THE HEART OF CHANGE- JOHN P. KOTTER & DAN S. COHEN

LEARNINGSSuccessful organisations know how to overcome resistance to change• Grab opportunities, avoid hazards• Make big leaps

Eight stages of change• Urgency, put together a guiding team, create the vision, communicate the vision, remove

barriers to action, accomplish short-term wins, keep pushing for change, and create a new culture

Changing people’s behaviour• Not strategy, not systems, not culture

Influence people’s feelings• the heart of change is in the emotions

8 STEPS OF CHANGE

Increase urgency

Build the guiding team

Get the vision right

Communicate for buy-in

Empower action

Create short-term wins

Don’t let up

Make change stick

PATTERN ASSOCIATED WITH SUCCESSFUL CHANGE

SEE

FEEL

CHANGE

STEP 1 – INCREASE URGENCY

STEP 1 – INCREASE URGENCY

Complacency

Immobilization

You-can’t-make-me-move

Pessimistic attitudeOff to a bad start

OFF TO A GOOD START

Seeing - Establish credibility

Feeling - Surprise, fear, urgency

Changing – Shift in behaviour

STEP 2 – BUILD THE GUIDING TEAM

THE SECOND STEP IN MAKING YOUR CHANGE SUCCESSFUL

• Helping pull together the right group of people with the right characteristics and sufficient power to drive the change effort

• Helping them to behave with trust and emotional commitment to one another.

• Help form a group that has the capability – in membership and method of operating – to guide a very difficult change process.

WHAT WORKS• Showing enthusiasm or commitment (or helping someone to do so) to help draw the

right people into the group.

• Modelling the trust and teamwork needed in the group (or helping someone to do that)

• Structuring meeting formats for the guiding team so as to minimise frustration and increase trust

• Putting your energy into step 1 (raising urgency) if you cannot take on the step 2 challenge and if the right people will not

WHAT DOES NOT WORK• Guiding change with weak task forces, single individuals, complex governance

structures, or fragmented top teams

• Not confronting the situation when momentum and entrenched power centres undermine the creation of the right group

• Trying to leave out work or work around the head of the unit to be changed because he or she is hopeless

REAL LIFE EXAMPLES• The Blues Vs. The Greens

• Meetings Down under

STEP 3 – GET THE VISION RIGHT

GET THE VISION RIGHTGuiding teams-No clear direction or embrace vision

Catastrophic for Organization

Charting the future

Large scale change

Planning exercise

PAINTING PICTURES OF THE FRAMEDeregulation and liberalization

Diversified Conglomerate

Orthodox Planning Process

Incremental Change

Planning and Budgeting

GRAPPLE THE PROBLEM

Carry on business as usual

Limited growth Opportunities

Retrench and batten down the hatches

Series of meetings

Magnitude of the Changes

FORMAL DISCUSSIONS

• New Alternatives• Summary of the optionsMultiutility

• Triple the size of the company

• Consensus on the vision

Testing the Conclusion

PROCESS

Seeing

Feeling

Changing

LARGE SCALE CHANGEBudget, Plans ,Strategies and Vision

Budgeting- A math exercise

Planning-Logical and linear Process

Strategizing-Conceptual Skills

Venturing into unknown territory

EFFICIENCY VERSUS SERVICEInnovation and Customer Service

Fear, anger and Cynicism grow

Service Oriented Visions

COST VERSUS SERVICEStreamlining the Organization

Funding inefficiencies

Removing impediments

Duplicative Practices

Purchase of new technology

BOLD STRATEGIESIndustry leader

Small modifications in culture

Strategic need for speed

Corrosive effect

Move-quick Strategy

NEW VISIONTrying to see—literally—possible futures

• Visions being Clear

• Visions-Commitment

• Strategies –Bold Vision

• Paying careful attention

STEP 4 – COMMUNICATE FOR BUY-IN

More than data transfer

Cutting through the Avalanche of Information

Matching Works & Deeds

New Technologies

CHANGE IS WIDELY COMMUNICATED FOR

UNDERSTANDING & FOR GUT LEVEL BUY- IN

MORE THAN DATA TRANSFERPREPARING FOR Q&A

SEE

FEEL

CHANGE

NEW TECHNOLOGIES

THE SCREEN SAVER

MATCHING WORDS & DEEDSNUKING THE EXECUTIVE FLOOR

CUTTING THROUGH THE AVALANCHE OF INFORMATION

MY PORTAL

What Works?

• Keep communicating simple &heartfelt not complex & technocratic

• Do homework before communicating especially to understand feelings of people

• Speaking to anxieties, confusions & distrust

• Ridding communication channels of junk so that important messages can go through

• Use new technologies to help people see the vision

What Doesn't Work?

• Under communicating which happens all the time

• Speaking as though you are only transferring information

• Accidently fostering cynicism by not walking the talk

STEP 5 – EMPOWER ACTION

• It is not about giving people new authority and new responsibilities and then walking away.

• It is all about removing barriers.

• “Empowerment is not giving people power, people already have plenty of power, in the wealth of their knowledge and motivation, to do their jobs magnificently. We define empowerment as letting this power out” - Blanchard. K

REMOVING THE “BOSS” BARRIER

• Subordinates either give up or spend an inordinate amount of time trying to maneuver around this barrier.

• Retooling the Boss From Tim Wallace

Superintendent “Old School” Joe

Stint at the customer’s plant

Transformation of a change resistor into a best manager

RETOOLING THE BOSS

Seeing

FeelingChanging

REMOVING THE “SYSTEM” BARRIER

• Overwhelming bureaucracy

• Layers in hierarchy, rules and procedures.

• Performance evaluation & Rewards – stickiest part of the system.

• The addition of bonuses and raises does not necessarily motivate a change in behavior, nor does it necessarily convince people.

• The Worldwide Competition From Louise Berringer

THE WORLDWIDE COMPETITION

• To have a dramatic recognition program, dramatic improvements are needed.

• Teams working on ‘Improvement idea’ both at local level and then having a global competition.

• Innovative ways of presentation.

• 300 – 875 – 1400 teams. Emotionally moving moments

• People feeling empowered

REMOVING BARRIERS IN THE MIND

• Never underestimate the power of the mind to disempower.

• Never underestimate the power of clever people to help others see the possibilities, to help them generate a feeling of faith, and to change behavior.

• “I Survived, So You Can Too” from Greg Hughes & Dalene McCann

“I SURVIVED, SO YOU CAN TOO”

• 21 teams formed

• Ron briefing about the ‘Lexmark’ way of bracing change – jolt of new energy

• All-out, knock ’em dead brawl

• Old and new employees – like oil and water

• “This is possible; you won’t die in the process; the end result can be very important.”

REMOVING INFORMATION BARRIERS

• “Making Movies on the Factory Floor” from Rick Simmons

• Tim, Division executive

• Inspections done away with

• New change effort

• Meetings proved fruitless

• Filming production work

• Change in outlook

• Wooden models of factory setup

• Archiving the videos

NOT DOING EVERYTHING AT ONCE

• “Harold and Lidia” from Jeff Collins

• Barriers in their department to a big new-product development concept.

• First, engineering team leaders.

• Second, lack of any formal process for capturing new-product brainstorms.

• Forming a team of ten good performers

• Generating new and promising prototypes

WHAT WORKS

• Finding individuals with change experience who can bolster people’s self-confidence with we-won-you-can too anecdotes.

• Recognition and reward systems that inspire, promote optimism, and build self-confidence.

• Feedback that can help people make better vision-related decisions.

• “Retooling” disempowering managers by giving them new jobs that clearly show the need for change.

WHAT DOES NOT WORK

• Ignoring bosses who seriously disempower their subordinates.

• Solving the boss problem by taking away their power (making them mad and scared) and giving it to their subordinates.

• Trying to remove all the barriers at once.

• Giving in to your own pessimism and fears.

STEP 6 – CREATE SHORT-TERM WINS

WHY SHORT TERM??Producing sufficient short term wins, sufficiently fast to,

• Energize the change helpers

• Enlighten the pessimists

• Defuse the cynics

• Build momentum for the effort

WHAT WORKS??• Early wins that come fast (Process Timeline)

• Wins that are visible to as many people as possible (Visibility)

• Wins that penetrate emotional defenses by being unambiguous (Defusing cynics and enlightening pessimists)

WHAT WORKS??• Wins that are meaningful to others-the more deeply meaningful the better (Universal

Clarity)

• Early wins that speak to powerful players whose support you need and do not have (Gain support)

• Wins that can be achieved easily and cheaply, even if they seem small compared to the grand vision (Small, small steps)

WHAT WON’T WORK??• Juggling too much balls than what you can handle

• Providing the first win too slowly

• Stretching the truth

STORIES TO LEARN FROM• The list on the bulletin boards

• Creating the new navy

• The senator owned a trucking company

• Hoopla

STEP 7 – DON’T LET UP

AFTER 1ST SET OF SHORT TERM WINS• Direction & Momentum

• Urgency up

• Feeling of false pride down

• Eliminating exhausting work

• BUT not declaring victory prematurely

KEEPING URGENCY UP Urgency to

drop

Become frustrated

Declare victory soon

Complacent yourself

Short term wins

PE ratios

TACKLING MORE AND MORE DIFFICULT CHANGES

• Attitude of Solving easier problems and creating momentum

• Courage & perseverance help

• Structure situations to gain power

• Power = Authority + Time + Resources + Access

The merchant of Fear

NOT KILLING OURSELVES

Urgency high

People want to

take on big problems

Succeed in

generating change

Still fail

•Conscious effort as early as possible•Anticipate the issue•Stop unnecessary meetings•Delegate more•People are not machines•Rejuvenation from sleep, relaxation and fun off the job is must

Ways to overcome

25 2

FAVOURITE STEP 7 STORY

• This is creative.

The Streets

WHAT HELPS• Aggressively riding yourself of work that wears you down

• Looking constantly for ways to keep urgency up

• Using new situations opportunistically

WHAT DOES NOT HELP• Developing rigid 4 year plan

• Convincing yourself that you are done & you can get the job done without confronting some of the major problems

• Working hard ( physical + mental collapse)

STEP 8 – MAKE CHANGE STICK

MAKE CHANGE STICK• Powerful force – Tradition

• Permanent Change – Creation of new, supportive and strong org. culture

• Revolutionary technology, globalized organization, innovative strategy, efficient processes – Winner

Fragile Change

• Successful change – More fragile – Challenges have to be met

• Case – Boss who went to Switzerland – Lack of continuity in vision

• Change held in place by guiding team

• Keys – Peers & Not really thinking

• Large scale change – Power of culture

MAKE CHANGE STICKNew Employee Orientation

• Employee turnover – Disruption of culture

• Case - The path to the patient

• Lack of co-ordination

• Loss of money

• Change

• Leadership support from parent organization

• Influencing R&D and training sessions

• Communication Events

• Making it a way of life

MAKE CHANGE STICK• Employee orientation program

1. R&D’s new operating ways

2. Video conveyance

3. Creative animation

4. Projection of core value in the form of a real customer

MAKE CHANGE STICKThe Promotions Process

• Reinforcing fragile culture – Promotions process

• Case – Promoting the Thirty-Something

• Clarity of path

• Successful communication

• Real success by acting per the new rules

• Denise Warren – Flexible schedule – Promoting similar persons

• Promotions – Solid & Stable foundation

MAKE CHANGE STICKPower of Emotion

• Case – Home Mortgage

• Risk of culture dilution

• Visionquest – re-examination of values

• Story – Video of a son

• True culture change – New way of operating has to succeed over a period of time

• Shifting norms & values before new way of operation – Does not work

• Behaviors – End of process

CONCLUSION

• Turbulence – Ever present

• Winning organizations – Eight step process of adaptation & transformation

• Key – Less emphasis on analysis & thinking and more emphasis on seeing & feeling

• Clear thinking – Large scale change

• Emotions – Anger, False pride, Pessimism, Arrogance, Cynicism, Panic, Exhaustion, Insecurity & Anxiety

• Facilitating emotions – Faith, Trust, Optimism, Urgency, Reality based pride, Passion, Excitement, Hope & Enthusiasm

• “Example is not the main thing influencing others. It is the only thing.”

Albert Schweitzer

CONCLUSION

See• Identify

problem• Visualize it• Show

emotionally engaging solutions

Feel• Visualizations

capture attention

• Increases emotions that facilitate change

Change• Different

feelings• Change of

heart• Transform

behavior

THANK YOU