John P. Kotter's 8 stages of change are summarized as follows:
1. Establish a sense of urgency and gain buy-in from 75% of stakeholders who do not want to leave their comfort zones.
2. Form a powerful coalition of 5-50 key leaders to drive the change.
3. Create a vision to clarify the desired direction of change.
4. Communicate the vision through every available channel.
5. Empower others to act on the vision by removing obstacles and swaying reluctant leaders.
6. Plan for and create short-term wins within 1-2 years to boost morale and refine the vision.
7. Consolidate improvements
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Kotter's 8 steps change transformation fails
1. IS4203 Case Presentation
Leading Change: Why Transformation Efforts Fail
Team 1
Kang Jie Min
Tan Jin Xiang
Derek Ang Yi Heng
Thomas Lim Kuo Tao
Ivan Chew Teck Meng
by John P. Kotter
4. Introduction
Why does transformation fail?
Management too eager for success.
Flow of change is too fast or has no natural progression.
Deviations from a previously healthy onset of change.
Lack of Structurally-Managed Pathway of Change
Solution:
John P. Kotter’s 8 distinct steps of change.
5. The 8 Stages of a Change Process
1. Establishing a sense of urgency
Change makers are too impatient, want to implement
change quickly
Underestimate the lack of urgency
People do not want to get out of their comfort zones or being
paralysed by risk
Making an impact to the 75%
6. The 8 Stages of a Change Process
2. Form a coalition
Getting people together for a cause
Requires key “leaders” to succeed
Powerful Coalition =
7. The 8 Stages of a Change Process
3. Creating a vision
A vision says something that clarifies the direction in
which an organisation needs to move. (Kotter, 1995)
Developing strategies to achieve that vision
Kotter, J. P. (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review OnPoint(March-April), 1-10.
8. The 8 Stages of a Change Process
4. Communicate the vision
Utilise every possible channel
to communicate the vision
9. The 8 Stages of a Change Process
1. Create u _ _ _ _ _ y
! ! !
+
75%
10. The 8 Stages of a Change Process
2. ____ a _________
5-50
11. The 8 Stages of a Change Process
3. Create a ______
X
12. The 8 Stages of a Change Process
4. ___________ the vision
13. The 8 Stages of a Change Process
5. Empower others to act on the vision
Remove Obstacles
Move people out of their comfort zones
Work to sway the opinion of bosses who are reluctant to
change; get them to adhere to new initiatives
Align organizational structure/systems with the ebbs and
flows of change
14. The 8 Stages of a Change Process
6. Planning for and creating short-term wins
Plan for short-term goals, publicise short-term achievements
Timeframe within 1-2 years
Raise employee morale
Renew urgency and force detailed analysis to refine vision
Reasons for failure
Hoping for short-term wins instead of planning for it
15. The 8 Stages of a Change Process
7. Consolidate improvements and
produce still more change
Prepare for a Long-Drawn Process
Cultural change can take 5-10 years
Leaders should use the newfound credibility to tackle
even bigger problems
Avoid Premature Declaration of Successful Change
Kills change momentum
People return to old practices as change not sunk in
Change resistors seize opportunity to reverse change
16. The 8 Stages of a Change Process
8. Institutionalize new approaches
Demonstrate how new approaches, behaviours and
attitudes have helped improve performance
Important to let people know the true drivers of
change
Make the next generation of top management personify
the new approach
Lead by example!
17. The 8 Stages of a Change Process
5. _______ people
18. The 8 Stages of a Change Process
6. Plan and publicise _____-____ ____
/
19. The 8 Stages of a Change Process
7. ___________ improvements and ________
5-10
20. The 8 Stages of a Change Process
8. __________________ new approaches
+
21. Case Study: Yahoo!
1.
Establishing a sense of urgency
Quantification of Publicly Observable Metrics
2.
Forming a powerful guiding coalition
Hiring PhDs to Restore Yahoo!'s Research Unit
Accommodating a C-level Management Shakeup
3.
Creating a vision
Reigning in Yahoo!’s Flawed Business Processes
4.
Communicating the vision
Weekly “FYI” Meetings on Friday
5.
Empowering others to act on the vision
Discontinuation of Work-from-Home Practice
6.
Planning for and creating short-term wins
Free Food, Free iPhones, Feedback Forum
Mayer@
22. Case Study: Yahoo!
How positively has Yahoo! Changed?
16 July 2012
- Marissa Mayer appointed as CEO
Mayer@
23. What’s the Link?
Myths of change
Change is a one-time effort
Change the organization first to carry out change
Systems and technology are mandatory to carry out effective change
If management sees the need for change, then it is evident to everyone
If you know what requires change, just do it
Carry out all changes at one time to avoid disruptions
Change is positive and so it should be widely supported
You only need to involve a limited number of key employees to implement change
Plagiarized from IS4203 Lecture 2 slide 18
24. What’s the Link?
Why change fails
Change is not thought through or planned
Outsourcing of organizational change
Failure to address critical shadow systems
Change is driven top-down only
Over-reliance on one leader
Lack of localization of change efforts
Issues and problems surfaced not addressed quickly
Fuzzy measurements to determine success or failure
Change management stops after change is implemented
Plagiarized from IS4203 Lecture 2 slide 19
25. What’s the Link?
* Sorted *
(1) Change is positive and so it should be widely supported
Backing
(1) Change is driven top-down only
(1) You only need to involve a limited number of key employees…
(2) Over-reliance on one leader
(3) Change is not thought through or planned
(3) Carry out all changes at one time to avoid disruptions
Vision
(4) If management sees the need for change, then it is evident to everyone
(4) Lack of localization of change efforts
(5) Issues and problems surfaced not addressed quickly
(5) Failure to address critical shadow systems
(6) Change is a one-time effort
(7, 8) Change management stops after change is implemented
Plagiarized from IS4203 Lecture 2 slide 18, 19
Problems
Quick hits
Sustain
26. What’s the Link?
Business
Drivers of
Change
Vision
Organization
Structure
HR
Politics
Culture
X
Strategy
UTAUT
IS Success
Model
Technology
27. Conclusion
Structured framework to change process
Very easy to fail at each stage
Meet change resistance
So.. How to persuade people to change?
Next Presentation by team 13
Plagiarized from IS4203 Lecture 2 slide 19
1. Establishing a sense of urgency to everyone before making a change.Managers are too impatient: they want change to be implemented quickly. However, they underestimate the lack of urgency and that people do not like to get out of their comfort zones. To being the change process effectively, they need to make an impact on everyone and let everyone feel the same sense of urgency as them. In the article, a CEO deliberately engineer the largest accounting loss in the history of the firm to make an impact on his staff.
Forming a CoalitionSo after your establish a sense of urgency in the people of your organisation, the next logical thing to do is to get them together for a cause. This is where you form the “coalition”. A successful requires key leaders to succeed. Leaders in this context refers to the head of the organisation/department level that the change is going to be implemented. However, persuading them may not be easy as some people just do not buy the idea of the change, especially senior executives. Thus you need stage one to succeed before reaching this stage. Finally, a powerful coalition usually succeeds so what does are the factors that constitute a powerful coalition? Titles, information, expertise, reputation, relationships and basically anything that can facilitate the change.
Forming a VisionA vision is essentially the compass of change according to the definition by Kotter in his article. A vision should be easy to communicate and appeals to customers, stockholders & the employees of the organisation. That is why the coalition will have to refine the vision for a significant amount of time, usually 3 to 12 months and come up with the final vision. Then they will develop the strategies that are aligned to achieving that vision.
At this stage, the idea is to utilise every possible channel to communicate the vision to the rest of the company. It may sound simple, but the task of communicating the vision has to be consistent and done on a day-to-day basis. Examples of channel include: meetings, monthly newsletter, routine discussions, emails, etc.