45 pages • 1-hour read
Leading Change
A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
Background
Historical Context: Economic Changes in the 1990s
Published in 1996, Leading Change is, in many ways, a reaction to the upheaval of traditional business practices that occurred in the 1990s. Kotter mentions the advances in both globalization and technology that occurred during this time as he explains the need for change in a developing, modern world. Globalization, an ongoing process that experienced a sharp increase in the 1990s, is the increase in interconnectedness and interdependency between nations and cultures around the world. After the collapse of the Soviet Union, the 1990s saw the sudden inclusion of former Soviet bloc states in the Western economy. In North America, specifically, the creation of the North American Free Trade Agreement in 1992 allowed easier, cheaper trade between Mexico, Canada, and the United States. Such changes in global conditions allowed for new bonds across countries’ economies, generating the benefits of increased productivity and trade as well as the disadvantages of increased competition and the rise of practices like outsourcing labor.
Technology in the 1990s aided the process of globalization through telecommunications improvements and the advent of the internet. Suddenly, communication and trade could occur from any phone or computer almost anywhere in the world, and information became readily available to businesses and individuals alike. The increased efficiency and accuracy of business processes and financial information resulted in the “faster” world Kotter describes in Leading Change. Prior to the internet, information transfer was comparatively slow, and Kotter explains how executives could make decisions over long periods of time without pressure. Likewise, change was either unnecessary or lacked urgency, as little could be expected to change in a short period of time. With computers and the internet, change can happen quickly, meaning that businesses need to adjust rapidly to new technology and information in order to stay competitive.
Methodological Context: Forms of Change in Business
In the first chapter of Leading Change, Kotter lists some processes commonly associated with change in business: “reengineering, restrategizing, mergers, downsizing, quality efforts, and cultural renewal projects” (3). These processes, among others, are common in efforts to effect change in business, and though Kotter does not often mention them by name, they are an important part of the context in which he situates his advice. Restructuring, for example, is the shifting of a business's legal, operational, or methodological structures and functions to optimize efficiency for a given goal. Restructuring could involve shifting a hierarchy to change the way tasks and resources are delegated across departments. It could also involve selling some assets and acquiring others, including possible mergers and acquisitions. In comparison, downsizing, sometimes called “rightsizing,” is the process of cutting down on costs, either in the form of employees or capital, to function with greater efficiency. Reengineering often involves analysis of workflows and systems, with the goal of changing elements of the workflows or operations to improve some aspect of the business. In each case, these processes assist with effecting change in one or more aspects of the operations of the business.
Kotter’s target in Leading Change is not these specific processes of implementing change, but instead the broader steps necessary to ensure these change-effecting processes are successful. For example, in the seventh stage of the eight-stage process, Kotter refers to several ongoing change projects. These projects, though not detailed in the book, likely involve restructuring, reengineering, and re-strategizing efforts. Such projects might accompany specific stages in the eight-stage process, such as a reengineering effort to increase efficiency in a computer system with the goal of empowering employees and improving customer service. Throughout the book, Kotter focuses on the abstract elements of change, like vision, leadership, and culture. However, it is important to keep in mind that there are definitive practices underlying each of these concepts, and such processes are also part of how change is made.
Unlock all 45 pages of this Study Guide
Get in-depth, chapter-by-chapter summaries and analysis from our literary experts.
- Grasp challenging concepts with clear, comprehensive explanations
- Revisit key plot points and ideas without rereading the book
- Share impressive insights in classes and book clubs