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Summary strategy implementation (articles)
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Summary of mandatory articles of strategy implementation
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Samenvatting Strategy Implementation artikelenLeading Change; why transformation efforts fail
By John P. Kotter (eerste lecture).
Leaders who successfully transform businesses do eight things right (and in the right order).
Change initiatives often fail. Kotter states that too many managers don’t realize transformation is a
process (the steps take years). Pitfall: managers skip stages because of the pressure. By
understanding the stages and its pitfalls, you boost your chances of a successful transformation.
The change process goes through a series of phases that, in total, usually require a considerable
length of time. Skipping steps creates only the illusion of speed and never produces a satisfying result
(1) and (2) critical mistakes in any of the phases can have a devastating impact, slowing momentum
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,and negating hard-won gains.
Error 1: Not estabslishing a great enough sense of urgency
Start with recognizing a company’s (potential) competitive situation. This first step is essential
because just getting a transformation program started requires the aggressive cooperation of may
individual. Without motivation, people won’t help, and the effort goes nowhere. 50% fails in the step
already because:
- sometimes executives underestimate how hard it can be to drive people out of their comfort zones.
- or they overestimate how successful they have already been in increasing urgency.
- or they lack patience.
- also executives become paralyzed by the downside possibilities. A paralyzed senior management
often comes from having too many managers (those who keep the machine rolling) and too few
leaders. Change requires creating a new system, which in turn always demands leadership. Phase
one only takes of when there are enough senior levels that are also leaders.
Transformations begins with new leaders who see the needs for major change. If the renewal target
is the entire company, then the CEO is key. If change is needed in a division, the division general
manager is key. Loosing money catches people’s attention but is also gives less maneuvering room.
With good business results, the opposite is true; convincing people for change is much harder, but
you have more resources to make changes. There is also risk in playing too safe: when the urgency
rate is not pumped up enough, the transformation process cannot succeed and the long-term future
of the organization is put in jeopardy. The urgency rate is high enough when about 75% of a
company’s management is honestly convinced that business as usual is totally unacceptable.
Anything less can produce very serious problems later on in the process.
Error 2: Not creating a powerful enough guiding coalition
The leadership coalition should grow, but whenever some minimum mass is not achieved early in the
effort, nothing much worthwhile happens. The coalition often consist of those who are convinced
like the chairman and/or president and/or division managers plus another amount of people and
develop a shared commitment to excellent performance through renewal. It mostly never includes
all of the company’s most senior executives because some people just won’t buy in (not yet at least).
The coalition consist often of people with powerful titles, information, expertise, reputations and
relationships. Small organizations; needs at least 3-5 people in the coalition, large organizations; 20-
50. Senior managers always form the core of the group. The coalition tends to operate outside of the
normal hierarchy, which can be awkward, but it is clearly necessary. A high sense of urgency within
the managerial ranks helps enormously in putting a guiding coalition together, but more is required;
someone bring people together and develop for instance trust and communication. Off-site retreats
are a popular solution. Companies that fail in phase two usually underestimate the difficulties of
producing change and thus the importance of a powerful guiding coalition. The top might not be
used to teamwork, which can be disruptive.
Error 3: lacking a vision
The guiding coalition needs to develop a picture of the future that is relatively easy to communicate
and appeals to customers, stockholders and employees. Make a vision and develop a strategy to
realize this. This gives directions for the transformation and makes sure that the projects add up in a
meaningful way. The vision should give directions and inspiration. In addition, the vision should not
be too complicated or blurry in order to be useful. A useful rule of thumb: if you can’t communicate
the vision to someone in five minutes or less and get a reaction that signifies both understanding and
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,interest, you are not yet done with this phase of the transformation process.
Error 4: Undercommunicating the vision by a factor of Ten
There are basically three patters of communication: the group develops a good vision and then (1)
proceeds to communicate it by holding a single meeting or sending out a single communication. Or
(2) the head of the organizations makes speeches to employee groups but most people still don’t get
it. Or (3) there is much more effort into newsletters and speeches, but some very visible senior
executives still behave in ways that are antithetical to the vision. Result: cynicism goes up and belief
in the communication goes down.
Transformations is impossible unless many are willing to help (often to the point of making short-
term sacrifices). Employees will only make sacrifices if they believe that useful change is possible.
Without credible communication, and a lot of it, the hearts and minds of the troops are never
captured. This phase is particularly challenging if the short term sacrifices include job losses; so
gaining understanding and support is though when downsizing is a part of the vision. Therefore
successful visions usually include new growth possibilities and the commitment to treat fairly anyone
who is laid off. Executives who communicate well incorporate messages into their activities.
Executives should use ALL (and every possible) existing communication channels to broadcast the
vision and should make them lively. Walk the talk! They consciously attempt to become a living
symbol of the new corporate culture. High urgency and being part of the coalition and vision-creation
team might help in convincing people. Communication comes in both words and deeds. Nothing
undermines change more than behavior by important individuals that is inconsistent with their
words.
Error 5: not removing obstacles to the new vision
The more people involved, the better the outcome. Renewal also requires the removal of obstacles.
Obstacles can be the organizational structure but also bosses who refuse to change. So make sure
that for instance bosses are also consistent with the new vision. Not all obstacles need to be
removed directly but the big ones should be removed! Action is essential, both to empower others
and to maintain the credibility of the change effort as a whole.
Error 6: Not systematically planning for, and creating, short-term wins
Transformation takes time and a renewal effort risks losing momentum if there are no short-term
goals to meet and celebrate. Without short term wins, people might start to resist etc. Creating
short-term wins is different from hoping for short-term wins. Managers should actively look for ways
to obtain clear performance improvements like goals, and rewards (like money). Wins might boost
credibility. Commitments to produce short-term wins help keep the urgency level up and force
detailed analytical thinking that can clarify or revise visions.
Error 7: Declaring victory too soon
Celebrating within like 2-3 years is too soon, it takes 5-10 years before it is a company’s
habit/culture. Premature victory celebration kills momentum so that tradition takes it over instead of
the change. It is often a combination of change initiators and change resistors that creates the
premature victory celebration. Leaders should use the credibility afforded by short-term wins to
tackle even bigger problems.
Error 8: Not anchoring changes in the corporation’s culture
Change should stick when it becomes ‘the way we do things around here’. Two factors are important
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, in institutionalizing change in corporate culture:
- a conscious attempt to show people how the new approaches, behaviors, and attitudes have
helped improve performance.
- taking sufficient time to make sure that the next generation of top management really does
personify the new approach. (manager na jou moet het ook naleven). So if the requirements for
promotion don’t change, renewal rarely lasts.
Leading organizational change
Ryan L. Raffaelli (2017), eerste lecture
This article learns when to initiate change, how to design and implement the change and how to
measure its success. All individuals have the responsibility to understand, influence and contribute to
the success of change. There are 3 key assumptions: (1) organizations are systems and if you alter
one component, you affect other components. (2) change is a process and a outcome and how the
process is managed will affect the outcome. (3) There is no single correct formula for managing
successful change. There are 4 sections:
1. diagnosis: why is change needed?
2. Design: what sort of change is called for?
3. Delivery: how can change best be implemented?
4. Evaluation: how can the impact of the change be assessed and measured?
Diagnosing the need for change
Change can be needed if there is a performance or opportunity gap. Performance gaps require
change that improves current organizational routines and practices, while opportunity gaps require
change that creates new routines and practices for the future.
Performance gaps arise often when competitors or other business units do it better. As a
diagnostic tool, leaders should evaluate (1) the ability to perform and produce output, (2) capacity to
foster individual learning and satisfaction and (3) potential to adapt.
Opportunity gaps are potential future problems or missed opportunities for value creation.
They arise in two ways: (1) evolving shifts in customer preferences and demands etc. that promise
new routes for generating value and threaten existing ones and (2) from successful organizations
assuming that their track records and capabilities will sustain them indefinitely.
Designing the change process
SORT is the required change:
baded on Scope, Origin,
Rollout and Timing which are
the four elements of design
and implementation. The
scope and origin call upon
leaders to assess what is
needed, how far the
organization can be pushed
and from where the initiative
is emerging.
- Tactical change: top down &
incremental (small change).
Used for specific issues.
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