Kotter’s 8 Step Change Management Theory

1
Develop a sense of necessity:
-Identifying and discussing crises, potential crisis or major opportunities.
-People are more willing to embrace change when they see it as a response to an existing or future problem or possibility.
e.g. CEO went to US and spoke to unions regarding the use of carbon footprint. Board of directors and top 100 snr managers at Linfox participated in discussions.
2
Form A Guiding Group:
-Establish a team of people to act as facilitators.
-They should have the relevant authority, recognition and respect within the organisation.
e.g. Influential people: CEO, Head of org development, head of supply chain solutions, company secretary. All had similar attitudes and beliefs on the issue
3
Create a Vision:
-Provide employees with a clear, shared sense of direction that will allow them to achieve a common objective.
-Without a vision, there can be no cooperation and commitment, which makes adopting change almost impossible.
e.g. The chairman wanted a target statement “reduce carbon emissions by 15% by 2006/7”
4
Communicate the Vision:
-Share the vision with people who will be affected by the change.
– Wide variety of communication channels to make sure the message is transmitted to as great an audience as possible.
– The groundwork must be laid and the advantages of the change explained before people will go along with the change.
-Communicating the vision builds cohesion between employees and helps dispel fear of the unknown (common cause for resistance).
e.g. Greenfox logo created. First 12 months implement an education program teaching employees about global warming
5
Empower People to Fulfil the Vision:
– personal involvement through participation tends to defuse both rational and irrational fears about change.
-People who have the opportunity to be actively involved in the change process generally develop a sense of ownership.
-Training and development may be necessary if new skills and competencies are required.
e.g. 12 months of training, employee empowerment (staff could take action), encouraged to become a green fox member
6
Recognise and Reward Achievements:
-Recognise that most employees want to feel that their contributions have been worth the effort and are recognised and appreciated.
-should be given throughout the change process to encourage further risk taking and reinforce the positive aspects of embracing change.
e.g. BBQ at site, free movie tickets, certificates
7
Consolidate Improvements:
-As the change process proceeds, assemble the benefits attained into the organisation’s operating procedures and systems.
-Modify existing policies and procedures that no longer match the changed systems.
-the new structure becomes a solid base upon which more change may be made — the process of continuous improvement.
e.g. Educated staff on importance of carbon emission, focused on training, adopted low energy technology, implemented energy efficiency in offices and warehouses
8
Institutionalise the Changes:
-make a clear statement to show the connections between the new procedures and the success of the organisation.
-closes the loop of the change process and provides a positive experience from which further changes can be initiated.
e.g. new staff induction program which focuses on sustainable work behaviours and expectations, use of appropriate performance management system (performance appraisal)
Kotters Theory
Management researcher John Kotter developed an eight-step model of the change management process. The change management process is the sequence of steps that a manager would follow for the successful implementation and adoption of change.