How To Succesfully Lead Projects with Professor John Kotter's 8-step Model

1. Pink Elephant – Knowledge Translated Into Results How To Successfully Lead Projects With Professor John. P. Kotter’s 8-Step Model Karen Chua Management Consultant Pink Elephant

2. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Welcome & Agenda 1.  Why Change? 2.  Why Firms Fail? 3.  Eight Steps For Managing Organisational Change 4.  Q & Q ITIL® is a registered trade mark of AXELOS Limited. 2

4. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Why Change? 4 Globalisation & Competition Maturity of Markets Interna0onal Economic Integra0on Technological Change §  Reengineering §  Restructuring §  Quality Programs §  Mergers & Acquisitions §  Strategic Change §  Cultural Change If it ain’t broken, don’t fix it!

5. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Why Firms Fail 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 by a factor of 10 5.  Permitting obstacles to block the new vision 6.  Failing to create short-term wins 7.  Declaring victory too soon 8.  Neglecting to anchor changes firmly in the corporate culture 5 Consequences: §  New strategies not implemented well §  Reengineering takes too long, costs too much §  Quality program do not deliver expected results

6. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Kotter’s Eight Steps For Leading & Managing Organisational Change 6 Establishing a sense of urgency Creating the guiding coalition Developing a vision and strategy Communicating the change vision Empowering broad-based action Generating short-term wins Consolidating gains and producing more change Anchoring new approaches in the culture 1 2 3 4 5 6 7 8

7. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. 7 The Process Of Change CSI Output Future: Cultural Vision & Plans Input Baseline: Current Culture Transition Change 5. Empower Broad Based Action 6. Generate Short-Term Wins 7. Consolidate Changes & Produce More Change Transition Refreeze 8. Anchor Changes In Culture Unfreeze 1.Establish Sense Of Urgency 2.Create Guiding Coalition 3.Develop Vision & Strategy 4.Communicate Vision & Strategy Kotter’s Eight Steps For Transformation Kurt Lewin’s Three-Stage Model

8. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Establishing A Sense Of Urgency §  What is the sense of urgency for change? §  We are doing fine as we are… §  Why should we change when there is no real problem to fix? §  50% projects fail at this stage §  No real understanding of ‘why we are implementing change’ §  Sense of urgency at strategic level – not filtered down §  Lack of addressing the heart §  Burning platforms in IT today §  Globalisation, competition, governance, security etc. §  BYOD, Mobile computing, cloud etc. §  Service quality, reduced budgets etc. §  Sense of urgency is crucial §  To gain needed cooperation §  To sustain the momentum for change 1 8

9. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. 9 Never Forget Change comes from the heart not from the head. It is about being shown a truth that influences their feelings.

10. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Ways To Raise The Urgency Level 10 High Levels Of Urgency Create A Crisis Honest Discussions Eliminate Excess Set High Targets Broader Performance measures More Data on Customer Satisfaction Talk Regularly To Unhappy Customers Use Consultants Wonderful Future

11. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Creating The Guiding Coalition §  A team powerful enough to sustain the change throughout its journey §  Right composition, level of trust and common objectives §  Designed to overcome challenges like: §  CIO/Executive Sponsor moves on: Change project cancelled or scope severely reduced §  Lack of Credibility: Driven by middle management; Change project cancelled as more strategic business impacting projects take priority §  Challenging Change Project Dynamics: Long duration; High impact – roles, tools; Complex – global organisations/multi-departments §  Effective guiding coalition processes more information more quickly, speed up implementation of new approaches, committed to key decisions 2 11 Trust and common goal shared by people with the right characteristics result in a POWERFUL team!

12. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Traits Of A Guiding Coalition §  Trust & Emotional Commitment §  Sufficient level of trust §  Common objectives §  Right composition of people §  TEAMWORK! §  Key Roles §  Sponsor – Leadership. Ultimate owner of the change §  Advocates – Senior Management to support the Sponsor §  Agents – Have respect and credibility. Will embed the change §  Need both leadership and management! §  Key Characteristics (Kotter): §  Leadership – Proven leaders who can drive the change §  Position Power – Key stakeholder representation §  Credibility – Good reputation, taken seriously §  Expertise – Representative SMEs to make effective decisions 12 Guiding Coali0on Common Objec,ves Right Composi,on Trust

13. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Developing A Vision & Strategy §  Leadership is the process of creating a vision for others and having the power to translate it into a reality and sustain it (Kotter’s – Leadership Factor) §  A good vision statement should: §  Exercise both the HEAD and the HEART §  Clarify the general direction of the change program and the intent of the organisation §  Motivate people to take action in the right direction §  Steer a strategy to coordinate and focus the actions of many different people The Vision Statement describes the Des,na,on for the Journey Forward 3 13

14. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Vision Statement Vision Statement vs. Mission Statement §  A vision statement should not to be confused with a mission statement. The terms are often used interchangeably. Mission statements are present-based statements designed to convey a sense of why the company exists. Vision statements are future-based and are meant to inspire and give direction. Example: “To be a regional financial services leader.” (quoted from Maybank.listedcompany.com) Example: Our vision is to be the go to provider of choice for IT services, excelling in quality of service, innovation and responsiveness to the changing demands of the business. 14 An ineffective vision may be worse than no vision at all. Example: “A leading oil and gas multinational of choice.” (quoted from Petronas.com.my)

15. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Characteristics Of An Effective Vision 15 Rule of Thumb: If you cannot describe the vision to someone in 5 minutes and get them interested, you have a lot of work to do! Imaginable Desirable Feasible Focused Flexible Communicable Source: Leading Change, Table 5-1, KoHer

16. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Communicating The Change Vision A great Vision can serve a useful purpose even if it is understood by just a few key people. But the real power of a Vision is unleashed only when most of those involved in an enterprise or activity have a common understanding of its goals and direction. The shared sense of a desirable future can motivate and coordinate the actions that create transformation. Professor John P. Kotter, Leading Change 4 16

17. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Seven Steps To Success For Communicating The Vision & Strategy 1.  Must come from the heart. 2.  Keep it direct and simple §  Eliminate jargon and geek speak 3.  Use metaphors, analogies and examples §  Pictures are worth a thousand words 4.  Use Multiple Forums §  Normal IT Communication vs. Required Change Vision Communication requirements 5.  Communicate, Communicate, Communicate §  Repeat as often as possible – no fear of over communicating 6.  Lead by example – Be the right role model/walk the talk §  Provide explanations for perceived inconsistencies 7.  Two-way is more powerful and effective than one-way communication 17

18. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Empowering Broad-Based Action Does anyone truly understand the word “Empowerment?” §  Empower people to take action §  Empower people to make decisions §  Empower people to recommend/make changes §  Empower people to do what is right §  Empowerment requires guidelines on how far people can go 5 18

19. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Barriers To Empowerment §  Structures §  Fragmented resources, strong silos disempower people §  Skills §  Insufficient skills, understanding of necessary skills or training, wrong attitude §  Systems §  Personnel and information systems – appraisal, compensation and promotion §  Supervisors §  Middle Managers discourages actions aimed at implementing the new Vision – poses a serious threat Change leaders focus on removing obstacles and barriers. 19

20. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Generating Short Term Wins A Short Term Win describes an improvement in actual or perceived service quality, achieved within a short space of time with relatively little effort. There are typically many improvement activities that can be done in a short period of time without necessarily launching a formal improvement project. 6 20 Visible Unambiguous Related to the Change A Good Short Term Win

21. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Benefits Of Short Term Wins Buy-in & Commitment Success Feeds Success Key Stakeholder Support Address Skeptics Build Confidence In Program Funding Why Worry About QUICK WINS? 21

22. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Key Elements Of Short Term Wins §  Must be planned §  Must be visible §  Must be communicated §  Must add value and be meaningful §  Must be achieved in a short period of time §  Must support sense of urgency and inspire people to want to act 22

23. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Consolidating Gains & Producing More Change Why it is important to keep moving: §  Success makes it hard for people to block the change initiative §  Success breeds success §  Retain key resources and skills §  Provide Senior Management and the guiding coalition data on the viability of the programme/project §  Assures management and staff that the effort is worth it §  Creates many visible milestones 7 23

24. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Producing More Change 24 Short term wins generate more change Get more people involved to develop the change Leadership focuses on maintaining the course Middle management manages specific change projects Eliminate unnecessary interdependencies

25. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Anchoring New Approaches In The Culture New Practices Grafted into Old Culture: §  New practices to be stated and formalized §  Help new practices to grow deep roots, sink down to the core culture §  Attitude and Behaviour change at earlier stages; Culture change last §  Culture: behaviour norms, shared values §  Leadership is critical to change the culture §  Management is important to change the structure and systems Last but not Least: In the end, this last step may well be the most critical to your transformation activities. You have to find the courage and organisational will to transcend silos, create new governance/ownership structures, new roles and personal performance measures that will ensure that Executives, Managers and Staff feel personally accountable to actually change their behaviour and embrace the new practices. 8 25

26. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Kotter’s 8 Steps For Leading & Managing Organizational Change 26 Establishing a sense of urgency Creating the guiding coalition Developing a vision and strategy Communicating the change vision Empowering broad-based action Generating short-term wins Consolidating gains and producing more change Anchoring new approaches in the culture 1 2 3 4 5 6 7 8

29. How To Successfully Lead Projects With Professor John P. Kotter’s 8-Step Model © Pink Elephant, 2016. All Rights Reserved. Thank You. Questions? Karen Chua k.chua@pinkelephant.com @karenchuakc sg.linkedin.com/in/karenchua www.pinkelephant.com 29

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