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Leading Change
Author:
John P Kotter
In many ways this is the seminal work on change in the corporate environment. Now used as the
primary change model on several MBA courses, Kotter’s insights and understanding of the change
process, the problems that arise has much to offer the modern manager and leader. I consider it
essential reading for anyone in the management arena.
Drivers of change:
• Technology
• Internationalisation of economy
• Maturation of markets in developed countries
• Fall of communism
• Globalisation
• Increased competition and speed of competition
• Increasing market size
• Fewer market entry barriers
• Large scale change in organisations
o Reengineering
o Restructuring
o Quality programmes
o Mergers and Acquisitions
o Strategic change
o Cultural change
In implementing change Kotter suggests that there are 8 factors that lead a firm to failure:
To competently and robustly drive a change process, Kotter suggests the following 8 stage process:
Management Leadership
Planning and budgeting Establishing direction
Organising and Staffing Aligning attitudes and emotions
Controlling and problem solving Motivating and inspiring
Leads to Leads to
Predicatbility, order and consistency in output Change, growth, commitment to the vision
The first step in building such a coalition is to fill the 4 essential characteristics:
• Position Power – Ensure that there is sufficient leadership from the top to communicate the
degree of commitment behind the change
• Expertise – The team needs the expertise to make the informed and germane decisions
• Credibility – Is the group large enough and have the correct reputation
• Leadership – Does the team have the proven leadership to drive the change process
Vision has a way of breaking through emotional and cultural barriers and has characteristics of:
• Imaginable – Conveying an image of what the future will be
• Desirable – Appealing to the interests of all stakeholders
• Feasible – Has realistic attainable goals
• Focused – Is clear enough to provide guidance to decision makers
• Flexible – Is general enough to encourage individual initiative
• Communicable – Needs to be explainable in under 5 minutes
Such visions should also include the input of several stakeholder groups, including the employees.
Kotter suggests that all of the above will be in vain unless the information is given to the team. His
key elements for effective communication of vision are:
• Simplicity – No jargon or technobabble
• Metaphor, analogy and example rich – a verbal picture that is easily understood
• Multiple forums – Big meetings, small briefings, memos, internal comms.
• Repetition – Hammer the message home
• Leadership by example – Behaviour from senior management that is consistent with the
message
• Explanation of seeming inconsistencies – Inconsistencies undermine credibility
• Give and take – listen as well as broadcast
Kotter suggests that the key elements of a successful change effort include:
• More change not less occurs as credibility and confidence of the coalition grows
• More help is available as people become committed to the change and management
increases the support
• Leadership from senior management increases generating more urgency
• Project management and leadership from below increase as benefit is identified
• Reduction of unnecessary interdependencies as they are wasteful and not required by the
improving processes
Kotter;’s discussion of change has some clear guidance for organisations of the future:
There needs to be:
• 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
The route to the next stage in organisational structure and behaviour is not easy but Kotter offers
some comparisons that help the decisions process.
It is no surprise that, in the 21st century, people need to be well informed. Kotter supports a variety
of different learning processes such as the learning organisation. He therefore suggests that a 21st
century executive has:
• Personal History
o Innate capabilities
o Childhood experiences
o Job and educational experiences
• Competitive Drive
o Standards
o Desire to do well
o Self confidence in competitive situations
• Lifelong Learning
o Willingness to seek new challenges
o Willingness to reflect success and failure honestly
• Skills and Abilities
o Knowledge
o Leadership skills
o Other Skills
• Competitive capacity
Rating: 4/5