06 chm kotter's model (3+4)

7/31/2019 06 ChM Kotter's Model (3+4)

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1.Establishing a greater sense of urgency Examining seriously the market and competitive

realities

Identifying and discussing crises, potential crises

or major opportunities

2.Creating the guiding coalition

Putting together a group with enough power tolead the change

Getting the group to work together like a team


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3.Developing a vision and a strategy

Creating a vision to help direct the change effort

Developing strategies for achieving that vision

4.Communicating the change vision

Using every vehicle possible to constantlycommunicate the new vision and strategies

Role modeling needed behavior by the guidingcoalition


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CREATE A VISION

Vision refers to a picture of the future with someimplicit or explicit commentary on why peopleshould strive to create that future.

In a change process, vision serves 3 major goals:

1) It clarifies the target of change and indicatesthe direction of change

2) It motivates people to take action in the rightdirection

3) It helps coordinate the actions of differentpeople, even thousands of individuals


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DIRECTION OF CHANGE

Clarifying the direction of change is importantbecause, more often than not, people disagree ondirection, or are confused, or wonder whethersignificant change is necessary

With clarity of direction, the decision makingprocess becomes more efficient

A clear way for change can save a lot of time, byavoiding non-necessary activities and searching forpossible actions in other directions


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VISION-STRATEGY-PLAN

Leadership creates:

- Vision: A sensible and appealing picture of thefuture

- Strategies: A logic for how the vision can beachieved

Management creates:

- Plans: Specific steps and timetables toimplement the strategies

- Budgets: Plans converted into financialprojections and goals


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EFFECTIVE VISION

Imaginable: Conveys a picture of what the future willlook like

Desirable: Appeals to the long term interests ofemployees, customers, stockholders, and others who

have a stake in the enterprise Feasible: Comprises realistic, attainable goals

Focused: Is clear enough to provide guidance indecision making

Flexible: Is general enough to allow individual initiativeand alternative responses in light of changingconditions

Communicable: Is easy to communicate. It can besuccessfully explained within 5 minutes


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VISION OF CHANGE

Reengineering, restructuring, and other changeprograms never work well over the long run unlessthey are guided by visions that appeal to most of thepeople who have a stake in the enterprise: employees,customers, stockholders, suppliers, communities.

A good vision can demand sacrifices from some or allof these groups in order to produce a better future.

A good vision should be able to inspire and motivateall employees.


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IBM & Louis Gerstner Jr.

Louis Gerstner Jr. has been nominated as the new CEOof IBM in 1993, in a dramatic situation of the company.

Here are the 4 fundamental decisions made by him:- Keep the company together

- Change the fundamental economic model of company

- Reengineering the way IBM made business

- Sell underproductive assets in order to raise cash


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STRATEGIC FEASIBILITY

A vision with feasibility is more than a pipedream.

Feasibility means that a vision is grounded in aclear and rational understanding of theorganization, its market environment, andcompetitive trends.

Strategy provides both a logic and a first level ofdetail to show how a vision can be accomplished.


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COMMUNICATING THE CHANGE VISION

A great vision can serve a useful purpose even if it isunderstood by just a few people.

But the real power of vision is unleashed only whenmost of those involved in the change have a clearunderstanding.

That shared sense of a desirable future can helpmotivate and coordinate the kinds of actions thatcreate transformation.

That means a very efficient communication.


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Louis Gerstner(Who says elephants cant dance?)

Nobody likes change. Whether you are a senior

executive or an entry-level employee, changerepresents uncertainty and, potentially pain.

So there must be a crisis, and it is the job of theCEO to define and communicate that crisis, itsmagnitude, its severity, and its impact. Just asimportant, the CEO must also be able to

communicate how to end the crisis the newstrategy, the new company model, the newculture.


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EFFECTIVE COMMUNICATION

Simplicity: All jargon and techno-expressions must beeliminated

Metaphor, analogy, and example: A verbal picture isworth 1000 words

Multiple forums: Big meetings and small, memos andnewspapers, formal and informal interaction all mustbe used effectively

Repetitions: New ideas must be heard many times

Leadership by example: Behavior must be consistentwith the vision

Give-and-take: Two-way communication is alwaysmore powerful than one-way communication


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SIMPLICITY - Example

Version #1:

Through a process of debureaucratization, we willempower our frontline employees to better serveidiosyncratic customer requirements

Version #2:

We are going to throw out some of the rule booksand give employees more discretion to do theright thing for our customers


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COMMUNICATION THE ANTIDOTE TOUNCERTAINTY

The essence of change is the move from theknown to the unknown.

Periods of crisis and transition are very risky.

There is always ambiguity and uncertainty aboutchange.

The antidote of uncertainty is a clear, open andeffective communication to all the employees ofthe company.

Communicate even if you do not know all thefacts, but you know the basic direction of change.


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STEPS IN EFFECTIVE COMMUNICATION

1.Specify the nature of change

2.Explain why change is necessary

3.Explain the scope of the change even if there aresome bad news

4.Develop a graphic representation of the changeproject that people can understand and hold intheir heads

5.Predict negative aspects of implementation

6.Explain the criteria for success and how it will bemeasured

7.Explain how people will be rewarded for success


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STEPS IN EFFECTIVE COMMUNICATION

8. Repeat, repeat, and repeat the purpose of changeand actions to be done

9. Use a diverse set of communication styles that isappropriate for the audience

10. Make communication a two-way proposition

11. Be like a poster for the change program.

06 chm kotter's model (3+4)

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