Business

List the 8 steps of Kotter’s Model

1. Create a sense of urgency

2. Form a powerful coalition

3. Create a vision for change

4. Communicate the Vision

5. Empower action

6. Create short term wins

7. Build on the change

8. Make it stick

Create a sense of urgency

Leaders convince employees that change is necessary by highlighting threats, problems, competition or opportunities.

sales data

customer feedback

market trends

Form a powerful coalition

Leaders assemble an influential team of managers, employees and stakeholders who support the change.

Create a vision for change

A vision clearly explains the desired future and why the change will benefit the business and stakeholders.

Communicate the vision

Leaders repeatedly share the vision through meetings, emails, training, presentations and everyday actions

Empower action

Leaders remove barriers that prevent employees from acting on the vision, such as outdated policies, poor systems, lack of training or resistant managers.

Create short-term wins

Businesses set achievable early goals that produce visible improvements within a short time

Build on the change

After early successes, leaders use the increased credibility and momentum to implement larger or more difficult changes.

Make it stick

The change becomes part of the business’s culture and daily operations.

List Lewin’s Model theory

Unfreeze

Change

Refreeze

Unfreeze

• Key Actions: Communicate the rationale for the change, identify areas of inefficiency, and build support among leadership and stakehol

• Goal: Reduce resistance and foster a readiness to adopt new methods

Change

• Key Actions: Provide comprehensive training, continuous coaching, and practical support to help employees adapt

• Goal: Navigate the uncertainty of the transition and ensure that staff internalise the new ways of operating

Refreeze

• Key Action: Align policies and procedures, reward adherence to the new processes, and establish feedback loops

• Goal: Embed the change into the corporate culture so employees do not revert to old habits

Business environments

Internal environment

external operating environment

macro environment

stakeholder

Business criteria

Competitiveness

effectiveness

efficiency

stakeholder satisfaction

Seed stage

The idea stage: researching the market, planning the business and getting finance before it starts operating.

Start-up stage

The business has just begun trading; it is building customers, testing products and often losing money at first.

Growth stage

Sales, customers and profits increase quickly; the business may expand staff, products or locations.

Maturity stage

Sales and profits are stable but growth slows; the business focuses on keeping customers and staying competitive.

Post-maturity stage

The stage after maturity. The business either stays in a steady state, declines, renews itself or exits the market.

Steady state

The business continues operating at a stable level, with no major growth or decline.

Business Decline

Sales, profits or market share fall because the business has become less relevant or competitive.

Renewal

The business reinvents itself to grow again, such as launching new products, rebranding or entering new markets.

Business transformation

A major change to how the business operates, such as changing its business model, products, markets or structure.

Internal environment

Factors inside the business that it can control, such as employees, managers, culture, finance and operations.

External operating environment

Outside factors the business deals with directly, such as customers, suppliers, competitors and creditors.

Macro environment

Large outside forces that affect all businesses, such as the economy, technology, laws and social trends.

Stakeholder

Any person or group affected by, or with an interest in, the business, such as owners, employees, customers and the community.

Organisational change

A significant change to how a business operates, such as new technology, restructuring or a new strategy.

Change management

Planning, communicating and supporting change so employees accept it and the business achieves its goals.

Globalisation

The increasing connection between economies, creating opportunities to sell globally but also increasing competition.

Diversification

Expanding into new products or markets to reduce dependence on existing income sources.

5 Strategies to Overcoming Resistance

Communication

Participation

Negotiation

Manipulation

Threat

Communication

Definition

• Telling stakeholders about the change and explaining why it is happening

When It Works Best

• When resistance comes from fear, uncertainty, or lack of information

Risk

• Low risk, but slow if trust is poor

Participation

Definition

• Involving stakeholders in planning and making decisions about the change

When It Works Best

• When employee ideas and buy in are important when change affects work practices directly

Risk

• Low risk, but can be time consuming

Negotiation

Definition

• Offering incentives or compromises to gain supprot for the change

When It Works Best

• When a powerful stakeholder group may lose soemthing from the change

Risk

• Moderate risk/ cost; may create precedent

Manipulation

Definition

• Influencing people to accept change without being fully open or honest

When It Works Best

• When speed matters and resistance is strong

Risk

• High risk damages trust culture if discovered

Threat

Definition

• Forcing people to accept change by warning of negative consequences

When It Works Best

• When urgent compliance is needed

RIsk

• High risk: Creates resentment, low morale, and may increase resistance

Internal drivers for change

Owners

Employees

Poor Performance

Owners

May want higher profits, busienss growth, a new direction, or successio/ exit plans

Employees

May seek better pay, conditions, flexibility, training, job security, or workplace culture

Poor Performance/ KPI’s

Falling sales, market share, profitability, productivity, or customer satisfaction cna trigger corrective change

External Drivers for Change

Competition

Customers

Technology

Competition

NEw entrants, lower prices, better products, improved custoemr servies, or new technoloigyu cna force a business to respond to protect marekt share

Customers

Changing needs, preerences, expectations, demographics, and buying habits reuqire busiensses to adapt products, service, channels, and marketing

Technology

Automation, AI, e-commerce, can improve efficiency but may make existing systems, skills,m or products obsolete