1.
Lesson 4: Kotters change theory

2.
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.

3.
Step 2- Form a powerful coalition
This team works to make the change happen. The
team must work well together to manage the change
process.

4.
Step 3 - Create a vision for change
The vision provides the ultimate goal of the change process. It
should motivate the organisation. The vision must be seen as
justifying the effort.

5.
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.

6.
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.

7.
Step 6 - Recognise and reward achievements
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.

8.
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Step 7 Consolidate
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.

9.
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.