...NORTHWESTERN UNIVERSITY | Leading Change: Why Transformation Efforts Fail | by John Kotter | | Calvin Beecher | 11/17/2013 | John P. Kotter’s frequently cited article, “Leading Change,” Kotter argues that many companies, when attempting to reorganize themselves and make fundamental changes to their business, make eight errors: not establishing a great enough sense of urgency, not creating a powerful enough guiding coalition, lacking a vision, under-communicating the vision by a factor of ten, not removing obstacles to the new vision, not systematically planning for and creating short-term wins, declaring victory too soon, and not anchoring changes in the corporation’s culture. In contrast, organizations that successfully transform themselves perform the following steps in the right order: establishing a sense of urgency, forming a powerful guiding coalition, creating a vision, communicating the vision, empowering others to act on the vision, planning for and creating short-term wins, consolidating improvements and producing still more change, and institutionalizing new approaches. Accomplishment of Objectives Kotter sets out to illustrate eight ways a company can fail to reengineer itself and eight steps a company can take to successfully transform to meet market needs. At this, he succeeds. More importantly, his arguments are reasonable and persuasive. Rather than simply give us yet another list of things to do to succeed, Kotter tells us how we will fail if...
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...Describe Lewin's change model and the systems model of change, and discuss the external and internal forces that create the need for organizational change. * Discuss Kotter's Eight Steps for Leading Organizational Change. * Discuss the 11 Reasons Employees Resist Change. * Discuss the process organizations use to build their learning capabilities and identify alternative strategies for overcoming resistance to change. Respond to at least two of your fellow students' responses. Try to respond to students who picked different statements. Kotter’s eight steps for leading organizational change include: 1 – Establish sense of urgency – Create reason for why change is needed 2 – Create guiding coalition – Get people with enough power and influence to lead change 3 – Develop a vision and strategy – Create plan to guide change process 4 – Communicate change vision – Implement communication strategy that constantly communicates new vision with others 5 – Empower broad based action – Eliminate barriers to change, encourage risk taking and problem solving 6 – Generate short term wins – Plan for short term wins, milestones to be met. Reward those who achieve these results 7 – Consolidate gains and produce more change – Coalition uses credibility from goal achievements/wins and creates additional change. More people are brought into the change process throughout the organization 8 – Anchor new approach in culture – Reinforce change by recognizing change and how it...
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...The Need for Change: Kotter’s Eight-Step Approach MGT 435 Organizational Change Prof Doug Nelson February 24, 2014 The Need for Change: Kotter’s Eight-Step Approach Change doesn’t come easy in an organization whether it is large or small. The first step in change is identifying the needs so that steps are put in place to implement. As an organization progresses and develops it can be a difficult strategy to perform especially if there are no steps put in place to follow. Developing more efficient ways to introduce and execute change puts less pressure on the associates, and can help internal and external customers adjust to the way of doing business. In this paper I will be identifying the need for change in pipeline/processing management in an organization by using Kotter’s Eight-Step Approach. In the society will live in today change is normal for any business. Alternate initiatives and technology improvements are essential for any organization to stay ahead of their competitors. Many Planned organizational change is a process that moves companies from a present state to a desired future state with the goal of enhancing their effectiveness. Ultimately, the goal of planned organizational change is to improve an organization's capabilities, thus enhancing its value to stakeholders and stockholders (Beer, 1980). Change can fail for many reasons in an organization if not managed correctly. In fact it has been stated that change in an organization fails 70% of the time...
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...Change Process and Organizational Behavior / Management Abstract Organizations today must learn to adapt to an ever changing global market or they will surly fail. Changes within a firm must be optimized to address the increased competition as a result competitors producing products better, faster, and cheaper. Change management processes must be developed and matured within the organization in order for them to remain competitive. Only through good leadership and the understanding of how to incorporate change can a company survive in today’s fast-paced, ever changing world. Common Errors and Consequences to Anchoring Change Over the years many firms have tried, but failed miserable because they were unable to effectively manage the processes of change which they have established in their organizations. Major change management is an extremely difficult simple process, but when all of the steps or phases of that process are followed, as mentioned in Kotter’s book Leading Change, the outcome will most always be positive. But, if a step(s) is skipped or only partially completed, implementation of the desired change effort will be less than desirable or fail completely. Kotter (1996) states, “To some degree, the downside of change is inevitable. Whenever human communities are forced to adjust to shifting conditions, pain is ever present.” (p. 4). Below are eight the most common errors and the consequences that affect the success of the change process. Figure 1 - Eight...
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...paper discusses John Kotter’s Eight-Stage Change Model and how it can be used as a guide when implementing change within an organization. The roles of various stakeholders including senior and emerging leaders, managers and employees throughout the eight stages are defined. In addition, factors which can contribute to a failed organization change initiative are discussed. Transforming an organization from a sub-optimizing enterprise of independently functioning departments to an organization that embraces cross-functional teams and customer centric integrated processes that focuses on delivering quality products and services requires a well defined and implemented plan of action. In addition, transforming an organization also requires a large amount time, financial resources and most importantly risk. Published success rates of some change management programs are as low as 10% (Oakland & Tanner, 2007). Shrinking profit margins and increasing competition both globally and locally require initiatives that are implemented by organizations to deliver the desired results. A number of organizational change models are available for an organization to use when transforming an organization. John Kotter’s Eight-Stage Change Model provides a framework that allows an organization the time needed to implement change as well as inclusion and participation of all stakeholders throughout the organizational transformation. John Kotter’s Eight-Stage Change Model is a “comprehensive...
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...Applying John Kotter’s 8 step change model on the recent change management success at SBI Yogesh Kamath Assistant Professor – Marketing & HR, Rustomjee Business School, Mumbai Freelance Journalist – Point-of-Purchase magazine, V J Media Works Publications ------------------------------------------------- E-mail: yogesh.rbs2010@gmail.com ------------------------------------------------- For Conference: Peter. F. Drucker Memorial 4th National Seminar on “Opportunities & Challenges of Contemporary & Innovative Management Practices” ------------------------------------------------- Track: Human Resource Management – Change Management Transformation is not instantaneous. It takes decades, in some cases. That is why we need to start the process today. We are already 20 years too late. * O.P. Bhatt, chairman, SBI, Steptember 2006 Effective leaders help others to understand the necessity of change and to accept a common vision of the desired outcome. * John P Kotter, Author – Leading Change, Harward Business School Press, 1996 Abstract: The first half of the 2000-2010 decade was dominated by the growth of private banks in India who facilitated the changing profile of the demanding Indian consumer who was emerging out of the socialist mindset. ICICI lead the pack, in the year 2007 the figures stood at – ICICI bank’s deposits - Rs 1.65 lakh crore after just 12 years into business and the country’s 201 year old largest bank SBI stood at Rs...
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...Organizational Change Management Name: Bharath Kumar Reddy Gangaram Institution: Wilmington University Abstract Organization change is changing the subsisting strategies of an association to the gauges needed. It is considered as a vital perspective in an association and assumes a key part in the improvement of an organization. As innovation is overhauling step by step, hierarchical change is needed for each organization to withstand in this aggressive world. Organization change can take truly a couple of structures, for example, transmutation in the structure of the association, strategies, society, approaches, methodologies. There are numerous hypotheses that are to be considered before actualizing authoritative change in an organization. Superb results could be gotten if a hierarchical change is actualized effectively in an organization. This paper predominantly has three parts. A fizzled extend in Axon Company is portrayed in the first piece of the paper. The Kotter's change model which is the most prominent hypothesis among all the hierarchical speculations is quickly portrayed in the second piece of the paper. At long last, the application of Kotter's change display in the fizzled venture is clarified in the third part. Organizational change: Organizational change is changing or institutionalizing the running guidelines, business process, and budgetary structures when there are modifications in the business forms. Hierarchical change is a characterized structure...
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...Revolutionary Change in the Workplace Tiara Garrett SPRING15-1-8-ORG100-1– Navigating Organizations and Change Colorado State University – Global Campus Dr. Mary Welsh March 14, 2015 Theorists Who Impact Revolutionary Change in the Workplace Sometimes, in order to be on top of their game, organizations opt to change their approach or implementation of their products and/or services in the industry. This type of organizational change is considered revolutionary. There have been many articles and books created to advise of strategies or techniques to successfully navigate through the transformation process; as well as advise of what to avoid. The theorists I will focus on are John Kotter, James Womack, and Daniel Jones. Kotter's “Eight-Step Process” Not all revolutionary change is successful. John P. Kotter wrote an article discussing eight major errors he's seen to occur during his studies that halted a successful change. Many cannot get out of phase one in implementing the change. That first phase is establishing a sense of urgency (Kotter, 1996). Kotter mentioned that he witnessed more than 50% of the companies he watched fail this phase. One reason being was that some executives did not fully take into account how hard it'll be to drive people out of their fixed mindset. Another reason, lack of patience. He created an eight step process to prevent the errors witnessed from incurring in the future. See Figure 1 for an outline of those steps. Kotter's impact on...
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...Change Management Brenda Macy American InterContinental University December 13, 2015 Abstract The world is an ever changing entity. As a business owner, you will need to keep up with those changes for success within your business. There are 3 areas of change to be considered when changing the organizational culture, the technology, the structure, and the people. Sometimes resistance is met when change is introduced in the workplace. To manage that change, models of change management are introduced to make the transition a smooth process. Two of those models are discussed here. Lewin’s Change Management Model, and Kotter’s 8 Step Change Model (Normandin, 2012). Change Management No matter the size of your business or what kind of business you are in, all businesses have the common element of change. Change can come from the introduction of new technology, new structure within the organization or by the people (Normandin, 2012). The world is changing on a fast track and to succeed in business, organizations must be on the fast track of change as well. Failing to implement a successful change within the organization can cause failure of the business (EditorialBoard, 2011). A psychologist name Kurt Lewin created a change model for understanding organizational change. It is the Unfreeze, Transition, Refreeze change model. In step one, the need for change is recognized and preparing the organization that the change is needed, and effective communication of the...
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...intervention completion july 2014 Long term 3 years after intervention completion january 2016.) The intervention will incorporate each of Kotter's (2007: 99) eight steps to leading change. The first step is to establish a sense of urgency. We will examine the market and discuss with the client the reality of their competition in order to get them to reprioritize. There are many major opportunities and potential crises that HDMC needs to be aware of but without motivation and commitment of the organizational managers the effort will go nowhere. The next step is to form a powerful guiding coalation team. Our cunsulting team will find the right number of people with good energy, level of trust, and strong authority to lead the change effort. This group will be trained to understand and not underestimate the difficulties of producing change and to also work together as a team. The following step is to create a clear vision and express it simply. This step will need to be acomplished by creating a vision that motivates people in the right direction. The vision needs to be easy to communicte and also inspire not only the people participating in the actual changes but also the stakeholders. Communicating the vision is our next step. This is where the team pulls together and communicates what needs to be done simply and honest. The fifth step is to empower others to act on the vision. HDMC...
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...Organizational Change in the Insurance Company The organizational change which will be discussed in this paper involves a large insurance company who wants to increase market share from the sale of their cutting edge variable annuity product. The outside sales force, known as wholesalers have set territories throughout the United States. Current studies have determined that many of the existing leads, who are Financial Advisors, are not being contacted and so therefore potential new business and new relationships are being missed. Upper Management has decided to institute a major organizational change in the form of creating smaller territories for existing wholesalers and hiring new, inexperienced wholesalers with the objective that there will be more effective penetration and an increase in business. The key stakeholders who will be involved are all employees, management and shareholders. The stakeholders with the most significant impact will be the existing internal and external wholesalers and the training department staff. These departments will have challenges such as maintaining current business while finding new business, hiring new people will create challenge for the managers and the training department. The existing wholesalers will need to restructure their business which will meet with resistance. This paper will address the change management approach, recommended action steps as wells as overcoming various obstacles in order to effect the change and increase...
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...Department of Education website. Retrieved May 5, 2014 http://www2.ed.gov/about/landing.jhtml http://www.nea.org/home/40991.htm John P. Kotter (1996). Leading Change. Harvard Business Review Press; 1st edition http://www.kotterinternational.com - See more at: http://www.relationsandmore.com/kotters-8-step-change-model.html#sthash.rjg9E4N1.dpuf Almost everyone that reads this will have graduated from a long-established high school where we went to an old-style building five days a week and learned from the quintessential school teachers that no doubt fill at least one stereotype. Traditional classrooms that are part of these brick-and-mortar schools are no longer competitive and vital to the learning process. Instead, students now pay most attention to the information they get off the internet. Sites like Wiki and Facebook have figured out the formula to keeping our young people’s attention. Why should we as tax payers continue to supplement this dying form of education when the answers can be found by researching the success of the online college education system and the top ranked education countries around the world? While on vacation in Phoenix I noticed TV commercials toting an online education that the state sponsors. I could not believe that I was hearing this, state sanctioned home schooling. Let’s think outside the box for a moment. Think of the savings we could make with rethinking the way we teach our students. I am a firm believer that all students...
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...Successful Change Management — Kotter’s 8-Step Change In 1996 John Kotter wrote Leading Change* which looked at what people did to transform their organisations. Kotter introduced an 8-step change model for helping managers deal with transformational change. This is summarised in Kotter’s 8-step change model. For The Heart of Change* (2002) John Kotter worked with Dan Cohen to look into the core problems people face when leading change. They concluded that the central issue was changing the behaviour of people and that successful change occurs when speaking to people’s feelings. In this article Martin Webster explains how Kotter’s 8-step change model gets to the heart of how successful organisational change actually happens and answers the question “how do you go beyond simply getting your message across to truly changing people’s behaviour?” You’ll also learn how The Heart of Change can alter the way organisations and leaders approach change management. Since this guide covers a lot of ground and is a long read (3,000 words) you may want to check out the table of contents below for some quick jumping around. And if you want to read more high quality articles please sign up for email updates and never miss another post. Want to read something shorter? Visit our related post: The Heart of Change. Or download the ebook of this article from our member resources section. Table of Contents * Successful Change Management * Kotter’s 8-Step Change Model for Leading Change ...
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...Change Management and Leadership Theories 1. Introduction We live in a world of change impacted by the financial crisis and technological advances causing businesses that fail to evolve to fail. Change can be described as the ‘substitution or succession of one thing in place of another’ to the ‘alteration in the state or quality of anything’ (Hayes 2010). Hurn (2012) argues that “new market opportunities will arise and these will involve the need to adapt and adjust to change in strategic thinking in order to compete and survive”. Continuous change when it happens, needs constant updating of working approaches and social advances. Orlikowsky suggests that continuous change involves individuals and groups, who will be dealing with breakdowns, exceptions, opportunities that the change will bring with it (Hayes 2010). This analysis will show the most important theories of Change Management: Kotter’s 8 steps, Lewin and Prosci. Additionally we will look at Leadership theories such as Trait, Transformational and Great Man Theory, followed by a critical discussion on the role of Leadership in Change Management and finally an analysis in the case study of Biogen Idec Inc. 2. Literature Review 2.1. Change Management Theories 2.1.1. Kotter’s 8 Steps In 1995 Jhon Kotter introduced an 8-step change model for helping managers deal with transformational change, Webster (2012). The model outlines an organized and effective approach of managing a major change. Kotter (2007)...
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...Leading Change, Transition & Transformation A Guide for University Staff 1 Contents 1. Purpose of the ‘How To’ Guide………………………………………………….3 2. Who is the Guide For and Why Use it?.........................................................3 3. Understanding Organisational Change…………………………………….….3 • Introduction……………………………………………………………………4 • What is Change Management………………………………………………4 • • • • What are the differences between change and transition? What is transformation? Leading and managing change Why is organisational change difficult to accomplish? 4. Kotter’s Eight-Stage Process for Creating Major Change……………………7 5. Bridge’s Three Phases for Managing Transition ……………………………...9 6. The Project Management Approach to Change Projects…………………...11 7. Managing Performance During Times of Change……………………..….…19 8. Further Reading…………………………………………………………….……20 2 PURPOSE OF THE ‘HOW TO’ GUIDE The purpose of this guide and accompanying online resources is to provide University staff with an overview of ‘best practice’ change management methodologies, research, readings and guiding pro formas. This guide does not attempt to reproduce the many informative texts written on change management, transition and transformation. The follow-up reading is also strongly advised as it informs much of the change management and transition processes undertaken in the University of Adelaide. The guide identifies the differences between managing the process of change and leading people through...
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