Leading Change:

Why Transformation Efforts Fail

By John P. Kotter

BY ,
NIDHIN(14PGP026)
RAT I S H ( 1 4 P G P 0 3 7 )
S RAVA N ( 1 4 P G P 0 4 5 )
SANJIT(14PGP060)
GROUP 5

Objective
To discuss eight reasons why transformation efforts fail in organizations and
to learn some strategies for successful organization transformation.

Error #1: Not Establishing a Great Enough

Sense of Urgency
Organizations need to continually examine the market and look for a
competitive advantage
Anticipate and identify potential crises
And look for opportunities
Organizations need to have forward thinking employees

Error #2 Not Creating a Powerful Enough

Guiding Coalition

In a successful transformation, you need to assemble a

group of people with enough power to lead the change
efforts and to encourage the group to work together as
a team

Error 3: Lacking a Vision

Clarifies the
direction in
which a
company moves

Often the
transformation
effort can lead
to the opposite
direction

Guiding
coalition needs
to come with
multiple
iterations to
imbibe the
essence of the
vision

Success

Plenty of plans,
direction and
programs but no
vision

Failure

Vision

Picture of the
future to
communicate
and appeal to
all stakeholders

Communicate
vision in 5 mins
or less

factor of Ten
Single meeting or
communication to
communicate the
change

Head of the
organization takes
time and tries to
explain the vision

Newsletters and
speeches
communicate the
vision but
executive behave
opposite to it

Downsizing is an
important part of
the vision

Use every possible channel to communicate especially those wasted in non essential
information
Performance
appraisal: how the
employees
behavior helps or
undermines the
vision

Quarterly
performance:
divisions executive
are helping in the
transformation

Town Hall: Q&A

session are tied to
transformation
goals

Business Problem:
how the solution
fits into the bigger
picture

Error 5: Not Removing Obstacles to the New

Vision
Obstacles
Resistance to change work goals
Org. structure
Narrow minded bosses
Performance appraisal process

Error 6: Not Systematically Planning For and

Creating Short-Term Wins
Real transformation is always long term
Need short term goals to keep up momentum
Creating short term wins and hoping for short term wins
Reward people with recognition, money or promotion

Error 7: Declaring victory too

soon
Managers tempt to declare victory with the first clear
performance improvement
Declaring war won can be catastrophic

Premature victory celebration kills momentum

Use the credibility afforded by short-term wins to tackle
bigger problems
Understand that renewal efforts take not months but
years

Error 8: Not anchoring changes in

the corporate culture
New behavior in social norms and share value , are
subject to degradation as soon as the pressure is
removed

2 factors institutionalizing change in corporate culture

Conscious attempt to show people how the new approach , behavior,
and attitude have helped improve performance
Make sure that next generation of top management really personify the
new approach
One bad decision at the top of an organization can
undermine a decade of hard work

Thank You