Change Management Kotter Consolidating change and producing more

Change Management Kotter – Consolidating change and producing more change Ideensammlung zur Erstellung einer Präsentation 1 Raimund Hudak

Change Management Ø It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Charles Darwin 2 Raimund Hudak

Krise als Chance 3 Raimund Hudak

Steps in the Change Process 1. Establishing a sense of urgency 2. Creating the guiding coalition 3. Developing (collaboratively) a vision and strategy 4. Communicating the change vision 5. Empowering broad-based action 6. Generating short-term wins 7. Consolidating change and producing more change 8. Anchoring new approaches in the culture (John Kotter, 1996) 4

7. Consolidating change and producing more change • According to John Kotter many change trajectories fail because victory is declared too early. • However, change is a slow-going process and it must be driven into the overall corporate culture. Quick wins are only the beginning of long-term change. • An organization therefore needs to keep looking for improvements. Only after multiple successes have been achieved, it can be established that the change is paying off. 5 Raimund Hudak

7. Consolidating change and producing more change • Quote John P Kotter: – 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. 6 Raimund Hudak

7. Consolidating change and producing more change • John Kotter Error 7: Declaring Victory Too Soon –Use increased credibility from early wins to change 'the old way we do things around here' systems, structures, and policies that are undermining the vision and have not been confronted before. –Understand that renewal efforts take not just months but often years. –Promote, hire, develop employees and use change agents who can implement the vision. 7 Raimund Hudak

Pilots • Test and learn before scaling up, but don’t expect one pilot to be enough • In a wide-scale transformation effort, improvement initiatives need to be piloted in selected units before they are rolled out across the whole organization. • Leaders are often impatient to get a pilot under their belt so they can press on with implementation, but driving change too quickly can have unwanted effects 8 Raimund Hudak

Test and learn through pilots • Pilots are the means to test and tailor the roll-out model, and should not be rushed: – care and time spent here will smooth the path to full-scale implementation. – One key decision is where to hold the pilots. – The units selected should be representative, varied by region, culture, and performance level, and able to offer clear headway for improvement. 9 Raimund Hudak

Bring the effort to scale • After learning from the pilots, organizations need to decide how to scale up the change. • There are three main approaches to suit different circumstances and needs: – In linear scale-ups, implementation proceeds sequentially in one area after another. This is the best choice if the organization is not facing a crisis, the roll-out affects only a few areas, the stakes are high, capable team members are in short supply, deep expertise is needed, there is strong resistance to change, and the toolkit and solutions require extensive customization. 10 Raimund Hudak

Bring the effort to scale • Three main approaches to suit different circumstances and needs: – In geometric scale-ups, implementation happens in waves, with each successive wave much larger than the last (say, two sites in the first wave, four in the second, sixteen in the third, and so on). – This approach makes sense if many areas need to be transformed and a linear scale-up would take too long, multiple areas share some common features, capable implementers are readily available, and the organization has the capacity to absorb the changes 11 Raimund Hudak

Bring the effort to scale • Three main approaches to suit different circumstances and needs: – In “big bang” scale-ups, implementation takes place in all areas at once. This requires a lot of resources, but only for a limited period. – This approach may be the right one if the need for transformation is urgent, multiple areas share many common features, little resistance is expected (or an appetite for change already exists), and a standard toolkit and approach can be employed 12 Raimund Hudak

Bring the effort to scale • Whichever form of scale-up is used, it should focus not only on hitting improvement targets but also on building leadership capability for change. • Leaders from the pilots should be actively involved in teaching peers and solving problems. • Practical development programs, coaching, and mentoring should be provided on a wide scale to reach hundreds or even thousands of managers. 13 Raimund Hudak

Bring the effort to scale • During the scale-up, the metrics tested in the pilots should be embedded in the performance management system through balanced scorecards or other tools. • To keep employees engaged, the transformation story must be told and retold through a communications program that appeals to both head and heart and celebrates victories large and small. • Every initiative should be linked back to the core themes and transformation headline 14 Raimund Hudak