h positive feedback, rewards, recognition, measuring performance and taking corrective actions. ADKAR Model of Change (2003)
Kotter's 8 steps for Leading Change
Dr. John Kotter developed the 8 steps to change which can help organizations to avoid failure and be proactive to change. They are:
Acting with Urgency - It refers to identification of the problem and crisis areas in regards to the company, market and the competitive forces.
Developing the Guiding Coalition - Form a team of employees who would be responsible to handle the change efforts in a collective manner.
Developing a Change Vision - This step involves creating a vision and formulating the strategies to achieve the vision.
Communicating the Vision buy-in - There needs to be clear communication between the employees and the vision and the means to achieve it both need to be known by all the employees while keeping the team as the source of example.
Empowering broad based action - Use varied risky ideas, non-traditional means and other techniques not in the book to remove all the obstacles to the change.
Generating short term wins - Visible improvements need to be planned and all the incumbents should be duly rewarded for their efforts.
Do not let up - To change all the systems, structures and policies new employees maybe needed to be recruited, old ones removed and other promoted to meet the vision by also putting in new projects, ideas, work patterns, etc.
Make change stick - Use the leaders in the organization to show its employees the benefits of the change activity in both qualitative and quantitative terms so that people do not digress from the change activity. Kotters 8 steps of change (2005)
Beckhard & Harris Change Formulae
In 1987 Beckhard and Harris developed the Change equation which helps the organization to identify all the possibilities to change. The change equation propounded is:
D x V x F > R
=
Dissatisfaction x Vision x First steps > Resistance to Change
All the three components must be present in congruence in order to overcome resistance to change. Dissatisfaction with the current happenings, Vision of what is to come in the near future, and the way/direction/First steps to reach or achieve this vision should all be there to repel the resistance to the change activity. Beckhard and Harris's Change Equation (1987)
CASE STUDY
Tata Motors
Jaguar Cars Limited and Land Rover, based in the UK, are one of the key global auto majors companies that are engaged in manufacturing luxury sports saloons and sports cars that cater to the premium end of the market. On June 22, 2008; Tata Motors, India's largest automobile company, acquired the Jaguar Land Rover businesses from Ford Motor Company for a net consideration of US $2.3 billion. (Press Release: 2nd June, 2008)
But just immediately after the acquisition; the global financial sector collapsed and squeezed out global liquidity. The consequent lack of access to credit and working capital, along with the meteoric rise in commodities and fossil fuel prices, has an unprecedentedly devastating effect on the global automotive sector. All the automobile companies, hard hit by the crisis, posted major operating losses. Two of the three major U.S. car makers, General Motors
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