Leadingchange john kotter

April 10, 2023Dr. V. R. Kesava Ram (P.T.)

LEADING CHANGEJohn P. Kotter


Why firms fail…common errors# 1: allowing too much complacency

# 2: failing to create a sufficiently powerful guiding coalition

# 3: underestimating the power of vision# 4: under communicating the vision # 5: permitting obstacles to block the new

vision# 6: failing to create shot term wins# 7: declaring victory too soon# 8: neglecting to anchor changes firmly in

the corporate culture


Consequences

New strategies aren’t implemented well

Acquisitions don’t achieve expected synergies

Reengineering takes too long and costs too much

Downsizing doesn’t get costs under control

Quality programs don’t deliver hoped-for results


Economic and social forcesdriving change Technological International economic integration Maturation of markets in developed

countries Fall of communist and socialist

regimes Globalization of markets and

competition More competition and increased

speed with Bigger markets and fewer barriers


More large scale change in organizations Reengineering Restructuring Quality programs Mergers and acquisitions Strategic change Cultural change


THE EIGHT-STAGE PROCESS OF CREATING MAJOR CHANGE


1. Establishing a sense of urgency Examining the market and

competitive realities

Identifying and discussing crises, potential crises or major opportunities


2. Creating the guiding coalition Putting together a group with enough

power to lead the change

Getting the group work together like a team


3. Developing a vision and strategy Creating a vision to help direct the

change effort

Developing strategies for achieving that vision


4. Communicating the change vision Using every vehicle possible to

constantly communicate the new vision and strategies

Having the guiding coalition role model the behavior expected of employees


5. Empowering broad based action Getting rid of obstacles

Changing systems or structures that undermine the change vision

Encouraging risk taking and nontraditional ideas, activities, and actions


6. Generating short term wins Planning for visible improvements in

performance or wins Creating those wins Visibly recognizing and rewarding

people who made the wins possible


7. Consolidating gains and producing more change Using increased credibility to change

all systems structures and policies that don’t fit together and don’t fit the transformation vision

Hiring promoting and developing people who can implement the change vision

Reinvigorating the process with new projects themes, and change agents


8. Anchoring new approaches in the culture Creating better performance through

customer and productivity oriented behavior more and better leadership and more effective management

Articulating the connections between new behaviors and organizational success

Developing means to ensure leadership development and succession


Leadership

Establishing direction Aligning people Motivating and inspiring Producing change


Complacency

The absence of major and visible crisis Too many visible resources Low overall performance standards Narrow functional goals Wrong performance indexes Insufficient feedback Kill the messenger of bad news, low candor,

low confrontation culture Denial Too much happy talk from senior management


Effective guiding coalition Position power Expertise Credibility Leadership


Building a coalition that make change happen Find the right people

Create trust

Develop common goal


Relationship between V-S-P-B

visionLEADERSHIP

strategies

plansMANAGEMENT

budgets


Characteristics of an effective vision Imaginable Desirable Feasible Focused Flexible Communicable


Creating an effective vision First draft Role of the guiding coalition Importance of teamwork Role of the head and the heart Messiness of the process Time frame End product


Key elements of the effective communication of vision Simplicity Metaphor Analogy and example Multiple forms Repetition Leadership by example Explanation of seeming

inconsistencies Give and take


Barriers to empowerment

Formal structures Lack of needed skills to action Obstructing personnel and

information systems Bosses discourage actions for the

new vision


Empowering people to effect change Communicate a sensible vision to

employees Make structures compatible with the

vision Provide the training employees need Align information and personnel

systems to the vision Confront supervisors who undercut

needed change


Role of short term wins

Provide evidence that sacrifices are worth it

Reward change agents with a pat on the back

Help fine tune vision and strategies Undermine cynics and self serving

resisters Keep bosses on board Build momentum


Why culture is powerful

1. Because individuals are selected and indoctrinated so well

2. Because the culture exerts itself through the actions of hundreds or thousands of people

3. Because all of this happen without much conscious intent and thus is difficult to challenge or even discuss


Anchoring change in culture Comes last, not first Depends on results Requires lot of talk May involve turnover Makes decisions on succession

crucial


Twenty first century organizationStructure:i. Non bureaucraticii. Limited to fewer levelsiii. Management leads and employees

manageiv. Policies and procedures with

minimal internal interdependence needed to serve customers


Systems:i. Many performance information

systems ii. Distribute performance data widelyiii. Offer management training and

support systems to many people


Culture:i. Externally orientedii. Empoweringiii. Quick to make decisionsiv. Open and candidv. More risk tolerant


The relationship of lifelong learning, leadership skills and the capacity to succeed

in future

Personal history Inborn capabilities Childhood experiences Job and educational experiencesCompetitive driveLevel of standardsDesire to do wellSelf confidence in competitive

situations


Life long learningWillingness to seek new challengesWillingness to reflect honestly on

successes and failuresSkills and abilities KnowledgeLeadership skillsOther skills


Competitive capacity

Capability of dealing with an increasingly competitive and fast moving economic environment


Mental habits that support life long learning

Risk taking- willingness to push oneself out of comfort zones

Humble self reflection- honest assessment of successes and failures especially the latter

Solicitation of opinions- aggressive collection of information and ideas from others

Careful listening- propensity to listen to others

Openness to new ideas- willingness to view life with an open mind


Thank you

Leadingchange john kotter

Business

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