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FOR MANAGING THE GROWTH
JOHN KOTTER
LEADING THE CHANGE
ORGANIZED BY : CEBRAIL UCURPRESENTED BY : REYYAN DEMIR
Leading and Managing the Change
Agenda
Why is Change a Problem?
How to Change and What Drives the Change?
The Organization of the Future
Why do the Firms Fail to Change?
8 Stage Process for Change
Leadership and Life-Long Learning66
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44
33
22
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Why is Change a Problem?
tNew Strategies aren’t implemented well.
Related Consequences
Allowing too much complacency
Why do Firms Fail?
1 11
Failing to create a sufficiently powerful guiding coalition
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Underestimating the power of vision
3
Under-communicating the vision
4
tAcquisitions don’t achieve expected synergies.
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tDownsizing doesn’t get costs under control
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tQuality problems don’t deliver hoped-for results.
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Why is Change a Problem?
Reengineering takes toolong and costs too much
Related Consequences
Permitting obstacles to block the new vision
Why do Firms Fail?
5 55
Failing to create short term wins
6
Declaring victory too soon7
Neglecting to anchor changes firmly in corporate culture
8
Successful Change & The Forces that Drives It
Globalization of markets and competition
The 8 stage change process
The importance of sequence
Projects within projects
Management vs leadership
Globalization of Market and Competition
More Competition
Increased Speed
More Opportunities
Bigger markets, Fewer Barriers
Larger Scale Change in Organization.
What Drives the Change ?
Technological ChangeInternational
Economical İntegrationMature Markets in Developed Markets
Global privatization
Technological Change
Faster & better
communication
Faster & better
transportation
Global
information
networks
International Economical Integration
Fewer tariffs
Currencies linked
via floating
More global
capital flow
Mature Markets in Developed Markets
Slower domestic growth
More aggressive exporter
More deregulation
Global privatization
More privatization
More countries
linked to capital
systems
Larger Scale Change in Organizations
To avoid hazards and/or capitalize on opportunities, firms must become strong competitors
– Reengineering– Restructuring– Quality programs– Merger & Acquisitions– Strategic change– Cultural Change
8 Stage Change Process
Communicating the change vision
Establishing a sense of urgency
Developing a vision and strategy
Creating a guiding coalition
8 Stage Change Process
Anchoring new approaches in the culture
Empowering the broad base
actions
Consolidating gains and
producing more change
Generating short term wins
1. Establising a Sense of Urgency
• Examining the market and
competitive realities.
• Identifying and discussing potential
crisis and opportunities
• Pushing up the urgency level
• The role of crisis
• The role of low and middle level
managers
• How much urgency is enough?
2. Creating the Guiding Coalition
A Common «TARGET»Sensible to the head
Appealing to the heart
Putting together a group with enough power to
lead the change.
Find the right people,create trust and develop a common goal
Getting the group together like a team
3. Developing a Vision and a Strategy
Creating a VISION to help direct the change effort.
Developing STRATEGIES for achieving that vision
It clarifies the general direction for change
It motivates people to take action in the right
direction
It helps coordinate the actions of different
people.
Why Vision is Essential?
Change
GOAL
VISION
STRATEGY
CommunicableEasy to communicate ;
can be successfully
explained in 5 min.
FocusedClear enough to
provide guidance in decision -making
FlexibleGeneral enough to
allow individual initiative &
alternate responses
ImaginableConveys a picture of what the future
look like.
DesirableAppeals to the long
term interests of employees & stakeholders
FeasibleComprises realistics
and attainable goals
Characteristics of an Effective Vision
4. Communicate the Vision Change
Having the guiding coalition role model the behavior expected of employees
Using every vehicle possible to constantly communicate the new vision and strategies
2
1
The magnitude of the task
The magnitude of the task
Use metaphors, analogies,examples
Use metaphors, analogies,examples
Keep it simpleKeep it simple
Walk the Talk, or Lead by example
Walk the Talk, or Lead by example
Repeat,Repeat, Repeat,
Repeat,Repeat, Repeat,
Use many different forums
Use many different forums
Address seeming
inconsistencies
Address seeming
inconsistencies
Listen and be
listened to
Listen and be
listened to
Communicate the Vision Change
5. Empowering the broad based actions
Changing systems or
structures that undermine the change
vision
Getting rid of obstacles
Encouring the risk taking and non-traditional ideas,activities,
and actions
• Planning for visible improvements in performance, or «wins»
• Creating those wins• Visibly recognizing and rewarding people
who made the wins possible
6.Generating Short Term Wins
The Role of Short Term Wins•Provide evidence that sacrifices are worth it.
•Reward change agents with a pat on the back.
•Help fine-tune vision and strategies.
•Undermine cynics and self-serve resistors
•Keep bosses on board
•Build momentum
• Using increased credibility to change all systems, structures, and policies that don’t fit together and don’t fit the transformations vision
• Hiring ,promoting, and developing people who can implement the change vision
• Reinvigorating the process with new projects, themes, and change agents
7. Consolidating Gains and Producing More Change
A Successful Change Effort
• More change, not less
• More help
• Leadership from senior management
• Project management and leadership from below
• Reduction of unnecessary interdependencies
8. Anchoring New Approachesin the Cultures
Articulating theconnectionsbetween newbehaviors andorganizationalsuccess.
tDeveloping means to ensure leadership development and succession
Creating better performance through customer and productivity-oriented behavior, more and better leadership, and more effective management
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Why Culture is so Powerful?
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• Individuals are selected and indoctrinated so well
• The culture exerts itself through the actions of many , many people
• All of the this happens without much conscious intent and thus is difficult to challenge or even discuss
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Anchoring Change in Culture
• Comes last, not first• Depends on results• Requires a lot of talk• May involve turnover• Makes decisions on succession crucial
Management vs. Leadership
Establishing
Direction
Aligning People
Motivating &
Inspiring
Planning &
Budgeting
Organizing &
Staffing
Controlling &
Problem Solving
The Organization of the Future
• A persistent sense of urgency
•Teamwork at the top
•People who can create and
communicate vision
•Broad-based empowerment
•Delegated management for
excellent short-term performance
•No unnecessary interdependence
•An adaptive corporate culture
•Getting from here to there
Mental Habits that Support Life-Long
Learning
• Risk taking• Humble self-
reflection• Solicitation of
opinions• Careful listening• Openness to new
ideas
Leading The Change
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Why Change is a Problem?
How to change and what drives the change?
The Organization of the Future
Why the firms fail to change?
8 Stage Process for change
Leadership and Lifelong Learning
THANK YOU!
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