Kotters Eight Step Change Management Model Management Essay

Kotters eight-spotsome timbre shift steering amaze Management Essay flip over is the word that best absorbd of the modern societies and burnish. qualifying occurred in roughly every aspects of life. Change presses us out from our comfort z nonp areil. People channelized in their life to avoid stagnation and to improve their look of life and cause a better psyche. This is also true in headache where the speedy flip-flop in technologies, the way of doing things, advances in knowledge technologies, internal and outer pressures, e- lineage and orbiculateization creates a competitive environment in around brass in baseb entirely club to survive and to be relevant. How business react, operate and alter to each(prenominal) win overs ascertaintle the survivability of the company. In makeup, replace is necessary that oft proves to be ch exclusivelyenging.To comport a win over (managing a diversity serve) whitethorn be the greatest test for the leader of t he organization especially when in that respect is resistance. thitherfore to lead a change is essential only grueling (Kotter 2007). The conquestfulness on passing change in an organization engages a serial of phase, a correct tools and proper planning. Palmer, Dunford and Akin (2009) quoted that Changing organizations is as mussy as it is exhilarating, as frustrating as it is satisfying, as muddling-through and fictive a process as it is a rational one (p. 1).On the re voguishing(prenominal) hand, angle of inclination six-spot Sigma or cant public opinion process has been widely accredited and adoptable tool for improving organizational performance. The thinking yields a order to do much with slight without jeopardizing the quality, cost and delivery and at the very(prenominal) quantify finding customers requirements. Less means less safari, less equipment, less time, less cost, less space and eliminating all sources of wastes in the process. Developed as a production systems eliminating wastes in the Toyotas manufacturing plant in 1960s, now heel over thinking evolving across countries and industries as a management greet that improves all processes at each level of the organization.However, in realities, many organizations atomic image 18 not able to transform themselves to run away organization and unable to get the bring in out of it. Transformation initiatives towards the cant over organization are full with cont hold ons and resistances. much companies that promote lean thinking, even those undertaken with the best intention are a great deal destined to a blendure due to its un victorious execution (Jeyaraman 2010). There are a lot of resistance factors and mostly shtup be divided into human and non-human factor. From Langstrand et al. (2012) In a member survey, the Lean effort Institute (LEI) found that more than 36% of the respondents attributed change failure to position management resistance. Along with emp loyee resistance and supervisor resistance, these were considered cardinal of the four most significant obstacles to implementing lean (LEI, 2007).According to (Norani 2011) lean transition requires sudden dodge and he suggested that among all the emergent change approaches, Kotters Eight- flavour Change Management arche face is one of the known change management fabric. Kotter (1996) suggested Eight-Step Change Management moulding as shown on Table 1.1.Table 1.1 Kotters Eight-Step Change Management formStep 1Establishing a Sense of UrgencyStep 2Creating the channelise CoalitionStep 3Developing A mass And StrategyStep 4Communication the Change reverieStep 5Em sourceing Employees for Broad- base ActionStep 6Generating Short-Term WinsStep 7Consolidating Gains And Producing more(prenominal) ChangeStep 8Anchoring New Approaches In The burnishThis airfield depart analyze the effectualness of change step efforts that stick been taken during the carrying out of Lean sext et Sigma Program in regime owned service oriented organization from a perspective of change management using the Kotters eight-step change management model as benchmarks. basis of The StudyIn todays fast-moving era, if at that place is an organization that is looking for the pace of change to slow or slow in their reaction to any response, is seeming to be sorely disappointed and left behind. In fact, some says that, in businesses change is permanent. Change is key in every organization because without change, business would likely lose their grocery shares, competitive edge and fail to meet the respective(a) require of the customers.SIRIM Berhad is also not neglected from the take exceptions of reacting more intelligently to customers needs to become more effective. SIRIM Berhad, formerly known as the Standards and industrial Research Institute of Malaysia (SIRIM), is a corporate organization owned whole by the Malayan Government, under the Minister of Finance Incorporat ed. It has been entrusted by the Malaysian Government to be the case organization for standards and quality, and as a mover of technological excellence in the Malaysian industry. The organization came into operation on September 1, 1996 via corporatization scheme of standards and industrial query institute, initiated by the government with the deal to be a corporation of choice for technology and quality.SIRIM Berhad as the national organization of standardization and quality, and as the prime mover in industrial research and outgrowth acts as a catalyst in livery about national economic dynamism through excellence in technology and international espousal of Malaysian products and services. Their mission is to enhance their customers fighting through technology and quality, and fulfill the needs of the shareholders.As much(prenominal)(prenominal) its position is to act asA champion of quality.The national technology development corporation.Vehicle for technology transfer.A provider of institutional and technical radix for the Government.SIRIM Berhad has initiated a political platform called Lean six-spot-Sigma Program (LSSP). LSSP is veritable based on the infamous good ruleology known as Lean 6 Sigma Strategy. It was initiated based on the emerging needs to develop SIRIM to be a market driven organization with induceable business growth and global market penetration. The proposal has been developed by Group feature occupational Safety Health and Environment Department (GQOSHE) in 2008.The important accusing of the LSSP is to establish an Integrated Business Process Improvement (IBPI) system that builds on four initiatives namely Lean Six Sigma (LSS), Innovative and Creative sight (ICC), Just Do It (JDI) and Personal Quality Program (PQP). The first deuce-ace initiatives are continuous value methodology use to enhance business performance while the latter is a motivational and ethnical learn political course of see for SIRIM staffs. The continuous progress initiatives were utilise to promote, nurture and inculcate innovative, creative thinking and learning kitchen-gardening into SIRIM to strengthen its business processes and systems in order to be a market driven organization.Problem StatementUpon acceptance of the proposal from President and Chief Executive, LSSP was officially fathered on January 28, 2008 followed by the directional to begin the Lean Six Sigma project executing on few lilliputian scale control projects on February 29, 2008. Seven (7) departments / divisions of SIRIM Berhad deport been selected for the pilot project.These departments relieve oneself been participating in the Lean Six Sigma workshops and training political platform which comprise of Green Belt and Black Belt programs. The program focal point on areas as followsTo assist the existing project aggroup to implement prioritized ICC projects,Lean Six Sigma pass judgment Stream projects,To initiate Lean Six Sigma initia tive at other SIRIM departments and,To certify the Green Belt who has carry out the certification process.During the training period, 19 projects initiated on cost saving activities and 9 of the projects stupefy been completed. Based on value electric current mapping (process analysis) conducted at participating departments, upon completion of all the prioritized projects, the program has estimated cost savings of RM300k per socio-economic class (including project savings from Genba Kaizen 5S execution of instrument). Other tangible realizes from the program areSafer and more organize work place.Creation of work space and elimination of obsolescent and out-dated items.Low and controllable stock keeping level of certain items such(prenominal) as stationeries, chemicals final resulting to better cash flow and stock management.Improved process visibility and productivity.Lean Six Sigma Program (LSSP) is expected to be a new change program in SIRIM Berhad and the successful exe cuting of the program is important for sustainability and growth of the organization.Despite the 3 geezerhood of training program consists of briefings, training session and pilot projects, the program unable to reach its aspiration of transferring SIRIM Berhad to become lean organization and to embed lean thinking into the culture of the organization. From an early interview with some of the staff acquired, it is confirmed that currently Lean Six Sigma has not been practiced in their section or department. The program seems to be abandoned and not getting enough bond to sustain the initiatives.Research ObjectivesThe objectives of this deliberate areTo analyze the effectiveness of change move efforts that have been taken during the implementation of LSSP with reference to Kotters Eight-Step Change Management Model.To determine the value of LSSP to the department during the implementation stages.To determine the weakness of LSSP to the department during the implementation sta ges.To make recommendation on the finding to the management of SIRIM Berhad on managing lean program and any change management initiatives.Scope of The StudyThis study pass on be focusing on the implementation stages of Lean Six Sigma program in SIRIM Berhad. The respondents pass on comprise of theatre directorial and non-managerial employees that participated in the program before. This study is focusing the change management steps as per Kotters eight change steps of change management as a benchmark. signification of The StudyAfter the training period, Lean Six Sigma program seems to be abandoned and not getting enough coalescency to sustain the initiatives but no formal and structure study has been done to understand wherefore the program not achieving the expected outcome especially on the implementation process. Therefore this study is significant to fill the gap by assessing the implementation steps that have been taken during the implementation of the Lean Six Sigma pro gram.The research will analyze the employees information toward the effort of change steps that have been taken during the implementation. By under stand up this, it will help the management to take aim the suitable and effective steps to improve the implementation of LSS program in SIRIM Berhad and also to be used as a guideline for any changes initiatives in the organization.This study will also provide value by identifying if Kotters popular change management model is also useful in government owned service organization. As a result, the outcome can also be used by other government owned organizations that will or are undergoing Lean Six Sigma initiatives by providing information concerning the applicability of Kotters eight-step change management model as a useful model on managing a change in their organization. Academician and lean consultant could also get the benefit from the findings on the effective way of managing lean in government owned service oriented organization. boundary of The StudyIt is important to understand that this is a case-study. This study is limited moreover to the staff of SIRIM Berhad that involved during the implementation of LSSP. The survey is based on perception and subject to bias that could impact the end results. Therefore the sincerity of the correspondents during say the survey is very important.Definition of TermsBlack Belt enough time position creditworthy for leading project teams. They are responsible for delivering the value and benefits that were determined for each of their projects during the projects selection process.Green BeltsA person who works on a Lean Six Sigma project sole(prenominal) part-time, on a particularized process about which he or she generally possesses knowledge important to the success of the project (Michele 2002).KaizenContinuous improvement in Japanese. The kaizen process is modeled after quality circle, the team-based continuous improvement vehicle utilized in the Toyota production System. The secret to Kaizen is that it emphasize creativity before capital (Michele 2002).Lean Six SigmaThe activities that cause the customers critical-to-quality issues and create the eight-day time delays in any process offer the greatest prospect for improvement in cost, quality, capital, and lead time (Michele 2002).Value StreamThe set of activities that convert customer needs into delivered products and services. Improving an entire value stream requires multiple projects (Michele 2002).CHAPTER 2LITERATURE REVIEWIntroductionChapter 2 presents the belles-lettres review of the research study. This chapter is discussing about the change management, lean six sigma, change model, Kotters eight-step change management model and the research questions.Change ManagementChange is a reality of life. In the past five decades change/improvements initiatives have been driven by a lot of approaches. For example, in 1950s Management by Objectives (MBO), Employee Assistance Programs (EAP s) have been introduced. In 1960s to 1970s Sensivity Training, T-groups, Quality Circles, Corporate Culture have been used. The famous improvement initiatives such as ISO9000, Total Quality Management and Corporate Culture were introduced in mid-eighties and in 1990s Reengineering Agile Strategies, Horizontal weeds, Employee Empowerment, Core Competencies and Vision have taken the scene (Palmer, I. et.al 2009). Motivations for change have been customers satisfaction, cost reduction, meliorate efficiency, improved quality, or, in extreme cases, survival (Longbothom et.al 2006).Self D.R and Schraeder M. (2009) explained that the first challenge organization faced during implementing change in the organization is recognizing the need for change and second, and mayhap more significant is effectively deploying strategies to implement change. Contemporary literature outlines a multitude of various strategies for implementing change in an organization.Wikipedia (2012) defines Change M anagement as an approach to shifting / transitioning several(prenominal)s, teams, and organizations from a current state to desired future(a) state. Smith (2005) explained that change is a process of letting go of things as they are in order to take up a new ways of doing things. Organizational change normally challenges the status quo of the employee and it may challenge the values and perceived rights of workers and work group. For some large number, change is welcome and relates to something new, fresh and exciting but for some people may be more cautious by seeking to test and examine before proceeding.Palmer et. al (2009) explained that there are six images of managing change. First is change manager as a director which gave an image of management as control and change outcomes as being achievable. Second is change manager as a navigator where the manager is in control of a given stead and the outcomes are partly emergent quite an than completely planned and result from a variety of influences, competing interests and processes. Third is change manager as trade taker is an ideal image of management is still one of control, although the ability to action control is severely constrained by a variety of forces, both internally and externally driven, that propel change comparatively independent of managers intentions. forward is change manager as a coach where the manager is in a position to shape the organizations capabilities in particular ways. Fifth is change manager as an interpreter where managing change places the change manager in the position of creating meaning for the other organisational members, helping them to make common sense of various organisational events and actions. And lastly change manager as nurturer where the nurturing image to managing assumes that even small changes may have a large impact on organizations and managers are not able to control the outcomes of their changes.For other journal, Michael Stanleigh (2008) found th at most change initiatives fail because management may not be engaging employees in the process towards change and do not allow sufficient time for change to set. It is important to implement change in a series of phases that will engage employee and to allow sufficient length of time for each phase to become institutionalized within the organization. He listed out some(prenominal) drivers of change such as mergers and acquisitions, cosmos, technology, restructuring / re-organizing, declining sales and/or market share, globalization, magnification and growth, sense of urgency and lastly when 75% of the leadership is honestly convinced that business as usual is no longer as grateful plan. However he claimed that, too often, management fails to recognize that adjustment to change takes time. They expected the employee to react quickly to the changes and fail to recognize that each individual will go through all of the phases at different paces. As a result, sometimes the employee may burn out, scared or discomfited and unable to cooperate. Therefore he recommended all managers to apply multi-step process to guide, include, empower, take and motivate employees toward change.2.2 Lean Six SigmaLean Six Sigma is a proficiency to improve process and can be used either individually, in a group of people or in combination with a target to improve the quality and delivery of any business process. conciselyer developed by Toyota called as Toyota take System is based on series of principles focusing on eliminating 7 categories of Muda, Japanese word means waste, peculiar(prenominal)ally any activity of consuming resources but creates no values. drive out such as over divulged of goods that no one wants, transportation of goods from one place to another without any reasons, waste due to correction of defects which require rectifications, waste in waiting time due to delay in process, over- bear upon, inventory pile up and motion waste of unnecessary processing steps will end up not meeting the needs of the customers.Liker (2004) claimed that the lean thinking was used by Taiichi Ohno, a Toyotas Plant manager who was assigned to improve Toyotas manufacturing process back in 1950. TPS underpins many innovation including the elimination waste muda, quality at the source jidoka and continuous improvement kaizen. Through years of trial and error, Toyota caught the worlds attention in 1980s where the cars produced were perpetual longer than American cars and required much less repair. Based on his study, in 1990s Toyota capable to produced new design of auto faster, with more reliability, at a competitive cost and became third-largest auto manufacturer in the world behind General Motors and Ford. Much of the success comes from its astounding quality reputation. Kaizen (continuous improvement) will lead to learning organization. This culture when embedded to the organization will give a great benefit by providing opportunities for improveme nt and sustainability in a long run.Any organization will obtain an effectiveness and efficiency in their process by implementing Lean. Lean requires a specific way of thinking, philosophy and management system. Liker (2004) describes fourteen principles of lean at Toyota Production Systems (TPS) and the principles can be divided into four categories that areLong-Term Philosophy.The mature Process Will Produce The Right Results.Add Value by Developing Your People and Partners, andContinuously Solving Root Problems Drives Learning.Womack J.P and Jones D.T (1996) explained that the lean thinking provides a method to make any tasks more satisfying by converting waste into value with less human effort, less equipment, less time and less space while coming closer and closer to providing customers with precisely what they want. He proposed 5 lean principles consist ofSpecify Value.Identify the Value Stream.Determine the Flow.Pull.Perfection.They proposed that all 5 steps should be appl ied holistically and it is important that all the steps are performing in concert due to the interrelationship between the principles is enough to enhance the outcomes of the others. They also argue than lean not just can be successful in manufacturing organization but also in any other organization. They come out with a term called From Lean Production to Lean Enterprise. Although lean will invariably associated with reduction of costs, eliminating waste and JIT but the adoption of lean is beneficial for knowledge-based activities such as services, design, engineering and product development.2.3 Change ModelThere are a lot of change models been studied and introduced to organize change activities in a systematic approach. Researchers have been studying change, specifically organizational change, for decades. concomitant studies on implementing change has been conducted by Ian Palmer, Richard Dunford and Gib Akin (2009) and presented in their obligate Managing Organizational Cha nge. They said that in various change management approaches provide multistep models of how to achieve larga-scale, transformation change. They studied 9 examples of change management model that have been introduced from 1992 to 2006. These models differ not just in terms of the number of steps but also the way to implement the steps. Katner, Stein and Jick proposed an approach called Ten Commandments in 1992, Pendlebury, Grouard and Meston proposed Ten Keys in 1998, Nadler proposed 12 Action go in 1998, Taffinder proposed Transformation Trajectory in 1998, Anderson and Anderson proposed Nine-Phase Change Process Model in 2001, Kirkpatrick proposed Step-by-Step Change Model in 2001, Mento, Jones and Dirndorfer proposed 12-Step Framework in 2002, Light proposed RANDs Six Steps in 2005 and Leppit proposed Integrated Model in 2006. The summary of all 9 change models made by Palmer et. al. (2009) is as Appendix 1.Ian Palmer, Richard Dunford and Gib Akin (2009) said that possibly one of the best-known change management model is John Kotters eight-step model. Norani (2011) also says that among all the emergent change approaches, Kotters model is said to have a long standing extravagantly reputation that has flexibility to deal with vast number of problems and issues that may be experienced during change. Kotters simplifies the steps during change process to overcome the challenge and constraints that might occurred during the implementation.2.4 Kotters Eight-Step Change Management ModelJohn P. Kotter graduated from MIT and Harvard. He joined the Harvard Business School faculty in 1972 and after 8 years, at the age of thirty-three, he was voted tenure and a full professorship. He wrote a lot of books, journals and articled related to leadership, change and managements. In 1994 he wrote an article for the Harvard Business Review entitled Leading Change why Transformation Efforts Fail. It was based on his analysis from a lot of initiatives to produce significant usef ul change in organization via restructuring, reengineering, restrategizing, acquisitions, downsizing, quality programs and cultural renewal in companies that trying to remake themselves into significantly better companies. These companies include large organizations such as Ford, General Motors, British Airways, Landmark Corporation etc. The basic object of all change efforts was to make total changes in how business is conducted in order to cope with a changing market environment. He has made his study on both success and fail of change initiatives.As a result from his analysis Kotter developed his 8 steps for change. The eight steps were created to be followed one by one and in sequence where for him each step building on the preceding(prenominal). Kotter states that it is essential to thoroughly complete all 8 steps, not pillow slip only one or myopic. Kotter (1996) quoted Whenever you leave one of the steps in the eight-stage change process without finishing the work, you usually pay a tumid price later on.Step 1 is Establishing a Sense of Urgency. Change efforts begin successfully when some individuals of a group of people start realize and look hard at a companys competitive situations, market positions, technological trends and financial performance. Kotter notes that over half of the companies he analyzes have never been able to create enough urgency to prompt action. Compared with other steps in the change process, step one can sound free but it is not. Well over 50% of the companies I have watched fail in this first phase (Kotter, 2007, pg. 3). Kotter proposed that the change initiatives can be successful is when 75% of companys managements is honestly convinced and agreed to change.Step 2 is Creating the Guiding Coalition. Kotter (1995) described it as a step that requires the organization to assembling a group with enough power to lead the change effort and shape up the group to work together as a team. The team may consist one or two peop le in the early stage but it must grow over time. It is important that the team get full validate by the top managements. A high sense of urgency for change within the top management is such organization helps enormously in putting a guiding coalition together. Leadership play an important role to spread out the sense of urgency to change. Efforts that dont have a powerful enough guiding coalition cant only sustain for a while and in the end the progress will stop.Step 3 is Developing a Vision and Strategy. A vision helps clarify the direction in which the change results should be. Kotter (1995) describe this step as developing a picture of the future that is relatively easy to communicate and appeals to customers, stock-holders and employees. Without a sensible vision, any change effort can easily dissolve into a list of confusing and antipathetic projects that can take the organization in the wrong direction or nowhere at all.Step 4 is Communicating the Change Vision. In this st ep, every possible communication channel must be used to spread out the change initiatives. Everybody needs to know, aware and get long-familiar about what is happening. Some key elements of effectively communicating shall be used such as repetition, explanation, forums and leading by example of the guiding coalition.Step 5 is Empowering Employees for Broad-Based Action. In this step, action should be taken to remove all obstacles to change. This might as be up to the extent of changing systems or structures that seriously undermine the vision. It also may involve allocating some budget, money, time, support etc. These are to get more people to involve. The more people involved, the better the outcome (Kotter 1995).Step 6 is Generating Short-Term Wins. Transformation will take time and effort and will risk losing momentum if there are no brusk-term goals or achievement. Some people will only get participate when they start to see the positive results. Without short term wins, peop le will get exhausted and may roll back to their original behavior or condition.Step 7 is Consolidating Gains and Producing More Change. In this step, Kotter gave warns that people tend to declare victory too soon before they are really won. They easily get satisfied with the changes without shrewd that it is not fully embedded into the systems of the organization. The change might take years to complete.Step 8 is Anchoring New Approaches in The Culture. This step is the ultimate goal of any change initiatives. It embeds in the culture of the organization, when it seeps into the bloodstream of the organization.2.5 Research QuestionsBased on the discussion above, the following research questions have been formulated to guide the study.Is the program established enough Sense of Urgency to the staff during the implementation period?Is the program creating a group of people with enough power to lead the change effort and encourage the group to work together as a team during the implem entation period?Is the staff been thought about the Vision and Strategy and understand the end results of Lean Six Sigma program?Is the staff easily versed and understand about the benefit of Lean Six Sigma?Is the program gets enough support from the management and well accepted by the staff?Is staff clear about the short term target and long term target of the program and see that Lean Six Sigma will give a lot of benefit to them?Is the program continuously developing and more people start to blab out about Lean Six Sigma?Is Lean Six Sigma embedded into the culture of every staff?CHAPTER 3RESEARCH METHODOLOGYIntroductionThe previous chapters provide with a contextual framework for understanding the purpose and objectives of the research. Chapter three focuses on the research methodology and its application to the research objectives and questions outlined in chapter one and two. The research design, population and sample, sampling procedure, assessment instruments and pilot stud y are described according to its use in this chapter. In appurtenance the statistical tools used for data analysis are defined in relation to the objectives and research questions.Research DesignResearch can be describe as a systematic and organized effort to check out a specific problem that needs solution. Management research could shroud the study of employee attitude and behavior, human resources management, the impact of changing demographic on management practices, production operation management, strategy formulation, information systems, and the like (Sekaran, 1984, p. 5).The type of this research is applied research. When research is done with the intention of applying the results of its findings to solving specific problems currently being experienced in the organization, it is called applied research (Sekaran, 1984, p. 6). information can be collected in a variety of ways, settings and sources. This study will base on quantitative research using questionnaires (survey ) method and qualitative research by interviewing some of the selected staff purposive sampling. Sekaran (1984) explained that a questionnaire is a preformulated written set of questions to which respondents record their answer, usually within rather closely defined alternatives and interviewing is a process to obtain information on the issues of interest to the researched. It can be either unstructured or structured and could be conducted either face to face or any means. The main purpose of the interview is to have an early understanding on Lean Six Sigma Program that has been implemented.Population and SampleA total of long hundred participants from 7 departments / divisions of SIRIM Berhad participated in Lean Six Sigma Program will involve in this study. The participants are full time staff work