Leading Change Kotter s Eight-Step Model

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1 Leading Change Kotter s Eight-Step Model George Spalding Executive Vice President Pink Elephant Pink Elephant Knowledge Translated Into Results

2 Agenda 1. Eight Steps For Managing Organizational Change 2. When I Get Back to Work? 3. Questions Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 2

3 Eight Steps For Leading & Managing Organizational Change Kotter s Eight Steps Establishing a sense of urgency. Creating the guiding coalition. Developing a vision and strategy. Communicating the change vision. Empowering broad-based action. Generating short-term wins. Consolidating gains and producing more change. Anchoring new approaches in the culture. Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 3

4 Establishing A Sense Of Urgency 1 What is the sense of urgency for process improvement? We are doing fine as we are Why should we change when there is no real problem to fix? 50% projects fail at this stage No real understanding of why we are implementing service management Re-emphasize the sense of urgency will sustain the momentum Sense of urgency agreed at a strategic stakeholder level not filtered through the organization Lack of addressing the heart Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 4

5 Burning Platforms In IT Today Governance issues Increased demand for service quality and reduced budget Cloud computing and Shadow IT BYOD Mobile computing Severe outages that could have been avoided (tangible and intangible effect) Threat of outsourcing due to poor service perception Growth, globalization requires processes to improve availability and stability of IT services Lack of integration between different service providers Business demographics: growth rate, rate of change and competitiveness Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 5

6 Never Forget Change comes from the heart not from the head It s about being shown a truth that influences feelings Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 6

7 Creating The Guiding Coalition 2 A Guiding Coalition is a team powerful enough to sustain the change throughout its journey A team designed to overcome the following challenges: CIO/Executive Sponsor moves on ITIL project is cancelled or scope is severely reduced Lack of credibility: Driven by middle management ITIL project is cancelled as more strategic business impacting projects take priority Challenging ITIL Project Dynamics: Long duration High impact roles, tools etc. Complex global organizations/multi-departments ITIL is a registered trade mark of AXELOS Limited Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 7

8 Traits Of A Guiding Coalition Requires Trust & Emotional Commitment Embrace the Change Agents of the Change Key Roles Sponsor Leadership. Ultimate owner of the change Advocates Senior Management to support the Sponsor Agents Have respect and credibility. Will embed the change Characteristics (Kotter): Leadership proven leaders who can drive the change Position Power stakeholder representation Credibility good reputation, taken seriously Expertise representative SMEs to make effective decisions Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 8

9 Service Management Vision Describing The Future State 3 Leadership is the process of creating a vision for others and having the power to translate it into a reality and sustain it (Kotter Leadership Factor) A good vision statement should: Clarify the direction of the ITSM program and the intent of the service provider Exercise both the HEAD and the HEART Motivate people to take action in the right direction Steer a strategy to coordinate and focus the actions of many different people Leading Change Kotter s Eight-Step Model The Vision Statement describes the destination for the journey forward Pink Elephant, All Rights Reserved. 9

10 ITSM Vision Statement Example: "Our [Amazon's] vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online." (Quoted from Amazon.com) Example: Our vision is to be the go to provider of choice for IT services, excelling in quality of service, innovation and responsiveness to the changing demands of the business. Vision Statement vs. Mission Statement A vision statement should not to be confused with a mission statement. The terms are often used interchangeably, but mission statements are present-based statements designed to convey a sense of why the company exists. Vision statements are futurebased and are meant to inspire and give direction Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 10

11 Common Errors Of Approach Expensive Reports The paper chase A fool with a tool is still a fool ITIL for the sake of ITIL The great tool hunt So What ITIL to the letter This does not fit the way we work Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 11

12 Communicating The Change Vision 4 A great Vision can serve a useful purpose even if it is understood by just a few key people. But the real power of a Vision is unleashed only when most of those involved in an enterprise or activity have a common understanding of its goals and direction. Professor John P. Kotter Leading Change Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 12

13 Seven Steps To Success For Communicating The Vision & Strategy 1. Must come from the heart. 2. Keep it simple. Eliminate jargon and geek speak 3. Use metaphors, analogies and examples. Pictures are worth a thousand words 4. Use Multiple Forums. Normal IT Communication vs. Required Change Vision Communication requirements 5. Communicate, Communicate, Communicate. Repeat as often as possible no fear of over communicating 6. Lead by example be the right role model/walk the talk. Provide explanations for perceived inconsistencies 7. Two-Way is more powerful and effective than one-way communication. Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 13

14 Empowering Broad-Based Action 5 Does anyone truly understand the word Empowerment? Empower people to take action Empower people to make decisions Empower people to recommend/make changes Empower people to do what is right Empowerment requires guidelines on how far people can go Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 14

15 Barriers To Empowerment If employees feel powerless, they generally won t or can t help with the transformation effort they feel boxed in: Insufficient skills, understanding of necessary skills or training Personnel and information systems appraisal, compensation and promotion Formal structures make it difficult to act Who has what power and how do they use it? Management discourages actions aimed at implementing the new Vision Middle Managers often create a serious threat Change leaders focus on removing obstacles and barriers. Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 15

16 Short Term Wins 6 A Short Term Win describes an improvement in actual or perceived service quality, achieved within a short space of time with relatively little effort. There are typically many improvement activities that can be done in a short period of time without necessarily launching a formal improvement project. Versus Pareto Principle At Work 80% of the effects comes from 20% of the causes Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 16

17 Short Term Wins Benefits Funding Key Stakeholder Support Address Skeptics Why Worry About QUICK WINS? Build Confidence In Program Success Feeds Success Buy-in & Commitment Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 17

18 Key Elements Of Short Term Wins Must be planned Must be visible Must be communicated Must add value and be meaningful Must be achieved in a short period of time Must support sense of urgency and inspire people to want to act Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 18

19 Consolidating Gains & Producing More Change 7 Why its important to keep moving: Success makes it hard for people to block the change initiative Success breeds success Retain key resources and skills Provide Senior Management and the guiding coalition data on the viability of the program/project Assures management and staff that the effort is worth it Creates many visible milestones Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 19

20 Help! No One Is Following Our Processes The CIO stood up and declared that she/he believes: 1. We sent everyone to ITIL Training. 2. We engaged knowledgeable consultants. 3. We developed process design teams with participation from key stakeholders. 4. We had creative communication sessions. 5. We conducted proof of concept pilots, focus groups, process testing workshops. 6. We delivered quick wins and small improvements to show people we were on the right track. 7. We designed and executed a brilliant marketing campaign. 8. We purchased a great ITSM Service Management Software. 9. We trained all key stakeholders on our new processes. But Still No One Is Following Our Process! Why? Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 20

21 Anchoring New Approaches In The Culture 8 The item missing from this list comes down to Professor John Kotter s 8th Step for Managing Organizational Change Anchoring new approaches in the culture You get what you inspect not what you expect What gets rewarded gets done In the end, this last step may well be the most critical to your transformation activities. You have to find the courage and organizational will to transcend silos, create new governance/ownership structures, new roles and personal performance measures that will ensure that Executives, Managers and Staff feel personally accountable to actually change their behavior and practice the new methods. Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 21

22 What Do I Do When I Get Back to Work? Week One When You Are Back Process Owners and Process Managers need to meet and have a heart-to-heart discussion on the effectiveness of your transformation program / project Process Owners and Process Managers need to meet with the IT staff and ask staff members if they know why this change is important and what the burning platform is for making the change If they do not, then identify and communicate the burning platform, the benefits to the business and IT, and what we expect from the staff in behavioral change ITSM Steering Committee / Governance Group needs to evaluate if the organization has the right guiding coalition team for the ITSM program. If not, then restructure your guiding coalition team Are they the right decision makers Are they true change agents and can they influence across the IT organization Do they have the heart and mind to move the change forward Leading Change Kotter s Eight-Step Model Pink Elephant, All Rights Reserved. 22

23 Questions? George Spalding Leading Change Kotter s 8 Step Model Pink Elephant, All Rights Reserved.