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Failure of changes, characteristics of effective change

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Failure of changes, characteristics of effective change

  2. 2. 2 Kotter’s 8 Step Change Model
  3. 3. Kotter’s 8 Step Change Model STEP 1 CREATE URGENCY In Kotter’s Words: Create a Sense of Urgency Helping others see the need for change & the importance of acting quickly 3
  4. 4. Kotter’s 8 Step Change Model STEP 2 BUILD A GUIDING TEAM In Kotter’s Words: Build a Guiding Coalition Ensuring there is a powerful group, with the appropriate leadership skills, credibility & authority to guide the change process 4
  5. 5. Kotter’s 8 Step Change Model STEP 3 CREATE A VISION FOR CHANGE In Kotter’s Words: Form a Strategic Vision and Initiatives Creating a picture of the future & how it will be different from the present 5
  6. 6. Kotter’s 8 Step Change Model STEP 4 COMMUNICATE THE CHANGE VISION In Kotter’s Words: Enlist a Volunteer Army Ensuring everyone understands & accepts the vision 6
  7. 7. Kotter’s 8 Step Change Model STEP 5 REMOVE OBSTACLES In Kotter’s Words: Enable Action by Removing Barriers Removing the barriers to making change successful 7
  8. 8. Kotter’s 8 Step Change Model STEP 6 CREATE ‘SHORT TERM WINS’ In Kotter’s Words: Generate Short-Term Wins Create clear, visible success stories early in the process 8
  9. 9. Kotter’s 8 Step Change Model STEP 7 CONSOLIDATE GAINS & PRODUCE MORE CHANGE – DON’T LET UP In Kotter’s Words: Sustain Acceleration Recognise more change opportunities following the ‘quick wins’ to take full advantage of the momentum for change 9
  10. 10. Kotter’s 8 Step Change Model STEP 8 ANCHOR THE NEW APPROACHES IN THE CULTURE In Kotter’s Words: Institute Change Ensure the new ways of behaving are recognised & rewarded to embed the change into the organisational culture 10
  11. 11. 11 Kotter’s 8 Step Change Model
  12. 12. Applying Kotter 8-Step Change Model 12
  13. 13. Failure of Change - Reasons  Lack of Knowledge  Lack of Skill and practice  Hidden Conflict working against change  Culture working against change  Lack of Plan  Weak follow through  Not investing resources 13
  14. 14. But What is the Key Reason..??? Technology People Process 14
  15. 15. Transition Steps  Review current roles and jobs  Review new skills needed  Assess skills and roles to support new process  Determine skill gaps  Review organisational jobs and roles  Suggest methods for updating skills  Obtain agreement regarding the new job  Support transition 15
  16. 16. Why Transformation Efforts Fail  Error 1: Not Establishing a Great Enough Sense of Urgency  Error 2: Not Creating a Powerful Enough Guiding Coalition  Error 3: Lacking a Vision  Error 4: Under communicating the Vision by a Factor of Ten  Error 5: Not Removing Obstacles to the New Vision 16
  17. 17. Why Transformation Efforts Fail  Error 6: Not Systematically Planning for, and Creating, Short-Term Wins  Error 7: Declaring Victory Too Soon  Error 8: Not Anchoring Changes in the Corporation’s Culture 17
  18. 18. Failure of Change can be due to  Lack of vision: When the corporate vision and/or strategies are unclear, people are unsure about how to interpret major new directives.  A history of poor implementation: When there is a track record of poorly implemented endeavours, people tend not to expect much when new changes are announced.  Lack of middle-management support: When midlevel managers are not enrolled in the change process and lack a sense of involvement and ownership, change objectives are jeopardized. 18
  19. 19. Failure of Change can be due to  Lack of understanding or belief: When people don’t understand or believe in changes being attempted, they typically don’t support them.  An environment of low risk taking: When there is a tendency to overly punish errors or reward their absence, people tend to avoid change.  No consequence management: Where there are few negative consequences for failing to comply, people usually ignore new directives. 19
  20. 20. Failure of Change can be due to  Lack of clear communications: When information is allowed to filter down unmanaged, it often becomes diffused and less specific and is open to interpretation.  Lack of planning for and management of resistance: When overt resistance is not acknowledged and managed properly, it goes underground, creating slowdowns, malicious compliance, or even outright sabotage.  Lack of time: When insufficient time is allowed for implementation, problems prevail and the maintenance costs for change are high. 20
  21. 21. Failure of Change can be due to  Poor follow-through: When projects are started with much fanfare but there is no follow-through o their finish, a legacy is created that threatens future change efforts.  Lack of synergy: When interdependence is not recognized between key players or groups, engaging change in one area will often cause resistance from another.  Rhetoric unsupported by actions: When leaders say one thing but their behaviour suggests the opposite, change goals are difficult to reach. 21
  22. 22. Role Definitions During Change  Initiating sponsor  The individual or group who strategically legitimizes implementation of a change, either within several major areas of the organization or enterprise wide. Sponsors (regardless of their level) sanction initiatives through influential communications and meaningful consequences. 22
  23. 23. Role Definitions During Change  Primary sustaining sponsor:  The individual or group who formally sanctions the change within relevant areas of responsibility, providing a “united front” of leadership support for the endeavour and coordinating implementation activities (across functional or geographical lines as necessary). 23
  24. 24. Role Definitions During Change  Local sustaining sponsor:  The individual or group who orchestrates the communications and consequences within relevant tactical areas of responsibility necessary to ensure successful change implementation. 24
  25. 25. Role Definitions During Change  Change agent:  The individual or group who facilitates the development and execution of the implementation plans.  Target:  The individual or group who must actually change.  Advocate:  The individual or group who wants to achieve a change but does not possess the necessary legitimization power. 25
  26. 26. Relationships Among Key Roles in the Change Process 26
  27. 27. Characteristics of Highly Effective Change Leaders  Low Level of Anxiety  Emotional Stability  Action Orientation  Confidence  Openness  Risk Tolerance 27
  28. 28. Characteristics of Change management  Resistance  Consistent Communication  Training and Goal setting  Recognition 28
  29. 29. Characteristics of organisational change management team  Lead by example  Recognize achievements  Promote accountability  Include change agent  Communicate effectively 29
  30. 30. Change Curve 30
  31. 31. Our Iceberg is Melting 31
  32. 32. Norfolk Southern  The Norfolk Southern Railway is a Class I railroad in the United States, owned by the Norfolk Southern Corporation. With headquarters in Norfolk, Virginia  Norfolk Southern serves domestic and international customers.  As a leading transportation provider, Norfolk Southern operates 20,000 route miles in 22 states and D.C., supports international trade with service to every major Eastern seaport, 10 river ports, and nine lake ports, and operates the most extensive intermodal network in the East. 32
  33. 33. Norfolk Southern: Case Study  When Katie Frazier first joined Norfolk Southern’s Atlanta terminal, she felt it was running well but still felt more could be done to improve operations. She was also concerned about safety issues.  As she got comfortable in her new job, she was wracking her brain, struggling with how to help the company take its safety and operations standards from just “good enough” to a higher level.  One day, while in a local bookstore’s business section, she noticed a book with penguins on the cover. Penguins had always been her favourite animal, but she wondered what such a book was doing surrounded by books on management! 33
  34. 34. Norfolk Southern: Case Study  The book, needless to say, was “Our Iceberg Is Melting.” Once she started reading it, she thought to herself, “wow, this is really helpful.”  She noticed that behaviors in her company sometimes mirrored the penguins’ behaviors, for example, people would see a complex problem, and then either ignore it or wait for someone else to fix it.  Katie thought that if she could get other people in the company to read the book, it might be a big help in giving people perspective on the bigger picture. Katie, being one of the few relatively young workers around, faced an enormous challenge in getting her older co- workers to buy in to the notion that penguins could help the organization. 34
  35. 35. Norfolk Southern: Case Study  There were many skeptics. She showed the book to her manager, a former Marine. He told her that the book was something his granddaughter might read, not something he would value as a business leader.  Katie persevered and insisted that he read it. After her manager actually did, he quickly began to realize the same lessons could apply at Norfolk Southern.  He gave Katie approval to start applying the learnings. 35
  36. 36. Norfolk Southern: Case Study - Step 1  Katie started by trying to create a sense of urgency around a willingness to raise safety and operational standards.  Through evaluation of these problems, not only by Katie but also by the broader leadership team, people began to feel that urgency was more than just the latest fad.  That process of raising the urgency level inside the Atlanta terminal of Norfolk Southern took about 2 months from start to finish. 36
  37. 37. Norfolk Southern: Case Study - Step 2  After sufficient urgency was raised, a guiding coalition formed made up of a few conductors, engineers & supervisors. Katie’s fear was that the group was too homogenous – she actually wanted to include a few of the company’s more skeptical employees to get their feedback and help strengthen the group’s decision making.  The Guiding Coalition began meeting regularly and called themselves “The Iceberg Group.” This group started out small, but eventually grew to have about 9 people, changing over time, from different parts of the organization, meeting regularly to see how to implement the rest of the 8 Steps. 37
  38. 38. Norfolk Southern: Case Study - Step 3  The vision that the group created was designed to change everyone’s mentality and attitude about safety. Injuries could not be treated as an acceptable risk at a railroad – they had to be reduced in order to get the railroad’s efficiency up and costs down. 38
  39. 39. Norfolk Southern: Case Study - Step 4  Communicating this vision was a constant battle, since most of a railroad’s employees are on the move at any given time. Furthermore, most of the crew members did not have access to modern communications like e-mail.  As a result, the vision was communicated through a vehicle called “job briefings,” where the days weather & track conditions were discussed for crews about to go out on to the tracks. These briefings happen 3 times a day, at the beginning of every shift.  The Iceberg Group started communicating the change vision at job briefings, around the clock, for two weeks straight. Over time, every crew member was touched by the vision multiple times, right at their point of highest awareness – before going out to work on the 39
  40. 40. Norfolk Southern: Case Study - Step 5  The largest barrier Katie felt she needed to overcome were related to the concept of raising the bar on safety standards – how can you make people really care about the highest possible safety standards, when current standards are already high? The way to do it, she said, was to make it personal – get to the heart and not just the mind.  They forced people to think about their families and how they would feel about an injury to their loved ones. Over time, the message began to sink in and people started to change their behaviour. This created a high level of 40
  41. 41. Norfolk Southern: Case Study - Step 6  The Iceberg Group set a goal for a short term win – six months injury free and communicated it broadly. Since the inception of the Iceberg Group’s work, with the exception of a small muscle pull, the Atlanta terminal has gone almost 9 months injury free.  Other outcomes resulted as well, for example, because the terminal became so proficient, they’ve never had to reduce the number of shifts running, even as other companies have cut back.  With injuries down about 97% over last year, the Atlanta terminal has had fewer missed days of work, fewer injury-related costs and more productive workers, enabling it to gain a critical advantage over the competition. 41
  42. 42. Norfolk Southern: Case Study - Step 7&8  Even with this success, the Atlanta terminal isn’t content to let up. As they continue to move through the 8 Step process, they hope to make the change permanent by anchoring these new changes into the culture.  The Iceberg Group continues to meet, looking for other ways in which they can help the company improve its operations, and hopefully, spread the Iceberg philosophy to other divisions of the company 42
  43. 43. Norfolk Southern - Vision  Be the safest, most customer-focused, and successful transportation company in the world  Norfolk Southern believes having a vision helps create prosperity. It pushes boundaries, creates new possibilities, and challenges people to roll up their sleeves and do what it takes to achieve goals. 43
  44. 44. Hmm… 44