Leading Change Karen Sledge

Objectives Background Transformation Through Change Describe the 8 stages Examine the actions needed for change Give common mistakes that lead to failure Connection to other readings

Background Dr John Kotter authored works on leadership and change management – “Leading Change, Why Transformation Efforts Fail” Change is a process Sequential Takes time (think years, not days) No room for short cuts Critical mistakes result in Loss of momentum Reversal of progress Pervasive distrust 1996 2005 2002 2008 1982 2012 MANAGING YOUR BOSS 1993 1992 2010 1985

Stage 1: Establish a sense of urgency What’s needed Finding potential crises or untapped opportunities Aggressive cooperation of many individuals A good leader who sees the need for major change Buy-in from 75% of company management convinced current practices are unacceptable How it fails Underestimating energy to move out of comfort zone Overoptimistic in conveying the “urgent” message Impatience

Stage 2: Form a Guiding Coalition What’s needed Completing previous stage Shared commitment to excellent performance only possible through change Leading by power, expertise, reputation and network Functioning outside of normal hierarchy and expectations How it fails Eliminating components of previous stage Underestimating difficulties in achieving change Undervaluing importance of coalition membership

Stage 3: Define a vision What’s needed Complete previous stages Guiding coalition strategizes to achieve vision Succinctly communicating the vision Individuals return understanding and interest How it fails Eliminated components of previous stages Wrong vision = Incompatible projects Unclear vision = No direction Complicated vision = Confusion

Stage 4: Communicate the Vision What’s needed Completing previous stages The Coalition incorporating the vision into daily activities Using all modes of communication How it fails Eliminating components of previous stages Under communicating the vision Inconsistent behavior with the vision

Stage 5: Remove Obstacles What’s needed Completing previous stages Convinced constituents that no external roadblocks exist Encouraging constituents to take risk Fostering nontraditional ideas, activities and actions Functions outside of normal hierarchy and expectations How it fails Eliminating components of previous stages Powerful naysayers who refuse to change Demands inconsistent with the overall effort

Stage 6: Plan and Create Short-Term Wins What’s needed Completing previous stages Engineering visible performance improvements Recognizing constituents Retaining the “urgency” Clarifying the vision How it fails Eliminating components of previous stages Stopping the process to soon Expecting results to occur quickly Leaving the short-term wins to chance

Stage 7: Wait to Declare Victory What’s needed Completing previous stages Using early, small wins to address areas that undermine the vision Integrating vision into hiring and promotion practices How it fails Eliminating components of previous stages Relaxing change initiatives Letting resistors reintroduce traditional ways

Stage 8: Anchor Changes into the Culture What’s needed Completing previous stages Cultivating the next generation of vision leaders New Behaviors + Performance = Company Success How it fails Eliminating components of previous stages Shallow roots of new behavior Status quo on promotion criteria

Connection to Other Readings People need to see they’re integral to the solution (Aaron & Nelson) Adaptive change requires individuals to alter their ways – without some distress there is no incentive to change (Heifetz & Linsky) Change will create conflict – resist the urge to resolve it (Weiss & Hughes) Change involves risks (Kouzes & Posner) Change will never stop (Berson & Stieglitz) Our Iceberg is Melting

Back-up slide About the author Created and co-founded Kotter International helping develop Global 5000 leaders Written 18 books w/12 best sellers HBR articles have sold more reprints Youngest tenured professor at Harvard 2011 & 2013 Thinkers 50 recipient for change management ideas (Clayton Christensen honored as top ranked thinker in 2011)