Kurt Lewin 3 Phases Change Theory

-by Shruti Patil Click to edit Master subtitle style

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Universally Accepted Change Management

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Unfreeze: Reducing the forces that are striving to maintain the status quo, and dismantling the current mind set. Transition: Developing new behaviors, values, and attitudes, sometimes through organizational structure and process changes and development techniques. Freeze: The final stage of crystallizing and the adaptation of ownership of the new 'as is'.

Continental Airlines 7/30/12 from the Poorest Performing Airline to Airline of The Year

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Transforming the Business: The Go Forward Plan

An all-encompassing initiative launched. The four central tenets of the plan were:

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Stop doing things that lose money (Fly To Win) Improve cash flow by restructuring obligations (Fund The Future) Get passengers and luggage to their destinations on time (Make Reliability A Reality)

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1994, lost $619 million, which was an improvement considering it had lost an average of $960 million the previous four years. Ranked dead last in almost every Department of Transportation performance measure Multiple bankruptcies Gordon Bethune named CEO Calculated that late and cancelled flights cost Continental $6 million per month

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He set a goal, Rank among the top three airlines for on-time performance in any month. If met, he would split half the $6 million with all non-executive employees (about $65 per employee) The very next month they were ranked fourth, the next two months they were ranked first 1995,1996, 1997: Continental earned $215 million, $319 million, and $383 million respectively Share price in 1994: $5.00, in 1995: $65.00

1. Understood the Link between operations and financial 7/30/12 performance 2. Developed a strategy

Fly to Win - Shut down unprofitable routes, develop hubs to win back business travel Fund the Future selling off non-strategic assets Make Reliability a Reality on-time performance, less lost luggage Working Together remove mistrust between management and workers
3. Measured performance

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Thank you