Kotter's Theory Flashcards
Kotter’s 8 Step Theory
Change is often difficult to implement due to resistance from key stakeholders. Kotter developed an 8 step theory on how to best manage the change process.
Step 1 - Create Urgency
Convincing people within the organisation of the need for change. This can help getting them on board if they see the real urgent purpose.
Step 2 - Form a powerful coalition
Creating a team that can lead the organisation through the change. It is important to have people that are well respected in the coalition.
Step 3 - Create a vision for change
A clear vision can help give direction on where the organisation is headed. Clarify how the vision will be better than what has happened in the past.
Step 4 - Communicate the vision
Being open and honest with stakeholders and talking about the vision regularly. Everyone must understand and accept the strategy and work towards achieving the vision.
Step 5 - Remove obstacles
Removing obstacles such as costs and bureaucracy can help empower employees to work towards the change. Reward those who make the changes happen which can motivate them and other employees to accept the change and work productively.
Step 6 - Create short term wins
Often a change can take a long time. It is important to celebrate short term success along the way. This helps reinforce that the sacrifices are paying off.
The 8 Steps
Create urgency Form a coalition Create a vision Communicate the vision Remove obstacles Create short term wins Build on the change Anchor the change in corporate culture
Step 7 - Build on the change
It is important to not let up and continue with the change. Often changes fail because victory is declared too early. Set goals to continue building on the momentum that has been achieved and encourage continuous improvement.
Step 8 - Anchor the change in corporate culture
Create a new culture so that the changed state becomes normal. Making continuous effort to ensure the change is seen in all aspects of the organisation.
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Step 1
Create urgency. Losses of up to $1.5 billion have been seen as an urgency within the business to make changes.
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Step 2
Form a powerful coalition. A team has been formed to lead the organisation through the change. This team involves senior executive from different areas of the business working together.
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Step 3
Create a vision for change. A vision is created to cut back on later service and increase Business and parcel services. Also to improve customer relationships.
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Step 4
Communicate the vision. The vision is openly communicated to key stakeholders in the media so that everyone understands the strategy and works towards achieving the vision.
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Step 5
Remove obstacles.
Removing of any structural obstacles were implemented so that the staff could be trained on new processes. The changes were lobbied to the government so that they were able to implement new structures and pricing schemes.
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Step 6
Create short term wins.
Even though it was early they celebrated internally and in the media, when such as new pricing schemes, customer relationship management systems. These wins helped motivate staff.
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Step 7
Build on the change. They continue to make changes to improve customer satisfaction and getting used to their digital lives. Goals were set to continue building on the momentum and that had been achieved and continuous improvement was encouraged.
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Step 8
Anchor the change in corporate culture. They understood that the Digital world is here to stay, so the constant training and implementation of new marketing methods will be constant. The changes were anchored in culture so the business could keep on improving and this was understood by all employees.
‘Fairhaven Aged Care’ is an Australia-wide large-scale organisation that has facilities in all capital cities and many regional centres. The Board of Directors has decided to open new facilities in New Zealand, where they have gathered data that indicates there is increasing demand for aged care.
As the expansion is a change management issue, identify and explain four steps of Kotter’s theory that could be applied to Fairhaven Aged Care.
The second step is to form a powerful coalition. Creating a team that can lead the organisation through the change. It is important to have people that are well respected in the coalition. At Fairhaven they should form a coalition from people from all departments so the expansion process can be effectively coordinated organisation wide.
The third step is to create a vision for change. A clear vision can help give direction on where the organisation is headed. Clarify how the vision will be better than what has happened in the past. At Fairhaven, managers need to ensure that employees understand that the expansion will bring many needed benefits to the organisation.
The fourth step is to communicate the vision. Being open and honest with stakeholders and talking about the vision regularly. Everyone must understand and accept the strategy and work towards achieving the vision. At Fairhaven they need to ensure that employees understand how the expansion will work and what is required from them to successfully expand.
The sixth step is to celebrate short term wins. Often a change can take a long time. It is important to celebrate short term success along the way. This helps reinforce that the sacrifices are paying off. At Fairhaven when they have successfully started moving into New Zealand they could organise a social night to celebrate the initial success.
