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John Kotter's 8-Stage Process of Creating Major Change

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Drew Newton

on 7 March 2013

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Transcript of John Kotter's 8-Stage Process of Creating Major Change

Error 1 Complacency Error 2 No Powerful Guiding Coalition Error 3 Underestimating the Power of Vision Error 4 Undercommunicating the Vision by a Factor of 10 Error 5 John Kotter's 8-Stage Process of Creating Major Change Created by Andrew Newton "Yes, we have our problems, but they aren't that terrible and I'm doing my job just fine" "If it ain't broke, don't fix it" Older generations did not grow up in an era of common transformation. There was less global competition and the business environment was much slower-moving. The norm was stability. Efforts to transform are useless unless organization has high-powered individuals who back transformation *Without an appropriate and clear vision a transformation effort can easily dissolve. Useful rule of thumb: Whenever you cannot describe the vision driving a change in five minutes or less and get a reaction that signifies both understanding and interest, you are in for trouble. Employees won't make sacrifices to embrace change unless they think the potential benefits are attractive and that change really IS possible ACTIONS Most powerful form of communication Permitting Obstacles to Block the New Vision Barriers to change will undoubtedly exist. They MUST be addressed "Whenever smart and well-intentioned people avoid confronting obstacles, they disempower employees and undermine change" - John Kotter Error 6 Failing to Create Short-Term Wins Critical for continued transformation momentum No S/T wins = increased complacency
decreased urgency
poor analytical thinking Creating S/T wins vs. hoping for S/T wins Error 7 Declaring Victory Too Soon Error 8 Neglecting to Anchor Changes Firmly in the Corporate Culture It can be easy for managers to declare complete victory after seeing the first major performance improvement
*Transformation momentum can stop
*Employees/managers think job is done "Declaring victory too soon is like stumbling into a sinkhole on the road to meaningful change. And for a variety of reasons, even smart people don't just stumble into that hole. Sometimes they jump in with both feet" - John Kotter Pressure and emphasis on change need to continue Any new management MUST embrace and personify this new approach Change must become "the way we do things around here" to truly stick Starts with identifying the eight most common errors in organization's process of making changes Management must create a high sense of urgency among employees and lower-level management Change is critical

Sacrifices need to be made This coalition will need to be POWERFUL enough to overcome the opposition to change John Kotter's Eight-Stage Change Process Stage 1: Establishing a Sense of Urgency Stage 2: Creating A Guiding Coalition "Without the credibility, you have the equivalent of an eighteen-wheeler truck being propelled by a lawn mower engine" - Kotter Putting the team together:
Position power
Trust Both management and leadership skills needed Size of coalition related to size of business Stage 3: Developing a Vision & Strategy Clarify where the company is headed Motivates employees to take action in the right direction Coordinates everyone involved efficiently and quickly "This is how our world is changing, and here are compelling reasons why we should set these goals and pursue these new products (or programs) to accomplish the goals" - Kotter Is this in line with the vision? Characteristics of an Effective Vision:
Communicable Stage 4: Communicating the Change Vision "A gallon of information is dumped into a river of routine communication, where it is quickly diluted, lost, and forgotten" - Kotter 7 Key Elements in the Effective Communication of Vision:
Methaphor, analogy, and example
Multiple forums
Leadership by example
Explanation of the seeming inconsistencies
Give-and-take Stage 5: Empowering Broad-Based Action Stage 6: Generating Short-Term Wins Stage 7: Consolidating Gains & Producing More Change Stage 8: Anchoring New Approaches in the Culture ~ Change is NEEDED for continued success
*Decrease complacency
*Increase sense of urgency ~ To increase urgency - remove sources of complacency OR minimize their impact
*May take bold or risky actions i.e.
Selling corporate HQ
Honest balance sheet to show losses
- CRISIS situation Critical to communicate a consistent and clear message * More employees become more empowered
~ Need necessary tools
Proper training
Company structure
Company systems
The right supervisors Many employees WANT to help but they need the right resources and structure-
*Empower as many employees as possible ~ Transformation can take a long time to accomplish
Victories need to be achieved along the way
Short-term wins are CRUCIAL 6 Benefits of Short-Term Wins:
1. Provide evidence sacrifices are worth it
2. Positive feedback to boost morale and motivation
3. Help guiding coalition see feasibility of their ideas
4. Undermine cynics and resisters
5. Provide evidence of being on track to upper management
6. Build momentum by increasing support Keep sense of urgency HIGH
*Don't over-celebrate s/t wins
*Cynics and resisters are opportunists "Whenever you let up before the job is done, critical momentum can be lost and regression may follow" - Kotter Many change projects occurring at same time
* Delegate responsibilities- everyone takes ownership "It's the way we do things around here" Change not successful until rooted deep into culture How is the new culture better for future than the old culture? Cultural change:
Comes LAST, not first
Depends on results
Requires a lot of talk
May involve turnover
Must reflect promotion processes
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