Undercommunicating the vision by a factor of ten. If you can’t communicate the vision in five minutes or less and get a reaction that indicates both understanding and interest, your work in this stage isn’t done.Ĥ. Without a coherent and sensible vision, a change effort dissolves into a list of confusing and incompatible projects. ![]() In successful transformation efforts, the chairman or president or general manager of the division, plus another five to 50 others-including many, but not all, of the most influential people in the unit- develop a shared commitment to renewal.ģ. Not creating a powerful enough guiding coalition. When is the urgency rate high enough? When 75% of management is genuinely convinced that the status quo is, in the words of the CEO of a European company, “more dangerous than launching into the unknown.”Ģ. Half of all change efforts fail at the start. Not establishing a great enough sense of urgency. Consolidating improvements and producing still more changeįor each of the stages in a change process, there is a corresponding pitfall.ġ. Planning for and creating short-term winsħ. And since the success of a given stage depends on the work done in prior stages, a critical mistake in any of the stages can have a devastating impact.ĥ. Skipping steps to try to accelerate the process invariably causes problems. These stages should be worked through in sequence. Moreover, a successful change process goes through a series of eight distinct stages. Why do so many transformation efforts produce only middling results? One overarching reason is that leaders typically fail to acknowledge that large-scale change can take years. Kotter’s lessons are instructive, for even the most capable managers often make at least one big error. A second lesson is that critical mistakes in any of the phases can have a devastating impact, slowing improvement and negating previous gains. Skipping steps creates only an illusion of speed and never produces a satisfying result. One lesson is that change involves numerous phases that, together, usually take a long time. The lessons that can be learned will be relevant to more and more organizations as the business environment becomes increasingly competitive in the coming decade. ![]() Most fall somewhere in between, with a distinct tilt toward the lower end of the scale. In almost every case, the goal has been the same: to cope with a new, more challenging market by changing how business is conducted.Ī few of those efforts have been very successful. ![]() Their efforts have gone under many banners: total quality management, reengineering, right sizing, restructuring, cultural change, and turnarounds. In the past decade, the author has watched more than 100 companies try to remake themselves into better competitors.
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