Kotter's 8 Step Model Of Change Management
Eisai; natural pharmaceutical company, has gone through changes in late 1980s. Their approach to respond to resistance to change was by planning the change and involving people. The company had a steady growth and big market share in Japan, but not globally. The last and in addition to high R&D investments made Naito the new CEO in the late 1980s visions changings that would develop the business. In order to make it through he followed a strategy that is very similar to Kotter´s 8 steps model. But Naito also understood the important of employee’s engagement and forming of the change process.
The first step he took was to establish urgency by analyzing the environment and addressing the necessity to have a sustainable competitive advantage which was a changing of the company´s focus on producing drugs to improving life quality. Then a training program was initiated for 103 “innovative managers” that were to become the agents of change in the company. Thereafter …show more content…
In early 1980s it was having problem getting new products to market in a timely way. High production costs and low margins in comparison with competitors like Sony's and Panasonic's. This resulted in loosing it´s market shares and an urgent to new strategies to regain its position. Although the new CEOs in 1980s succeeded in addressing the problems and setting up task forces on change the company was faced with the biggest operating loss in history. The reason to that the CEOs fail to make the operation of the intended changes to be materialized quickly enough. The reason for that was mainly because of lack of employees support and commitment to change; personal compacts blocked change. The employees were not encouraged to work harder or exceed the minimum expectations. Furthermore there was little alignment between top management statements and the practice of it between low-level managers and subordinates. All that together caused a failure to alter employee´s perception on the essential of change and act