Explain and apply to the case John Kotter’s eight steps for managing change effectively.

Question

What will be an ideal response?

Answer 1

? Step 1: Establish a Sense of Urgency
Signs for change urgency: Pringle’s range was too big and poorly designed;
middle-aged image; reduction of workforce down to 180; low corporate value
(only €9 million acquisition price); previous failure of initiatives; and loss of
traditional customers. Establishment of urgency: arrival of new Chief Executive
Officer (Kim); arrival of new Chief of Marketing (McAllister): ‘employees at
Pringle knew that changes were about to take place’.
? Step 2: Form a Powerful Guiding Coalition
Kim assembled a group with enough power to lead the change effort and
encourage the group to work as a team. She hired a new Chief of Marketing and
focused on working with senior executives who supported her direction (change
agents). By laying off senior executives who were critical of the change process,
she removed remaining obstacles and ambiguity in the leadership team.
? Step 3: Create a Change Vision
Creating a vision provides orientation and direction for the change. While the
vision is not directly mentioned in the case study, students can indirectly identify
Kim’s change vision. The new branding of the fashion merchandise ‘Pringle
Scotland’ clearly stated that Kim Winser aimed to position Pringle as a ‘quality
producer of Scottish cashmere’. There is a strong sense of identity with Scotland.
In achieving that vision, Kim Winser realised that she had to implement changes
within marketing (branding), operations (fashion range, HR) and structures
(location).
? Step 4: Communicate the Change Vision
Communicating the vision allows teaching of new behaviours by the example of
the guiding coalition. Winser communicated her change idea during a general
meeting: ‘products have to change and that this change has to be done fast’.
? Step 5: Empower Others to Act on the Vision
The marketing contract of Nick Faldo (golfer) was not renewed and replaced by a
younger image (Beckham); Kim and McAllister hired a new young fashion
designer and recruited new retailers; the location of the headquarters moved away
from high-cost and prestigious Savile Row in London (that symbolised old habits,
old leadership, old structure, etc.) to a ‘new, more modern building’. The design
function moved away from Scotland to London to be closer to the fashion market;
while the manufacturing site remained in Scotland.
? Step 6: Plan for and Create Short-Term Wins
Efficiency improvement: Kim aimed to re-launch the fashion range of knitwear in
just 12 weeks (never achieved before) for the Italian trade fair (which was successfully achieved). It promised bonus for employees. 20% of the existing
retail outlets were dropped and new retailers recruited, including Harvey Nichols
and Selfridges. Re-launch of the marketing strategy was supported by the visit of
the Princess Royal to the Hawick factory (motivation factor); David Beckham
publicly wore redesigned sweaters; and sales increased by the end of 2000.
? Step 7: Consolidate Improvements and Produce More Change
Sophie Dahl is the new face in Pringle’s advertisements; continuing sales growth
(about 30% by the end of 2001); investment in new machinery at Hawick; and
plans for retail expansion in the USA and Hong Kong.
? Step 8: Institutionalise New Approaches
The business press was reporting and celebrating the new found success of Pringle
in 2003. Given that there was some public awareness of Winser’s change efforts,
Kim managed to articulate the connections between the new behaviours and
organisational success.