Figure4. 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.
3.2.1Step 1. 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. 3.2.2Step 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...