Leading Organizational Change126

Of course, the challenge is in the details. A CEO such as Nokia s Stephen Elop needs a
process for leading such a change. An 8-step process for leading organizational change
follows.127
Unfreezing Stage
1. Establish a sense of urgency. Most managers start by creating a sense of urgency.
This often requires creativity. For example, the CEO might present executives
with a (fictitious) analyst s report describing the firms imminent demise.
2. Mobilize commitment through joint diagnosis of problems. Having established a
sense of urgency, the leader may then create one or more task forces to diagnose
the problems facing the company. Such teams can produce a shared understanding
of what they can and must improve, and thereby mobilize commitment.
Moving Stage
3. Create a guiding coalition. No one can really implement major organizational
change alone. Most CEOs create a guiding coalition of influential people. They
work together as a team to act as missionaries and implementers.
4. Develop and communicate a shared vision. Your organizational renewal may require
communicating a new vision.For example, Stephen Elops vision was of a streamlined
Nokia moving fast to build advanced smartphones based on Microsoft s operating
system. Guidelines here are keep it simple (for example, We are going to become
faster than anyone else in our industry at satisfying customer needs. ), use multiple
forums (meetings, e-mails, formal and informal interaction), and lead by example.128
5. Help employees make the change. Are there impediments to change? Does a lack
of skills stand in the way? Do policies, procedures, or the firms organization
make it difficult to act? Do intransigent managers discourage employees from
acting? If so, address the impediments. For example, Elop quickly replaced many
of Nokia s top and mid-level managers.

6. Consolidate gains and produce more change. Aim for attainable short-term
accomplishments. Use the credibility from these to change the remaining systems,
structures, and policies that don t fit well with the company s new vision.129
Refreezing Stage
7. Reinforce the new ways of doing things with changes to the company s systems and
procedures. For example, use new appraisal systems and incentives to reinforce
the desired behaviors. Reinforce the new culture by ensuring that the firms
managers role-model the company s new values.
8. Finally, the leader must monitor and assess progress. In brief, this involves comparing
where the company is today with where it should be, based on measurable
milestones. At Nokia, for instance, How many new products has the company
introduced? What is our smartphone and handset market shares?