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4 Figure 1:Lewin’s phase model of change The first phase: unfreezing prepares the organization to accept that change as necessary in order to break down existing structures before creating a new way of operating. In the second phase: changing the transition phase starts: people should understand the changes and adopt the new behavior. In the last refreezing phase the new behaviors and structures should be stabilized. This is a very important phase. This decides whether the change is sustainable and stabilizes for the long term. 1.5.2 Kotter’s eight steps of change process The 8-Step change process model by John P. Kotter is a structured framework for leading critical change initiatives within an organization. John Kotter says that the change process takes time and goes through several different phases in a successful change effort and that a mistake made during any phase of the change effort can have a negative impact on the organization. Kotter outlines an eight-step process with suggestions to help organizations transform. In addition to this process, described by Kotter in his book “Leading Change” 1996, Kotter focuses on the factor emotion. „People change what they do less because they are given analysis that shifts their thinking than because they are shown a truth that influences their feelings.” (Kotter, 2002, p. 1). This process of transition leaves the organization with a core competency that allows it to embrace change, execute it at higher speeds, and outperform the competition. This new core competence in Change Management can be compared to the development of Project Management as an important strategy. Management by Projects was, in the early 1990s, presented as a new organizational strategy, based on the assumption that projects as temporary organizations present a strategic option for the organizational structure of an organization (Gareis 2005, p. 21). Establish a sense of urgency Form a powerful guiding coalition Create a vision Communicate the vision • Examine markets • Convince - 75% of your managers • Drive people from comfort zones • Assemble a group with shared commitment and power • Encourage them to work as a team • Create a vision to direct the change effort • Develop strategies for realizing the vision • Use the KISS principle • Use every vehicle to communicate the new vision and strategies • Teach new behaviors by examples Empower others to act the vision Plan for & create shortterm wins Consolidate improvements/go for more change Institutionalize new approaches • Remove/alter structures undermining the vision • Encourage risk taking and nontraditional ideas • Remove powerful rivals Institutionalize new approaches • Define and engineer visible improvements • Recognize and reward employees contributing to those improvements • Use increased credibility from early wins to change strucures • Hire, promote and develop employees who can implement vision • Reanimate change process with new projects & change agents • Articulate connections between new behavior and corporate success • Create leadership development and plans with new approach Figure 2:Kotter’s 8 step model of a change process 47
KNOWLEDGE FOR BUSINESS IN BORDER REGIONS 4.5.2.1 Step 1: Increase urgency In this first step the organization should be prepared that change is essential. Organizations should achieve a sense of urgency using logic and emotion to overcome resistance to change. They should assess a real urgency within the organization, and achieve rational buy-in by making a case based on solid data, which provides a sound basis for confronting problems and measuring performance. Gaining emotional buy-in by providing a compelling story or picture that catches people’s attention and generates a high level of energy throughout the organization are the main tasks in this first step. These are the main actions needed: • Examine market and competitive situation for potential crises and untapped opportunities. Convince at least 75% of your managers that the status quo is more dangerous than the unknown. • Use reliable information (experts, statistics, market research, benchmarks, voice of customers…) and communicate this information broadly and dramatically with respect to (potential) crisis, or great opportunities. • Facilitation of a frank discussion of potential unpleasant facts about new competition, shrinking margins, decreasing market share… In this phase you must hit the organization and its members emotionally. They have to say: “We must do something”. Many tools will help to find the best way in analyzing the environment and the problem, and then in communication the need of change: Analysis • SWOT analysis • Market research / stakeholder satisfaction analysis / trend analysis / scenarios… • Competitor analysis • Benchmarking • Changing perspective (internal vs. external) Communication • Seeing – feeling – changing • Videotape or direct note of external people (customer, expert) • KISS (Keep it Simple and Short) • Emotion / symbolizing problems • Concrete examples of what went wrong / depict information • Management by walking around 4.5.2.2 Step 2: Form a powerful guiding coalition In this second step the organization should start with the first organizational issues in finding the right people leading this change process and in forming a powerful team. Organizations should create a sensible, clear vision that points all team members in the desired direction. They have to ensure that the guiding team members have sufficient influence, expertise, and credibility to drive the change, share high trust and team affinity, are emotionally committed to a successful implementation, and provide enough diversity of perspective and influence in the organization to offer well rounded solutions and broad organizational impact. These are the main actions needed: • Assemble a group with shared commitment and enough power to lead the change effort (top and senior management) • Encourage them to work as a team outside the normal hierarchy • If possible include a key customer in your team • Get the people together and help them develop a shared assessment of the problems • Create a minimum level of trust and communication in that team The process of building the right team should be lead by using all the different tools and methods of team management: • Reflecting on the 4 phases of team building: Forming – Storming – Norming – Performing • Implementing rules and roles • Integrating individuals with different capabilities (external perspective, credibility, internal knowledge, formal authority, leadership…) • Pulling people in („you are selected, because of…“) • Pushing people out, who are undermining the efforts of change • Use some symbols of external enemies • Implementing a special project culture • Finding the right meeting format • Try to find commitment with „difficult“ key players • Use powerful symbols 48
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