John .P Kotter eight steps model explaining the process of change for business organizations . He also mentioned the mistakes to be avoid to establish a new lover.
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Group Members Adnan Muhammad Azhar Presentation
John P.kotter Leading Change ( Why Transformation Efforts Fail)
Presentation Outline Details Transformation Core Objective Establish a sense of urgency Forming a powerful guiding coalition Introduction and e ight s tages Creating a vision Communicating the vision Empowering others to act on vision Creating short-term wins Combining improvements Establish new approaches Conclusion
Details Topic : Leading Change (Why transformation efforts fail) Author : John P.Kotter Date : March1995 Published : New york Free Press
Transformation Adoption to a more challenging market environment through fundamental reforms to business process.
Article Core Objective Discussion of eight reasons why transformation efforts fail in organization and learn. Some strategies for successful organization transformation are mentioned.
Eight Stages
Not establishing a Great Enough Sense of Urgency Need for competitive situations. Communicate information timely. Percentage required to create change should be 75 % or greater. Less percentage can produce problems.
Failure of 50 % Organizations in phase 1 Underestimating the need for motivating people. Overestimating their success. A lack of patience. Demotivation effect due to downside possibilities. Paralyzed senior management The key is to have leaders who motivate and instill confidence
Creating a Powerful Enough Guiding Coalition Leadership coalition necessary. Head of organization should be active supporter. Big companies require 20 to 50 members. Working outside formal boundaries. Senior managers form the core of group. Offsite retreat or other tools used.
Not creating a powerful enough guiding coalition No history of team work Groups without strong line leadership Efforts can progress a little but then opposition gets stronger. Lack of conviction in the need for change process. Lot of plans and progress , but no vision
Lacking a Vision Picture of future need to be developed. Vision clarify the directions. Vision should be easy to communicate. Appealing to customers and stakeholders. .
Errors in Lacking a Vision Lack of change can dissolve into confusing and incompatible projects. If you cant communicate the vision to some one in five minutes or less signifies both understanding and interest
Under communicating the Vision Credible communication Use all existing communication channels. Communication comes in both words and action. Making employees belief.
Error in Under communicating the vision Three mistakes Misbehavior of senior management Speeches to selected group of employees. Nothing undermines change more than behavior. “Molding behavior is the key”
Under communicating the vision Treat person fairly if the blocker Renewal also needed Empower and credibility of change efforts Main problem The main bosses who refused to change
Empowering others to act on Vision Employees are encouraged to apply new approaches. Obstacles for employees O rganization structure Narrow job categories Compensation and appraisal (self interest and vision)
Empowering the others to set a Vision Initially no organization has the momentum to get rid of problems. But tackle the big obstacles (blocker person). Action is necessary. To empower others and to maintain the credibility of the change effort as a whole.
Systematically Planning Short term wins Most people don’t continue the long journey unless Compelling evidence for short term outcomes Reward and planning system Obtain clear performance improvements
Continued Short term commitments within first two years Quality beginning Higher customer satisfaction Upward shift Product introduction “Short term wins help to keep urgency level high”
Error Declaring Victory to Soon Premature celebration kills momentum Resistors quick to find any opportunity to stop the change. New approaches takes time to get well settled in.
Declaring Victory to Soon Go after system and structures that are not consistent with transformation. Leaders know who is promoted and who is developed. Introduction of reengineering projects. Quantified the amount change the occur every year. “ Celebrating a win is fine, declaring the war can be disastrous”
Anchoring the Changes in the Corporation C ulture When change seeps into the bloodstream of corporate culture Previous behaviors are molded into change. Two factors in establishing a change To show people, the effects of new approaches. Next generation of top management personify the change
Conclusion These eight mistakes are the big ones Vision of change process can reduce the error rate. Effective communication. Short term achievement. Constant appraisal and reward.