A Systematic Approach: Eight Steps to Change. We shall use the impact of low-cost airline as an example to understand each step. In 2003, Lufthansa was facing intense competition from low-cost airline on short-haul domestic flights. In the fight for domination in the German skies, Lufthansa intend to match the low-cost rivals by expanding its own network of cut-price domestic and European services.
Establish a sense of urgency. From previous experiences of battling competition and enforcing change, the first step leading to the successful implementation of change is – the creation of urgency. Establishing a sense of urgency is vital for eliminating contentment and achieving the collaboration needed to implement change. Employees are required to co-operate, understand the differences between the company’s current situation and a desired future participate and step up to the mark in order to succeed. . 2. 2Step 2. Create a powerful guiding coalition.
Once sense of urgency is established within the organisation, the next step is forming a strong group of guiding coalition. The group could consist of internal or external organisation members with significant credibility and authority. These “outsiders” can provide valuable judgement, experiences and ideas that in turn allow the employees to share a common level of understanding for change. 3. 2. 3Step 3. Develop a compelling vision.
Obviously, the reason for changes is discontentment with the current situation and having the desire for a better future. For that reason, management have to develop a clear and accomplishable vision that consists of these characteristics: a desirable future, compelling, realistic, focused, flexible and, easy to communicate. They have to be specific about how the change will improve the organisation and how those improvements will benefit employees in the organisation. 3. 2. 4Step 4. Communicate the vision.
During the implementation of change, there are bound to have resisters opposing the change. Communication is the crucial factor to convert the resisters with managers taking advantages of all the communication channels in the organisation to get the transformation effort across to all. It must be able to convey and explain the specifically how the vision will benefit them. 3. 2. 5Step 5. Empower others to act on the vision. In every change, there are bound to be obstacles. The first four steps encourage employees to accept changes.
To further support change, obstacles that obstruct the way to attaining the vision should be eliminated. If the obstacles happen to be an employee, the organisation may well have to decide the option available or sever the relationship with the individual. 3. 2. 6Step 6. Generate short-term wins Depending on the significance of change, some transformation of change might take years to before it is successfully implemented. In the case of Lufthansa, in order to top the low-cost aviation industry, the duration might approximately take ten years.
Attitude and motivation among employees might fade along the way. Soon, they will loose sight of the vision and become discouraged and disappointed therefore Lufthansa should set up multiple short-term win situations in a major transformation change. 3. 2. 7Step 7. Consolidate gains and push for more change. It is important to note that celebrating a short-term win might create complacency among employees. So instead of celebrating or declaring victory prematurely, organisation should take the opportunity to implement larger changes.
With the confidence and belief, employees will be able to accept larger and more drastic changes than before. Organisation should build on the current momentum to push for more change. 3. 2. 8Step 8. Anchor new approaches in the company’s culture. Once the objective has been achieved, prove the positive result to employees. After that, management should ensure that cementation work such as new working methodologies and policies are enforced into the company culture whereby continuous improvement and changes are seen as norm and survival.