THE HEART OF CHANGE - JOHN P. KOTTER & DAN S. COHEN
LEARNINGS Successful 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
Off to a bad start
Pessimistic attitude
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 RIGHT Guiding teams-No clear direction or embrace vision Catastrophic for Organization Charting the future Large scale change Planning exercise
PAINTING PICTURES OF THE FRAME Deregulation 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 Multiutility
• New Alternatives • Summary of the options
Testing the Conclusion
• Triple the size of the company • Consensus on the vision
PROCESS Seeing
Feeling
Changing
LARGE SCALE CHANGE Budget, Plans ,Strategies and Vision Budgeting- A math exercise Planning-Logical and linear Process Strategizing-Conceptual Skills Venturing into unknown territory
EFFICIENCY VERSUS SERVICE Innovation and Customer Service Fear, anger and Cynicism grow Service Oriented Visions
COST VERSUS SERVICE Streamlining the Organization Funding inefficiencies Removing impediments Duplicative Practices Purchase of new technology
BOLD STRATEGIES Industry leader Small modifications in culture Strategic need for speed Corrosive effect Move-quick Strategy
NEW VISION Trying to see—literally—possible futures • Visions being Clear • Visions-Commitment
• Strategies –Bold Vision • Paying careful attention
STEP 4 – COMMUNICATE FOR BUY-IN
CHANGE IS WIDELY COMMUNICATED FOR UNDERSTANDING & FOR GUT LEVEL BUY- IN More than data transfer Cutting through the Avalanche of Information Matching Works & Deeds New Technologies
MORE THAN DATA TRANSFER PREPARING FOR Q&A
SEE
FEEL CHANGE
CUTTING THROUGH THE AVALANCHE OF INFORMATION
MY PORTAL
MATCHING WORDS & DEEDS NUKING THE EXECUTIVE FLOOR
NEW TECHNOLOGIES THE SCREEN SAVER
What Works?
What Doesn't Work?
• 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
• 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
Changing
Feeling
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 selfconfidence with we-won-you-can too anecdotes. • Recognition and reward systems that inspire, promote optimism, and build selfconfidence. • 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
Complacent yourself
Short term wins
Become frustrated
Declare victory soon 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
Ways to overcome •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
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 STICK New 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 STICK The 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 STICK Power 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
• ―Example is not the main thing influencing others. It is the only thing.‖ Albert Schweitzer
• 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
CONCLUSION
See
Feel
Change
• Identify problem • Visualize it • Show emotionally engaging solutions
• Visualizations capture attention • Increases emotions that facilitate change
• Different feelings • Change of heart • Transform behavior
