Eight-Step Model for Change

Kotter’s eight-step model for change comprises three major states: the current state, the transition state, and the improved state, all of which contain different steps.

From a leadership perspective, change within organizations is always challenging. To help alleviate that challenge, John Kotter, professor emeritus of leadership at Harvard Business School, created the 8-Step Process for Leading Change. Based on the research of one hundred organizations going through a process of change, Kotter’s model attempts to provide guidance on a fact many leaders and managers do not realize: change is a process with stages. The goal of any change process is to transform from the current state to an improved state.

The Current State

1. Increasing Urgency – The first step in Kotter’s model kickstarts the entire process. Change is hard; it removes people from their established norms. As a result, leaders must clearly articulate why change is needed in order to set expectations and create a common sense of urgency to implement the necessary change.
2. Building the Team – Once the importance and urgency of the change are established, leaders must build a team from those who have bought into the need for the change. In order to ensure a balanced perspective is maintained throughout the change process, project teams should be made up of cross-functional members from various departments and levels throughout the organization. It is imperative that each team member understands the goals of the change initiative, as the core team will be responsible for implementing the change and fostering buy-in from others.
3. Right Vision – To help drive understanding across all stakeholders, the core team should develop a motivating vision for the change that details the objectives of the initiative and associated timeline. The vision should be well-communicated and offered in writing.

Once a sense of urgency has been created, the team established, and the vision developed, communicated, and documented, the change process shifts into the transition state.

The Transition State

4. Communicate – Communication throughout the transition state is vital. The team should provide transparent communication and discuss the progress, and those affected by the change should be able to ask questions freely. Communication is key to creating understanding, encouraging collaboration, and fostering buy-in.
5. Empower Action – Throughout the change, individuals responsible for achieving specific goals should have the required skills, tools, and resources at their disposal to be successful. At the same time, affected employees and stakeholders should be informed and empowered, while leaders should continuously be scanning ahead to identify potential barriers to the project’s success and take the necessary actions to resolve them.
6. Create Short-Term Goals – Success promotes success. Throughout the transition state, leaders should make it a priority to set realistic short-term goals. Goals that are achievable frequently to show clear progress. At the same time, acknowledge those who achieve these goals, no matter how small. 

Now that action steps are being taken, and transformation is progressing, sustainability becomes key.

The Improved State

7. Sustain the Effort – Building off step six, do not confuse short-term progress with the long-term goal. You need to keep focused on the big-picture and not let up on pursuing it. Change is slow, and even after it is implemented, there will be a period of pushback as those affected acclimate. Lasting cultural shifts take time.
8. Make Changes Last – Finally, make the change last. Embed the improved state into the culture of the organization. The change should be taught as the new normal, no longer as a process. Corrective action should be taken immediately should individuals revert to old patterns of behavior, thus undermining the effectiveness of the change. Training materials and standard operating procedures and processes should be updated.

In implementing Kotter’s 8-Step Process for Leading Change, while there are a variety of tactical options available to the organization at each stage, the fundamental steps of the model itself support the change process. Understanding that change in a process, not an event, cultivates an organizational culture that embraces change.

References

Advanced Controller and CFO Skills: Leadership Styles; Change Management. e-book, Durham, NC, Association of International Certified Public Accountants, 2021.