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Kotter Leading Change Article Presentation

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Kotter Leading Change Article Presentation

  1. 1. Why Transformation Efforts Fail by John P. Kotter Ankit Jalan Harsimrat Kaur Govind Krishnan Mayank Kumar Leading Change
  2. 2. ▪ Introduction ▪ Eight steps to transforming your organization ▪ Conclusion
  3. 3. Introduction rvard Business School professor published the book “Leading Change” rs for organizational change. mental changes in how business is conducted in order to help cope with arket environment” e successful cases: rough a series of phases that usually require a considerable length of s only the illusion of speed and never produces a satisfying result. f the phases can have a devastating impact, slowing momentum and
  4. 4. This step is important because without motivation, people won’t help, and the effort goes nowhere. People have to be convinced, that the current state of the organization is not the appropriate one to face the future. Over 50% of the companies fail in this first phase because executives either underestimate or overestimate the situation. Transformation begin well when an organization has a good leader or change champions. ERROR 1: Not Establishing a Great Enough Sense of Urgency
  5. 5. When there is urgency, change can be defined, which should include people a Coalition for who have power, knowledge, credibility and leadership skills. A successful team is based on trust between the team members and a common goal Team can be formed with members from Senior Managers, Board Members, Customers and even Union Leaders. Companies that fail in phase two usually underestimate the difficulties of producing change and thus the importance of a powerful guiding coalition ERROR 2: Not Creating a Powerful Enough Guiding Coalition
  6. 6. Vision Helps clarify the direction in which an organization needs to move. Failed Transformations • Detailed procedures, goals, deadlines but no sense of direction • Complicated or blurry vision Impact of Unclear Vision • Confusion in the organization • Incompatible projects • Wasted efforts Thumb Rule Able to communicate the vision to someone in five minutes or less and get a reaction that signifies both understanding and interest Error 3: Lacking a Vision
  7. 7. 3 Patterns of Under- communication • Holding only a single meeting or sending out a single communication • Vision captures only .0005% of the speeches delivered • Senior executives still behave in ways that are antithetical to the vision. Effective Transformation • Possible through credible communication • Incorporate messages into • Hour-by-hour activities • Routine discussions about business problems • Regular performance appraisals • In a routine Q&A with employees • Using all communication channels to broadcast vision Walk the Talk Example Zero Distance- Innovation Using Design Thinking at Infosys Error 4: Under communicating the Vision by a Factor of Ten
  8. 8. 02 Not creating a powerful enough guiding coalition: • Met with 46 CEOs in Tokyo to establish competitive strategies. • Lee spread the new management initiatives to 1800 executives and produced a book. 04 Under communicating the vision by a factor of 10: • Chairman Lee unleashed a barrage of methods, including lectures that he provided himself, classes, books, and internal broadcasts. • The books were translated in many languages and all employees were trained by the end of 1993. Refresher training was provided and employees were asked to discuss the 01 Establishing the sense of urgency: • Lee saw the Samsung products gathering dust and ignored by customers in retail stores. • Chairman Lee called an immediate meeting of Samsung affiliates’ CEOs in LA. 03 Lacking a vision: • Lee defined a “world-class company” as “a company that contributes to society by providing the most competitive goods and services to customers based on high-quality talent and technologies.” • Lee wanted to shift the focus of executives from quantity to quality. The Samsung Way
  9. 9. ERROR 5: Not Removing Obstacles to New Vision New Vision + Old systems & Structures = Failure New Vision +New systems & Structure = Success • Successful transformations require large number of people • Communication is key parameter but not sufficient Types of obstacles: a. Mental Blockage b. Organizational structure c. Performance appraisal system d. Bosses
  10. 10. Purpose of short term wins: o Prove that its worth it o Reward Efforts o Fine tune vision & strategies o Undermine cynics o Keep executives involved o Reinvigorate the effort o Build Momentum ERROR 6: Not systematically planning for and creating short term wins
  11. 11. Managers declare victory of change process as soon as they see first signs of performance. This can be catastrophic and may lead to regression of new change process. The initiators become satisfied and the resistors find the celebration of premature victory as the end of change process. The troops are sent home and they become reluctant to again participate in change process. Successful leaders see achievements in short term as an opportunity to tackle bigger problems. The leaders should further promote, hire, develop employees and use change agents who can implement the vision and understand that renewal efforts take years not months. Error 7: Declaring Victory Too Soon
  12. 12. Error 8: Not Anchoring Changes in the Corporate’s Culture People should be made aware about improvements in performance due to new approaches, behaviors and attitude. It's also important that next generation of company's leaders continue to support the change. Poor succession decision happens when board is not an integral part of the renewal effort. Change sticks in the organization when it becomes “the way we do things around here”. Sometimes CEOs do not resist the board’s decision because they think that it’s impossible to undo the implemented culture of change.

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