- 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
2. Create a powerful guiding coalition
- 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
3. Plan for and create SHORT-TERM WINS
- 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
4. Consolidate improvements and monitor implementation of change objectives
- 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
5. Institutionalize the New Approaches
- 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