The Challenge and Opportunity of Change

John P. Kotter
Most executives who attempt a change of any significance today seem to struggle, no matter if the shift is strategic, organizational, or operational. They make a predictable set of mistakes starting, quite literally, with step 1: creating a sufficient sense of urgency. The predictable mistakes slow things down, increase costs, create frustration and fingerpointing, and ultimately stop them from achieving the ambitious goals all great leaders have.
But—there is a process for creating and executing new initiatives, or ambitious goals, or a turn-around, a process that has been shown to work remarkably well. It’s basically eight steps, and it does not require a rocket scientist to learn it. All managers, and as many employees as possible, need to learn and use the steps to change efficiently, quickly, intelligently, with the right vision, and with a minimum of wasted resources and frustration. Increasingly, this knowledge is not an asset, it’s a requirement.
The process, most of all, requires more leadership from as many people as possible, starting at the top. Executives need alignment around a clear vision, need to get their people to understand and truly buy into that vision, and need to create conditions that energize employees to achieve ambitious goals no matter the obstacles. It’s critical that executives see this and get the help needed to make this happen.
Most organizations have very few people providing good leadership. Leadership is missing all the way from the executive committee to task forces filled with junior employees. Leadership is missing because people mistake management for leadership (they are different, both important but clearly different). It’s missing because people think leadership is not their job (they believe it’s their bosses’ job or the CEO’s job). It’s missing because employees think the bosses don’t want them to lead (which may in fact not be true). To win, you must commit yourself to changing this reality (and we know it is possible to change this reality).
The upside possibilities for organizations that embrace change, create sufficient leadership, use the change formula well, and thus grab the opportunities and avoid the hazards—are huge, and much bigger than most people truly appreciate: growth, profitability, wealth creation, more successful customers, helping the economy, public esteem, and much more. As many people as possible must see this and truly believe it (not just think it would be nice but….)
The upside possibilities for individuals who step up to the plate and choose to lead, who provide some leadership no matter what their jobs, and who make needed change happen—in this case the possibilities are equally large. Career and income opportunities are there, yes, but even more so is a pride, a sense that work is truly meaningful, and a powerful feeling that you are making a difference. Again, as many people as possible must see this, starting at the very top (and I don’t mean they nod yet really think it’s all about the paycheck).
Truly great organizations drive these beliefs and skills all the way through the ranks—to some degree, literally, to the very bottom of the hierarchy. They get as many atoms as possible vibrating on the same frequency and the right frequency. The resulting energy, alignment of movement, and movement in a smart direction is what makes CEOs (and those around them) successful and wealthy, yes, but heroes too, and justifiably so. Executives must understand this fact, both intellectually and emotionally, and, when they do, they will act on the powerful implications.