• 50% of companies fail in this first phase
• the managing director is key
• change requires a new system which in turn demands leadership
• problems occur with too many managers and not enough leaders
• need frank discussion about reality and unpleasant facts

Change team objectives: identify and discuss crises, potential crises or major opportunities

• the change team needs a single leader with responsibility for success
• the change team needs to have power
• the group has to work as a team - three to five people during the first year
• eventually coalition needs to grow
• use off-site retreats for 2-3 days

Change team objectives: assemble a group with enough power to lead the change effort

• must see improvements in first 6 months if not sooner
• establish goals for the first year with clear goal posts and measurable results at fixed time-frames
• achieve objectives and reward people with promotion and additional compensation
• peer pressure is important element

Change team objectives: identify potential short-term wins, make sure that these are achieved to send the correct message

• celebrating a win is OK, but do not rest
• provide a system to monitor progress - use simple visual cues publicly displayed
• establish feedback mechanisms
• maintain urgency
• maintain the coalition of change makers
• use short-term wins to tackle bigger problems
• renewal takes years, not months - peaks may come after 2-3 years

Change team objectives: do not stop after first improvements tackle larger problems with same urgency

• change needs to stick
• new behaviors need to stay - if not imbedded they will disappear
• help people to see the connections to the strategy
• next generation of managers needs to personify the new approach

Change team objectives: changes need to be firmly established, changes must become the new culture of the firm