Telstra Case (Exam)

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Telstra case Page 1 of 27 _____________________________________________________________________ ______________ Telstra Case Scenario 2 (12 Marks, 4 marks and 8 marks each) PORTER 8 FORCE, PAGE 38 Case study 1 Monopoly until 1997, wholesale and retail Telecommunications Company Fixed line copper wire network fast become obsolete Strategy: Former CEO say adding value for our customer base is our driving force and idea of service and the drive for improvement must be at the core of the culture of the organsiation CEO David Thodey said the company need to transform from an engineering and technology led company to a truly sales and marketing led company, and he the first one have really did sth 13 years later, still try to make customer service part of its corporate structure Need to implement strategy for increasingly competitive and technologically evolving environment and marketplace Continue to redefine itself as distributor and retailer offer competitive products and pricing Government: either adopt super fast fibre to every home and structurally separated Telstra (sh will not buy its shares until govt bb policy is finalized) or pull it back 1

Transcript of Telstra Case (Exam)

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Telstra Case Scenario 2 (12 Marks, 4 marks and 8 marks each)

PORTER 8 FORCE, PAGE 38 Case study 1

Monopoly until 1997, wholesale and retail Telecommunications Company

Fixed line copper wire network fast become obsolete

Strategy:

Former CEO say adding value for our customer base is our driving force and idea of

service and the drive for improvement must be at the core of the culture of the

organsiation

CEO David Thodey said the company need to transform from an engineering and

technology led company to a truly sales and marketing led company, and he the first

one have really did sth

13 years later, still try to make customer service part of its corporate structure

Need to implement strategy for increasingly competitive and technologically evolving

environment and marketplace

Continue to redefine itself as distributor and retailer offer competitive products and

pricing

Government:

either adopt super fast fibre to every home and structurally separated Telstra (sh will

not buy its shares until govt bb policy is finalized) or pull it back to market driven

environment with tougher competition rules but No structural change

Misalignment of CEO and senior executives:

Telstra senior executives seems not align with the CEO by admit the company is not

managing customer service and announce a 1 billion transform project to fight for

customers in mobile, fixed bb and wireless bb markets

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New measures:

Educate customer importance in employee training

Removing and simplifying bundle and package product and services to make

customer less confusing

Fewer customer complaint reduce number of staff in complaint dept and fee imposed

by telecommunications industry ombudsman

From CEO Thodey (the first CEO to):

first to open customer services lines 24 hours a day

cut mobile and broadband price to competitive levels

send technicians out on weekend

other initiatives: new IT troubleshooting service, higher subsidies for mobile

handset and possibility of “welcome” credit for new customers

Financial performance:

Last yr, net revenue fell 2.3%

Expect to fell up to 9 % due to transformation cost

(400 mil go to improve customer service and upgrade system)

(600 mil go towards subsidizing mobile phones, t-boxes and t-hubs to attract new

customers)

steady decline in market shares and traditional sources of revenue

1.5 fewer residential home phones (fixed line) today than 97, number of calls made

from home phone drop my half – as no need to have a second line used for dialed up

now

CEO and CFO met investor to explain how a yr of pain will lead to better returns over

the long run

CFO gone to US to meet foreign investor

Bottom line is must invest to grow, win customers and lower cost base to make room

for a lower-margin product mix world to grow gross earnings

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Share price not bounce back from 9.5 % drop on the poor annual result day

sh will not buy its shares until govt bb policy is finalized or

sh unconvinced they can get the customer service right

Former CEO: expand Telstra overseas and build a new 3G national network, but

cannot stop the steady decline in market share and traditional sources of revenue

Labor government policy is to build a fibre network to 93 % of houses, with the rest

serviced by wireless and satellite (this will structurally separate Telstra)

Or pull back in market driven environment with tougher competition rules with no

structural change

This will see Telstra transfer copper network customer to govt-owned national

broadband network company’s wholesale fibre network and receive 9 billion in cash

as compensation and for leasing pipe network

Statistical figures:

1.5 mil fewer residential home phones (fixed line) then 1997,

home phone calls drop by half

decline as previous need a second line to use dial up internet but now no need

They will be in much worse position if former CEO Sol Trujillo had not invested in

the new billing system and the 3G network

Opportunities, Advantages:

Goldman Sachs analyst, the whole world is going wireless and they can leverage it

when going forward with this phenomenal network, because smartphone users need

3G everywhere

Competitors:

2G network of Optus and Vodafone incomparable to Telstra network now

Going forward:

start cut price in early 2010 to match competitions

must win ex customer back with better service

this aggressive market share push to catch up but not an ongoing thing

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Standard and poor rating:

The short term cost of winning back market share will not affect the company long

term credit rating, providing it is successful in regaining mkt share and turn Telstra

into a more competitive company

Tyndall investment analyst Michael Maughan: this is a delay reaction and the large

profit margin of recent yrs will prove unsustainable

Fixed line services not dead yet:

Optus add 25000 customer

Telstra add 11000 for fixed bb subscribers after lower price and reveal new devices

like T hub and T box in the first half of the financial years

Add 11000 customer after new price and increase data allowance, but

But still end the financial yr of 09-10 with 19000 fewer retail fixed bb customers

New Vision to enable further change:

Setup a new division focused on customer experience, simplicity and productivity

Reduce mgmt jobs to streamline decision making, get rid of overlaps and duplicated

reporting

ULTIMATE goal:

Transform into a new streamline company that operate as a retail telco provider (one

can retain customers, provide better service, pricing and content, and deliver a good

profit margin without the advantage of being the only really integrated provider)

Key functional areas Key activities

Finance - Credit rating will not affected

provided they can regain market

share

- Meet investors in US explain yr of

pain will be better in the long run

- Must invest to growth, lower cost

base to make room for the lower-

margin product mix world

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Operations - Remove and simplifying products

and services

- cut mobile and broadband prices to

competitive level and send

technicians out on weekend,

- new IT trouble shooting service,

higher subsidises for headset and the

possibility of welcome credit for new

customers

- Setup new division focus on

customer experience, simplicity and

productivity

- Fewer customers complaint will

reduce staff in complaint department

and less fees imposed by the

telecommunications industry

ombudsman

- Remove and simplifying products

and services

- Remove mgmt jobs to streamline

decision making

Marketing - they got to move from engineering

and technology led company to

being a truly sales and markeing led

company. (13 years still doing this)

- need to redefine itself as a distributor

and retailer offering competitive

products and pricing

- Remove and simplifying products

and services

- Must win ex-customer back with

better service

Human resources - Setup new division focus on

customer experience, simplicity and

productivity

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- Customer service: employee training,

remind staff about the importance of

customer

-

Communication (e.g. to stakeholder) - Misalignment, senior executives

admit company is not managing

customer service

-

IT - Competitors 2G network

incomparable to the 3G network

- Fixed line copper wire network fast

becoming obsolete

- The previous 26 billion investment

in billing system and 3G network is

great

- Can leverage the 3 g network by the

smart phone and mobile device

7S:

The McKinsey 7-S model is used as the framework for analysing the integration

issues. This model specifically shows that change is complex and requires the many

interconnecting variables involved to be simultaneously and actively managed.

You can use the 7S model to help analyze the current situation

(Point A), a proposed future situation (Point B) and to identify gaps

and inconsistencies between them. It's then a question of adjusting

and tuning the elements of the 7S model to ensure that your

organization works effectively and well once you reach the desired

endpoint.

Hard Elements Soft Elements

Strategy Shared Values

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Structure

Systems

Skills

Style

Staff

Strategy: Strategy—a set of actions aimed at gaining a sustainable advantage

over the competition. What is our strategy?

How do we intend to achieve our objectives?

How do we deal with competitive pressure?

How are changes in customer demands dealt with?

How is strategy adjusted for environmental issues?

- Ultimate aim for leader is to transform Telstra into a new streamlined company

that will operate as a retail telco provider, one can retain customers, provide a

better service, pricing ad content, and deliver a good profit margin without the

advantage being the only really integrated provider

- Misalignment, senior executives admit company is not managing customer service

- Recently announce a 1 billion plan to fight for customer in mobile, fixed bb and

wireless bb

- move from engineering and technology led company to being a truly sales and

markeing led company

- Recently announce a 1 billion plan to fight for customer in mobile, fixed bb and

wireless bb

- Setup new division focus on customer experience, simplicity and productivity

- Reduce mgmt job, streamline decision making, get rid of overlaps and duplicated

reporting

- Remove and simplifying products and services

- Setup new division focus on customer experience, simplicity and productivity

- improve customer service by 24 hours hotline, cut mobile and broadband prices to

competitive level and send technicians out on weekend, new IT trouble shooting

service, higher subsidises for headset and the possibility of welcome credit for

new customers

- Customer service: employee training, remind staff about the importance of

customer

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Issue :

1) uncertainty of the Government broad band policy have a huge baring of how

Telstra should go (a detail review and what if analysis may help)

2) no commonly understood strategy (?)

3) misalignment between CEO and senior executives (talk about diff things)

4) why no specific strategy to leverage the advantage in having the 3 G network but

target to get fixed line and BB customer

Structure: Structure—the organisation chart and associated information that

shows who reports to whom and how tasks are both divided up and integrated. How is the company/team divided?

What is the hierarchy?

How do the various departments coordinate activities?

How do the team members organize and align themselves?

Is decision making and controlling centralized or

decentralized? Is this as it should be, given what we're doing?

Where are the lines of communication? Explicit and implicit?

- Previously is a bureaucratic organization bloat by the high margin, now reduce

mgmt job, streamline decision making, get rid of overlaps and duplicated

reporting

- Setup new division focus on customer experience, simplicity and productivity

Issue: 1) Communication more effective due to less mgmt job, get rid or overlaps and

duplicated reporting

2) did not mention any ownership and measurable goals customer satisfaction

effort

3) did not mention whether there are any ownership and measurable goals for the

new division

4) Did not mention a formal communication channel

Systems: Systems—the processes and flows that show how an organisation

operates on a daily basis (e.g. information systems, capital budgeting systems,

manufacturing processes, quality control systems and performance measurement

systems).

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What are the main systems that run the organization?

Consider financial and HR systems as well as communications

and document storage.

Where are the controls and how are they monitored and

evaluated?

What internal rules and processes does the team use to

keep on track?

- The previous 26 billion investment in billing system and 3G network is great

- Can leverage the 3 g network by the smart phone and mobile device

- Reduce mgmt job, streamline decision making, get rid of overlaps and duplicated

reporting

Issues: 1) Billing system is good 2) reduce mgmt job to lose fat is good

3) do not have local performance measures to motivate them 4) employee training and

stress the important of customer is ok, but can do more

Shared Values: Shared values—the values that go beyond, but usually include,

the statement of goals and objectives in determining an organisation’s destiny. These

values are shared by most of the people in the organisation.

What are the core values?

What is the corporate/team culture?

How strong are the values?

What are the fundamental values that the company/team

was built on?

- need to redefine itself as a distributor and retailer offering competitive products

and pricing

- they got to move from engineering and technology led company to being a truly

sales and markeing led company. (13 years still doing this)

- Still trying to make customer service a part of its corporate structure

Style: Style—what managers consider to be important by the way they

collectively spend their time and attention and how they use symbolic behaviour. It is

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more important how management behaves rather than what management says. How participative is the management/leadership style?

How effective is that leadership?

Do employees/team members tend to be competitive or

cooperative?

Are there real teams functioning within the organization or

are they just nominal groups?

- CEO thodey do: improve customer service by 24 hours hotline, cut mobile and

broadband prices to competitive level and send technicians out on weekend, new

IT trouble shooting service, higher subsidises for headset and the possibility of

welcome credit for new customers

- Setup new division focus on customer experience, simplicity and productivity

- Reduce mgmt job, streamline decision making, get rid of overlaps and duplicated

reporting

- Misalignment, senior executives admit company is not managing customer service

- Issue: 1) Misalignment, senior executives admit company is not managing

customer service

Staff: Staff—what organisations do to foster the process of developing managers

and shaping the basic values of the management team. What positions or specializations are represented within the

team?

What positions need to be filled?

Are there gaps in required competencies?

- Customer service: employee training, remind staff about the importance of

customer

- Setup new division focus on customer experience, simplicity and productivity

- Reduce mgmt job, streamline decision making, get rid of overlaps and duplicated

reporting

Skills: Skills—those dominant attributes or capabilities that are possessed by an

organisation.

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What are the strongest skills represented within the

company/team?

Are there any skills gaps?

What is the company/team known for doing well?

Do the current employees/team members have the ability

to do the job?

How are skills monitored and assessed?

- The previous 26 billion investment in billing system and 3G network is great

- Can leverage the 3 g network by the smart phone and mobile device

- Issue: don’t focus on the 3 G network instead focus on BB

8S:

Note that a similar analysis can be made using the eight ‘S’s of strategy execution

model. In essence, the two models (the McKinsey 7-S model and the eight ‘S’s of

strategy execution model) are very similar in content; however, they merely express

the components differently. As such, to make the extension to the eight ‘S’s of

strategy execution model, it is necessary to re-assign the issues noted above under the

appropriate component. This can be done by using the comparison summary of both

models in Table B.6

Table B.6

McKinsey 7-S category Eight ‘S’s of strategy execution

Structure Structure

Systems Systems and processes

Skills reSources

Shared values Shared values (organizational culture)

Strategy Strategy and purposes

Style Style (leadership/management style)

Staff Staff

All 7 above contribute to Strategic performance

To check alignment

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Start with your Shared Values: Are they consistent with your structure,

strategy, and systems? If not, what needs to change?

Then look at the hard elements. How well does each one support the

others? Identify where changes need to be made.

Next look at the other soft elements. Do they support the desired hard

elements? Do they support one another? If not, what needs to change?

As you adjust and align the elements, you'll need to use an iterative (and

often time consuming) process of making adjustments, and then re-analyzing

how that impacts other elements and their alignment. The end result of better

performance will be worth it.

General issues from the Telstra artcles:

- need to implement a strategy for increasing competitive environment

- need to redefine itself as a distributor and retailer offering competitive products

and pricing

- they got to move from engineering and technology led company to being a truly

sales and markeing led company. (13 years still doing this)

- Still trying to make customer service a part of its corporate structure

- Uncertainty waiting for govt to announce the broadband policy

- Misalignment, senior executives admit company is not managing customer service

- Recently announce a 1 billion plan to fight for customer in mobile, fixed bb and

wireless bb

- Customer service: employee training, remind staff about the importance of

customer

- Must win ex-customer back with better service

- Remove and simplifying products and services

- Fewer customers complaint will reduce staff in complaint department and less

fees imposed by the telecommunications industry ombudsman

- CEO thodey do: improve customer service by 24 hours hotline, cut mobile and

broadband prices to competitive level and send technicians out on weekend, new

IT trouble shooting service, higher subsidises for headset and the possibility of

welcome credit for new customers

- Setup new division focus on customer experience, simplicity and productivity

- Reduce mgmt job, streamline decision making, get rid of overlaps and duplicated

reporting

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- Second half of 09-10 financial yr, 11000 customer sign up after new price release

and increase data allowance

- Credit rating will not affected provided they can regain market share

- Shareholders remain unconvinced that they can get the customer service right or

waiting for the govt bb policy (as the poor share performance show)

- Pervious CEO, expand overseas and build 3G network but still not working well

- Receive 9 billion if labour government broadband policy to build fibre network go

ahead

- Fixed line decline due to no need for dial up

- The previous 26 billion investment in billing system and 3G network is great

- Can leverage the 3 g network by the smart phone and mobile device

- Competitors 2G network incomparable to the 3G network

- Ultimate aim for leader is to transform Telstra into a new streamlined company

that will operate as a retail telco provider, one can retain customers, provide a

better service, pricing ad content, and deliver a good profit margin without the

advantage being the only really integrated provider

Rothschild organisational life cycle and strategic leadership model. (Q6.15)

Q: Given the life cycle position, what is the most appropriate strategic leadership style

required for Telstra ?

This question refers to the Rothschild organisational life cycle and strategic leadership

model.

Telstra was in the maturity stage of its organisational life cycle. As such, the most

appropriate leadership style is that of a caretaker; that is, it helps the organisation to

bring a different style, nurtuiring a more orderly, evolutionary growth and long term

persperity. They add structure, direction and stability and establish process to embed

operations for sustained long term success, they are cautiously adaptive, experienced

and administrative.

Dunphy and Stace model

Q Assess the type of leadership and change management adopted by Telstra for the

using the Dunphy and Stace model for transformational change.

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The type of leadership and change management required is an important

consideration. The Dunphy and Stace model provides a useful framework against

which to assess the most appropriate style of leadership and change management the

organisation requires at this time.

The Dunphy and Stace model considers transformational leadership as a continuum

moving through the following stages of change:

Fine-tuning—ongoing refinement of existing strategy and processes. (At

departmental level. Making re-alignments to ensure that there is a match between

strategy, structure, people and processes.)

Incremental adjustment—making distinct modifications and adjustments. (Bit by

bit changes to match the changing environment. Minor modifications to strategies

or structures…..)

Modular transformation—where large re-orientation occurs in a major component

of the organisation. Major realignment of one or more departments or divisions.

Downsizing, re-engineering.

Organisational (corporate) transformation—significant or radical change

throughout the whole organisation (major, rapid (spread over 18-24 months) and

revolutionary changes in strategy, structure, people & processes in order to meet

radically new or different circumstances. Also termed upheaval.’)

From Telstra’s point of view, it would most likely assess the change requirements to

be “corporate transformation” as there will be radical change throughout the whole

organisation (to transform from an engineering and technology led company to being

a truly sales and markeing led company.) There are also revolutionary changes in

strategy, structure, people & processes in order to meet radically new or different

circumstances which can be achieved by charismatic transformation (inspirational

change) and turnaround (frame breaking) to address the significant gaps identified

between the current and future objectives.

Page 6.48 Burns say corporate transformation is preferred style to achieve positive

outcome.

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Not Modular transformation as the scope of change is more than re-orientation occurs

in a major component of the organization. Major realignment of one or more

departments or divisions. Downsizing, re-engineering.

Not Incremental adjustment because it is not just bit by bit changes to match the

changing environment and minor modifications to strategies or structures, it is sth

more.

Not fine-tuning— because it is more than refinement of existing strategy and

processes. It is more than that and it is not just change in at departmental level.

These changes should address significant gaps that have been identified between the

current approach and future objectives.

Kotter’s eight steps (why implementation fail or 8 requirement of successful

change)

Q: How was the integration handled in relation to Kotter’s eight steps for

transformation, and what was the result?

Strategy implementation in essence consists of a range of hands-on tasks to make

strategy work. Such tasks are generally concerned with:

Aligning strategy with an organisation’s environment;

Exerting leadership to drive strategy throughout the organisation;

Configuring organisational structure and culture with strategy; and

Managing the politics of strategy implementation.

The challenge of implementation and the reason why there is sometimes a failure to

implement strategy is often related to an inability to execute one or more of the tasks

set out above, and may also be a consequence of uncertainty or unforeseen changes in

an organisation’s environment. Leaders are sometimes limited or constrained in their

ability to anticipate and manage events both inside and outside the organisation that

impact on performance.

Kotter identified eight key requirements for strategic success and successful change,

and notes that poor performance in any of the eight areas will lead to failure. The

eight key requirements are as follows:

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1. Establishing a sense of urgency;

2. Forming a powerful guiding coalition;

3. Creating a vision;

4. Communicating the vision;

5. Empowering others to act and eliminating obstacles;

6. Planning for and creating short-term wins;

7. Consolidating improvements and producing still more change; and

8. Institutionalising new approaches.

Kotter’s eight areas also provides a useful framework and checklist against which to

assess the integration plan of Chasseur and Notting, as illustrated in Table B.3.

It is clear from this analysis that, with the exception of financial performance which

improved substantially postacquisition, the integration was not successful overall. In

fact, more so from Chasseur’s perspective as the two parties entering the acquisition

had very different expectations from the acquisition. However, stakeholder values are

an important criteria in assessing the success of strategy implementation. From

Notting’s point of view, performance improvement targets were achieved and,

therefore, the integration was seen as successful, with issues arising along the

way perceived as teething issues only.

Step How the integration should have been implemented using Kotter’s model :

borative approach.

Step One: Create Urgency

For change to happen, it helps if the whole company really wants it. Develop a sense

of urgency around the need for change. This may help you spark the initial motivation

to get things moving.

This isn't simply a matter of showing people poor sales statistics or talking about

increased competition. Open an honest and convincing dialogue about what's

happening in the marketplace and with your competition. If many people start talking

about the change you propose, the urgency can build and feed on itself.

What you can do:

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Identify potential threats, and develop scenarios showing what could

happen in the future.

Examine opportunities that should be, or could be, exploited.

Start honest discussions, and give dynamic and convincing reasons to get

people talking and thinking.

Request support from customers, outside stakeholders and industry people

to strengthen your argument.

Kotter suggests that for change to be successful, 75% of a company's management

needs to "buy into" the change. In other words, you have to really work hard on Step

One, and spend significant time and energy building urgency, before moving onto the

next steps. Don't panic and jump in too fast because you don't want to risk further

short-term losses – if you act without proper preparation, you could be in for a very

bumpy ride.

Step Two: Form a Powerful Coalition

Convince people that change is necessary. This often takes strong leadership and

visible support from key people within your organization. Managing change isn't

enough – you have to lead it.

You can find effective change leaders throughout your organization – they don't

necessarily follow the traditional company hierarchy. To lead change, you need to

bring together a coalition, or team, of influential people whose power comes from a

variety of sources, including job title, status, expertise, and political importance.

Once formed, your "change coalition" needs to work as a team, continuing to build

urgency and momentum around the need for change.

What you can do:

Identify the true leaders in your organization.

Ask for an emotional commitment from these key people.

Work on team building within your change coalition.

Check your team for weak areas, and ensure that you have a good mix of

people from different departments and different levels within your company.

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Step Three: Create a Vision for Change

When you first start thinking about change, there will probably be many great ideas

and solutions floating around. Link these concepts to an overall vision that people can

grasp easily and remember.

A clear vision can help everyone understand why you're asking them to do something.

When people see for themselves what you're trying to achieve, then the directives

they're given tend to make more sense.

What you can do:

Determine the values that are central to the change.

Develop a short summary (one or two sentences) that captures what you

"see" as the future of your organization.

Create a strategy to execute that vision.

Ensure that your change coalition can describe the vision in five minutes or

less.

Practice your "vision speech" often.

Step Four: Communicate the Vision

What you do with your vision after you create it will determine your success. Your

message will probably have strong competition from other day-to-day

communications within the company, so you need to communicate it frequently and

powerfully, and embed it within everything that you do.

Don't just call special meetings to communicate your vision. Instead, talk about it

every chance you get. Use the vision daily to make decisions and solve problems.

When you keep it fresh on everyone's minds, they'll remember it and respond to it.

It's also important to "walk the talk." What you do is far more important – and

believable – than what you say. Demonstrate the kind of behavior that you want from

others.

What you can do:

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Talk often about your change vision.

Openly and honestly address peoples' concerns and anxieties.

Apply your vision to all aspects of operations – from training to

performance reviews. Tie everything back to the vision.

Lead by example.

Step Five: Remove Obstacles

If you follow these steps and reach this point in the change process, you've been

talking about your vision and building buy-in from all levels of the organization.

Hopefully, your staff wants to get busy and achieve the benefits that you've been

promoting.

But is anyone resisting the change? And are there processes or structures that are

getting in its way?

Put in place the structure for change, and continually check for barriers to it.

Removing obstacles can empower the people you need to execute your vision, and it

can help the change move forward.

What you can do:

Identify, or hire, change leaders whose main roles are to deliver the change.

Look at your organizational structure, job descriptions, and performance

and compensation systems to ensure they're in line with your vision.

Recognize and reward people for making change happen.

Identify people who are resisting the change, and help them see what's

needed.

Take action to quickly remove barriers (human or otherwise).

Step Six: Create Short-term Wins

Nothing motivates more than success. Give your company a taste of victory early in

the change process. Within a short time frame (this could be a month or a year,

depending on the type of change), you'll want to have results that your staff can see.

Without this, critics and negative thinkers might hurt your progress.

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Create short-term targets – not just one long-term goal. You want each smaller target

to be achievable, with little room for failure. Your change team may have to work

very hard to come up with these targets, but each "win" that you produce can further

motivate the entire staff.

What you can do:

Look for sure-fire projects that you can implement without help from any

strong critics of the change.

Don't choose early targets that are expensive. You want to be able to justify

the investment in each project.

Thoroughly analyze the potential pros and cons of your targets. If you don't

succeed with an early goal, it can hurt your entire change initiative.

Reward the people who help you meet the targets.

Step Seven: Build on the Change

Kotter argues that many change projects fail because victory is declared too early.

Real change runs deep. Quick wins are only the beginning of what needs to be done to

achieve long-term change.

Launching one new product using a new system is great. But if you can launch 10

products, that means the new system is working. To reach that 10th success, you need

to keep looking for improvements.

Each success provides an opportunity to build on what went right and identify what

you can improve.

What you can do:

After every win, analyze what went right and what needs improving.

Set goals to continue building on the momentum you've achieved.

Learn about kaizen , the idea of continuous improvement.

Keep ideas fresh by bringing in new change agents and leaders for your

change coalition.

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Step Eight: Anchor the Changes in Corporate Culture

Finally, to make any change stick, it should become part of the core of your

organization. Your corporate culture often determines what gets done, so the values

behind your vision must show in day-to-day work.

Make continuous efforts to ensure that the change is seen in every aspect of your

organization. This will help give that change a solid place in your organization's

culture.

It's also important that your company's leaders continue to support the change. This

includes existing staff and new leaders who are brought in. If you lose the support of

these people, you might end up back where you started.

What you can do:

Talk about progress every chance you get. Tell success stories about the

change process, and repeat other stories that you hear.

Include the change ideals and values when hiring and training new staff.

Publicly recognize key members of your original change coalition, and

make sure the rest of the staff – new and old – remembers their contributions.

Create plans to replace key leaders of change as they move on. This will

help ensure that their legacy is not lost or forgotten.

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