Group MembersAdnan

Muhammad Azhar

Presentation

John P.kotter

Leading Change ( Why Transformation Efforts Fail)

Presentation Outline

Details Transformation Core Objective

Establish a sense of urgency

Forming a powerful guiding

coalition

Introduction and eight stages

Creating a vision

Communicating the vision

Empowering others to act on

vision Creating short-

term wins Combining

improvements Establish new

approaches

Conclusion

Details

Topic : Leading Change (Why transformation efforts fail)

Author : John P.Kotter

Date :March1995

Published :New york Free Press

Transformation

Adoption to a more challenging market environment through fundamental reforms to business process.

Article Core Objective

Discussion of eight reasons why transformation efforts fail in organization and learn.

Some strategies for successful organization transformation are mentioned.

Eight Stages

Not establishing a Great Enough Sense of Urgency

Need for competitive situations. Communicate information timely. Percentage required to create change should

be 75 % or greater. Less percentage can produce problems.

Failure of 50 % Organizations in phase 1

Underestimating the need for motivating people.

Overestimating their success. A lack of patience. Demotivation effect due to downside

possibilities. Paralyzed senior management The key is to have leaders who motivate and

instill confidence

Creating a Powerful Enough Guiding Coalition

Leadership coalition necessary. Head of organization should be active

supporter. Big companies require 20 to 50 members. Working outside formal boundaries. Senior managers form the core of group. Offsite retreat or other tools used.

Not creating a powerful enough guiding coalition

No history of team work Groups without strong line leadership Efforts can progress a little but then opposition

gets stronger. Lack of conviction in the need for change

process.Lot of plans and progress , but no vision

Lacking a Vision

Picture of future need to be developed. Vision clarify the directions. Vision should be easy to communicate. Appealing to customers and stakeholders.

.

Errors in Lacking a Vision

Lack of change can dissolve into confusing and incompatible projects.

If you cant communicate the vision to some one in five minutes or less signifies both understanding and interest

Under communicating the Vision

Credible communication Use all existing communication channels. Communication comes in both words and

action. Making employees belief.

Error in Under communicating the vision

Three mistakes Misbehavior of senior management Speeches to selected group of employees. Nothing undermines change more than

behavior.

“Molding behavior is the key”

Under communicating the vision

Treat person fairly if the blocker

Renewal also needed

Empower and credibility of change effortsMain problem The main bosses who refused to change

Empowering others to act on Vision

Employees are encouraged to apply new approaches.Obstacles for employees Organization structure Narrow job categories Compensation and appraisal (self interest and

vision)

Empowering the others to set a Vision

Initially no organization has the momentum to get rid of problems.

But tackle the big obstacles (blocker person). Action is necessary. To empower others and to maintain the

credibility of the change effort as a whole.

Systematically Planning Short term wins

Most people don’t continue the long journey unless Compelling evidence for short term outcomes Reward and planning system Obtain clear performance improvements

Continued

Short term commitments within first two years Quality beginning Higher customer satisfaction Upward shift Product introduction

“Short term wins help to keep urgency level high”

Error Declaring Victory to Soon

Premature celebration kills momentum Resistors quick to find any opportunity to stop

the change. New approaches takes time to get well settled

in.

Declaring Victory to Soon

Go after system and structures that are not consistent with transformation.

Leaders know who is promoted and who is developed.

Introduction of reengineering projects. Quantified the amount change the occur every

year.“Celebrating a win is fine, declaring the war

can be disastrous”

Anchoring the Changes in the Corporation Culture

When change seeps into the bloodstream of corporate culture

Previous behaviors are molded into change.Two factors in establishing a change To show people, the effects of new

approaches. Next generation of top management personify

the change

Conclusion

These eight mistakes are the big ones Vision of change process can reduce the error

rate. Effective communication. Short term achievement. Constant appraisal and reward.