100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

100 GREAT BUSINESS IDEAS • 129

An organization undergoing signifi cant changes should
pay attention to eight key steps to avoid the problems that
typically occur.

The idea

Leadership expert John Kotter studied 100 companies going through
transitions. By analyzing their triumphs and pitfalls, he identifi ed
a number of commonly made mistakes. This led Kotter to compile
the “eight steps of change”: a sequence of actions to ensure that
changes succeed.

1. Establish a sense of urgency. Organizations frequently allow high
   levels of complacency to develop during times of transition.
   Kotter commented, “Without motivation, people won’t help
   and the effort goes nowhere. Executives underestimate how
   hard it can be to drive people out of their comfort zones.” To
   accept change, businesses need a “burning platform” to remove
   complacency and inertia.


2. Form a strong guiding coalition. A group of strong, unifi ed
   leaders should drive the change process and establish support
   throughout the entire organization.


3. Create a vision. A clear sense of direction and an idea of the end
   result will allow efforts to be focused, organized, and effi cient.


4. Communicate the vision. The strategy and vision for change
   must be communicated to everyone involved. As well as holding

57 Kotter’s eight phases of change