General Manager of Strategy, Marketing and Sales
Operations, Managing Partner and was named Senior Vice
President in 2005 and held this position until 2009 (Bloomberg,
2017).
From 2009 – 2010, Ginni served as Senior Vice President
of Global Sales & Distribution and as Senior Vice President of
Group Executive Sales and Marketing and Strategy from 2010 –
2012. Ginni became IBM’s first female CEO on January 1st,
2012 and has also held the position of Chairman since October
1st, 2012 (Bloomberg, 2017). Ginni also serves on many other
boards and councils. These include the Council of Foreign
Relations, the Board of Trustees of Northwestern University,
and the Board of Overseers and Board of Managers for of
Memorial Sloan-Kettering Cancer Center. She leads IBM’s
diversity initiatives which include the Women in Technology
Council and the Women’s Leadership Council. Ginni was the
recipient of the Carl Sloane award in 2006 and frequently
speaks at industry business conferences around the world
(Bloomberg, 2017).
The State of IBM
On June 11, 1916 in the state of New York, IBM became a
corporation named the Computing-Tabulating-Recording
Company (C-T-R). This corporation formed as a result of the
combination of three separate companies merging. This original
company sold commercial scales, tabulators and punch cards,
meat and cheese slicers, and time recording machines.
Additionally, C-T-R employed around 1300 and had offices and
plants located in various locations in the Eastern US and
Canada. In 1914, Thomas Watson, Sr. joined C-T-R as the
general manager at the age of 40. Watson, with a successful
background in sales, implemented strategies and business
tactics that would increase sales, improve employee morale and

become known for his favorite slogan, “think”. Under Watson’s
leadership, the company’s focus shifted to large scale, custom-
built tabulating machines for businesses and away from other
small office products. He was promoted to president within his
first year and more than doubled the company’s revenues in 4
years. Additionally, he opened business locations in Europe,
Asia, Australia, and South America.
In the 1920s the company broadened their products through
engineering advancements and the leaders decided their
company name was too limited and no longer fit their portfolio.
On February 14, 1924, the company formally changed its name
to International Business Machines Company (IBM for short).
In the 1930s the company flourished through the Great
Depression while other industries suffered. It was during these
years that Watson opened one of the first research and
development labs as well as the IBM Schoolhouse which was a
training and educational facility for employees. In the 1940s
the company moved into computing developing what it called
the “Selective Sequence Electronic Calculator” (IBM.com,
2017).
The 1950s saw numerous technological advancements and
changes for the company. In 1952, Watson Sr. passed the torch
of president to his son, Thomas Watson, Jr. Additionally,
during this year, the company introduced the IBM 701, a large
vacuum tube computer that could execute 17,000 instructions
per second. In the mid-50s, the IBM 7090 came to market as
“one of the first fully transistorized mainframes” performing
229,000 instructions per second (IBM.com, 2017) and making
the vacuum tube model obsolete. It was also around this time
(1957) that IBM introduced the first computer disk storage
system called the “Random Access Method of Accounting and
Control” or RAMAC for short. The company also introduced
the FORTRAN which “is a computer language based on algebra,
grammar and syntax rules” and became one of the most widely
used language for computer technical work.
Watson, Jr., also a visionary, saw the future role that computers

would play in business. It was under his direction in the 1960s
that the company moved away from tabulating machines and
typewriters to a leader in the computer industry. It was also
during this time that the marketing of the company shifted and
IBM began offering its hardware, software, and services in an
“unbundled” fashion allowing consumers to purchase items
individually. This was the dawn of IBM’s software and services
industries, of which they are still a world leader today.
The 1970’s marked the end of the Watson leadership era with
Watson Jr. stepping down in 1971. After an interim leadership
period, in 1973, Frank T. Cary assumed the role. During this
decade, the floppy disk took over as the standard of computer
storage and IBM’s computers were installed in grocery store
checkout stations across the country utilizing glass prisms and
lasers to read product prices.
John R. Opel accepted the role of CEO in 1981 and it was
during this decade that the IBM personal computer or PC was
introduced to the market. The IBM brand began entering
homes, businesses and schools as IBM partnered with Intel for
the processor and Microsoft for the operating system. This was
also a period marked with research achievements when a
heavier focus was placed on this area in 1985 when John F.
Akers became CEO. These investment breakthroughs would
lead to 4 Nobel prize winners in physics for expanded
computing capabilities. Additionally, IBM laid the foundation
of networking by allowing computers to share information,
printers, and files.
During the late 1980’s and 1990’s IBM went through a period of
turmoil as the computer revolution changed the way consumers
bought and utilized the technology. During this time IBM
wasn’t well integrated and the company lost focus on its
customers as purchasing decisions weren’t left to the proper
management channels. Reporting a record $8 billion in losses
in 1993, the company considered splitting off its different
business units into separate companies.
Recognizing the need for a significant shift in focus, the board

looked outward and hired Louis V. Gerstner, Jr. as the CEO.
With previous experience as the CEO for Nabisco and a top
executive at American Express, Gerstner brought with him a
“customer-oriented sensibility and strategic-thinking expertise”
(IBM.com, 2017). And, he had to act quickly with dramatic
changes to save the company. Gerstner’s desire to keep the
company together and place a focus on its integrated solutions’
capabilities would prove a smart move but also came at a price.
In order to achieve stabilization, Gerstner had to reduce costs,
decrease the company’s workforce, and rebuild the product line.
When the rise of the internet shifted the entire industry, IBM
was better prepared. With their emphasis now on networking
and the client/server field, IBM was able to deliver solutions
and technology that met their customers’ needs. Gerstner
shared IBM’s networking vision in an address at an industry
trade show in Las Vegas in 1995. He accurately predicted the
importance network computing would play in the growth of the
industry and aligned IBM’s strategy to meet the need.
In 1997, IBM introduced its Deep Blue to the market. A super
computer, Deep Blue became well known when it beat the
World Chess Champion, Garry Kasparov, in a chess match
raising public debate on computer versus human intelligence.
As the 90’s close, IBM has once again established itself as an
industry leader and information technology innovator under the
superb leadership of Gerstner.
The 2000’s began with the dotcom bust, but IBM persevered
and introduced the e-Server providing infrastructure support for
e-business. During this decade, Sam Palmisano becomes
President and CEO succeeding Gerstner. It was also during the
early part of this decade that Rometty was moving up in the
ranks of IBM and showing her leadership capabilities. She
would assume the role of CEO after Palmisano stepped aside in
2011.
“The Leadership Challenge” Practices Defined
The Leadership Challenge is a framework of leadership
development based on over 30 years of data gathered from more

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