IS4203 Case Presentation

IS4203 Case Presentation

Leading Change: Why Transformation Efforts Fail

Team 1 Kang Jie Min Tan Jin Xiang Derek Ang Yi Heng Thomas Lim Kuo Tao Ivan Chew Teck Meng

by John P. Kotter

Agenda

1. Introduction

2. The 8 Stages of a change process

3. Case study:

4. Key takeaways of change management

Introduction

What is transformation?

“Adaptation to a more challenging market environment through

fundamental reforms to business processes.”

Introduction

Why does transformation fail?Management too eager for success.

Flow of change is too fast or has no natural progression.

Deviations from a previously healthy onset of change.

Lack of Structurally-Managed Pathway of Change

Solution: John P. Kotter’s 8 distinct steps of change.

The 8 Stages of a Change Process

1. Establishing a sense of urgency

Underestimate the lack of urgency

People do not want to get out of their comfort zones or being paralysed by risk

Change makers are too impatient, want to implement change quickly

Making an impact to the 75%


2. Form a coalition

Getting people together for a cause

Requires key “leaders” to succeed

Powerful Coalition =


3. Creating a vision

A vision says something that clarifies the direction in which an organisation needs to move. (Kotter, 1995)

Kotter, J. P. (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review OnPoint(March-April), 1-10.

Developing strategies to achieve that vision


4. Communicate the vision

Utilise every possible channel to communicate the vision


1. Create u _ _ _ _ _ y! ! !

75%+


2. ____ a _________

5-50


3. Create a ______

X


4. ___________ the vision


5. Empower others to act on the vision

Remove Obstacles

Move people out of their comfort zones

Work to sway the opinion of bosses who are reluctant to

change; get them to adhere to new initiatives

Align organizational structure/systems with the ebbs and

flows of change


6. Planning for and creating short-term wins

Plan for short-term goals, publicise short-term achievements

Timeframe within 1-2 years

Raise employee morale

Renew urgency and force detailed analysis to refine vision

Reasons for failure

Hoping for short-term wins instead of planning for it


7. Consolidate improvements and

produce still more changePrepare for a Long-Drawn Process

Cultural change can take 5-10 years Leaders should use the newfound credibility to tackle

even bigger problems

Avoid Premature Declaration of Successful Change Kills change momentum People return to old practices as change not sunk in Change resistors seize opportunity to reverse change


8. Institutionalize new approaches

Demonstrate how new approaches, behaviours and attitudes have helped improve performance

Important to let people know the true drivers of change

Make the next generation of top management personify the new approach

Lead by example!


5. _______ people


6. Plan and publicise _____-____ ____

/


7. ___________ improvements and ________

5-10


8. __________________ new approaches

+

Case Study: Yahoo!1. Establishing a sense of urgency

Quantification of Publicly Observable Metrics

Mayer@

2. Forming a powerful guiding coalition Hiring PhDs to Restore Yahoo!'s Research Unit Accommodating a C-level Management Shakeup

3. Creating a vision Reigning in Yahoo!’s Flawed Business Processes

4. Communicating the vision Weekly “FYI” Meetings on Friday

5. Empowering others to act on the vision Discontinuation of Work-from-Home Practice

6. Planning for and creating short-term wins Free Food, Free iPhones, Feedback Forum

Case Study: Yahoo!

16 July 2012- Marissa Mayer appointed as CEO

How positively has Yahoo! Changed?

Mayer@

Myths of change Change is a one-time effort

Change the organization first to carry out change

Systems and technology are mandatory to carry out effective change

If management sees the need for change, then it is evident to everyone

If you know what requires change, just do it

Carry out all changes at one time to avoid disruptions

Change is positive and so it should be widely supported

You only need to involve a limited number of key employees to implement change

Plagiarized from IS4203 Lecture 2 slide 18

What’s the Link?

Why change fails Change is not thought through or planned

Outsourcing of organizational change

Failure to address critical shadow systems

Change is driven top-down only

Over-reliance on one leader

Lack of localization of change efforts

Issues and problems surfaced not addressed quickly

Fuzzy measurements to determine success or failure

Change management stops after change is implemented


What’s the Link?

* Sorted *

Plagiarized from IS4203 Lecture 2 slide 18, 19

(1) Change is positive and so it should be widely supported (1) Change is driven top-down only (1) You only need to involve a limited number of key employees… (2) Over-reliance on one leader

(3) Change is not thought through or planned (3) Carry out all changes at one time to avoid disruptions (4) If management sees the need for change, then it is evident to everyone (4) Lack of localization of change efforts

(5) Issues and problems surfaced not addressed quickly (5) Failure to address critical shadow systems (6) Change is a one-time effort (7, 8) Change management stops after change is implemented

Vision

Backing

ProblemsQuick hits

Sustain

What’s the Link?

What’s the Link?

Business Organization

Technology

XStructure HR

Politics Culture

IS SuccessModel

UTAUT

Drivers ofChange

Vision Strategy

Conclusion

Structured framework to change process

Very easy to fail at each stage


Meet change resistance So.. How to persuade people to change?

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