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1 Your company logo here Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing Product #9467 TL
2 CONTENTS SECTION SLIDES 1 For Presenter Only: Introduction, Kotter Reading List, and How to Use This Product 2 – 14 2 Why Change? 16 – 21 3 Kotter’s 8 -Step Process 22 – 75 4 Kotter’s Dual Operating System 76 – 82 Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
3 The following ten slides are just for you to read, not for you to present to your group. Presentation slides begin on slide 15. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
4 INTRODUCTION If you’re like most of us, you’ve been part of a failed change initiative. Change is hard and few organizations master it. At best, only 30% of such efforts succeed. But there is a way to increase your chances of success. In 1995, John Kotter wrote “Leading Change: Why Transformation Efforts Fail” for Harvard Business Review. Based on more than fifteen years of observation and analysis, that article and his follow-up book, Leading Change, identified the mistakes organizations make when trying to effect change. It provided an 8 -step process for successfully tackling change. Since the publication of that book in 1996 and three key follow-up books that expanded on the principles and provided multiple examples, many thousands of managers have used Kotter’s principles and processes in their organizations. Recently, Kotter introduced the dual operating system, an outgrowth of his original eight steps. This new system allows organizations to better handle change in much faster-moving environments. continued on the next slide Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
5 INTRODUCTION This slide deck, Accelerating Change, will educate you about Kotter’s 8 -step process, the principles underlying his framework, and the adaptive organization that results from using it successfully. It will also introduce you to the new dual operating system. The deck will help you view Kotter’s change principles through the lens of your own organization. Its aim is to inspire you—and enable you to inspire others—to achieve change. Accelerating Change isn’t meant to replace Kotter’s books and articles. On the contrary, it extensively references the following: John P. Kotter on What Leaders Really Do, Leading Change, The Heart of Change, A Sense of Urgency, Buy-In, and the article “Accelerate!” included here. Have your books handy or click on this link to purchase them. You can also visit www. kotterinternational. com for more information. And please see the Kotter Reading List on slides 7 and 8. Whether you use the 8 -step process or the dual operating system depends on the speed of change your organization faces. continued on the next slide Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
6 INTRODUCTION Kotter originally created the eight steps in 1995 because he saw the pace of change speeding up. Traditional methods of managing change were failing. The 8 -step process helped—and continues to help—organizations adapt to shifting conditions. Now, the rate of change has increased again—but this time exponentially. Windows of opportunity are opening and closing even more quickly. In many organizations and industries—though not all—a much more rapid rate of change requires a whole new form of the eight steps. This is why Kotter created the dual operating system. The dual operating system’s two parts are: 1) the traditional hierarchy, which enables organizations to efficiently manage day-to-day operations, and 2) a new, agile network. In this network, Kotter’s original eight steps become eight accelerators. The accelerators are similar to the eight steps, but they operate much more quickly and continuously. The new networks in full integration with the traditional hierarchy to create a truly adaptable organization. Only a few organizations do this now, but eventually, to survive, all organizations will need to adopt this system. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
Your company logo Your company (change master) logoon here
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14 The following slides are for you to read first and then share with/present to others. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
15 Your company logo here Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
16 AGENDA 1 Why Change? 2 Kotter’s 8 -Step Process 3 Kotter’s Dual Operating System Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
17 CHANGE IS HARD 70% of change efforts fail. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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21 Become a Change Leader Our organization needs many more change leaders. § Leaders exist at every level. § Leadership is a choice. § Change begins one leader at a time. We must: § Model the change. § Not force the change upon others. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
22 AGENDA 1 Why Change? 2 Kotter’s 8 -Step Process 3 Kotter’s Dual Operating System Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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STEP 1 Your company logo Your company (change master) logoon here
STEP 1 Your company logo Your company (change master) logoon here
STEP 1 Your company logo Your company (change master) logoon here
28 STEP 1 ESTABLISH OUR SENSE OF URGENCY We need to get urgent about what—exactly? Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
29 STEP 1 ESTABLISH OUR SENSE OF URGENCY We must not: §Leap to creating vision or strategy before we’ve made our urgency undeniable §Focus exclusively on building a “rational” business case with lengthy, expensive analysis Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
30 STEP 1 ESTABLISH OUR SENSE OF URGENCY Complacency and false urgency kill change. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
31 STEP 1 ESTABLISH OUR SENSE OF URGENCY Recognize Complacency § Do we delegate critical issues to consultants or task forces? § Do we refuse to confront the bureaucracy and politics that slow down important initiatives? § Are our discussions too inwardly focused and not enough about markets, emerging technology, competitors, and the like? continued on the next slide Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
32 STEP 1 ESTABLISH OUR SENSE OF URGENCY Recognize Complacency § Do we use highly selective facts to shoot down data that suggest a big hazard or opportunity? § Do we regularly blame others for significant problems instead of taking responsibility and changing? § Do we discuss our past failures, not to learn from them, but to stop or stall new initiatives? Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
33 STEP 1 ESTABLISH OUR SENSE OF URGENCY Find False Urgency §Do we have trouble scheduling meetings on important initiatives because we’re too busy with other matters? §Do we end key meetings without deciding what must happen next, other than scheduling another meeting? §Do we spend long hours developing Power. Point presentations on almost anything? continued on the next slide Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
34 STEP 1 ESTABLISH OUR SENSE OF URGENCY Find False Urgency §Do we run from meeting to meeting, rarely focusing on the most critical hazards or opportunities? §Do we make cynical jokes that distract from the real issues and undermine important discussions? §Do we say, “We must act now, ” but then fail to do anything? Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
35 STEP 1 ESTABLISH OUR SENSE OF URGENCY Truly urgent behavior is: § Focused externally on important issues § Alert, fast-moving § Relentless § Continuously purging irrelevant activities to make time for important ones, and to prevent burnout Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
36 STEP 1 ESTABLISH OUR SENSE OF URGENCY Tactics for building true urgency: § Bring outside reality in. § Behave with urgency every day. § Find opportunity in crisis. § Communicate! Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
37 STEP 1 ESTABLISH OUR SENSE OF URGENCY What are we urgent about? Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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39 STEP 2 CREATE OUR GUIDING COALITION A guiding coalition must have three things: 1. A shared objective 2. Trust 3. The right people—power, expertise, credibility Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
40 STEP 2 CREATE OUR GUIDING COALITION No egos No snakes Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
41 STEP 2 CREATE OUR GUIDING COALITION A diverse many, not a limited few Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
42 STEP 2 CREATE OUR GUIDING COALITION The power of volunteerism §Passion powers change §“Want to” and “get to, ” not “have to” change Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
43 STEP 2 CREATE OUR GUIDING COALITION Who should be in our guiding coalition? How can we enlist volunteers? Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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STEP 3 Your company logo Your company (change master) logoon here
46 STEP 3 DEVELOP OUR CHANGE VISION Six things that make a vision effective: 1. Is bold but achievable 2. Paints a vivid picture of the future 3. Appeals to employees’ hearts (and minds) 4. Is specific enough to help individuals make decisions and trade-offs 5. Is flexible enough to adapt to changing conditions 6. Is easy to communicate quickly—in 60 seconds Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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48 STEP 3 DEVELOP OUR CHANGE VISION How will we define the initiatives needed to make our change vision a reality? Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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50 STEP 4 COMMUNICATE OUR VISION FOR BUY-IN Communicating our vision must be: § Constant § Heartfelt § Consistent Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
51 STEP 4 COMMUNICATE OUR VISION FOR BUY-IN Whose buy-in do we need? To whom are we communicating? Everyone who needs to make adjustments in what they do, how they do it, and with whom they do it. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
52 STEP 4 COMMUNICATE OUR VISION FOR BUY-IN Be a broken record. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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54 STEP 4 COMMUNICATE OUR VISION FOR BUY-IN State our vision constantly, everywhere. § Project updates § Financial updates § All-staff meetings § Dedicated space on the intranet § Trainings § One-on-one conversations It all adds up. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
55 STEP 4 COMMUNICATE OUR VISION FOR BUY-IN Walk the talk. § Match words and deeds. § Behave in ways that are consistent with our vision. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
56 STEP 4 COMMUNICATE OUR VISION FOR BUY-IN Address naysayers: § Invite the lions in. § Then respond respectfully to attacks. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
57 STEP 4 COMMUNICATE OUR VISION FOR BUY-IN Where and how will we communicate our vision? Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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60 STEP 5 EMPOWER BROAD-BASED ACTION Common barriers: §Mindset: People don’t believe change is possible. §Systems: Formal structures (e. g. , information sharing, performance management) make it difficult to act. §Bosses: Key players discourage employees from behaving differently. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
61 STEP 5 EMPOWER BROAD-BASED ACTION Why can’t we just use project management to effect change? §Project management is important, but it’s not enough. §Changing culture and behavior demands much more. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
62 STEP 5 EMPOWER BROAD-BASED ACTION What are our barriers? Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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64 STEP 6 GENERATE SHORT-TERM WINS Compelling evidence— immediately Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
65 STEP 6 GENERATE SHORT-TERM WINS Short-term wins must be: § Visible § Unambiguous § Relevant § Celebrated Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
66 STEP 6 GENERATE SHORT-TERM WINS Short-term wins serve many purposes: § Make sacrifices worth it § Undermine resisters § Build momentum § Enable the guiding coalition to fine-tune the vision and change initiatives Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
67 STEP 6 GENERATE SHORT-TERM WINS Communicate short-terms wins to the organization frequently and everywhere: § Dedicated section on intranet § Bulletin boards in public areas § In regular email updates § On screen savers Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
68 STEP 6 GENERATE SHORT-TERM WINS Where and how will we publicize our successes? Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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70 STEP 7 NEVER LET UP Maintain momentum: §Don’t declare victory prematurely §Keep urgency up §Eliminate unnecessary, demoralizing work §Continue learning from experience Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
71 STEP 7 NEVER LET UP Eliminate unnecessary work. Cancel unnecessary meetings. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
72 STEP 7 NEVER LET UP Does our problem still feel urgent and relevant? Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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74 STEP 8 INCORPORATE CHANGE INTO OUR CULTURE To embed change into our culture: §It’s OK if resisters leave. §It’s imperative that we promote the right people. Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
75 STEP 8 INCORPORATE CHANGE INTO OUR CULTURE The change becomes “the way we do things around here. ” Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
76 AGENDA 1 Why Change? 2 Kotter’s 8 -Step Process 3 Kotter’s Dual Operating System Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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83 THANK YOU! Your company logo (change on master) Based on the books and articles by John P. Kotter © 2012 Harvard Business School Publishing
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