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Michael Arias

on 11 April 2013

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Ben Brown
Carolyn Monholland
Michael Arias How to Change to a Culture of Developing Leaders Overview Why Change?
Qualitative Reasons for Change
Quantitative Reasons for Change
Kotter's 8 Step Model
Benefits and Criticisms of Approach
Leader Responsibility
Questions Why Change? The rate of change is not going to slow down anytime soon. If anything, competition in most industries will probably speed up even more in the next few decades."— John P. Kotter Leading Change ("Leading thoughts: Building," 1996)
-"Your success in life isn't based on your ability to simply change. It is based on your ability to change faster than your competition, customers and business."—Mark Sanborn of Sanborn & Associates ("Leading thoughts: Building," 1996)
-"Everybody has accepted by now that change is unavoidable. But that still implies that change is like death and taxes — it should be postponed as long as possible and no change would be vastly preferable. But in a period of upheaval, such as the one we are living in, change is the norm."—Peter Drucker Management Challenges for the 21st Century (1999) ("Leading thoughts: Building," 1996)
-“Traditional ways of competing have reached a level of parity in which businesses cannot easily distinguish themselves solely on the basis of technology, products, or price. The ability of an organization to conceptualize and manage change—to compete from the inside out by increasing its capacity for change—may represent that novel way to compete. The universal challenge of change is to learn how organizations and employees can change faster than changing business conditions to become more competitive. That is, to change faster on the inside than the organization is changing on the outside”— R.W. Beatty & D.O. Ulrich professor of Industrial Relations and Human resources Rutgers University and professor at the University of Michigan School of Business, respectively (Jick & Peiperl, 2011, p. 37) Qualitative Reasons for Change b.A large Medical Center in NY decided to institute in-house leadership development, and here are the results (Kaplan & Feldman, 2008):
• The throughput pilot fostered a view beyond silos toward a broad, systemic perspective
• The communications project met the chairman’s goal for performance improvement
• There was increased medical staff committee participation on
hospital-medical staff issues, projects, and decision-making such as working with vendors and patient safety initiatives
• There has been a renewed focus on succession planning in the leadership of the medical staff
• Recruitment was aided by MMC offering leadership opportunities for physicians
• There is more delegation to division chiefs and program directors with an eye on departmental succession planning
• There was increased interdisciplinary teamwork evident on subcommittees
• A group of 20 physician leaders volunteered to be trained to investigate complaints about disruptive behavior and take a leadership role in holding physicians accountable
• Several physicians left the institution for a higher leadership role, thanking the institution for the opportunity Helping You Reach Your Goals Through Change Entrepreneurial Growth Maturity Decline or Re-energize/Renew Why Change Cont. Organizational life cycle (R.W. Beatty & D.O. Ulrich (retrieved from Jick & Peiperl, 2011)
- Organizations, like people, are only motivated by pressure. They will only move toward change and become motivated when they truly become dissatisfied with the status quo. Therefore dissatisfaction drives organizational change (Jick & Peiperl, 2011)
- a leader’s dissatisfaction with the current state means absolutely nothing if he or she cannot find ways of disseminating that very dissatisfaction to the managers of the business units (Jick & Peiperl, 2011)
- Two ways of effectively diffusing dissatisfaction: the sharing competitive information and offering models (that suggest not just where the company out to be headed but also how far it is from that goal)

- Has a team been assembled with enough power to lead the change effort? In terms of titles, information and expertise, reputations and relationships.
- 5 or 15 or 50 people

- “a picture of the future that is relatively easy to communicate and appeals to customers, stockholders, and employees” (Kotter, 1995)
- Goes beyond a 5 year plan
- Shapes the direction of the organization
- “Without a sensible vision, a transformation effort can easily dissolve into a list of confusing and incompatible projects that can take the organization in the wrong direction or nowhere at all” (Kotter, 1995) Kotter's 8 Step Model. 1-3 Kotter's 8 Step Model Cont. 4-6 4. Communicate the vision for buy-in
- “Without credible communication, and a lot of it, the hearts and minds of the troops are never captured” (Kotter, 1995)
- Needs to be communicated through every available facet: Meetings, performance appraisals, company newsletters, emails, conferences, speeches (etc.)
- Communication comes in both words and deeds, and the latter are often the most powerful form. Nothing undermines change more than behavior by important individuals that is inconsistent with their words” (Kotter, 1995)
5. Empowering employees to act on the vision, removing obstacles
- Properly communicated visions will result in employee leadership to apply it
- Obstacles can take the form of an organizational structure such as narrowly defined job categories, compensation structures, non-appropriate performance-appraisals
- Example: The divisional blocker
6. Create short-term wins
- “Real transformation takes time, and a renewal effort risks losing momentum if there are no short-term goals to meet and celebrate. Most people won’t go on the long march unless they see compelling evidence within 12 to 24 months that the journey is producing expected results” (Kotter, 1995)
-Must be purposeful and proactive, not surprising and passive
-Example: the new product Kotter's 8 Step Model Cont. 7 Resistance to Change Loss of Control Suprise, Suprise! Excess Uncertainty Resistance to Change Cont. Everything Seems Different Sometimes the Threat is Real Ripple Effects More Work Successful Implementation:
Senior Most Leader Advice Understand Conflict and Resistance
Build relationships and Promote Teamwork
Avoid Staying Behind Closed Doors
Meet With Employees
Reinforce Change
Check on Progress
Energize and Renergize (Jick & Peperil, 2011) (Kanter, 2012) (Kanter, 2012) Summary Why Change?
Qualitative Reasons for Change
Quantitative Reasons for Change
Kotter's 8 Step Model
Benefits and Criticisms of Approach
Leader Responsibility
Overview Questions References Kanter, R. M. (2012, September 25). Ten reasons people resist change. Retrieved from http://blogs.hbr.org/kanter/2012/09/ten-reasons-people-resist-chang.html Jick, T. D., & Peiperl, M. A. (2011). Managing change: Cases and concepts. (3rd ed.). New York: McGraw-Hill. Kaplan, K., & Feldman, D. L. (2008). Realizing the value of in-house physician leadership development. The Physician Executive, Retrieved from http://ebscohost.com Kesner, I. F. (2009). Leadership development: Perk or priority?. Harvard Business Review, Retrieved from http://ebscohost.com Kotter, J. P. (1995). Leading change: Why transformation efforts fail. Harvard Business Review, (4231) Leading thoughts: Building a community of leaders, quotes on change. (1996). Retrieved from http://www.leadershipnow.com/changequotes.html Appelbaum, S. H., Habashy, S., Malo, J., & Shafiq, H. (2012). Back to the future: Revisiting kotter's 1996 change model. Harvard Business Review, 31(6), 764-782. Retrieved from http://www.google.com Sustain the Change is an important part of the 8 step process and "Make it Stick" is Kotter's 8th and last step in the change process To make change stick the changes must be firmly in place. Employees will be more at ease with the change processes and the steps the management team members will be required to take. Kotter's 8 Step Model 7 Cont. To make change stick the changes must be firmly in place. Employees must have an outline with processes and step by step procedures. To "Sustain the Change" a timeline is important. Using Dr. Epperson's handout page 4 and the Continuum of Change, at this point the Measurable Progress gives timelines of the following:
4-6 week, 2-6 months, and 3-9 months Kotter's Model Step 8 Step 8 is the last step in the change process Step 8 "Make it Stick" should follow "What Changes" this means there has to be a clear picture of and an outline of what has to take place. Using the Continuum of What Changes under Process Improvement and Transformation or Process Engineering the following must take place; Step 8 Cont. Process modified to improve service and quality Procedures, policies Job responsibilities, clarity of roles Technology enhancements Business processes dramatically improve in cost, quality, service and speed Job roles change- work leveraged, employees empowered Step 8 Cont. Technology enhancements Business processes dramatically improve in cost, quality, service and speed Job roles change - work leveraged, employees empowered Organizational structure changes Major technology/system changes Step 8 Cont. One important item in the end is a reward system. Rewards should be predetermined and could be offered in several ways.
Bonuses could be given. A percent of salary or a certain amount.
Raises could be another option with the amount set by management and HR.
A vacation package could be offered at the end with a drawing for this reward.
Depending on how much money the company would like to spend several vacations could be offered with a few being at local hotels for employees and family for a weekend outing Benefits of the approach Why Kotter? 1.Why Kotter?

-Ease of applicability

-Comprehensive step-by-step process (opposite: McKinsey 7-s model, Lewin’s freeze model, Elgin’s 7 stages) Why not Kotter? Criticism (Appelbaum, Habashy, Malo & Shafiq, 2012): -“Kotter validated Kotter”
-His audience is C-level leaders and stakeholders, not academics. His theory has experienced enormous practical success but some feel there is not enough empirical data to back up the findings
-It’s not detailed enough (i.e. Multiple guiding coalitions in different departments) 1. Create a sense of shared need & urgency: 2. Build the guiding coalition 3. Create a Vision Epperson, B. Continuum of change: Eight steps of change. pages 4-5. #1Group#1 Consulting
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