Change Management: Kotter's 8-Step Model and McKinsey's 7-S Model

This article discusses Kotter's 8-step model and McKinsey's 7-S model in relation to change management. It explains the importance of change management, the stages of Kotter's model, and the seven factors of McKinsey's model. It also highlights the significance of effective leadership and talent management in change management.

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Introduction
In accordance with the opinion of Doppelt (2017), change management helps the
organizations to incorporate changes in the working procedures. As opined by Kuipers et al.
(2014), change management guides the companies to prepare its employees, support its skilled
professionals, teams so that they can make adjustments with the organizational modifications. In
this particular task, the Kotter’s change management has been discussed in relation to
organizational changes. Additionally, another model of change management known as
McKinsey’s 7-S model is also being considered for this study.
Discussion
In accordance with the opinion of Lewis, Passmore and Cantore (2016), change
management refers to the systematic approach which is used by business organizations for
dealing with transformation of its objectives, procedures or technologies. It has been observed
that the main aim of change management is to incorporate fruitful business strategies for
applying changes, and controlling changes. In addition to this, change management aids
individuals to make adjustments with modifications that have been applied by the companies in
its working procedures. In the opinion of Rajan and Ganesan (2017), change management refers
to the procedures, tools as well as techniques to manage individuals to accept changes in order to
attain the targeted outcomes from its business operations. In this context, it can be stated that
managing modifications is a difficult task. In accordance with the opinion of Hornstein (2015),
modifications should be applied by business organizations in its workflow either from internally
or from externally. As opined by Rosenbaum, More and Steane (2018), the main motive of
change management is to obtain organizational outcomes by involving skilled professionals as

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well as motivating them to work in a new way. If people willingly accept changes in the working
procedures, then it is possible for the respective organizations to attain its desired goals and
objectives.
It has been observed that 8-step change management model has been developed by John
Kotter. It has been observed that these eight stages are creation of urgency, forming a powerful
coalition, creation of vision, and communicate and share the vision. Apart from this, there are
other stages such as empower-broad based action generate short-term wins and consolidate gains
to produce more changes and anchoring changes in the working procedures of the business
organizations (Guérin et al.2015).
It is very essential for the companies to prepare a scheme and undertake action with an
intention to incorporate changes within the organizational work culture. In accordance with the
opinion of Salmanet al. (2017), it is needed for the companies to create a sense of urgency
within the environment of the respective company. In order to implement the changes within the
organization, it is required for the leaders to explain the present condition of the respective
organization. In this context, it can be stated that leaders need to explain to its employees about
the benefits that the changes would bring in the company. If the leader highlights the key issues
in front of others, then it is possible for the leader to create urgency within the organizational
workflow.
It is required for the leaders to convince his people that bringing changes would improve
the workflow of the organization. In order to bring changes in the working processes of the
companies, the leaders need to form a strong as well as powerful coalition team who will
willingly work in a collaborative as well as coordinated manner (Doppelt, 2017). By forming a
strong and powerful team, it is possible for the leaders to achieve the desired goals and

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objectives of the respective organization. In the opinion of (Kuipers et al. 2014), all the team
members should respect each other and they should trust each other. In this context, it can be
stated that mutual trust along with respect helps the team members to achieve the specified
objectives. In this regard, it can be stated that it is essential for the leaders to highlight the weak
areas that are present in the coalition team and the leaders should involve influential individuals
from different cross functional departments.
According to Lewis, Passmore and Cantore (2016), a clear vision should be developed
by the leader itself. In accordance with the opinion of Rajan and Ganesan (2017), creating vision
enables the leader to coordinate all the activities of various individuals with enhanced efficiency
as well as productivity. It has been observed that vision consists of business strategies, schemes
as well as budgets, which is essential for creating a good future for each and every stakeholder of
the companies.
After creating the vision, it is important for the leader to communicate the created
vision to each and every member of the team including the stakeholders. In the opinion of
(Rosenbaum, More and Steane (2018), formal language should be used by the leader while
communicating the vision. In this regard, Hornstein (2015) commented that both-way
communication should be followed by the leader at the time of communicating the vision.
It is seen that at this particular stage, leaders as well as coalition team finds out the
individuals who are reluctant to accept the changes (Guérin et al. 2015). Therefore, it is needed
for the leaders and the coalition team to find out what measures can be undertaken for removing
these obstacles in order to make the modifications happen in the work culture of organizations.

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It is necessary for the leaders to create short–term objectives rather than creating long-
term goals for the skilled professionals. In this context, it can be stated that short-teems wins are
easily attainable than that of long-term objectives (Salman et al. 2017). It is necessary for the
leaders to give rewards to the individuals who have fulfilled the short-term objectives of the
company.
This stage is known as consolidating the gains. It has been noticed that companies can
make necessary improvements after assessing success stories individually.
In order to anchor changes in work culture, the leaders should make ensure the fact that
the change has become a part of company’s corporate culture and this change is seen by all
employees and stakeholders of the respective organization (Doppelt, 2017).
McKinsey’s 7-S model: The model speaks of seven factors which can potentially impact the
change management process (Ravanfar 2015).
Figure 1: McKinsey’s 7-S Model
(Source: Ravanfar 2015)

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Strategy: According to this model, it is important to identify a strategy to stay unaffected from
the market competition and to remain directed towards the success. A change process especially
the major changes cannot be covered within a shorter-period of time. This rather continues for a
long-time. This is why companies undergoing the change process has dual task to perform such
as undergoing the change process and avoiding the market competition. A strategy assessment is
a list of tasks that needs to be completed to strengthen the one pillar of McKinsey’s model.
Hence, in order to succeed in the change process, following strategies in accordance to
McKinsey’s model must be attained (Ravanfar 2015):
Objectives: The objectives of the change process should be made clear and concise. The
objectives should be satisfying the needs of both the change process and also the daily progress
of the business. Priority needs to be given to the both segment of the business.
Strategies to achieve the objectives: It is also important to cross-check the strategies for
its capabilities and the competencies in context to the objectives. In other words, strategies must
be viable with the objectives of the change management. For example, if one of the objectives is
to enhance the profitability of the business then the list of strategies must also include a sustained
marketing of products & services. Hence, competencies will remain unaffected during the whole
period of the change process.
Stay competitive: Staying competitive during the change process is one of the essentials
of the change process. The use of effective and relevant strategies may certainly be helpful in
staying competitive. A continued focus will be required over the different domains of the
business such as marketing & sales, advertising, human resource, finance & accounting and
others.

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Strategy to manage the current and future: The importance of ability to effectively
manage the current operation while undergoing the change process is already being discussed.
The future business post the change process will perhaps bring a number of challenges to the
company. For example, ABC Company has implemented the change process to become one of
the leading solutions for technologies. The after-change process will need the various strategic
supports to sustain the gained momentum. The list of required supports will also include a
continued association of skilled & creative professionals as those professionals take part in the
brainstorming sessions and consequently produce the valuable ideas. On the other hand, it is
close to impossible to retain the skilled professionals (Lozano, Ceulemans and Seatter 2015).
Structure: During the change process, it is important that each of the business departments is
able to effectively communicate. A communication gap between any of the departments should
never exist while the firm is through the change process. This is due to a fact that such practices
will delay the decision-making process and also the execution of actions. Hence, there can be
unnecessary delays to the change process also. An unnecessary delay to the change will also
mean an unwanted elevation in the estimated budget (Ravanfar 2015).
Systems: One of the very vital aspects of a change process is the systems. It is the core systems
of business which is critical for the change process. The core systems include human resource,
team management, meeting, finance, document management and others. Policies for these
systems must be supportive to the change. There will be needs to change the policies at any point
of time during the change process. Hence, it is important to examine whether the systems
policies are flexible enough to adapt to the change & the added challenges (Van der Voet 2014).
Staff: They mean huge to a change process. Strategy designs and the plans to execute the crafted
strategies are handled by managers; however, the implementation part requires the association of

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skilled and creative employees. Nevertheless, such employees do also contribute by
brainstorming the new ideas. Therefore, staffs are required for both creative ideas and to support
the change process. Notably, their association with the company will also be needed once the
change is completely implemented. The changed state after a successful change process is a
much wider operation than it had once existed. Productivity will expectedly increase; however,
will definitely need a much improved support from every member. It includes but is not limited
to like human resource team, finance team, marketing & sales team, and the low-level staffs.
Employees are always an asset to firms (Cai, Loon and Wong 2018).
It is, therefore, important to assess the talent base to identify whether there is any need for
the training. Professionals must have the ability to sustain the laid changes. The ability will be
measured in terms of skills, relevant experience, curiosity to work, innovation & creativity and
others. This is the reason why talent management during or after the change process is important.
Talent management is an effective strategy to identify the skills and abilities of staffs. Talent
management will also educate the needs for training, development and the recruitment process
(Cai, Loon and Wong 2018).
Skills: Skilled professionals will be required every time either during or after the transformation
process. Firms undergoing the change process must assess its skills base to identify the needs for
training during or after the change. Training & development is one of the effective strategies
which firms generally use to manage its talents. However, these programs consume a high-
spending and so is an aspect of risk. Risk to lose the spending will be more if the training &
development program is less effective and fails to deliver an impact (Lines et al., 2015). To
ensure that the objectives of training are met, it is important to monitor the after training progress

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of staffs those who were the participants. This will help to evaluate the development progress
and hence, the training outcomes will be known.
There are other ways also to manage the skills which is to recruit the fresh professionals
from outside. This will also attract a high-spending, so that, the process be made both attractive
and engaging to fresh professionals. One of the objectives of the recruitment process will be
recruiting the skilled professionals. The entire recruitment process is time-consuming as it is
generally divided in two phases such as the recruitment and the training & induction processes to
the selected professionals. Objectives of the recruitment process must include an emphasis on
recruiting the creative and innovative skills (Lines et al., 2015). Innovation and creativity will
produce a workforce which is open to challenges and motivating for new ideas.
Style: The style which is of concern in context to the change management is the management
and the leadership style. It is the leadership style which makes the most of difference. A leader
does posses the set of skills which are useful in diverse sectors. For example, an effective leader
will appropriately communicate the change process and the needs for it. Such leaders will also
create a culture for change at the organizational level. Notably, the culture must be supportive to
the change otherwise there will be number of constraint factors opposing a smooth progress of
the change. Effective leaders do not lose their nerves during the challenging circumstances.
Leaders are really very important for a change (Belias and Koustelios 2014).
There are examples of such leaders in the world. One such example is of “Jeff Immelt”
who successfully carried on its responsibilities the change process in General Electric (GE). The
CEO had faced a number of challenges and the barriers; however, CEO had the counter actions
all those times (Koch, Forgues and Monties 2017). A change process is if it is set for a big is
expected to face the number of diverse challenges. Possibilities for barriers are always very high

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in such changes (Smollan 2015). Therefore, for an effective and bigger change there must be a
good coordination between the member of firms and the leaders.
Shared values: This is the last of the seven factors of McKinsey’s model. It advocates the
importance of company’s values and the culture. Company’s values are important as in case
values are not supportive to the needful change, this will emerge as one of the constraints of the
change. The culture at the organizational level and in teams is also very vital for an effective
conduction of the change process. If the organizational and the team’s culture are not supportive,
this will produce barriers to the change. If there are odds in respect to culture, company must
have measures to strengthen the culture. Effective leaders should take the necessary measures to
improve the organizational values (Uzoamaka, Nnamani and Eze 2015).
Conclusion
From the above discussion, it can be stated that the proper implication of Kotter’s 8-step
change management model will bring success to the companies. In other words, it has been
observed that each and every step of Kotter’s change management model should be followed in a
proper sequence otherwise it is not possible for the organizations to incorporate changes in its
working procedures. This can be said that McKinsey’s 7-S Model should be a god guide for a
change process in firms. It is the responsibility of managers and the leaders to identify the odd
features at the organizational level and repair those with effective strategies.

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