The 8-Step Process for Leading Change - Essay Example

?Change Management Change is considered as the only constant factor affecting organizations in the contemporary world. However, people working withinthese organizations are generally adamant to change, as they are not willing to change how things are done (Chapman, 2006). It is an innate tendency for human beings to live in their comfort zone. On the other hand, organizations need to survive in the current business environment where change is inherent. Therefore, organizations should be prepared to live with the change in order to stay at the top of the competition (Chapman, 2006). Change management refers to the process, techniques and tools that are used to manage employees in order to achieve a desired business result. It is about the transition from one stage to (problem stage) to another (the solution stage). A company’s change means that a company is restructuring, reengineering, keeping up with the trends in the industry or promoting cultural transformation. The 8-Step Process for Leading Change This model was proposed by John Kotter a Harvard professor who studied over a hundred companies that were going through change management ranging from well-established companies to small companies. He found that 70 percent of the change activities within companies fail (Burton, 2010: 45). This malfunction can be attributed by the companies’ failure to adopt a holistic approach towards change management. Therefore, Kotter came up with eight stages through which companies can achieve sustainable change and business improvement. Although the steps are depicted in a linear fashion, experience demonstrates that it is better to think of the steps in a continuous manner to ensure that the rapport of the change is maintained. In addition to, he identified possible setbacks that can negatively affect the change process (Czerniawska and May, 2004: 53). The steps are discussed below: Create urgency For change to happen in an entity, it is important for there to be an urgency for change that will help spark the motivation to get things done (Vogelsang et al., 2012: 18) This involves the identification of potential threats and come up with situations showing what is likely to happen in future and opportunities that could be exploited. It also involves the start of discussions to start the process of thought among the employees. Forming a powerful coalition This involves convincing people that change is required and this requires for strong leadership and support from key people within the entity (Cameron and Green, 2004: 34). Creating the vision for change When a company comes up with the decision to implement change in a n organization, there will probably be numerous ideas and solutions available (Morgan, n.d.). These concepts should be combined to form a general vision that people can easily understand and practice. Communicate the vision The events that take place after creation of the vision determine success or failure of the change management. Frequent communication of the vision is considered more effective than holding official routine meetings to communicate the vision. Empowering others to act on the vision This involves changing the systems that may hinder the change and moving any obstacles to the change process. Plan for short-term wins Success is known to be one of the most effective motivating factors. The company should evaluate the progress that has taken place within a one month period (Chapman, 2006). Criticism is also important at this point as t helps to identify the success or failure of the change. Short- term goals are considered more achievable and this leaves failure less chances. Consolidate improvements and produce yet more change Kotter argues that projects fail because victory is announced too early (Cameron and Green, 2004: 34). Real change is considered comprehensive and companies should be careful as short term wins are only the beginning of the process towards long- term change. Institutionalize the new approaches or make the changes part of the corporate culture Finally, the change that has been achieved should be made part of the entity’s culture, it should become an important aspect of the organization. Advantages Transition is considered easier and gives a framework of preparing and accepting change (Chapman, 2006). Disadvantages The process is time consuming and none of the steps can be skipped (Chapman, 2006). Practical Example of the Kotter’s 8 Step Model British Airways is one of the global airlines that use this model to manage change (Chapman, 2006). The customer has a huge customer base and connects various destinations across. The company uses this model to handle any internal and external change. The ADKAR Model This model was developed by Prosci a research company in 2001. This was following a project where Prosci worked with over 700 companies going through change (Hiat, 2006: 65). This model is an investigative tool that helps employees to understand their role and place in the change process. The managers can also use this tool to make out gaps in change management. The model is a coaching tool that is used to guide the employees throughout the change process. For organizations to use the model effectively, they need to be aware of the primary framework for change programs. The model states that two dimensions drive change: the people dimension and the business dimension. Effective change only happens when the two dimensions work concurrently. The people dimension requires the management of the five key stages. These are Awareness of the need to introduce change, Desire to take part and support the change, Knowledge of how to carry out the change, Ability to implement the change consistently and Reinforcement to maintain the change (Hiat, 2006: 65). Advantages The model provides a comprehensible checklist to manage change within an entity. Secondly, it sums up the process aspect of change and the personal of change (Warrilow, n. d.: 88). Disadvantages The model pays no attention to the principles of programme management and leadership to guide the change process (Shelly et al., 2009: 5). Practical Example: Ford Motor Company Ford Company is known to be one of the key players in the car industry. However, the company had suffered losses and poor performance for a while calling for an overhaul. This meant that a culture change was necessary at this point. The company hired Allan R. Mullay who turned around the company’s fortune. He introduced changes such as creation of new models that were more attractive the buyers (McKelvey and Lassen, 2013: 50). The ADKAR model was used to manage this change. McKinsey 7-S Model This model was developed by Robert Waterman and Tom Peters while they were working at McKinsey & Company. Additional contributors to the model were Anthony Athos and Richard Pascale. The framework offers a holistic approach that determines how the company will handle the change. The model is made up of seven aspects that are shared values, strategy, structure, systems, style, staff, and skill (Recklies, (2007). Shared values are the basis of the model since they are what the organization believes in. Strategy represents the company’s reaction to external change. Structure simply refers to the entity’s organizational structure. Systems refer to the routines and processes of how things should be done. Staff refers to the employees. Style represents the management style and organizational culture in an organization. Finally, skills refer to the abilities and competencies that the organization has. Advantages The model provides proper guidance for organizational change. It links the emotional components and the rational elements. It provides a framework for understanding and diagnosing problems within an entity (12Manage, 2007). Disadvantages Organizations using this model have higher chances of failure. The model is complex. All the parts are interrelated so failure in one part leads to failure in the entire process (12Manage, 2007). Practical Example: Tesco UK The company uses this framework to operate its daily operations. Much effort is given to the hierarchy of the employees rather than individual performance. Employees know what to expect if they reach the targets or not. The scorecard is displayed at the end of the month and this evaluates whether the employees have achieved their goals. Kuble- Ross five-stage model This model was developed in the 1960s by Elisabeth Kubler Ross to give an explanation of the grieving process. Change in a organization is compared to the grieving process. There are five stages that are discussed in this model: denial, anger, bargaining, depression and acceptance (Kubler- Ross and Kessler, 2005: 6). When change is first introduced in an organization, the employees find it hard to deal with the change, after this they are indifferent towards the change. They then come up with a way to deal with the situation, they then get demotivated and uncertain and when they finally realize that things will not change, they accept the situation. Advantages An individual’s reaction to change is captured at the personal level and this forms a foundation for effective communication (Grant, 2003: 3). Disadvantages This model is difficult to apply in a group. Secondly, it assumes that all change is likely to bring about a negative reaction (Grant, 2003: 3). Finally, it is difficult to identify the shift between stages. Practical Example: Apple’s iPhone 5 When the company first launched the iPhone 5 brand, there was a lot of disappointment as it did not meet the customers’ expectations (Lim, 2013: 11). However, the customers went through all the stages as stipulated by the model and accepted the product as it was. Conclusion In summary, no one model can be argued to be perfect. For example, there are several changes that British Airways has not been able to deal with over the years. The company has not yet learnt to handle the recruitment process owing to changes such as privatization and mergers. Additionally, the company does not properly handle passenger strikes during peak seasons. Although the ADKAR model by Prosci was used to introduce a culture change in Ford Motor Company, the model was not effective as the company suffered great losses during the great depression, as it could not manage change effectively during this period. There are some challenges faced by Tesco UK that cannot be solved using McKinsey 7-S Model. The Kuble- Ross five-stage model posed major weaknesses in launching of the iPhone 5. From the above discussion, it is clear that none of the models of change management is faultless. References 12Manage. (2007) 7-S framework (Mckinsey), viewed November 2, 2013, from . Burton, M. (2010) Irrigation management: Principles and practices, CABI. Cameron, E. & Green, M. (2004) Making sense of change management: A complete guide to the models, tools & techniques of organizational change, Kogan Page Publishers. Chapman, A. (2006). Change management, viewed November 2, 2013, from . Czerniawska, F. & May, P. (2004) Management consulting in practice: award-winning international case studies, Kogan Page Publishers, pp. 53-55. Giddings, S.L. (2007) Understanding the behaviors experienced by individuals during an organizational change effort: a Delphi analysis utilizing the five-stage grieving model, Capella University. Grant, K. (2003) Things we learned in organizations, iUniverse. Hiatt, J. (2006) ADKAR: A model for change in business, government, and our community, Prosci. Kubler- Ross, E. & Kessler, D.A. (2005). On grief and grieving: finding the meaning of grief through the five stages of loss, Simon and Schuster. Lim, W.M. (2013) ‘Revisiting Kubler-Ross’s five stages of grief: Some comments on the iPhone 5’ Journal of Social Sciences, vol. 9, no. 1, pp. 11-13. McKelvey, M. & Lassen, A. (2013) How entrepreneurs do what they do: case studies in knowledge intensive entrepreneurship, Edward Elgar Publishing. Morgan, O. (n.d.). Organization management part 1, viewed April 12, 2007 from . Recklies, D. (2007) The 7-s-model, viewed November 2, 2013, from . Shelly, G.B., Cashman, T.J. & Rosenblatt, H.J. 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