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Leading Change Why Transformation Efforts Fail

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Linda Mao

on 27 March 2014

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Transcript of Leading Change Why Transformation Efforts Fail

Leading Change---Why Transformation Efforts Fail?

A change process goes through a series of phases.
Kotter maintains that transformation is a process, not an event. It advances through stages that build on each other. And it takes years.
By understanding the stages of change— and the pitfalls unique to each stage—you boost your chances of a successful transformation.
Creating Major Change
The 8 Stage Process of Creating Major Change:

Kotter, J.P. (2007). Learding Change Why Transformation Efforts Fail. Harvard Business Review.
The goal: to make fundamental changes in how business is conducted in order to help cope with a new, more challenging market environment.
Leaders who successfully transform businesses do eight things right (and they do them in the right order)
Critical mistakes in any of the phases may negate people's efforts

Presented by Ming Xu,Wei Li,Mei Wang

Establishing a sense of urgency
Form a powerful guiding coalition
Create a vision
Communicate the vision
Empower other to act on the vision
Plan for and create short-term wins
Consolidate improvement and produce more change
Institutionalize new approaches

Error1: Not establishing a great enough sense of urgency
People not motivated
Executives don’t know how difficult it is to motivated, push people to do better or chage their old way business.
Transformations begin well with good leader who likes the idea of change
(CEO are important)
Businesses create a problem on purpose
How can urgency to change become quicker? When urgency rate 75% of management believes without change business can not continue

Error 3: Lacking a Vision
Making vision is developing a picture for the future and helps clarify the direction in which an companies to move.
If vision or goal is not clear or visible it may be confusing orunclear what should be done in the future.
example– companies made detailed notebooks of plans but causes confusion among employees (people confused doesn’t bring about transformation)
Communicate your vision in 5 minutes or less to clear, simple, interesting capture the attention of the listener

Error 4: Undercommunication the vision by factor of ten

Lack of communication
The head of organization spend a lot of time making speeches that many people doesn’t understand
Some executives act against the vision.

Three patterns with respect to communication:
Error 5: Not Removing Obstacles to the New Vision
Renewal requires large numbers of people.
Renewal requires the removal of obstacles.
The most common obstacle may be the organizational structure.
Action is a crucial point of a change.

Error 6: Not Systematically Planning for, and Creating, Short-Term Wins
Real change is not easy and takes time!

Short-term goals help people to see a bright future.
It can also help managers to motivate employees.--Urgency level goes up.

Error 7: Declaring Victory Too Soon
Error 8: Not Anchoring Changes in the Corporation's Culture
The new change should be rooted in the culture.
Two crucial factors:
-Consciously remind people the benefits of new method.
-Make sure the top management in the future are invovled in the new approach.

New approaches may subject to regression.
Keep going and do not too happy and relaxed with the first performance improvement.

Error2: Not creating a powerful enough guiding coalition
Companies start one or two people, the leadership coalition grows with time
More manger(power) to push for successful transformation
Many people must be committed to transformation and work together
The bigger company need more manager/leaders to create progress
Companies that don’t take “forming a powerful guiding coalition” seriously fail to recognize difficulties for transformation
If the coaliion of change is not strong enough opposition can overtake and stop change.

Error 6: Not Systematically Planning for, and Creating, Short-Term Wins
Real change is not easy and takes time!
Short-term goals help people to see a bright future.
It can also help managers to motivate employees--Urgency level goes up.
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