This was assigned reading for an MBA class at UT Austin.
Highlights:
Paul Levy leads Beth Israel Deaconess Hospital from red to black while exceeding expectations.
Two parts to the turnaround process: 1) Develop Plan, 2) Implement Plan [Dr. Stephen R Covey would call this the Mental Creation and the Physical Creation respectively.]
Four phases of persuasion campaign:
1. Convince employees that radical change is necessary and show why the new direction is the right one
2. Position and frame, gather feedback and announce final plan
3. Manage employee mood through constant communication
4 reinforce new behaviors to prevent backsliding
Although the article doesn't reference Kotter's "Leading Change" and his 8 steps, Levy's actions definitely do highlight the 8 steps. However, the one thing I didn't see was any mention of a "guiding coalition" that Kotter would recommend.
A few bullet points
- Clear, concise vision –bold and compelling
- Prepare the soil for change
- Differentiate from past plans
- Convince people their organization is truly on its deathbed and quick, radical change is necessary
- Gain mandate for change
- Frequent communication – don't sugarcoat; balance negative with realistic hope and vision of future
- Change and reinforce behavior, not just thinking
Questions I have:
What about less than "massive" change? What if your organization is not on its deathbed?
What if you've already started to change? Is it too late to go back and start over Russian Mark
This is only one case. Where else has this been tried? With the strategy and tactics have had the same result within another organization?