Harvard Business School professor Dr. John Kotter has been a thought-leader on organizational change, and he developed Kotter’s 8-step change model, which helps business managers deal with organizational change. Kotter created the 8-step model to drive organizational transformation.
| Component | Description |
|---|---|
| Definition | Kotter’s 8-Step Change Model is a strategic framework for initiating, planning, and successfully implementing organizational change. It emphasizes the need for a structured and comprehensive approach to navigate the challenges of change within an organization. |
| Origin | Developed by John Kotter, a professor at Harvard Business School, this model was introduced in his book “Leading Change” in 1996. Kotter’s extensive research and experience with organizations led to the formulation of this change management framework. |
| Principles | – Create a Sense of Urgency: Successful change begins with establishing a compelling reason and sense of urgency for the change initiative. – Build a Guiding Coalition: Form a dedicated team of leaders and change agents to drive and support the change effort. – Form a Strategic Vision and Initiatives: Develop a clear vision for the future state and identify specific initiatives to achieve that vision. – Enlist a Volunteer Army: Mobilize a broader group of employees who are willing to actively participate in the change process. – Enable Action by Removing Barriers: Identify and address obstacles, barriers, or resistance that may impede progress. – Generate Short-Term Wins: Create and celebrate quick wins to build momentum and demonstrate progress. – Sustain Acceleration: Continue driving change and use the momentum from initial wins to keep the change effort moving forward. – Institute Change: Integrate the change into the organization’s culture and ensure it becomes the new norm. |
| Importance | Kotter’s 8-Step Change Model is highly regarded for providing a systematic and comprehensive approach to managing change. It helps organizations avoid common pitfalls and increase the likelihood of successful change implementation. |
| Benefits | – Structured Approach: The model offers a clear and structured path for managing change, reducing the risk of failure. – Employee Engagement: Involving employees at various levels fosters engagement and commitment to the change effort. – Quick Wins: The model encourages early victories, boosting morale and support for the change initiative. – Alignment: Ensures that the entire organization is aligned with the change vision and objectives. |
| Drawbacks | – Complexity: The 8-step process may appear complex, and organizations may struggle to implement all steps effectively. – Time-Consuming: It can be time-consuming, and some organizations may require a more agile approach. – Resistance: Resistance to change can still be a challenge, even with a well-structured model. |
| Contemporary Relevance | The model remains relevant in contemporary organizational settings, especially when organizations undergo significant transformations or face external disruptions. The principles of urgency, coalition-building, and communication continue to be valuable. |
| Applications | Kotter’s model has been applied in a wide range of industries and sectors, including business, healthcare, education, and government, to manage changes such as mergers and acquisitions, digital transformations, process improvements, and cultural shifts. |
| Examples | – IBM’s Transformation: IBM used Kotter’s 8-Step Change Model during its transformation from a hardware-focused company to a solutions and services provider. – General Electric (GE): GE has employed the model to manage changes related to restructuring and shifting its focus to digital industrial solutions. – Healthcare Organizations: Many healthcare institutions have utilized the model to improve patient care and adapt to new healthcare regulations. – Educational Institutions: Schools and universities have applied the model to implement changes in curriculum, teaching methods, and administrative processes. |
Understanding Kotter’s 8-step change model
The model was developed by Harvard Business School professor Dr. John Kotter, a notable thought-leader on organizational change.
Kotter recognized that change was difficult for some businesses, especially for those that had been in operation for some time. But he also knew that change was an important factor in a business remaining viable, no matter how much success they had enjoyed in the past.
Big change in an organization is usually the result of bold and courageous leadership, which we will discuss in the next section.
The eight steps of Kotter’s change model
Kotter created his model after witnessing how leaders led their organizations during periods of transformation.
These are the eight steps that will help a business navigate this transformation:
1 – Create urgency
The most significant changes occur because of urgency. For example, urgency might result from a string of negative reviews or the emergence of a powerful competitor. Whatever the scenario, it is important to present change as the solution to a problem.
To feel compelled to act, management must be notified of a problem in advance with convincing evidence or support from key stakeholders.
2 – Form a powerful coalition
This can be achieved by identifying the key playmakers in an organization. Who are the individuals that hold the power in decision making?
In the search to form a coalition, representatives should seek out influential people with a broad range of experience or skillsets.
3 – Develop a vision and strategy
Key decision-makers will only get behind an initiative for change if they can understand the reasons for doing so. Therefore, the vision for change must be clear, concise, and well presented.
It should also:
- Reflect the core values of the business or identify new core values.
- Contain a mission statement.
- Detail a logical and feasible change strategy.
4 – Communicating the vision
Presenters should not be afraid to sell the vision to decision-makers if required to do so. They must present their vision with confidence and conviction. In other words, they must truly believe that their strategy will be successful.
Wherever appropriate, relate the strategy for change to pre-existing company values. Address any concerns from the audience publicly in a calm and empathic manner.
5 – Remove the obstacles
Individuals are often the greatest obstacles to change. Identify those most resistant to change and work collaboratively to address any concerns. Then, reward or recognize those who were open to change from the very beginning.
6 – Create short-term wins
Early in the change process, short-term wins are crucial to building momentum and confidence. This is particularly true of large changes with long timelines because people can become disheartened at the prospect of the job ahead of them.
Again, incentivization is useful for those who meet and continue to achieve short-term wins.
7 – Consolidate gains
Consolidation means building on quick wins through expansion and repetition. Each win should be analyzed to determine areas for possible improvement.
Subsequent goal-setting should also strike a balance. Each goal must be slightly more ambitious than the last without causing employee disenfranchisement.
8 – Make it stick
Making a change stick means that it becomes part of company culture. This process can take years and usually involves mistakes or employee turnover along the way.
To ensure that management cannot revert to the status quo, change success stories should be regularly highlighted. Employee contributions should also continue to be celebrated and rewarded where appropriate.
It is also essential that a business knows what it stands for before recruiting. This allows HR managers to instill core values into new employees from day one.
Kotter’s 8-step change model examples
We’ll now conclude this article with some real-world examples of companies that have successfully implemented the Kotter 8-step model.
Coty Inc.
Coty Inc. is an American multinational beauty company that was founded in 1904.
After a period of rapid expansion and in preparation for an IPO, Coty realized that it needed to improve the efficiency of its supply chain.
Several “low-hanging” initiatives had resulted in minor improvements, but progress made by the company’s Supply Chain Leadership Team had plateaued.
To reach a level of supply chain excellence, Coty worked with Kotter International to develop a change initiative with the following pillars:
- Organization-wide participation.
- Mobilization of every level and function of the business to take on the role of change agent. This involved asking questions and taking action on directives from leadership.
- Finding non-traditional ways to identify new revenue streams, increase productivity, improve quality, drive sustainability, and manage costs.
The results of the initiative were impressive, with employees permitted to take risks and become drivers of change.
Over $39 million was saved from supply chain operations in the first year, with more than 2,000 employees volunteering to become change agents.
NetApp
NetApp is a California-based enterprise storage and data management company that implemented Kotter’s model after noting a shift in customer purchasing patterns.
Essentially, customers were buying from third parties who offered storage solutions packaged with other hardware and software.
They were not, as they once did, buying data management solutions direct from vendors such as NetApp.
Unable to leverage its high-cost, direct sales strategy, the company was at risk of being taken over as profitability and its share price tumbled.
To reverse this trajectory, senior leaders at NetApp worked with Kotter to help them achieve three strategic goals:
- Increase market share.
- Drive organizational efficiencies, and
- Implement global partnerships.
To drive change across the company, a level of urgency was created whereby employees were asked to buy into a vision where NetApp was the leader in the emerging cloud computing market.
With this vision serving as the company’s north star, 63% of all worldwide employees volunteered their services in a coordinated and creative way.
Ultimately, NetApp was able to jump three market share positions by adopting the mindset that the essence of change was urgency.
Fortune 500 semiconductor manufacturer
An unnamed Fortune 500 semiconductor manufacturer also worked with Kotter after noting that its approach to innovation had stagnated and inefficiencies were leaving significant amounts of money on the table.
It was also noted that engineers had fallen into a predictable pattern of product development, lacking the passion required for such a cut-throat industry and not considering their individual roles in the context of a broader value chain.
To accelerate product development, drive enhanced value realization, and shift employee mindsets, the semiconductor manufacturer developed the following change initiatives:
- Increase collaboration across the full development cycle to identify efficiencies that could reduce the cycle time by months or even years.
- Remedy chronic quality challenges while increasing yields by 10-20%.
- Institute a new way of working that could be scaled to increase operational efficiency across the business, and
- Deliver demonstratable, unambiguous results within a few weeks to justify continued investment in the change initiative.
In less than a month, there was a demonstrable shift in development cycle time, with smaller teams of 10-20 people driving exponential value in the business after five months.
For one high-priced product, the development cycle time was reduced from 80 weeks to 10 weeks.
Kotter’s model helped the manufacturer think differently about the full system and reconsider the power of people within it.
Diverse perspectives were incorporated in the early stages of development, which better equipped the teams to solve cycle time problems and persistent yield issues.
These actions were underpinned by a distinct change in employee mindset. Instead of believing themselves to be cogs in a vast, incomprehensible machine, individuals started to take ownership of their innovations and understand their contributions to the system as a whole.
Key takeaways
- Kotter’s 8-step change model helps decision-makers adapt to transformational change.
- Kotter’s 8-step change model was developed by leading management consult Dr. John Kotter. By observing organizations undergoing transformation, he identified that leadership ultimately determined the likelihood of change.
- Kotter’s 8-step change model advocates urgency, stakeholder engagement, and a clear vision as important preliminary change driving ingredients. Change must then be communicated to leadership convincingly so that a plan rewarding short and long-term wins can be implemented.
Key Highlights
- Development by John Kotter: Harvard Business School professor Dr. John Kotter is a thought leader in organizational change. He created the 8-step change model to assist businesses in effectively managing and navigating through organizational transformations.
- Urgency as a Catalyst: Kotter emphasizes that significant change is often driven by a sense of urgency. Urgency can arise from challenges like competition or negative reviews. It’s crucial to present change as the solution to a pressing problem to motivate action.
- Forming a Powerful Coalition: Identifying key decision-makers and forming a coalition of influential individuals is essential. This coalition should consist of people with diverse skills and experiences who can drive change effectively.
- Vision and Strategy: A clear and concise vision for change is crucial for gaining the support of decision-makers. This vision should reflect core values, include a mission statement, and outline a logical change strategy.
- Effective Communication: Presenters must confidently and convincingly communicate the vision for change. Addressing concerns and linking the change strategy to existing company values can help gain buy-in.
- Obstacle Removal: Identifying and addressing resistance to change among individuals is essential. Recognizing and rewarding those who embrace change early can help build momentum.
- Creating Short-term Wins: Achieving early, tangible successes is vital to build momentum and boost confidence. These short-term wins are particularly important for complex, long-term changes.
- Consolidating Gains: Building on initial successes through expansion and repetition is crucial. Continuous improvement and balanced goal-setting contribute to the ongoing change process.
- Making Change Stick: The goal is to embed change into the company culture. Highlighting success stories and celebrating employee contributions help reinforce the change and prevent reverting to the old ways.
- Real-world Examples: The model’s effectiveness is showcased through real-world examples. Companies like Coty Inc., NetApp, and an unnamed semiconductor manufacturer have successfully implemented the 8-step model to drive change and achieve substantial improvements.
- Coty Inc.’s Supply Chain Transformation: Coty Inc. used the model to improve its supply chain efficiency, resulting in significant savings and empowered employees driving change.
- NetApp’s Market Shift Response: NetApp implemented the model to reverse a decline in market share by creating a sense of urgency among employees and achieving strategic goals.
- Fortune 500 Semiconductor Manufacturer: An unnamed semiconductor manufacturer applied the model to accelerate product development, enhance value realization, and change employee mindsets, leading to substantial improvements in development cycle time and efficiency.
- Key Takeaways: The 8-step change model underscores the importance of urgency, stakeholder engagement, clear vision, effective communication, short-term wins, and embedding change into company culture for successful organizational transformation.
| Comparison’s Table | Kotter’s 8-Step Change Model | Lewin’s Change Management Model | ADKAR Model |
|---|---|---|---|
| Type | Sequential process for managing organizational change. | Three-stage model for understanding and implementing change. | Individual change management model focused on employees. |
| Purpose | To guide organizations through the process of successful change. | To explain the process of change and provide a framework for managing it. | To facilitate individual transitions during organizational change. |
| Key Components | 1. Create a Sense of Urgency 2. Build a Guiding Coalition 3. Form a Strategic Vision and Initiatives 4. Enlist a Volunteer Army 5. Enable Action by Removing Barriers 6. Generate Short-Term Wins 7. Sustain Acceleration 8. Institute Change | 1. Unfreezing 2. Changing 3. Refreezing | 1. Awareness 2. Desire 3. Knowledge 4. Ability 5. Reinforcement |
| Application | Used to plan and implement organizational change initiatives. | Applied to initiate, implement, and stabilize change efforts. | Utilized to manage individual transitions during organizational change. |
| Focus | Focuses on creating a sense of urgency, building support, and implementing change initiatives. | Focuses on unfreezing existing behaviors, implementing change, and refreezing new behaviors. | Focuses on addressing individual change barriers and facilitating successful transitions. |
| Benefits | – Provides a structured framework for managing complex organizational change. – Emphasizes the importance of communication, leadership, and employee involvement. – Helps overcome resistance and build momentum for change. | – Offers a clear understanding of the change process and stages. – Guides organizations in effectively managing resistance and facilitating adoption. – Encourages collaboration and stakeholder engagement throughout the change journey. | – Enhances change management effectiveness by focusing on individual needs and behaviors. – Provides a roadmap for addressing common change-related challenges and barriers. – Facilitates the adoption and sustainability of change initiatives through targeted interventions. |
Read Next: Lewin’s Change Management.
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