Lesson 4: Kotters change theory

Step 1 - Create the urgency for change

This can be expected to arise from threats to or opportunities for the organisation. The need for change usually results from an assessment of market realities: change is needed to make the business more competitive.

This team works to make the change happen. The team must work well together to manage the change process.

Step 2- Form a powerful coalition

The vision provides the ultimate goal of the change process. It should motivate the organisation. The vision must be seen as justifying the effort.

Step 3 - Create a vision for change

Step 4 - Communicate the vision

Staff need to share the vision and have some understanding of how it will be achieved. A variety of methods can be used to communicate the vision. These include the guiding team setting an example of new behaviour.

Step 5 - Empower people to fulfil the vision

Recognise that personal involvement through participation tends to defuse both rational and irrational fears about change. People who have the opportunity to be actively involved in the change process generally develop a sense of ownership.

Recognise that most employees want to feel that their contributions have been worth the effort and are recognised and appreciated. Recognition and reward should be given throughout the change process to encourage further risk taking and reinforce the positive aspects of embracing change.

Step 6 - Recognise and reward achievements

As the change process proceeds, assemble the benefits attained into the organisation’s operating procedures and systems. Modify existing policies and procedures that no longer match the changed systems. Once this is accomplished, the new structure becomes a solid base upon which more change may be made — the process of continuous improvement.

! Step 7  Consolidate

Step 8  Anchor the change in corporate culture

The aim is to promote a corporate culture that fully supports the new behaviour. The guiding team should evaluate performance in the change process and consider its future role in the organisation.