Kotter’s Eight-Stage Process of Creating

Major Change
1. Establish a Sense of 5. Empower Broad-Based
Urgency Action
2. Create the Guiding 6. Generate Short-Term
Coalition Wins
3. Develop a Vision and 7. Consolidate Gains and
Strategy Produce More
4. Communicate the Changes
Change Vision 8. Anchor New
Approaches in the
Culture
Source: John P. Kotter, “Why Transformation Efforts Fail,” Harvard Business Review (March-April 1995):61
 Kotter’s 8 stages in action
Establish a Sense of Urgency
Service Portfolio
Create the Guiding Coalition
Development and
Develop a Vision and Strategy Leadership –
Every couple of years
Communicate the Change Vision or whenever program
status changes
Empower Broad-Based Action

Generate Short-Term Wins – Service Product

Implement New Functionality
Management Cycle or
Consolidate Gains and Continual Service
Produce More Changes Improvement –
A new “release” every
Anchor New Approaches in the Culture four to six months
 Developing a Vision
• Based upon “good practices”?
– How much adoption of “good practice” is useful for your
organization?
– COBIT5, ISO/IEC 38500, ITIL 2011, IAITAM, ISO/IEC 19770,
USMBOK, ISO9001…..
• Based upon industry “maturity models”?
– Maturity models can help. But your priorities are yours.
• Prioritized based upon your current status, your
problems and your opportunities for improvement
– First Order Needs – business issue and result
– Second Order Needs - Wants
– Context and Constraints
 What is a Vision?
• A clear and compelling statement of where you are headed –
consistency is key.
– “Leadership is the capacity to translate vision into reality.” – Warren
Bennis
– “The manager asks how and when; the leader asks what and why.” -
Warren Bennis
• An elevator pitch – less than 5 minutes
• White Paper backing up the Vision – not more than 15 pages
answering what and why
• Leave the how and when, and specifics about what’s included
in the next release, to the Product Manager to communicate
for each new release.
 Peter Drucker’s 8 practices of
Effective Executives
• What made them all effective is that they followed the same eight
practices:
– They asked, “What needs to be done?”
– They asked, “What is right for the enterprise?”
– They developed action plans.
– They took responsibility for decisions.
– They took responsibility for communicating.
– They were focused on opportunities rather than problems.
– They ran productive meetings.
– They thought and said “we” rather than “I…”
ITIL Service Development and Continual Service
Improvement Model

What is the Vision? Business vision, mission,

goals and objectives

Where are we now? Baseline Assessments

How do we keep the Where do we want to be at Measurable targets

momentum going? the next release?

Service & Process

How do we get there? Improvements, Release Plans

Measurements, metrics, post-

Did we get there? release implementation
reviews

Source: ITIL v.3 Continual Service Improvement Model

 Customer Service Gap Model
Gap 1
External and Gap 2
internal What do we WANT? Past Experiences
communications,
influences and Gap 6
Gap 3
drivers What do we NEED?

Communications with
Gap 4

Customers
What will we get?
Expected Service
Gap 7
Gap 5
What did we get?
Perceived Service
Gap 8

Customer Satisfaction =
Expected Service – Perceived Service
 CSI and the Service Lifecycle
Service Strategies

Strategies, Policies,
Standards
Feedback
Loops
Service Design
Plans to create and
modify services and
service management
processes

Service Transition
Outputs Manage the transition of
a new or changes
service and/or service
management process
into production.

Service Operation
Day-to-day operations
Continual Service Improvement and of services and service
Service Product Management management
processes.
 How to manage Perception and
human change – Fair Process
• Engagement
– Involve affected individuals in the decision by asking them for their
input and allowing them to refute the merits of other’s ideas and
assumptions.
– Results in better decisions and greater commitment.
• Explanation
– Everyone involved and affected should understand why decisions were
made.
– Increases confidence that managers have considered their opinion.
Increases trust, enhances learning.
• Expectation Clarity
– Managers must state clearly the new rules of the game.
Fair Process: Managing in the Knowledge Economy, W. Chan Kim & Renée
Mauborgne, Harvard Business Review, January 2003
 Fair Process
• Fair Process is not decision by consensus.
• Does not set out to achieve harmony or win support
through compromise.
• Does not accommodate every individual’s opinions,
needs or interests.
• Does give every idea a chance.
• Not democratic.
• Pursues best ideas systematically for management to
decide.
1. Establish a Sense of 2. Create the Guiding
Urgency Coalition
• Examine the market • Put together a group
and competitive with enough power to
realities lead the change
• Identify and discuss • Get the group to work
crises, potential crises, together like a team
or major opportunities
 Kotter’s Eight-Stage Process of Creating Major
Change
3. Develop a Vision and 4. Communicate the
Strategy Change Vision
• Create a vision to help • Use every vehicle
direct the change possible to
effort communicate the new
• Develop strategies for vision and strategies
achieving that vision • The guiding coalition
must model the
behavior expected of
employees
 Kotter’s Eight-Stage Process of Creating Major
Change
3. Develop a Vision and 4. Communicate the
Strategy Change Vision
• Create a vision to help • Use every vehicle
direct the change possible to
effort communicate the new
• Develop strategies for vision and strategies
achieving that vision • The guiding coalition
must model the
behavior expected of
employees
 Kotter’s Eight-Stage Process of Creating Major
Change
5. Empower Broad-
Based Action
• Get rid of obstacles
• Change systems or
structures that undermine
the change vision
• Encourage risk taking and
nontraditional ideas,
activities and actions
6. Generate Short-Term
Wins
• Plan for visible
improvements in
performance, or “wins”
• Create those wins
• Visibly recognize and
reward people who made
the wins possible
 Kotter’s Eight-Stage Process of Creating Major Change
7. Consolidate Gains and
Producing More Change
• Use increased credibility to
change all systems, structures,
and policies that don’t fit
together and don’t fit the
transformation vision
• Hire, promote, and develop
people who can implement the
change vision
• Reinvigorate the process with
new projects, themes, and
change agents
8. Anchor New Approaches in
the Culture
• Create better performance
through customer- and
productivity-oriented behavior,
more and better leadership, and
more effective management
• Articulate the connections
between new behaviors and
organizational success
• Develop means to ensure
leadership development and
succession