Leading Change by John P Kotter
(Reviewed by M Amulya) The author says that there has been tremendous change in the organisation and whenever the organisation try’s to change pain is ever present. Some of the most common errors when transforming an organization are: ? ? ? ? ? ? ? ? Allowing too much complacency Failing to create a sufficiently powerful guiding coalition Underestimating the power of vision Under communicating the vision by a factor of 10x-100x Permitting obstacles to block the new vision Failing to create short-term wins Declaring victory too soon Neglecting to anchor changes firmly in the corporate culture
There are many factors necessitating organizational change including technological, international economic and opening market forces. They create both more hazards and opportunities for organizations. Useful changes tend to be associated with a multi -step process that creates power and motivation significant to overwhelm all the sources of inertia and is driven by high qua lity leadership, not just excellent management. The eight stage process follows from the errors in leading change: ? ? ? ? ? ? ? ? Establishing a sense of Urgency Creating a guiding coalition Developing a vision and strategy Communicating the changed vision Empowering broad-base action Generating short-term wins Consolidating gains and producing more chan ge Anchoring new approaches in culture
Establishing a Sense of Urgency: The author presents nine reasons of why organizations experience complacency. Before this, however, he explains that most companies face compl acency despite the fact that they have highly intelligent and well -intentioned individuals. He provides nine ways to overcome complacency, and also asserts that a strong leader is required to facilitate these methods: ? First, companies often lack a visible crisis, and so employees fail to feel compelled to address problems within the company, though they do in fact exist. Second, companies tend to lull themselves into a false sense of security with the mere affluence of the corporate headquarters. This environment serves to instil a sense of success within employees.
?
?
Third, managers will measure themselves and the performance of ot hers against low and easily attainable standards. Furthermore, these standards actually deceive employees as to the success of their results by failing to compare their results, with those of their competitors. Fourth, organization structure may cause employees to focus on na rrow functional goals of the department they are involved in, rather than establishing a sense of contribution to the overall performance of the business. So, an employee may feel successful with their personal work and fail to realize that the performance of the company is declining. Sixth, internal performance feedback composes almost 100% of the feedback employees receive during their tenure. Without crucial external feedback from outside stakeholders, they will never realize the reality of their performance. Seventh, those employees who do seek feedback from outside stak eholders and initiate honest discussions regarding company perfo rmance are admonished for inappropriate behaviour. Eighth, the human tendency to deny what we don’t want leads to su ppression of problems and avoidance of the work necessary to ad dress them. Ninth, senior managers often cultivate a lethal sense of complacency within a company’s employees through “happy talk”. This serves to downplay problems and embellish success, ultimately fost ering a false sense of security.
?
? ?
?
?
?
Creating a guiding coalition: The author offers four steps necessary to put together a guiding coali tion: ? First, position power in which assessment of the team is done so as to ensure if it possesses enough of the right individuals with the skills and influence to affect change. Second, it is ensured if the team has the necessary level and diversity of expertise to produce intelligent, in formed decisions. Third is to check if the group possesses the credibility to influence the company and actualize change. Fourth is to make sure the group includes enough legitimate and respected leaders to lead the change process.
? ? ?
The two most critical characteristics of a successful team is the trust shared among its members and the sincerity of the commitment to a common
goal. Kotter further asserts that trust is fundamental to creating a shared objective. Also, the most typical goal used to bind a team together is a co mmitment to excellence, and a strong, genuine d esire to maximize the performance of the organization. Consequently, a strong leader is necessary for he possesses the ability to e ncourage people to transcend short-term parochial interests, and commit to furthering the excellence of the company. In short, Kotter says to build a guiding coalition that you must find the right people, create trust, and deve lop a common goal. Developing a vision and strategy: There are three methods of trying to coerce people into changing their behaviour in order to create a transformation within the company: ? ? ? Authoritarian Micromanagement Vision
Vision is the explanation of why a change is needed. Vision is a central component to all great leadership and that it is essential in breaking through the forces that support the status quo. Communicating the broad vision: The seven key elements in the effective communication of vision have been outlined as follows: ? ? ? ? ? ? ? Simplicity Metaphor Multiple forums Repetition Leadership by example Explanation of seeming inconsistencies Give-and-take
Empowering broad base action: Here, the concept of broad-based employee empowerment has been explained. Although the term “empowerment” is used widely and maybe ove rused, the concept of empowerment cannot be over looked when implementing change efforts. Kotter speaks of removing barriers to action that will help the change effort. This allows even the lowest level employees to pa rticipate in the change effort.
As managers we must remove barriers to change by ensuring that our cu rrent structure does not hamper vision and therefore prevent change. By aligning our systems with our vision, the change process can be a more eff icient and less timely process. Education allows for the actual empowering of your employees instead of just telling them they are “empo wered”. Obviously change efforts take “actual broad -based employee empowerment”. Generating short term wins: Kotter explains the value of “creating” short -term wins to the change effort in chapter nine. He states generating short-term wins allows a better chance of actually completing the change effort. However, these short-term wins are only effective if they are visible to many, the terms are unambiguous, and the victory is closely related to the change effort. A victory generated to meet these requirements creates excitement, certai nty, momentum, and serves also to quiet critics. So you ask, how do we do this. Kotter states that short-term gimmicks can be effective at least for a while, but managers must not hurt the future of the company in order to provide short-term wins today. In conducting long term changes in companies, one of the main problems companies run into is claiming victory too soon. Company CEOs and high level executives can derail change initiatives by celebrating small victories too much. While celebrating small victories is important in any change o peration, too much emphasis on them will produce a false sense of security. Consolidating gain and providing more change: Kotter outlines five steps to succeedin g in change programs. ? ? ? ? ? The first step is to introduce even more and harder changes in the company. Then bring in more help to ensure the program’s success. Third, senior level managers must continue t o provide a strong focus on the purpose of the change initiatives. Next, decentralization of projects is imperative. This allows the leadership to focus on the specific projects and give them a better chance to succeed. Finally, companies need to eliminate unnecessary interdependencies in their company.
Following these steps should allow companies to continue to pro gress with their change initiatives and to ensure their success.
Anchoring new approaches in culture: Kotter looks at corporate culture as being made up of both the Norms of Group Behaviour and the Shared Values of a company. All things under this list range from the hard to change to the very hard to change based primarily on their relative visibility. That is to say that it is easier to change the way a company reacts to a customer request than it is to alter managements view of quality versus quantity. Kotter goes on to give three reasons why cult ure is difficult to change: ? ? ? Because individuals are selected and indoctrinated so well Because the culture exerts itself through the actions of hundreds or thousands of people Because all of this happens without much conscious intent and thus is difficult to challenge or even discuss
At last Kotter offers these tips to remember when anchoring change in the culture: ? ? ? ? ? Culture change comes last not first It is dependent on results It will require a lot of talk May involve turnover Makes decisions on succession crucial
Conclusion: Thus for an organization to survive in the 21 st century, the necessity of future businesses is to eliminate complacency. Organizations will be forced to make changes often, and a sense of urgency is the best tool to counter this complacency, as it often allows employees to better cope with frequent change. Another essential attribute is higher level cooperation or “tea mwork at the top”. It is no secret that when the essential members of an o rganization work together, it is easier to get that organization moving in the right direction and, therefore, successfully implement change. These ind ividuals must also be able to effectively build and communicate vision. When “high-ranking” members of an organization are consistently working as a team as well as acting upon a well -developed and well-communicated vision, it is much more likely that those beneath them will follow their example
doc_594995775.docx
(Reviewed by M Amulya) The author says that there has been tremendous change in the organisation and whenever the organisation try’s to change pain is ever present. Some of the most common errors when transforming an organization are: ? ? ? ? ? ? ? ? Allowing too much complacency Failing to create a sufficiently powerful guiding coalition Underestimating the power of vision Under communicating the vision by a factor of 10x-100x Permitting obstacles to block the new vision Failing to create short-term wins Declaring victory too soon Neglecting to anchor changes firmly in the corporate culture
There are many factors necessitating organizational change including technological, international economic and opening market forces. They create both more hazards and opportunities for organizations. Useful changes tend to be associated with a multi -step process that creates power and motivation significant to overwhelm all the sources of inertia and is driven by high qua lity leadership, not just excellent management. The eight stage process follows from the errors in leading change: ? ? ? ? ? ? ? ? Establishing a sense of Urgency Creating a guiding coalition Developing a vision and strategy Communicating the changed vision Empowering broad-base action Generating short-term wins Consolidating gains and producing more chan ge Anchoring new approaches in culture
Establishing a Sense of Urgency: The author presents nine reasons of why organizations experience complacency. Before this, however, he explains that most companies face compl acency despite the fact that they have highly intelligent and well -intentioned individuals. He provides nine ways to overcome complacency, and also asserts that a strong leader is required to facilitate these methods: ? First, companies often lack a visible crisis, and so employees fail to feel compelled to address problems within the company, though they do in fact exist. Second, companies tend to lull themselves into a false sense of security with the mere affluence of the corporate headquarters. This environment serves to instil a sense of success within employees.
?
?
Third, managers will measure themselves and the performance of ot hers against low and easily attainable standards. Furthermore, these standards actually deceive employees as to the success of their results by failing to compare their results, with those of their competitors. Fourth, organization structure may cause employees to focus on na rrow functional goals of the department they are involved in, rather than establishing a sense of contribution to the overall performance of the business. So, an employee may feel successful with their personal work and fail to realize that the performance of the company is declining. Sixth, internal performance feedback composes almost 100% of the feedback employees receive during their tenure. Without crucial external feedback from outside stakeholders, they will never realize the reality of their performance. Seventh, those employees who do seek feedback from outside stak eholders and initiate honest discussions regarding company perfo rmance are admonished for inappropriate behaviour. Eighth, the human tendency to deny what we don’t want leads to su ppression of problems and avoidance of the work necessary to ad dress them. Ninth, senior managers often cultivate a lethal sense of complacency within a company’s employees through “happy talk”. This serves to downplay problems and embellish success, ultimately fost ering a false sense of security.
?
? ?
?
?
?
Creating a guiding coalition: The author offers four steps necessary to put together a guiding coali tion: ? First, position power in which assessment of the team is done so as to ensure if it possesses enough of the right individuals with the skills and influence to affect change. Second, it is ensured if the team has the necessary level and diversity of expertise to produce intelligent, in formed decisions. Third is to check if the group possesses the credibility to influence the company and actualize change. Fourth is to make sure the group includes enough legitimate and respected leaders to lead the change process.
? ? ?
The two most critical characteristics of a successful team is the trust shared among its members and the sincerity of the commitment to a common
goal. Kotter further asserts that trust is fundamental to creating a shared objective. Also, the most typical goal used to bind a team together is a co mmitment to excellence, and a strong, genuine d esire to maximize the performance of the organization. Consequently, a strong leader is necessary for he possesses the ability to e ncourage people to transcend short-term parochial interests, and commit to furthering the excellence of the company. In short, Kotter says to build a guiding coalition that you must find the right people, create trust, and deve lop a common goal. Developing a vision and strategy: There are three methods of trying to coerce people into changing their behaviour in order to create a transformation within the company: ? ? ? Authoritarian Micromanagement Vision
Vision is the explanation of why a change is needed. Vision is a central component to all great leadership and that it is essential in breaking through the forces that support the status quo. Communicating the broad vision: The seven key elements in the effective communication of vision have been outlined as follows: ? ? ? ? ? ? ? Simplicity Metaphor Multiple forums Repetition Leadership by example Explanation of seeming inconsistencies Give-and-take
Empowering broad base action: Here, the concept of broad-based employee empowerment has been explained. Although the term “empowerment” is used widely and maybe ove rused, the concept of empowerment cannot be over looked when implementing change efforts. Kotter speaks of removing barriers to action that will help the change effort. This allows even the lowest level employees to pa rticipate in the change effort.
As managers we must remove barriers to change by ensuring that our cu rrent structure does not hamper vision and therefore prevent change. By aligning our systems with our vision, the change process can be a more eff icient and less timely process. Education allows for the actual empowering of your employees instead of just telling them they are “empo wered”. Obviously change efforts take “actual broad -based employee empowerment”. Generating short term wins: Kotter explains the value of “creating” short -term wins to the change effort in chapter nine. He states generating short-term wins allows a better chance of actually completing the change effort. However, these short-term wins are only effective if they are visible to many, the terms are unambiguous, and the victory is closely related to the change effort. A victory generated to meet these requirements creates excitement, certai nty, momentum, and serves also to quiet critics. So you ask, how do we do this. Kotter states that short-term gimmicks can be effective at least for a while, but managers must not hurt the future of the company in order to provide short-term wins today. In conducting long term changes in companies, one of the main problems companies run into is claiming victory too soon. Company CEOs and high level executives can derail change initiatives by celebrating small victories too much. While celebrating small victories is important in any change o peration, too much emphasis on them will produce a false sense of security. Consolidating gain and providing more change: Kotter outlines five steps to succeedin g in change programs. ? ? ? ? ? The first step is to introduce even more and harder changes in the company. Then bring in more help to ensure the program’s success. Third, senior level managers must continue t o provide a strong focus on the purpose of the change initiatives. Next, decentralization of projects is imperative. This allows the leadership to focus on the specific projects and give them a better chance to succeed. Finally, companies need to eliminate unnecessary interdependencies in their company.
Following these steps should allow companies to continue to pro gress with their change initiatives and to ensure their success.
Anchoring new approaches in culture: Kotter looks at corporate culture as being made up of both the Norms of Group Behaviour and the Shared Values of a company. All things under this list range from the hard to change to the very hard to change based primarily on their relative visibility. That is to say that it is easier to change the way a company reacts to a customer request than it is to alter managements view of quality versus quantity. Kotter goes on to give three reasons why cult ure is difficult to change: ? ? ? Because individuals are selected and indoctrinated so well Because the culture exerts itself through the actions of hundreds or thousands of people Because all of this happens without much conscious intent and thus is difficult to challenge or even discuss
At last Kotter offers these tips to remember when anchoring change in the culture: ? ? ? ? ? Culture change comes last not first It is dependent on results It will require a lot of talk May involve turnover Makes decisions on succession crucial
Conclusion: Thus for an organization to survive in the 21 st century, the necessity of future businesses is to eliminate complacency. Organizations will be forced to make changes often, and a sense of urgency is the best tool to counter this complacency, as it often allows employees to better cope with frequent change. Another essential attribute is higher level cooperation or “tea mwork at the top”. It is no secret that when the essential members of an o rganization work together, it is easier to get that organization moving in the right direction and, therefore, successfully implement change. These ind ividuals must also be able to effectively build and communicate vision. When “high-ranking” members of an organization are consistently working as a team as well as acting upon a well -developed and well-communicated vision, it is much more likely that those beneath them will follow their example
doc_594995775.docx