Leading ChangeLeading Change

March 17March 17thth, 2008, 2008

ThemesThemes

►Leading vs. Managing ChangeLeading vs. Managing Change►Transformational leaders vs. Transformational leaders vs.

Transactional leadershipTransactional leadership►Kotter’s 8 Step ProcessKotter’s 8 Step Process

DevotionDevotion

►Leading and implementing ChangeLeading and implementing Change►Exodus 18Exodus 18►Reflective Questions:Reflective Questions:

Who are you most like, Moses or Jethro?Who are you most like, Moses or Jethro? What was Jethro’s “formula” for coaching What was Jethro’s “formula” for coaching

Moses?Moses? What principles would you extract from What principles would you extract from

this passage for your own leadership this passage for your own leadership credo?credo?

Kotter DiscussionKotter Discussion

►““..change process goes through a ..change process goes through a series of phases that, in total, usually series of phases that, in total, usually require a considerable length of time.”require a considerable length of time.”

Kotter DiscussionKotter Discussion

►““Change, by definition, requires Change, by definition, requires creating a new system.”creating a new system.”

Kotter DiscussionKotter Discussion

►““..when the urgency rate is not ..when the urgency rate is not pumped up enough, the pumped up enough, the transformation process cannot transformation process cannot succeed and the long-term future of succeed and the long-term future of the organization is put in jeopardy”.”the organization is put in jeopardy”.”

Kotter DiscussionKotter Discussion

►““No matter how capable or dedicated No matter how capable or dedicated the staff head, groups without strong the staff head, groups without strong leadership never achieve the power leadership never achieve the power that is required.”that is required.”

Kotter DiscussionKotter Discussion

►““without sensible vision, a without sensible vision, a tranformation effort can easily dissolve tranformation effort can easily dissolve into a list of confusing and into a list of confusing and incompatible projects that can take incompatible projects that can take the organization in the wrong direction the organization in the wrong direction or nowhere at all.”or nowhere at all.”

Kotter DiscussionKotter Discussion

►““Executives who communicate well Executives who communicate well incorporate messages in their hour-by-incorporate messages in their hour-by-hour activities.”hour activities.”

Kotter DiscussionKotter Discussion

►““Nothing undermines change more Nothing undermines change more than behavior by important individuals than behavior by important individuals that is inconsistent with their words.”that is inconsistent with their words.”

Kotter DisucssionKotter Disucssion

►““Commitments to produce short-term Commitments to produce short-term wins help keep the urgency level up wins help keep the urgency level up and force detailed analytical thinking and force detailed analytical thinking that can clarify or revise visions.”that can clarify or revise visions.”

►““they (leaders) understand that they (leaders) understand that renewal efforts take not months but renewal efforts take not months but years.”years.”

Kotter DiscussionKotter Discussion

►““Until new behaviors are rooted in Until new behaviors are rooted in social norms and shared values, they social norms and shared values, they are subject to degradation as soon as are subject to degradation as soon as the pressure for change is removed.”the pressure for change is removed.”

Three Dimensional Tic Tac Three Dimensional Tic Tac ToeToe

►http://www.churchweb.com/biblegamehttp://www.churchweb.com/biblegames/3dtictactoe/3dtictactoe.htmls/3dtictactoe/3dtictactoe.html

Leading ChangeLeading Change

Based on “Leading Change” John Kotter.Based on “Leading Change” John Kotter.

Why Change FailsWhy Change Fails

1. 1. Allowing too much complacency Allowing too much complacency

2. 2. Failing to create a sufficiently Failing to create a sufficiently powerful guiding coalition powerful guiding coalition

3. 3. Underestimating the power of vision Underestimating the power of vision

4. 4. Undercommunicating the vision Undercommunicating the vision

5. 5. Permitting obstacles to block the Permitting obstacles to block the vision vision

Why Change FailsWhy Change Fails

6. 6. Failing to create short term wins Failing to create short term wins

7. 7. Declaring victory too soon Declaring victory too soon

8. 8. Neglecting to anchor changes Neglecting to anchor changes firmly in the corporate culture. firmly in the corporate culture.

Leading Not ManagingLeading Not Managing

►Only leadership can motivate the Only leadership can motivate the actions needed to alter behavior in actions needed to alter behavior in any significant way. any significant way.

►Only leadership can get change to Only leadership can get change to stick, by anchoring it in the very stick, by anchoring it in the very culture of the organization. culture of the organization.

►The leadership effort must have The leadership effort must have support from many people who assist support from many people who assist the leadership agenda within their the leadership agenda within their sphere of activity. sphere of activity.

The Eight Stage Change The Eight Stage Change ProcessProcess

The first four steps help to defrost a The first four steps help to defrost a hardened status quo. They are:hardened status quo. They are:1 1 establishing a sense of urgency establishing a sense of urgency

2 2 creating the guiding coalition creating the guiding coalition

3 3 developing a vision and strategy developing a vision and strategy

4 4 communicating thecommunicating the change visionchange vision

The Eight Stage Change The Eight Stage Change ProcessProcess

The next stages then introduce The next stages then introduce many new practices: many new practices:

5 5 empowering a broad base of people empowering a broad base of people to take action to take action

6 6 generating short term wins generating short term wins

7 7 consolidating gains and producing consolidating gains and producing even more change even more change

The Eight Stage Change The Eight Stage Change ProcessProcess

The final stage grounds the The final stage grounds the changes in the corporate culture, changes in the corporate culture, and makes them “stick” and makes them “stick”

8 8 institutionalizing new approaches in institutionalizing new approaches in the culture the culture

Establishing a Sense of Establishing a Sense of UrgencyUrgency

►Actions RequiredActions Required Examine externally crises or opportunities Examine externally crises or opportunities Convince a critical mass of managers that Convince a critical mass of managers that

status quo is more important than the status quo is more important than the unknownunknown

►ChallengesChallenges Underestimating the difficulty of driving Underestimating the difficulty of driving

people from their comfort zonespeople from their comfort zones Becoming paralyzed by risk avoidanceBecoming paralyzed by risk avoidance

Form a powerful guiding Form a powerful guiding coalitioncoalition

►Actions neededActions needed Assemble a group with shared commitment Assemble a group with shared commitment

and enough power to lead the change effortand enough power to lead the change effort Encourage them to work as a team outside Encourage them to work as a team outside

the normal hierarchythe normal hierarchy►ChallengesChallenges

No prior experience in teamwork at the topNo prior experience in teamwork at the top Relegating team leadership to an HR quality Relegating team leadership to an HR quality

or strategic planning executive rather than or strategic planning executive rather than a senior line managera senior line manager

Create a VisionCreate a Vision

►Actions Needed:Actions Needed: Create a vision to direct the change effortCreate a vision to direct the change effort Develop strategies for realizing that visionDevelop strategies for realizing that vision

►Challenges:Challenges: Presenting a vision that’s too complicated Presenting a vision that’s too complicated

or vague to be communicated in five or vague to be communicated in five minutesminutes

Communicate the visionCommunicate the vision

►Actions needed:Actions needed: Use every vehicle possible to Use every vehicle possible to

communicate the new vision and communicate the new vision and strategies for achieving itstrategies for achieving it

Teach new behaviors by the example of Teach new behaviors by the example of the guiding coalitionthe guiding coalition

►Challenges:Challenges: Under communicating the visionUnder communicating the vision Behaving in ways antithetical to the visionBehaving in ways antithetical to the vision

Empower other to act on the Empower other to act on the visionvision

►Actions needed:Actions needed: Remove or alter systems or structures Remove or alter systems or structures

undermining the visionundermining the vision Encourage risk taking and nontraditional Encourage risk taking and nontraditional

ideas, activities, and actionsideas, activities, and actions

►Challenges:Challenges: Failing to remove powerful individuals Failing to remove powerful individuals

who resist the change effortwho resist the change effort

Plan for and create short-term Plan for and create short-term winswins

►Actions needed:Actions needed: Define and engineer visible performance Define and engineer visible performance

improvementsimprovements Recognize and reward employees Recognize and reward employees

contributing to those improvementscontributing to those improvements

►Challenges:Challenges: Leaving short term successes up to Leaving short term successes up to

chancechance Failing to score successes early enough Failing to score successes early enough

Consolidate improvements and Consolidate improvements and produce more changeproduce more change

► Actions needed:Actions needed: Use increased credibility from early wins to Use increased credibility from early wins to

change systems, structures, and policies change systems, structures, and policies undermining the visionundermining the vision

Hire, promote, and develop employees who can Hire, promote, and develop employees who can implement the visionimplement the vision

► ChallengesChallenges Declaring victory too soon – with the earliest Declaring victory too soon – with the earliest

performance improvementsperformance improvements Allowing resistors to convince the community Allowing resistors to convince the community

that the war has alread been wonthat the war has alread been won

Institutionalize new Institutionalize new approachesapproaches

►Actions needed:Actions needed: Articulate connections between new Articulate connections between new

behaviors and corporate successbehaviors and corporate success Create leadership development and Create leadership development and

succession plans consistent with the new succession plans consistent with the new appraochappraoch

►ChallengesChallenges Not creating new social norms and shared Not creating new social norms and shared

values consistent with changesvalues consistent with changes Promoting people into leadership positions Promoting people into leadership positions

who don’t personify the new approachwho don’t personify the new approach