Leading Change

By far the biggest mistake people make when trying to change organizations is to plunge ahead without establishing a high enough sense of urgency in fellow managers and employees.

By far the biggest mistake people make when trying to change organizations is to plunge ahead without establishing a high enough sense of urgency in fellow managers and employees. Complacency is the enemy of change. Organizations often fail to transform because they underestimate the power of complacency and don't create a sufficient sense of urgency. Complacency can stem from: Past success and the absence of visible crises Low performance standards and lack of external feedback Organizational structures that focus on narrow functional goals Internal measurement systems that emphasize the wrong metrics To increase urgency: Create a crisis by exposing major weaknesses Set ambitious targets that can't be reached by business as usual Provide more customer and financial performance data to employees Insist on frank discussions about problems in management meetings

A strong guiding coalition is always needed—one with the right composition, level of trust, and shared objective. Teamwork at the top is crucial. Major change is impossible unless the head of the organization is an active supporter, but the effort requires a powerful coalition beyond just one leader. This coalition should have: Position power: Enough key players to lead the change Expertise: Relevant perspectives for making informed decisions Credibility: A good reputation to be taken seriously Leadership: Proven change leaders to drive the process To build an effective coalition: Find the right people with a combination of skills and traits Create trust through carefully planned off-site events and activities Develop a common goal that appeals to both head and heart

Vision refers to a picture of the future with some implicit or explicit commentary on why people should strive to create that future. A clear vision guides the change effort. An effective vision serves three important purposes: Clarifies the general direction for change Motivates people to take action in the right direction Helps coordinate the actions of different people efficiently Characteristics of an effective vision: Imaginable: Conveys a clear picture of the future Desirable: Appeals to long-term interests of stakeholders Feasible: Contains realistic, attainable goals Focused: Clear enough to guide decision-making Flexible: Allows for individual initiative and alternative responses Communicable: Can be explained quickly and easily

Without sufficient empowerment, critical information about quality sits unused in workers' minds and energy to implement changes lies dormant. Remove barriers to change. Even when employees understand and support the vision, they may feel disempowered by obstacles in their path. Common barriers include: Organizational structures that undermine the vision Lack of needed skills or training Personnel and information systems that are misaligned with the vision…