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Transforming Change: Kotter’s Model for Shared Services Success

Change isn’t just a buzzword; it’s an inevitability. Especially in the shared services industry, making transformation more than just a strategy is crucial. Ever feel like you’re stuck in a rut, with processes dragging you down? You’re not alone. Many of us wrestle with the challenges of implementing effective change.

Let’s talk about a reliable way to tackle this: Kotter’s 8-Step Change Model. This isn’t your typical change management framework; it’s built on real stories and results. I want to walk you through each step and share some insights that have worked wonders in my 20+ years in the shared services realm.

Step 1: Create a Sense of Urgency

The first step is about feeling the fire. Why should anyone in your team care about change? You have to create a buzz. Paint that picture vividly. Highlight the problems we are facing and the opportunities on the horizon. Here’s how:

  • Share real statistics – numbers don’t lie.
  • Tell stories of competitors thriving while others falter.
  • Involve everyone – let them know their voice matters.

It’s about more than just telling; it’s about showing why change is necessary today. This isn’t just a few slides during a meeting. It’s a movement.

Step 2: Form a Powerful Coalition

No great change can happen without support. You need a team on board that’s ready to champion the transformation. How do you build this coalition?

  • Identify influential team members who believe in the change.
  • Bring together a diverse mix of skills and perspectives.
  • Meet regularly to keep everyone aligned and motivated.

This coalition isn’t just about senior leaders; it’s about including those who will make the change happen on the ground. Make everyone part of the journey.

Step 3: Create a Vision for Change

Ever try navigating a storm without a map? That’s what we’re doing without a clear vision. Create a compelling vision that everyone can rally around. Here’s some advice:

  • Make it simple and clear.
  • Use visuals to illustrate the future state.
  • Incorporate feedback from your coalition to refine it.

Your vision should resonate with everyone involved. When the entire organization knows where they’re heading, they’re more likely to jump on board.

Step 4: Communicate the Vision

This is where the rubber meets the road. Once you’ve crafted your vision, spread the word like it’s the hottest gossip in the office.

  • Use multiple channels – emails, meetings, town halls.
  • Encourage two-way communication. Be open to questions and concerns.
  • Repeat your vision constantly. People need to hear things more than once to remember them.

If folks don’t understand or don’t buy into the vision, the change will falter. Communication is key.

Step 5: Empower Others to Act on the Vision

Here’s where empowerment kicks in. You can talk a big game, but without action, it’s just noise. Remove barriers that keep your team from moving forward:

  • Identify areas in current processes that need a rethink.
  • Provide resources – be it time, tools, or training.
  • Encourage risk-taking within reason. Let your team know it’s okay to fail and learn.

Create a culture of accountability where taking initiative is the norm.

Step 6: Create Short-Term Wins

No one likes to wait, and big changes take time. So, what can you do? Celebrate small victories that give everyone that sweet taste of success.

  • Set realistic goals that can be achieved quickly.
  • Publicly recognize and reward contributions.
  • Share stories of success in meetings and newsletters.

Short-term wins build momentum and energy for the longer journey ahead.

Step 7: Consolidate Gains and Produce More Change

The seventh step is about riding that wave of momentum. Don’t let your foot off the pedal. Here’s how to keep the fire burning:

  • Use the credibility gained from short wins to tackle bigger challenges.
  • Continue to refine processes and make adjustments.
  • Encourage further contributions and input from the entire organization.

It’s essential to keep evolving. This isn’t just a one-and-done scenario; it’s continuous improvement.

Step 8: Anchor New Approaches in the Culture

Finally, it’s time to embed the change into the company culture. This doesn’t happen overnight. To ensure your transformation lasts:

  • Always connect your changes to the organization’s core values.
  • Incorporate the new practices in training and onboarding.
  • Regularly revisit the vision and keep it alive in conversations.

If you don’t anchor the new changes, they’ll drift away over time. It’s about normalizing the shift.

Wrap Up

Change is complex, but using Kotter’s 8-Step Model simplifies it. I’ve watched organizations transform by keeping these steps at the forefront of their strategies. As much as we talk about processes, remember that at the heart of transformation is people. The shared services landscape is evolving, and adapting is not just a choice—it’s a necessity.

If you’re itching to dive deeper into shared services transformation and innovation, check out THEGBSEDGE blog for more insights. There’s a community waiting to discuss, learn, and grow. Your shared services journey deserves every possible resource to thrive.

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