Good-to-Great Process, Essay Example

John Kotter suggested a sufficient eight-step change model for a company to implement change. In fact, the change will occur only when the whole company really wants it. In order to create initial motivation to get things going you have to develop a sense of urgency on the first place. A good manager in this case should identify the potential threats and possible outcomes, examine opportunities to be exploited, hold a discussion providing dynamic and convincing reasons supported by customers, outside stockholders, and industry people. “A majority of employees, perhaps 75 percent of management overall, and virtually all of the top executives need to believe that considerable change is absolutely essential”(Kotter, 1996) The seconds step would be forming a powerful coalition, for leading change is even more essential than managing it. As a manger, you have to look for effective true change leaders throughout your organization, disregarding traditional company hierarchy.  Thus you will be able to bring together a powerful coalition or team, consisting of influential people, who obtain their power from a variety of sources. Next step proposed by John Kotter was creating a vision for change. Here you have to define the central change values and develop a short summary reflecting your thoughts about the organization in the future, thus creating a certain strategy to fulfill the vision. The next step after creating the vision would be communicating it. Considering the strong competition your vision will have from other day-to-day communications, you have to bring it up powerfully and more repeatedly. Using it daily for making decisions and solving problems will keep it fresh on everyone’s minds. Furthermore, you have to remove obstacles, which is the next step. At this point your staff is supposed to be encouraged to achieve the goals and change promoted. Identify change leaders and reward people who deliver the change and make it happen. As a manager, you also have to examine the organizational structure, performance and compensations systems, and job descriptions to make sure they correspond to your vision. The sixth step would be creating the short-term targets to motivate your staff with a taste of victory early in the change process. Try to organize the change process so you have smaller inexpensive targets to be achieved, thus being able to justify the investment in each project. The seventh step would be building on the change, thus constantly looking for improvement to your system. Kotter suggests that small and quick wins are only the beginning, for real change goes deep. Lunching one product through one system is good, but launching ten products through this system proves that it is working. Therefore, you have to build on every success and continuously enhance the system. The last step of Kotter’s eight-step change process is implementing the changes in corporate culture, thus making continuous efforts to ensure that your change is observed in each and every aspect of your organization’s culture.

Collins in his book Good to great: Why some companies make the leap and others don’t present a three-step process of turning a good company or business into a great one. The breakthrough starts with looking for disciplined and professional people and hiring them. At the same time the company should get rid of its burden – the workers, who do not contribute to the prosperity and development of the company. Moreover, it is vital to find the right positions for the right people and find a person able to control and manage the whole business ‘machine’. Collins underlines: “People are not your most important asset. The right people are” (Collins, 2001). The next stage includes introducing disciplined thought. It starts with distinguishing and realizing the most brutal facts of the company’s situation, while always keeping steady faith in the positive outcome of any business transition or decision. Acquiring culture of discipline eliminates bureaucracy, hierarchy, and excessive controls. Once the company reveals the three circles of hedgehog concept, faces the real data and facts, understand what it should recognize and address, and evaluates its biggest challenge in the transaction from good to great, than it is ready to move to the third step, which is disciplined action. Collins emphasizes that technology is not the main driving force of the leap, but rather assist in the transition in skillful hands: “…technology by itself is never a primary, root cause of either greatness or decline” (Collins, 2001). The process is not a revolution. Neither is it a quick jump for being a good company to being a great company. It is a steady process, which takes time, effort, skills, and motivation that is aimed at the point of breakthrough.

Kotter’s change model as compared to Collin’s three-step process appears to be more specific, detailed, and internal. Kotter suggest applying certain tools in the already existing company, making the managers, leaders, and employees, who are currently working for a company to change together with the company. Collins is more concerned with building a new company within the old one, changing its psychology, goals, and culture together with bringing new people into the business. Moreover, Kotter is extremely concerned with the psychological and emotional situation of the employees, constantly emphasizing the need of brainwashing and demonstrating. However, the overall goal of both authors is to set up a clear process of transformation, from the very first idea to the final leap from good to great.

References

Collins, J. (2001). Good to great: Why some companies make the leap and others don’t. New York: HarperCollins Publishers Inc. ISBN: 0066620996.

Kotter, J. P. (1996). Leading change. Boston: Harvard Business School Press. ISBN: 0875847471.

Senge, P. (1994). The fifth discipline fieldbook: Strategies and tools for building a learning organization. New York: Doubleday. ISBN: 0385472560.