Question

You are the CEO of United Airlines and you have had a pretty difficult month. First, you kicked young women off of a plane because they were wearing yoga pants, then you forcefully dragged a doctor off a plane against his will. While your stock price has mostly rebounded, you a loss of value of $1 billion the day after the incident with the doctor. You know your organization needs a culture change. Apply Kotter’s 8-step model of change,to the United organization – what would be your strategy for remaking the organization? Be as specific as you can.

Answer 1

Firstly, am assuming that the young women and the doctor are passengers and not the staff, since it is no where in the case expressed that they are the staff of the organization. Secondly, if it were staff who he kicked out, then stock prices wouldn't have had dropped that significantly. It will only happen when customers are treated badly. Therefore, going with the assumption that, CEO misbehaved with the passengers, below is the answer.

Culture change in United Airlines : Kotter's 8 step model of change

Kicking out young women (passengers) who were wearing yoga pants and dragging doctor (again a passenger) off the plane against his will are the two biggest blunders that a topmost executive who represents the company can do. An ultimate fall in the stock price is bound to happen. In order that organization should rebound back to the lost glory, there should be a definite cultural change in the organization.

Applying Kotter's 8 step model of change :

Step 1 : Create Urgency

First step is to create an urgency, and urgency will drive the change. Change will only help if the whole organization wants it really. So, it is very important to develop a sense of urgency around the need for change. This will help spark the initial motivation to get things moving towards the change.

Opening a honest and convincing dialogue, apologising the staff and the customers is the first stap that is needed to be taken by the CEO. Then they should understand on what's happening in the marketplace, what impression does people have on the airlines and what is it with your competition, how is he succeeding.

The proposed change could be, having an equal dress code to all the staff, and absolutely no dress code to the passengers. It is just that, passengers can wear whatever they want untill and unless it is decent enough, and does not have any vulgarity in the dressing. Passengers are not forced for anything unless it is damaging the image of the airlines. They are given the freedom to relax and enjoy their journey with the airlines. At the same time, employees should be given the freedom to take independent decisions in the times of emergency and urgency. Employees have all the right to question where there is an injustice and they are free to discuss their issues with the top management. Lastly, it is with every body's support, organization can flourish again.

If many people start talking about the change you propose, the urgency can build and feed on itself.

Step 2 : Form a powerful Coalition

Next step is to convince people that change is necessary. This often takes strong leadership and visible support from key people within the organization. Managing change isn't enough, one has to lead it.

Most of the times, one can find change leaders effectively throughout the organization and they don't seem to follow the traditional company hierarchy. In the other words, one can find leadership in any person irrespective of his position in the organization.

Once the people are recognized, then the group of people with "change coalition" need to work as a team, continuing to build urgency and momentum around the need for change.

Step 3 : Create a vision for change

A clear vision can help everyone understand why you're asking them to do something. When people see for themselves what you're trying to achieve, then the directives they're given tend to make more sense.

Step 4 : Communicate the vision

If creating a vision is important, communicating it will be much more important. Message has to be communicated frequently, on a daily basis. Use the vision daily to make decisions and solve problems. When you keep it fresh on everyone's minds, they'll remember it and respond to it.

Step 5 : Remove obstacles

Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward.

Step 6 : Create short term wins

It is important to create short-term targets and goals, and not just one long-term goal. Smaller targets will be easier to achieve, with little room for failure. It is important change team to work very hard to come up with these targets, but each "win" that is produced can further motivate the entire staff.

Step 7 : Build on the change

Many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change. Each success provides an opportunity to build on what went right and identify what can be improved.

Step 8 : Anchor the changes in organizational culture

Finally, to make any change stick, it should become core part of the organization. Making continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give the change a solid place in organization's culture.