leading change: why transformation efforts fail summary
In successful transformations, the chairman or president or division general manager, plus another 5 or 15 or 50 people, come together and develop a shared commitment to excellent performance through renewal.
He allowed human resource systems to remain intact even when they were clearly inconsistent with the new ideals.
John Kotter explains why many organizations fail to institute a sense of urgency. Not establishing a great enough sense of urgency. After the celebration is over, the resistors point to the victory as a sign that the war has been won and the troops should be sent home.
This practice will motivate the workers.Human beings always interact with their surrounding environments. The second error is failing to remove every obstacle affecting the vision. Too often, an employee understands the new vision and wants to help make it happen. Well over 50% of the companies I have watched fail in this first phase. I’ve seen three patterns with respect to communication, all very common. They pay great attention to who is promoted, who is hired, and how people are developed. With good business results, the opposite is true: convincing people of the need for change is much harder, but you have more resources to help make changes.
For each of the stages in a change process, there is a corresponding pitfall.
On a scale of one (low) to ten (high), year one received a two, year two a four, year three a three, year four a seven, year five an eight, year six a four, and year seven a two.
For example, because results improved while charismatic Harry was boss, the troops link his mostly idiosyncratic style with those results instead of seeing how their own improved customer service and productivity were instrumental. In reality, even successful change efforts are messy and full of surprises. Lower level managers concluded that senior management had lied to them about their commitment to renewal, cynicism grew, and the whole effort collapsed.In the first half of a transformation, no organization has the momentum, power, or time to get rid of all obstacles.
One overarching reason is that leaders typically fail to acknowledge that large-scale change can take years. What I am talking about goes far beyond that. Companies that fail in phase two usually underestimate the difficulties of producing change and thus the importance of a powerful guiding coalition. But it also gives less maneuvering room. Gaining understanding and support is tough when downsizing is a part of the vision.
In a routine discussion about a business problem, they talk about how proposed solutions fit (or don’t fit) into the bigger picture. In a regular performance appraisal, they talk about how the employee’s behavior helps or undermines the vision. No matter how capable or dedicated the staff head, groups without strong line leadership never achieve the power that is required.Efforts that don’t have a powerful enough guiding coalition can make apparent progress for a while.
The organization should develop the best incentives to empower its employees.This article by John Kotter explains why business leaders should not take organizational transformation lightly. Half of all change efforts fail at the start.
Not surprisingly, most of the employees with whom I talked were either confused or alienated. From what I have seen, the answer is when about 75% of a company’s management is honestly convinced that business-as-usual is totally unacceptable. But in most cases, the blockers are very real.Sometimes the obstacle is the organizational structure: narrow job categories can seriously undermine efforts to increase productivity or make it very difficult even to think about customers. Anything less can produce very serious problems later on in the process.Major renewal programs often start with just one or two people. In the other two cases, the CEOs did not resist the boards’ choices, because they felt the transformation could not be undone by their successors. The author explains why business leaders should examine every aspect of the proposed change. In that case, a high level of urgency helped. Declaring victory too soon. Within two more years, the useful changes that had been introduced slowly disappeared. Commitments to produce short-term wins help keep the urgency level up and force detailed analytical thinking that can clarify or revise visions. In all but two cases, victory was declared and the expensive consultants were paid and thanked when the first major project was completed after two to three years. But it is the premature victory celebration that kills momentum. In every successful transformation effort that I have seen, the guiding coalition …
Skipping steps to try to accelerate the process invariably causes problems. The employees in an organization are comparable to cogs in a wheel.
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