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Lesson 4: Kotters change theory
Step 1 - Create the urgency for change 
This can be expected to arise from threats to 
or opportunities for the organisation. The need 
for change usually results from an assessment 
of market realities: change is needed to make 
the business more competitive.
Step 2- Form a powerful coalition 
This team works to make the change happen. The 
team must work well together to manage the change 
process.
Step 3 - Create a vision for change 
The vision provides the ultimate goal of the change process. It 
should motivate the organisation. The vision must be seen as 
justifying the effort.
Step 4 - Communicate the vision 
Staff need to share the vision and have some 
understanding of how it will be achieved. A variety of 
methods can be used to communicate the vision. 
These include the guiding team setting an example 
of new behaviour.
Step 5 - Empower people to fulfil the vision 
Recognise that personal involvement through 
participation tends to defuse both rational and 
irrational fears about change. People who have 
the opportunity to be actively involved in the 
change process generally develop a sense of 
ownership.
Step 6 - Recognise and reward achievements 
Recognise that most employees want to feel that 
their contributions have been worth the effort and 
are recognised and appreciated. Recognition and 
reward should be given throughout the change 
process to encourage further risk taking and 
reinforce the positive aspects of embracing change.
! 
Step 7 Consolidate 
As the change process proceeds, assemble the 
benefits attained into the organisation’s operating 
procedures and systems. Modify existing policies and 
procedures that no longer match the changed systems. 
Once this is accomplished, the new structure becomes 
a solid base upon which more change may be made — 
the process of continuous improvement.
Step 8 Anchor the change in corporate culture 
The aim is to promote a 
corporate culture that fully 
supports the new behaviour. 
The guiding team should 
evaluate performance in the 
change process and 
consider its future role in the 
organisation.

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Lesson kotter change

  • 1. Lesson 4: Kotters change theory
  • 2. Step 1 - Create the urgency for change This can be expected to arise from threats to or opportunities for the organisation. The need for change usually results from an assessment of market realities: change is needed to make the business more competitive.
  • 3. Step 2- Form a powerful coalition This team works to make the change happen. The team must work well together to manage the change process.
  • 4. Step 3 - Create a vision for change The vision provides the ultimate goal of the change process. It should motivate the organisation. The vision must be seen as justifying the effort.
  • 5. Step 4 - Communicate the vision Staff need to share the vision and have some understanding of how it will be achieved. A variety of methods can be used to communicate the vision. These include the guiding team setting an example of new behaviour.
  • 6. Step 5 - Empower people to fulfil the vision Recognise that personal involvement through participation tends to defuse both rational and irrational fears about change. People who have the opportunity to be actively involved in the change process generally develop a sense of ownership.
  • 7. Step 6 - Recognise and reward achievements Recognise that most employees want to feel that their contributions have been worth the effort and are recognised and appreciated. Recognition and reward should be given throughout the change process to encourage further risk taking and reinforce the positive aspects of embracing change.
  • 8. ! Step 7 Consolidate As the change process proceeds, assemble the benefits attained into the organisation’s operating procedures and systems. Modify existing policies and procedures that no longer match the changed systems. Once this is accomplished, the new structure becomes a solid base upon which more change may be made — the process of continuous improvement.
  • 9. Step 8 Anchor the change in corporate culture The aim is to promote a corporate culture that fully supports the new behaviour. The guiding team should evaluate performance in the change process and consider its future role in the organisation.