Improving Change Implementation

Transcription

1 Typically, organizations have trained managers in change process models rather than change implementation frameworks. Given the track record for failed change interventions, there is an opportunity for organizational development professionals to provide effective guidance through the application of a comprehensive change implementation model... Improving Change Implementation Practical Adaptations of Kotter s Model By Nicole Stragalas Introduction While it is common for corporate management training programs to provide examples of change process models, discussion of change implementation models is infrequent. Given the high percentage of failed change management efforts, it is essential for corporations to direct more attention to the specifics of change execution. Managers would also benefit from the review of broad-scale organization approaches, rather than primarily focusing on process models at the individual level, where the emphasis is on employee reaction rather than practical execution of specific steps. One comprehensive implementation model, developed by John Kotter, offers clear guidance for large-scale change management efforts. While the Kotter framework is more closely related to organizational behavior, in that it targets macro-level organizational theory, it is also appropriate as an organizational development tool, providing a three-dimensional linkage between individuals, groups, and the organization. Although Kotter s work has been validated through significant research and is a staple component in graduate management programs, the seemingly limited use of the model to guide many corporate change initiatives suggests there are gaps in translation. A cursory examination of recent research into successful change management interventions may provide information that would expand and clarify Kotter s implementation model. By matching specific recommendations from recent research with each stage in Kotter s design, specific themes emerge. These themes, grouped by stakeholder leadership, employees, organization reveal valuable insights, enhancing the usefulness of this model for corporations seeking to improve the odds for positive, lasting organizational change. Change Process Models in Corporate Training Programs A significant number of transformation models have been introduced and analyzed within the field of organizational development. In corporations, however, three change models are most commonly reviewed in leadership development programs. Two, by William Bridges and Edgar Schein, are process models that can be applied at an organizational level, but are typically discussed at the individual or team level. The third, by Kotter, is more appropriately classified as a change implementation model. Certain elements are common in all three approaches. Bridges proposed there are three significant stages in managing transitions. He defined these stages as Ending, Losing, Letting Go; Neutral Zone; and New Beginning (Bridges, 2003, p. 5). Individuals begin a change process with a certain sense of loss and feelings of discomfort, move through a period of psychological realignments and repatternings (p. 5), and come through the transition with a new identity new energy and new sense of purpose that make the change begin to work (p. 5). Two areas developed Improving Change Implementation: Practical Adaptations of Kotter s Model 31

2 Table 1: Comparison of Change Process and Implementation Models William Bridges Three stages: Ending. Losing, Letting Go Neutral Zone New Beginning (Bridges, 2003) Four rules for the New Beginning: Be consistent Ensure quick successes Symbolize the new identity Celebrate the success On Simultaneous Change: The first thing need[ed] in order to handle nonstop organizational change is an overall design [where] the various changes are integrated as component elements. (p. 101) When no larger strategy exists (for a rapidly developing change situation), the organization must proactively define the underlying common purpose (costs, new competitor, need for agility, etc.) (p. 101) Actions to deal with non-stop change include: Make transition to change as the norm Clarify purpose Rebuild trust Unload old baggage Sell problems, not solutions (cannot sell each change piecemeal ) (p. 106) Edgar Schein (Lewin) Three stages: Unfreezing/Disconfirmation Cognitive Restructuring Refreezing (Schein, 2004) Three sub-processes in Unfreezing: Sufficient disconfirming data to create discomfort/imbalance Data connected to important goals/ ideals, causing anxiety and guilt Psychological safety exists in sufficient form to enable problem-solving and learning without loss of identity (p. 320) On Unfreezing: Some sense of threat, crisis, or dissatisfaction must be present before enough motivation is present to start the process of unlearning and relearning. (p. 324) On Refreezing (conditions for transformative change): Survival anxiety or guilt must be greater than learning anxiety Learning anxiety must be reduced rather than increasing survival anxiety (p. 331) Creating Psychological Safety includes 8 conditions, such as: A compelling positive vision Involvement of learner Positive role models Reward and discipline system consistent with new model (p ) Based model on work of Lewin, with modifications John Kotter Eight Stages: Establish Sense of Urgency Form a Powerful Guiding Coalition Create a Vision Communicate the Vision Empower Others to Act on the Vision Plan for and Create Short-Term Wins Consolidate Improvements and Produce More Change Institutionalize New Approaches (Kotter, 2007) Key conditions for success: All stages are necessary (no shortcuts) At least 75% of managers must believe the status quo is more dangerous than the unknown Coalitions, in larger companies, need to be people Communication must be multichanneled and continuous Thousands of people must be willing to help with short-term sacrifices Need to allow for broader job latitude Need rewards/performance appraisal to match new vision Managers must be positive, visible role models Proactive explanations made showing connections between new approaches and improved performance On Urgency: Well over 50% of companies fail in this first phase Executives underestimate how hard it can be to drive people out of their comfort zones. [Some] become paralyzed by the downside possibilities [which] often comes from having too many managers and not enough leaders. Management s mandate is to minimize risk and to keep the current system operating. Change, by definition, requires creating a new system, which in turn always demands leadership (p. 3). 32 OD PRACTITIONER Vol. 42 No

3 by Bridges, but often left out of management training, are (1) the four rules for the New Beginning to take hold and (2) actions to deal with continuous and simultaneous change. The core actions for reinforcing new beginnings include: consistency in messages (p. 69); strategically selected quick successes that increase morale (p. 71); applications of symbolism linking the past and present (p. 71); and celebration of achieved goals (p. 72). Bridges also advocated the development of activities that would ensure companies were primed for ongoing transformations. Some of these processes have been identified as repeated clarifications of purpose (p. 107), modeling of trustworthiness (e.g., listening carefully, asking for feedback, following through on statements) (p. 109), and providing pressure valves for the expression of frustrations related to the past (old baggage) (p. 111). Another important continuous change preparation action is selling problems, not solutions (p. 111); this framing helps managers avoid the pitfall of selling each change piecemeal (p. 111). Overall, Bridges outlines implementation considerations in his model, but the information is limited in scope and does not offer concrete steps for execution. Further, in leadership training, managers typically only learn about the three stages and are not provided an opportunity to analyze the other facets inherent in Bridges work. Edgar Schein, basing his model on the original design of Lewin (Schein, 2004), also described three stages in a change For psychological safety to exist, while sustaining sufficient anxiety to motivate an individual to participate in the organizational change process, two conditions must be met: (1) Survival anxiety must be greater than learning anxiety and (2) Learning anxiety must be reduced, rather than increasing survival anxiety... To that end, specific conditions for psychological safety, such as presenting a compelling positive vision, involving the employee learner, and providing positive management role models, must be established in the Refreezing phase... process: Unfreezing/disconfirmation; Cognitive Restructuring; and Refreezing (Schein). Using a more traditional psychological approach, Schein discusses his analysis in terms of disequilibrium, leading to emotions of anxiety and guilt, which results in a cognitive restructuring to reestablish equilibrium in the new context. In the Unfreezing stage, Schein posits Some sense of threat, crisis, or dissatisfaction must be present before enough motivation is present to start the process of unlearning and relearning (2004, p. 32 4). To achieve change, a sufficient environment of psychological safety must be created to support problem-solving and learning without loss of identity (Schein, 2004). For psychological safety to exist, while sustaining sufficient anxiety to motivate an individual to participate in the organizational change process, two conditions must be met: (1) Survival anxiety must be greater than learning anxiety and (2) Learning anxiety must be reduced, rather than increasing survival anxiety (p. 331). To that end, specific conditions for psychological safety, such as presenting a compelling positive vision, involving the employee learner, and providing positive management role models, must be established in the Refreezing phase (Schein). Key aspects of Schein s change process model are reflected in Kotter s implementation model. It can be argued that individual employee requirements, necessary for adaptation to occur, are addressed through the eight stages defined by Kotter (refer to Table 1). Organizational implementation must address the needs of the individual employees; additional research into follower behavior and antecedents to employee acceptance of change helps define the action steps necessary for effective implementation. Further, Schein s model, with its emphasis on arguably negative emotional states such as anxiety, guilt, and survival anxiety, presents a contextual framework that may subtly undermine change efforts. A more positive world view is instrumental in defining employee engagement strategies, which in turn provides the proper antecedents for employee receptiveness and adaptability to change in the organization. Change Implementation Model: Kotter In the third model, Kotter defines eight stages in change adaptation and organizational transformation: (1) establish a sense of urgency; (2) form a powerful guiding coalition; (3) create a vision; (4) communicate the vision; (5) empower others to act on the vision; (6) plan for and create shortterm wins; (7) consolidate improvements and produce more change; (8) institutionalize new approaches (Kotter, 2007, p. 4). He further provides broad action steps within each stage, based on his extensive primary research with more than 100 companies (2007). These action steps are delineated in Table 2. Kotter identifies specific conditions essential for successful transformations. It is important to review the salient factors he identified, as the other later research results expand and inform Kotter s analysis. For example, in stage 1, Create urgency, at least 75% of managers must believe the status quo is more dangerous than the unknown (Kotter, 2007, p. 4). This observation links back to Schein s process theory: there must be sufficient disconfirming data to create discomfort/ imbalance (2004, p. 320). Managers must also be positive, visible role models, offering proactive explanations to illustrate the connection between new approaches and improved organizational performance (stages 2 and 4) (Kotter, 2007). Attention should be paid to providing employees Improving Change Implementation: Practical Adaptations of Kotter s Model 33

4 Table 2: Implementation Steps, Drawn from Research, As Associated with Kotter s 8 Stages Kotter s Eight Stages (Kotter, 2007, p. 1 table, all) Establish a sense of Urgency Analyze environment for potential crises and opportunities Convince 75% of managers status quo is more dangerous than the unknown Form a powerful guiding coalition Assemble group with commitment and power to lead effort Encourage them to work as team outside hierarchy Create a vision Create a vision that guides transformation Develop strategies for turning vision to reality Communicate the vision Communication is multi-channeled and continuous Coalition managers model the new behaviors/ actions Empower others to act on the vision Change or eliminate processes and factors impeding transformation Encourage risk-taking, innovation, and action Plan for and create short-term wins Define and proactively promote visible improvement successes Recognize and reward employees involved Consolidate improvements and produce more change Build on credibility from early successes to advance more implementation plans (e.g., removing barriers, getting additional resources, etc.) Promote/hire individuals who support and can enact the vision/implementation plans Energize the process with additional targets Institutionalize new approaches Proactively explain connections between new approaches and transformation successes Create succession plans that identify individuals who can carry the vision forward in the long-term Implementation Steps from Outside Research to Support Stages 2007, p ), (Cowley, 2007, p ), (Choi, 2006, p ), (Hoover, 2008, p ), (Leybourne, 2006, p ), (Parish et al., 2008, p ), (Soltani, 2005, p ), (Van Dam et al., 2008, p ) Communicate specifics regarding expected results, time tables, and employee change (Cowley) Build understanding before commitment (Brower) Break down, through language, old models nullify information no longer relevant or functional (Brower) Promote, through language, disengagement from outdated commitments (Brower) Confront brutal facts (Brower quoting Collins, p. 70) Establish intellectual and emotional actualization (Hoover) Signal involvement (senior leaders), including change advocacy through informal channels and deployment of resources through formal processes (Cowley) Build a linked arm coalition (senior leaders) (Cowley) Motivate followers through empathy, envisioning, and empowerment, including establishment of high standards for performance and creative strategies for goals (Choi) Emphasize what data is now relevant, affirm the mission, inspire energy towards that (Brower) Establish intellectual and emotional actualization (Hoover) Communicate expected results in advance (Cowley) Signal involvement (senior leaders), including change advocacy through informal channels and deployment of resources through formal processes (Cowley) Establish behavioral and perceptual actualization (Hoover) Signal involvement (senior leaders), including change advocacy through informal channels and deployment of resources through formal processes (Cowley) Communicate specifics regarding expected results, time tables, and employee changes (Cowley) Recognize followers may respond to charismatic leader because of sense of trust and selfefficacy (Choi) Allow and officially sanction improvisation, which can provide new ways of completing tasks when resources are in limited supply (time, materials, staffing) (Leybourne) Build high-quality leader-member exchange relationships through increased sharing of information, mutual trust, and encouragement of employee participation (change process quality). When there are high-quality LMX relationships, employees are receptive to change (Van Dam et al.) Ensure senior manager signals are communicated in order to create sustained employee accountability (commitment to see the projects/changes through) (Cowley) Allow and sanction improvisations which can provide new ways of completing tasks when resources are in limited supply (time, materials, staffing) (Leybourne) Establish and sustain key antecedents to affective commitment to change (employee engagement): positive employee-manager relationships, job motivation, and role autonomy (Parish) Build and sustain positive leader-member exchange relationships through increased sharing of information, mutual trust, and encouraged employee participation (change process quality). (Van Dam et al.) Balance use between formal and informal channels necessary for sustainable accountability (Cowley) Control management mobility to manifest benefits of organizational learning, ensure consistency in leader style and prioritization, and ensure manager accountability for longterm outcomes (Soltani) Clarify purpose, unload old baggage (past frustrations with change processes), and sell problems, not solutions (Bridges) 34 OD PRACTITIONER Vol. 42 No

5 more latitude in their job tasks, encouraging risk-taking and innovative thinking (Kotter). The reward and performance appraisal systems must be realigned to directly support the vision and actions associated with the changes (stages 6 and 7) (Kotter). Expanding and Refining Kotter s Action Steps In analyzing Kotter s model from an organizational practitioner s perspective, the stages and action steps are clear, but broad. A business seeking to implement a strategic change initiative based on this original information could become frustrated with the gaps in explanation; the model is designed to provide a framework and starting points, rather than offer a step-by-step action plan. A meaningful consultation would need to incorporate further research and guidance based on those findings. To begin developing an updated and synthesized construct, it is beneficial to select studies offering cross-functional perspectives. Accordingly, the research review included two articles by corporate organizational development practitioners, three articles examining change management from the employee (follower) perspective, including one theoretical model, another two studies from the leader perspective, and finally, the presentation of a general theoretical model. The relevant findings are summarized in Table 2. The research analysis yields information and insights that significantly enhance the original action steps and observations presented by Kotter. In Table 2, the relevant activities drawn from each research study are matched to the appropriate stage from Kotter s model. As some actions would be important in more than one stage, these specific findings are listed in each applicable element. To emphasize that the goal is the identification of detailed implementation steps, the matched findings are presented as directives (action items). Current evaluations of successful change management determinants suggest there is a wealth of empirical support for the central eight-stage framework, and recommendations from individual studies provide contextual dimension and practical activities that an organizational development practitioner could use in creating a comprehensive strategic change management intervention. One area not addressed in Kotter s model or in the literature review was the factor of continuous or simultaneous change. To counter this potential limitation, Bridges recommended actions for dealing with non-stop change (2003, p. 106) are incorporated into the enhanced implementation steps for stage 8 (refer to Table 2). Clearly, not all change inter ventions are at the organizational level, and many change initiatives are taking place in concurrent time frames. A well-defined implementation plan must address this reality in many business environments. While the linking of enhanced action steps with Kotter s stages offers practical value in change management implementation design (as reviewed in Table 2), it can be difficult to gain perspective on over-arching themes represented in the literature. In relation to the organizational development professional s role, while the change process may move through progressive stages, the actual action steps must be managed in groups, with subprocesses addressed simultaneously. For example, leadership skills, behaviors, and actions are important in stage 1, but equally significant in the other seven stages. An organizational development professional would recommend projects that address leadership characteristics across all stages, developing training or coaching interventions that (a) improve language choice (Brower, 2007), (b) bring awareness to employee antecedents impacting receptiveness to change (Van Dam et al., 2008), and (c) provide practical action steps for communicating expected change results and measurements from the beginning (Cowley, 2007). Essential enhancements to the Kotter framework, as drawn from the research review, will thus be discussed through the lens of stakeholder groups. The three identified stakeholders are leadership (senior, middle, and front-line managers); employees (followers); and the organization (system). To begin developing an updated and synthesized construct, it is beneficial to select studies offering cross-functional perspectives. Accordingly, the research review included two articles by corporate organizational development practitioners, three articles examining change management from the employee (follower) perspective, including one theoretical model, another two studies from the leader perspective, and finally, the presentation of a general theoretical model. Enhanced Action Steps: Leadership An important insight for leadership (see Figure 1, next page, for summary) is the acknowledgment managers have the most impact in generating change management success. From communicating the vision, modeling new behaviors, and signaling support for change, to rewarding employees for innovation and improvisation, to building employee engagement managers carry the keys to unlock the benefits of transformational change. Organizational development professionals should devote considerable energy to the design of corporate-wide development tools and measures that proactively develop core change management competencies. These skill sets and behaviors include: 1. Communicating specifics regarding expected change process results, including how performance will be measured, what resources will be committed, and projected employee changes (Cowley, 2007). Improving Change Implementation: Practical Adaptations of Kotter s Model 35

6 2. Using building up and breaking down language (Brower et al., 2007, p. 69) to generate understanding and commitment, where establishing understanding is the first priority. Breaking down language means negating information no longer relevant or functional, then promoting disengagement from outdated commitments (Brower et al.). Building up language includes emphasizing information directly relevant to the new vision, then affirm[ing] the [company s] mission and inspir[ing] commitment to it (2007, p. 69). 3. Developing high-quality leadermember exchange relationships (Van Dam et al., 2008, p. 315) to increase employee receptivity to change. Highquality relationships exist when the leader communicates relevant information frequently, follows through on actions to build trust, and empowers employees to participate in decisions, especially those relating to the change process (Van dam et al.). 4. Supporting innovation and improvisation. Improvisation can lead to positive results, where team responses are faster, processes are improved experientially during the change process, and employees feel empowered in the change implementation (Leybourne, 2006). Managers must signal support for creative approaches and sanction activities that do not necessarily fall within normal formal channels and processes (Leybourne). Enhanced Action Steps: Employees The proposed action steps for employees substantively mirror the action steps for leadership. Many of the leader recommendations were based on the evaluation of motivating followers. Charismatic leaders affect organizational outcomes through envisioning, empathy, and empowerment (Choi, 2006). They meet followers needs for achievement, affiliation, and referential power through such actions as demonstrating innovative strategies to reach goals, setting high standards for employee and organizational performance, establishing trust and emotional bonds, and modeling behaviors others wish to imitate (Choi). Cowley s research at Eli Lilly supports Choi s components, indicating employees Figure 1: Recommended Enhanced Action Steps to Kotter Model, Grouped by Stakeholder EMPLOYEES Want specifics: expected results, impacts, timetables, and measures Look for signals from senior management before accepting accountability, investing, and committing Require an intact management team through the transformation Seek role autonomy, participation, a relationship with managers, and connection to vision LEADERSHIP Communicate specifics regarding expected results Use building up and breaking down language for understanding and commitment Be visible in communications, using formal and informal channels Support improvisation Sell problems, not solutions, for encompassing change Engage employees through purpose and challenge ORGANIZAT ION Shape effective management practices Train and coach managers to exhibit the identified skills and behaviors Match reward systems to transformed vision, processes, and leadership behaviors Support risk-taking and innovation Target the identified antecedents for successful change management Use employee engagement strategies to reinforce organization culture values 36 OD PRACTITIONER Vol. 42 No

7 look to senior management for signals the change process is accepted. These signals include visible support for the initiative, action in coordination with a senior management coalition, and the use of informal and formal organization channels to initiate the allocation of resources for the change initiative (Cowley, 2007). When employees register these signals, they will commit to the process and take accountability (assuming the envisioning, empathy, and empowerment activities have been successful). These recommendations are all linked to employee engagement. Employee engagement is the level of employee commitment to the work and to the organization, which is linked to motivation, satisfaction, and direction of energy. One specific employee engagement model, Gallup Q12, identifies twelve elements, or questions, that identify and measure levels of employee engagement (actively engaged, somewhat engaged, actively disengaged) (Asplund, 2007). Organizations pursuing change implementation success can take action to increase organizational levels of employee engagement, using the Gallup Q12 action process or another design. Many of the factors identified in Kotter s model and through the research review, collectively viewed as antecedents to effective change management for leadership and employees, can be positively influenced through proactive employee engagement design and implementation. Enhanced Action Steps: Organization At the organization level, the analysis leads to summary conclusions used to develop company-wide interventions. The organizational development professional, in examining the action steps related to Leadership and Employee stakeholder groups, can build a comprehensive list of targets for organizational development; these goals, if successfully achieved, set up the company for success in many change implementation processes, not simply for a specific strategic change initiative. This point is significant when considering the current business environment, where change processes are occurring continuously and simultaneously. The systemic intervention goals on the organizational development professional s agenda might include: (1) Employee engagement program with corresponding management action planning; (2) Re-tooled reward and recognition programs matching change management priorities, expected goals, and associated measures: and (3) Management training and coaching targeting communication messages, communication language, high-quality leadermember exchange relationships, job design and worker autonomy, appropriate application of new reward/recognition systems, and team activities designed to promote innovation and improvisation. It is important for organizations to recognize that managers across the organization are at different levels of development. Successful change management, particularly in continuous changing organizations, hinges on systemic improvements in management and leadership execution. Since some change initiatives are taking place at business unit or departmental levels, it is difficult to target management skills and behavior on a case by case basis this strategy is inefficient and generally ineffective. Concerted management development programs, focused on key change implementation skill sets, will help ensure that change efforts are successful and organizational performance in projects unrelated to change will also be enhanced. Conclusion Dynamic business conditions lead to rapid corporate change on several levels. Typically, organizations have trained managers in change process models rather than change implementation frameworks. Given the track record for failed change interventions, there is an opportunity for organizational development professionals to provide effective guidance through the application of a comprehensive change implementation model, Kotter s eightstage process. Recent research supports At the organization level, the analysis leads to summary conclusions used to develop company-wide interventions. The organizational development professional, in examining the action steps related to Leadership and Employee stakeholder groups, can build a comprehensive list of targets for organizational development; these goals, if successfully achieved, set up the company for success in many change implementation processes, not simply for a specific strategic change initiative. This point is significant when considering the current business environment, where change processes are occurring continuously and simultaneously. Kotter s design and provides insights into more detailed action steps that can ensure appropriate and relevant application of the outlined process. Organizational development professionals can use this information to design concurrent development interventions for leadership, employee, and organization (system) stakeholders. A proactive approach to change management can potentially improve implementation and increase the percentage of successful change initiatives saving organizations money, sustaining employee engagement and retention, and ensuring business competitive advantage. Improving Change Implementation: Practical Adaptations of Kotter s Model 37

8 References Asplund, J., Fleming, J., & Harter, J. (2007). Return on investment in engaging employees. The Gallup Management Journal Online, p Retrieved from Bridges, W. (2003). Managing Transitions (2nd Ed.). Cambridge, MA, Perseus Books. Brower, H., Fiol, C.M., & Emrich, C. (2007). The language of leaders. Journal of Leadership Studies, 1(3), Choi, J. (2006). A motivational theory of charismatic leadership: Envisioning, empathy, and empowerment. Journal of Leadership and Organizational Studies, 13(1), Cowley, B. (2007). Why change succeeds: An organization self-assessment. Organization Development Journal, 25(1), Hoover, J.D. (2008). Cognitive mapping and diagnostic aspects of organizational change. Organization Development Journal, 26(1), Kotter, J. (2007). Leading change: Why transformation efforts fail. Harvard Business Review, Retrieved from Leybourne, S. (2006). Managing improvisation within change management: Lessons from UK financial services. The Services Industries Journal, 26(1), Parish, J., Cadwallader, S., & Busch, P. (2008). Want to, need to, ought to: Employee commitment to organizational change. Journal of Organizational Change Management, 21(1), Schein, E. (2004). Organizational culture and leadership (3rd Ed.). San Francisco, CA, Jossey-Bass. Soltani, E., Lai, P., & Gharneh, N.S. (2005). Breaking through barriers to TQM effectiveness: Lack of commitment of upper-level management. Total Quality Management, 16(8-9), Van Dam, K., & Oreg, S. (2008). Daily work contexts and resistance to organisational change: The role of leader member exchange, development climate, and change process. Applied Psychology: An International Review, 57(2), Yacovone, L. (2007). Organizational design for a supply chain transformation: Best practice at Johnson and Johnson Health Care Systems, Inc. Organization Development Journal, 25(3), Nicole Stragalas is an external OD consultant in Phoenix, AZ specializing in leadership development and employee engagement. With over 15 years of experience as a senior manager and advisor, she has developed national programs in service, sales, and quality assurance in the healthcare and banking industries. She has her SPHR certification and is a Six Sigma Green Belt. Her dual masters degrees were earned at the University of Florida; currently, she s working on her PhD in I/O Psychology through the University of Phoenix. She can be reached at ncstragalas@mac.com. 38 OD PRACTITIONER Vol. 42 No

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