Leading Change

The concluding section of the book looks to the future, predicting trends in business and speculating on how companies can adjust to a more modern workspace. Kotter’s vision for companies in the 21st century essentially follows his criticisms of traditional business management styles, which are each countered in the eight-stage process. As such, Kotter is setting up a dynamic in which companies need to transition as they enter their modern industry environments, which will resolve the conflicts targeted by the eight-stage process. Kotter predicts an increase in competition: “Enterprises everywhere will be presented with even more terrible hazard and wonderful opportunities, driven by the globalization of the economy along with related technological and social trends” (161). This prediction supports his initial assessment of why change is important in modern companies. The “terrible hazards” and “wonderful opportunities” come from the increase in globalization and improvements in technology, which require firms to become more global and technologically advanced to keep up with the market. To avoid the hazards and reap the benefits, firms need to embrace change. Kotter’s book therefore attempts to outline how companies can enact change while minimizing the costs and pains of that change.

In the end, the key to overcoming The Nature and Challenges of Change lies in embracing The Difference Between Leadership and Management and The Importance of Vision and Direction in Organizational Dynamics. In the final chapters, Kotter presents his own vision of the future, noting the number of changes that most industries need to undergo to adapt to the modern landscape. He asks readers to consider the pace of change: “How long do you think it will take to move incrementally from the twentieth-century model to the twenty-first?” (173). In doing so, he illustrates the need for vision in making sweeping overhauls to most company structures and behaviors.

Changes are necessary in culture, systems, and structure. Though this undertaking will require time and effort, such changes will lead to a company that can thrive in a modern environment. Kotter devotes much of the final chapter to discussing lifetime learning and leadership, which he frames as linked traits, with lifetime learning often producing industry leaders. Regarding developing leaders, Kotter ties vision to success: “[S]ense of purpose spurs [leaders] on and inspires them during rough periods” (186). An important element of Kotter’s work is that he does not diminish the fact that change is challenging. The role of leadership in the change effort, in part, is to sustain dedication to a challenging task. Vision provides a sense of purpose both in life and in business, and leaders capitalize on that vision to push entire firms forward in a change effort. Inevitable “rough periods” will occur within the well-being of the firm or due to family issues or personal struggles, but leaders can harness their vision to thrive despite adversity. As companies undergo a change effort, regression is likely; while it will lead to failure in the long term, it may diminish hardships in the short term. However, Kotter asserts that change, though difficult, is necessary for survival in the modern economy. Moreover, he promises hefty rewards for the firms that succeed in turning their vision into competitive and viable business models in the 21st century.