Kotter’s 8-Stage Process Dr. Michael Hoffman 8/7/2014 Leading Change Kotter’s 8-Stage Process Dr. Michael Hoffman 8/7/2014

Leading Change

Leading Change Change can be very difficult Complacency Resistance Communication (lack thereof) Sustainability Change isn’t necessarily good or bad, it just is

Leading Change Step 1 – Establish a Sense of Urgency Leverage a crisis Use market data Compare yourself to competition “Create” a crisis Set very high goals Eliminate examples of excess Stop the “happy talk”

Leading Change Step 2 – Create a Guiding Coalition Why? Who? Because it’s difficult, if not impossible, for one leader to implement a major change initiative without help Who? The right people, with the right skills, and the right amount of trust Position power – is important Leadership ability Credibility – if they help champion the change initiative, will people listen?

Leading Change How? Define a charge, or charter, for the coalition Clear task(s) Clear boundaries What’s off the table? Clear authority Create a reinforcing framework Reward the team, not the individuals on the team People, and teams, respond to incentives Cascading sponsorship Ensure that there are reinforcing sponsors all of the way down the organization’s hierarchy

Leading Change Step 3 – Develop a Change Vision Why? Simplifies numerous more detailed decisions Helps to empower people Motivates action in the direction required by the change initiative Vision can help trump short-term interests Helps to coordinate the efforts of large numbers of people in an efficient way Not sure if your action is in support of the change initiative? Ask yourself, is it in line with the change vision? Can always go back to the vision

Leading Change The Change Vision should be: Imaginable: They convey a clear picture of what the future will look like. Desirable: They appeal to the long-term interest of those who have a stake in the enterprise. Feasible: They contain realistic and attainable goals. Focused: They are clear enough to provide guidance in decision making. Flexible: They allow individual initiative and alternative responses in light of changing conditions. Communicable: They are easy to communicate and can be explained quickly.

Leading Change Sample Change Vision "We want to reduce our costs by 30 percent and increase the speed with which we respond to customers by 40 percent. When this is completed, in approximately three years, we will have ... better satisfied customers, increased revenue growth, more job security, and the enormous pride that comes from great accomplishment."

Leading Change Step 4 – Communicate the Change Vision Communication is vitally important, particularly during a major change initiative Best to error on the side of too much communication than too little Often the most overlooked step Necessary to communicate the change vision, or it is essentially worthless

Leading Change Communication – Key Elements Simplicity Use of Examples/Analogies Multiple Forms Repetition Leadership by Example Explanation of Real or Perceived Inconsistencies Bi-Directional (don’t forget to listen)

Leading Change Step 5 – Empowering Employees for Broad-Based Action Major organizational change typically requires effort from many people Remove barriers Structural Training Systems (compensation, etc.) Hierarchy Supervisors Are they salvageable?

Leading Change Step 6 – Create Short-Term Wins Help to build momentum Reward change agents with evidence of success Provide evidence that the sacrifices made for the change effort are worth it Help to fine-tune change vision and strategies Undermine change resistors Help convince the highest-levels of the organizational hierarchy that the change effort is succeeding

Leading Change How are short-term wins achieved? They are planned for Is one short-term win enough? Probably not Plan for multiple short-term wins, spaced apart to reinforce change momentum Are they real, or gimmicks? They are genuine

Leading Change Step 7 – Consolidate Gains & Produce More Change Characteristics of a Successful Change Effort As interdependencies increase, change becomes more difficult Additional people are leveraged to help with the change Short-term wins are leveraged for more change Unnecessary interdependencies are eliminated Senior management leads and coordinates the effort Lower-level managers lead specific change projects

Leading Change Step 8 – Anchoring New Approaches in the Culture Culture is powerful Is present and felt through the actions of large numbers of people Individuals are indoctrinated into the culture easily and effectively Is often adopted by individuals without conscious intent

Leading Change Change organizational culture last, not first Culture is created over years, changing it may take just as long Results, results, results Change initiatives and new approaches must be shown to work in order to change the culture Talk Reinforce changes in culture with verbal instruction and support Turnover Sometimes turnover in key positions is the only way to truly change the culture