Kotter’s 8 Step Model of Change
John Kotter’s eight-step approach is a leading change management model that looks at all the components that need to be in place to help make change successful.It starts with creating a climate for change which focuses on making a compelling case for change based on honest facts and dramatic evidence; getting the right people involved to make the change happen; and creating a clear vision of the future – what will it look like, feel like and how will we know when we have got there? We also need a clear roadmap of how to achieve the vision – what are the step-by-step plans and do we have the appropriate budget to make our vision a reality?
Engaging and enabling the whole organisation focuses on effective communication – that appeals to our rational and emotional needs; empowers people to act and delivers some quick successes. Short term wins help the momentum of a change initiative by giving us a ‘pause point’ to reassess our vision and strategies; celebrate success; and build faith in the outcomes.Finally we need to implement and sustain change. Too often change initiatives fail because we declare success too soon. New ways of working need to be embedded and continue successfully for some time before the culture truly changes.
A number of common issues were raised when we followed up on the survey results, talked to people who had been involved in Transformation Programme change projects, and participants in change training courses – these are outlined below:
| Things that help change ... | Things that hinder change ... |
| Strong sponsorship – setting the vision, championing the change, skills and influence to make it happen |
Lack of accountability |
| A clear vision, communication about why the change is needed, clarity on the benefits |
Capacity – people being impacted by multiple changes |
| Clarity on the people impact of the intended change and how this impact is going to be managed |
Lack of empowerment |
| Recognition of the timescales needed to make the change happen; clarity on the effort involved by the people involved in the change – understanding of the impact on business as usual |
Lack of drive and support from the business owner, senior leaders; lack of preparation for transition |
| Clarity and confirmation of the budget for change |
Poor experience of previous change |
| The right people involved, with the capacity to be involved appropriately (business leads, HR, IT etc) |
Lack of engagement – people thinking that change is optional and resisting the change |
| Strong communication and engagement – multiple stakeholders, different means of communicating and involving, consistent messaging. Clarity on when we are ’telling’ and when we are ‘consulting’ – where and how people have an input |
Lack of consistency in communication and lack of focus on the ‘end-game’ |
| Clear signposting to where support is available |
Unwillingness to make changes to the approach / plan in light of experiences to date |
Applying change management on an initiative is not free. It takes time, energy and resources. Cost components include:
- Staff time
- Training
- Communication
- Event costs – workshops, group meetings, road shows, etc
- Reinforcement and recognition costs
To ‘tip the scale’ towards investment in managing the people side of change, the benefits of change management must outweigh these cost components.
According to research1, initiatives with excellent change management are 6 times more likely to meet their objectives than those with poor change management. Four specific benefit perspectives have been identified:
Benefit 1: People factors
Excellent change management can improve …
Benefit 2: Cost avoidance
Significant and quantifiable costs are incurred when changes are poorly managed, at both initiative and organisational levels. In addition to the extra costs of fixing the people-side issues, the University will also fail to derive the value expected and lose the investment made in the initiative. Potential costs if the change is poorly managed include:
| Costs to the organisation | Costs to the initiative | Costs if change not implemented |
| Productivity plunges | Delays | Efficiencies not gained |
| Morale declines | Missed milestones | Waste not eliminated |
| Loss of value employees | Buget overruns | Savings not made |
| Decline in quality | Rework required | Quality improvements not gained |
| Stress, confusion, fatigue | Resources not made available | Regulations not met, resulting in fines, etc |
Benefit 3: Risk Mitigation
If the benefits of a planned initiative have a strong dependency on people changing and adopting new ways of working, then effective change management is a key risk mitigation approach. This approach is also a benefits realisation ‘insurance’ to help ensure that the benefits are realised as expected.
Benefit 4: Probability of Meeting Objectives
More effective change management results in a higher likelihood of delivering the intended results of a change initiative. Research1 shows that initiatives with ‘excellent’ change management in place were six times more likely to meet objectives that those with ‘poor’ change management. Even those using ‘good’ change management were five times more likely to meet their objectives.