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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Why is Change a Problem?

tNew Strategies aren’t implemented well.

Related Consequences

Allowing too much complacency

Why do Firms Fail?

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Failing to create a sufficiently powerful guiding coalition

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Underestimating the power of vision

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Under-communicating the vision

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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?

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Failing to create short term wins

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Declaring victory too soon7

Neglecting to anchor changes firmly in corporate culture

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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

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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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