Leading change in organization
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The document summarizes Kotter's 1996 change model for leading organizational change. It outlines the 8 steps in the model: create urgency, form a coalition, create a vision, communicate the vision, empower action, create short-term wins, consolidate gains, and institutionalize changes. It provides examples of companies that have successfully implemented aspects of the model. It also discusses limitations of the model and implications for managers and leaders in driving change initiatives.
Leading change in organization
- 1. BACK TO THE FUTURE:REVISITING KOTTER'S 1996 CHANGE MODEL LEADING CHANGE
- 2. GROUP MEMBER'S Shranik Jain(2017SMN6668) Nitika Pasricha(2017SMN6503) Prachi Bhambani(2017SMN6506) Lokesh Saini (2017SMN6502) Varun Dixit (2017SMN6536) Rohit Rana (2017SMN6666) Sonia Jain(2017SMN6546)
- 3. DMS,IITDELHI WHY? Most major change initiatives—whether intended to boost quality, improve culture, or reverse a corporate death spiral—generate only lukewarm results. Many fail miserably.
- 4. LEADING LEADERS WHO SUCCESSFULLY TRANSFORM BUSINESSES DO EIGHT THINGS RIGHT (AND THEY DO THEM IN THE RIGHT ORDER).
- 5. DMS, IIT DELHI KOTTER'S CHANGE MODEL Create Urgency Form a powerful Coalition Empower action Communicate the vision Create a vision for change Create quick vision Consolidate gains and produce more change New approaches
- 6. Examine market and competitive realities for potential crises and untapped opportunities. CREATE A SENSE OF URGENCY ACTIONS NEEDED DMS,IITDELHI Convince at least 75% of your managers that the status quo is more dangerous than the unknown PITFALLS Underestimating the difficulty of driving people from their comfort zones Becoming paralyzed by risks
- 7. DMS,IITDELHI ZOMATIO ANNUAL REPORT-FY'19 ZOMATO SET AUDACIOUS GOALS AND BEAT THEM Always think backwards from the problem. Last year, we clocked $68m in revenue; and in March’18, when we were planning for FY19, we set an audacious goal of $180m — most of us thought that this was near impossible, but the team worked backwards from there and comfortably beat the goal.
- 8. DMS,IITDELHI FORM A POWERFUL COALITION Assemble a group with shared commitment and enough power to lead the change effort. A C T I O N S N E E D E D No prior experience in teamwork at the top P I T F A L L S Encourage them to work as a team outside the normal hierarchy. Relegating team leadership to an HR, quality, or strategic-planning executive rather than a senior line manager
- 9. Google founder Larry Page’s breaking up of the massive and thriving company into parts of a new company, Alphabet CEO Satya Nadella’s reorganization of Microsoft British Airways’ reorganization in the 1980s DMS, IIT DELHI
- 10. DMS,IITDELHI CREATE VISION A C T I O N S N E E D E D Create a vision to direct the change effort Develop strategies for realizing that vision P I T F A L L S Presenting a vision that’s too complicated or vague to be communicated in five minutes
- 11. DMS,IITDELHI
- 12. DMS,IITDELHI COMMUNICATE VISION A C T I O N S N E E D E D P I T F A L L S Use every vehicle possible to communicate the new vision and strategies for achieving it Teach new behaviors by the example of the guiding coalition. Under-communicating the vision Behaving in ways antithetical to the vision
- 13. DMS,IITDELHI EMPOWER OTHERS TO ACT ON THE VISION P I T F A L L S A C T I O N S N E E D E D Remove or alter systems or structures undermining the vision Encourage risk taking and nontraditional ideas, activities, and actions Failing to remove powerful individuals who resist the change effort
- 14. The vision of the company is to “Belong Anywhere”, and employees are encouraged to help customers feel like they belong by connecting with them on a personal level. Employees keep tabs on customers’ thoughts on social media and are encouraged to do things to make customers feel special— anything from replacing items that are taken from hosts’ homes to sending luggage to guests. AIRBNB DMS,IITDELHI
- 15. DMS,IIT DELHI PLAN FOR AND CREATE SHORT TERM WINS A C T I O N S N E E D E D Define and engineer visible performance improvements Recognize and reward employees contributing to those improvements P I T F A L L S Leaving short-term successes up to chance Failing to score successes early enough (12-24 months into the change effort)
- 16. DMS,IITDELHI CONSOLIDATE IMPROVEMENTS AND PRODUCE MORE CHANGE Use increased credibility from early wins to change systems, structures, and policies undermining the vision A C T I O N S N E E D E D Hire, promote, and develop employees who can implement the vision Reinvigorate the change process with new projects and change agents. P I T F A L L S Declaring victory too soon—with the first performance improvement Allowing resistors to convince “troops” that the war has been won
- 17. After a few years of hard work, managers may be tempted to declare victory with the first clear performance improvement. While celebrating a win is fine, declaring the war won can be catastrophic.
- 18. DMS,IITDELHI INSTITUTIONALIZE NEW APPROACHES Articulate connections between new behaviors and corporate success A C T I O N S N E E D E D Not creating new social norms and shared values consistent with changes P I T F A L L S Create leadership development and succession plans consistent with the new approach. Promoting people into leadership positions who don’t personify the new approach
- 19. DMS,IITDELHI LIMITATIONS OF KOTTER'S MODEL The model should be followed in sequence. If any of the steps is missed, the implementation of the change is not worth and if the process has started, it is difficult to change the direction of the project. But, in real life, the steps may be combined or somehow reviewed for the fluent change management. A R I G I D A P P R O A C H The linearity of the model can lead to the wrong assumptions. There might be some transformations in the organization that does not require nor are able to go through certain steps. For example, if there is a change with need for a great deal of secrecy. Steps 1 and 4 will be completely discarded. S O M E S T E P S A R E N O T R E L E V A N T I N S O M E C O N T E X T
- 20. DMS,IITDELHI LIMITATIONS OF KOTTER'S MODEL Organization may undergo through several difficulties while implementing change. The planning of changes according to the Kotter’s Model should limit the obstacles. The model is not detailed enough to provide information in all scenarios. For example, Resistance to change and commitment to change are major aspects of change management and complementary components outside Kotter’s model. D E A L I N G W I T H D I F F I C U L T I E S D U R I N G T H E C H A N G E M A N A G E M E N T
- 21. DMS,IITDELHI IMPLICATIONS FOR MANAGERS & LEADERS SET OBJECTIVES ORGANIZE MOTIVATE MAKE MEASUREMENT DEVELOP PEOPLE MOTIVATE & INSPIRE ALIGNING PEOPLE ESTABLISH A DIRECTION MANAGERS LEADERS
- 22. CONCLUSION The study provided by Kotter's in now working for many organizations, the CEO must lead the change; the entire organization must be involved; and the organizational culture must be taken into account before any major change. According to Kotter, successful change leaders find a problem or a solution to a problem and then engage the people and compel them to change the behavior according to situation. They recommend a people-driven approach that helps people to see the reason for change.Furthermore, Kotter has deeply analyzed the functions of the managers and leaders in an organization that acts as a guide in today’s business to achieve the business success. In today’s changing world, every organization needs to enhance strategies to meet the globally changing demands.
- 23. THANK YOU!