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

2. Leading Change

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

4. 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”

5. 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?

6. 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

7. 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

8. 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.

9. 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."

10. 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

11. 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)

12. 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?

13. 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

14. 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

15. 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

16. 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

17. 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