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www hbrreprints org best of hbr leaders who successfully leading change transform businesses do eight things right and they do them why transformation efforts fail in the right order by ...

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	 5	                                                                                          The Globalisation of Markets and Competition
                                                         Technological           International          Maturation of              Fall of 
                                                             Change                Economic               Markets in            Communist 
                                                                                  Integration             Developed            and Socialist 
                                                                                                          Countries               Regimes
                                                        •Faster and better      •Fewer tariffs         •Slower domestic       •More countries                                                      More Hazards                          More Opportunities
                                                         communication           (GATT)                 growth                 linked to the                                                   •More competition                        •Bigger markets
                                                        •Faster and better      •Currencies            •More aggressive        capitalist                                                      •Increased speed                         •Fewer barriers
                                                         transportation          linked via             exporters              system
                                                        •More information        floating              •More deregula-
                                                         networks               •More global            tion
                                                         connecting              capital 
                                                         people globally
                                                                                                                                                                                                           More Large-Scale Change in Organisations
                                                                                                                                                                                        To avoid hazards and/or capitalise on opportunities, firms must become 
                                                                                                                                                                                        stronger competitors.  Typical transformation methods include:
                                                                          The Globalisation of Markets and Competition                                                                    •Reengineering                                •Mergers and acquisitions
                                                                                                                                                                                          •Restructuring                                •Strategic change
                                                                                                                                                                                          •Quality programs                             •Cultural change
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	 5		&&!                                                      Stage 4:  Communicating the Change Vision
                                                                                                                                                                     •Using every vehicle possible to constantly communicate the new vision 
                                                      Stage 1:  Establishing a Sense of Urgency                                                                       and strategies
                                                      •Examining the market and competitive realities                                                                •Having the guiding coalition role model the behaviour expected of 
                                                      •Identifying and discussing crises, potential crises, or major opportunities                                    employees
                                                     Stage 2:  Creating the Guiding Coalition                                                                         Stage 5:  Empowering Broad-Based Action
                                                     •Putting together a group with enough power to lead the change                                                   •Getting rid of obstacles
                                                     •Getting the group to work together like a team                                                                  •Changing systems or structures that undermine the change vision
                                                                                                                                                                      •Encouraging risk-taking and non-traditional ideas, activities, and actions
                                                      Stage 3:  Developing a Vision and Strategy                                                                      Stage 6:  Generating Short-Term Wins
                                                      •Creating a vision to help direct the change effort                                                             •Planning for visible improvements in performance, or “wins”
                                                      •Developing strategies for achieving that vision                                                                •Creating those wins
                                                                                                                                                                      •Visibly recognising and rewarding people who made the wins possible
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                                                      Stage 7:  Consolidating Gains and Producing More Change                                                                      Management
                                                      •Using increased credibility to change all systems, structures, and                                        •Planning and budgeting:  establishing 
                                                       policies that don’t fit together and don’t fit the transformation vision                                  detailed steps and timetables for achieving                 •Produces a 
                                                      •Hiring, promoting, and developing people who can implement the change                                     needed results, then allocating the resources               degree of 
                                                       vision                                                                                                    necessary to make it happen                                 predictability and 
                                                      •Reinvigorating the process with new projects, themes, and change                                                                                                      order and has the 
                                                       agents                                                                                                    •Organising and staffing:  establishing some                potential to 
                                                                                                                                                                 structure for accomplishing plan requirements;              consistently 
                                                                                                                                                                 staffing that structure with individuals;                   produce the 
                                                                                                                                                                 delegating responsibility and authority for                 short-term results 
                                                                                                                                                                 carrying out the plan; providing policies and               expected by 
                                                      Stage 8:  Anchoring New Approaches in the Culture                                                          procedures to help guide people; and creating               various 
                                                      •Creating better performance through customer and productivity oriented                                    methods or systems to monitor                               stakeholders (eg 
                                                       behaviour, more and better leadership, and more effective management                                      implementation                                              for customers, 
                                                      •Articulating the connections between new behaviours and organisational                                                                                                always being on 
                                                       success                                                                                                   •Controlling and problem solving: monitoring                time; for 
                                                      •Developing means to ensure leadership development and succession                                          results, identifying deviations from plan, then             stockholders, 
                                                                                                                                                                 planning and organising to solve these                      being on budget)
                                                                                                                                                                 problems
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                                                                    Leadership                                                                                       Some combination of visionary entrepreneurship and/or luck creates and 
                                                  •Establishing direction: developing a vision of                                                                    implements a successful business strategy
                                                  the future - often the distant future - and                •Produces 
                                                  strategies for producing the changes needed                change, often to a 
                                                  to achieve that vision                                     dramatic degree, 
                                                                                                             and has the                                             A fairly dominant position (and thus lack of strong competition) is 
                                                  •Aligning people:  communicating direction in              potential to                                            established in some market.  The market is usually a product or service 
                                                  words and deeds to all those whose                         produce                                                 but could also be financial, labour, or supply.
                                                  cooperation may be needed; so as to influence              extremely useful 
                                                  the creation of teams and coalitions that                  change (eg new 
                                                  understand the vision and strategies and that              products that 
                                                  accept their validity                                      customers want,                                         The firm experiences much success in terms of growth and profits
                                                                                                             new approaches 
                                                  •Motivating and inspiring:  energising people              to labour 
                                                  to overcome major political, bureaucratic, and             relations that 
                                                  resource barriers to change by satisfying                  help make a firm 
                                                  basic, but often unfulfilled, human needs                  more competitive
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                                                     The firm needs,            The pressures on        Managers begin 
                                                     hires, and promotes        managers come           to believe that                                                      A strong and arrogant culture develops
                                                     managers, not              mostly from             they are the best 
                                                     leaders, to cope           inside the firm.        and that they are                                                    Managers fail to acknowledge the value of 
                                                     with the growing           Building and            superior.  They                                                      customers and stockholders.  They behave in an 
                                                     bureaucracy.  Top          staffing a              become more and                                                      insular, sometimes political fashion
                                                     managers allow             bureaucracy that        more arrogant.  
                                                     these people, not          can cope with           Top management                                                       Managers fail to acknowledge the value of 
                                                     leaders, to become         growth is the           does nothing to                                                      leadership and the employees at all levels who can 
                                                     executives.                biggest                 stop this trend                                                      provide it.  They tend to stifle initiative and 
                                                     Sometimes top              challenge.              and often                                                            innovation.  They behave in centralised/ 
                                                     management                 External                exacerbates it                                                       bureaucratic ways
                                                     actively prevents          constituencies 
                                                     leaders from               are neglected
                                                     becoming senior 
                                                     executives
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...Www hbrreprints org best of hbr leaders who successfully leading change transform businesses do eight things right and they them why transformation efforts fail in the order by john p kotter included with this full text harvard business review article summary idea brief core practice putting to work further reading a list related materials annotations guide exploration articles ideas applications reprint rj most major initiatives whether give your effort chance succeeding take actions at each tended boost quality improve culture or stage avoid common pitfalls reverse corporate death spiral generate only lukewarm results many miserably needed maintains that too establish examine market competitive reali underestimating diculty driving managers dont realize is sense ties for potential crises untapped people from their comfort zones urgency opportunities becoming paralyzed risks process not an event it advances through convince least man stages build on other agers status quo more dan tak...

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