Leading Change: Why Transformation Efforts Fail By John P. Kotter Harvard Business Review March-April 1995

Objective To discuss eight reasons why transformation efforts fail in organizations and to learn some strategies for successful organization transformation.

Error #1: Not Establishing a Great Enough Sense of Urgency YouTube - He forgot to wipe Organizations need to continually examine the market and look for a competitive advantage Anticipate and identify potential crises And look for opportunities Organizations need to have forward thinking employees

Error #2 Not Creating a Powerful Enough Guiding Coalition In a successful transformation, you need to assemble a group of people with enough power to lead the change efforts and to encourage the group to work together as a team.

Error #5: Not Removing Obstacles to the New Vision Often times employees understand the new vision and want to help make it happen but something appears to be blocking the path. This can be obstacles in the organizational structure where compensation or performance appraisal systems make people choose between the new vision and their own self interests. Also bosseswho refuse to change and who make demands that are inconsistent with the overall effort.

Error #3: Lacking a Vision Organizations need to have a clear vision that directs the change efforts and strategies that need to be implemented for achieving that vision

Error #4: Under-Communicating the Vision by a Factor of Ten Organization leaders need to use every vehicle possible to communicate the new vision and strategies. The organizations needs to teach new behaviors by the examples of the guiding coalition. A vision says something that clarifies the direction in which an organization needs to move.

Error #6: Not Systematically Planning For and Creating Short-Term Wins Organizatios need to plan for visible performance improvements and create the improvement They also need to recognize and reward employees involved in the improvements

Error #7: Declaring Victory to Soon http://www.youtube.com/watch?v=rjoiQBRixmA Celebrating a win is fine but declaring the war won can be catastrophic Until change changes sink deeply into a company’s culture, a process that can take five to ten years, new approaches are fragile and subject to regression.

Error #8: Not Anchoring Changes in the Corporate Culture YouTube - Nextel Dance Party Remix Change stickes when it becomes the way we do things around here Until new behaviors are rooted in social norms and shared values, they are subject to degradation as soon pressure for change is removed. Two factors are important in institutionalizing change in corporate culture A conscious attempt need to be made to show people how the new approaches, behaviors, and attitudes have helped improve performance. Organizations need to invest sufficient time to make sure that the next generation of top management really does personify the new approach.

Eight Steps to Transforming Your Organization Establish a Sense of Urgency Forming a Powerful Guiding Coalition Creating a Vision Communicating the Vision 1 2 3 4

Cont……. Eight Steps to Transforming Your Organization Empowering Others to Act on the Vision Planning for and Creating Short-Term Wins Consolidating Improvements and Producing Still More Change Institutionalizing New Approaches 5 6 7 8

Thank You Nikki L Hartley