CHAPTER 8
John Kotter: Stories as a Force for Change
John Kotter is the Konosuke Matsushita Professor Emeritus of Leadership at Harvard Business School. He is widely recognized as one of the foremost authorities in the field of leadership. He has authored or co-authored 17 books, 12 of them bestsellers. He has won many honors, including an Exxon Award for Innovation in Graduate Business School Curriculum Design, a Johnson, Smith & Knisley Award for New Perspectives in Business Leadership, and a McKinsey Award for Best Harvard Business Review Article.
He started his teaching career at Harvard Business School in 1972, becoming a full professor in 1980 at the age of 33. When he opted to retire at 54, he quipped that he became the youngest retired professor—after having been the youngest full professor—in his field.
He is, of course, much more than that, being one of the most sought-after gurus in the fields of leadership and change. His name is inherently linked to the term “change leadership,” and one of his major messages is “Leadership is about change.”
His three most influential books—his “change trilogy”—are A Force for Change (1990), in which he differentiated leadership and management as separate activities and processes; Leading Change (1996), in which he identified eight steps to successfully leading a change initiative; and The Heart of Change (co-authored with Dan Cohen, 2002), in which he introduced the powerful “see-feel-change” model.
His sixteenth book, Our Iceberg Is Melting (co-authored with Holger Rathgeber in 2002), marked a “change” away from his usual academic research work. A fable about how a group of penguins move away from a melting iceberg, the book is consistent with one of his central findings about change, which is that stories are the force for change.
In January 2008, when he was busy writing his next book, A Sense of Urgency (published in September that year), we had a dialog starting with the “penguin book” at his home in Cambridge, Massachusetts.

A Different Vehicle for Change

Liu: Our Iceberg is Melting is your newest book, I believe?
 
Kotter: Right.
 
Liu: When you retired from Harvard Business School a couple of years ago, you said that you were very interested in storytelling. Obviously you have pursued this interest, as this book is a fable and its main characters are penguins. May I ask what’s new about the book and how it came about?
 
Kotter: First of all, it draws content from what we have learned about change. Based on actual research, I published a book called Leading Change, which went on to become, at least in North America, the bestselling book on organizational change. We followed up with another book called The Heart of Change that went deeper and started telling stories from actual people’s points of view.
I was hearing more and more people say, “People belonging to organizations need to understand this material. But most people, except for recent MBA graduates, don’t read business books. So what can you do for me?”
At that time I was studying neurology, the study of the brain, trying to understand how people learn in the sense of changing their actions, not just holding information in their brains.
It all seemed to converge at one point when Holger Rathgeber, who is German, sent me an email one day. His idea was to try to put together a story because the brain likes stories. The brain is not built for PowerPoint slides. We decided to write a book that took the same material, expanded it in a few directions, and made it relatively simple and easy, and interesting to read. We put it in a form of a fable. That is what led to the new book.
So, it takes the material from Leading Change and The Heart of Change, it adds a little bit more about specific personalities, but offers it up in a very different form, with the idea of affecting the brain in a different way and reaching a broader audience. That was the logic behind it.
It was the best-selling business book in Germany for 50 weeks, and Holland for 40 weeks. It’s been on one of the charts in America for 16 months. So some people have picked it up. From the emails I get, clearly in some circumstances it is doing what we wanted. People read it. They talk about it. It creates a little language system they don’t forget.
Stories remain in the brain, and therefore have some chance of affecting behavior. So it is a different vehicle, a different methodology for helping people with content that I have written about before.
 
Liu: In other words, it is another way to illustrate your ideas about change.
 
Kotter: Right. And illustrate them in such a way that the mind can grasp those ideas, hold on to them, and have some chance of changing behavior. I want to help people actually get better results. So performance—individual or organizational—is my field. I am not just writing about it, but trying to help better performance happen.
So, increasingly over the years, the questions that keep going through my mind not only relate to what I observe in the sense of performance, particularly on the leadership side, but how to help people do more than read, nod their head, and then forget. How do you get them to actually somehow absorb material and do something with it? That has affected my writing a lot over the last 15 years. This penguin book was just one more little vehicle for trying to do that.

An Important Tool for Change

Liu: I think this book actually starts from the premise in The Heart of Change where you say people should “see, feel, change.”
 
Kotter: Yes.
 
Liu: In that book you actually outlined many powerful tools for changing behavior, and moving things along, in any of the stages in your eight-step model: a slogan, a picture, a video tape, and so on. So is storytelling just one form of those, or is it the most powerful form?
 
Kotter: That is a good question, which depends how narrowly or broadly you define or use the word “story.” You could define it narrowly, in the sense of “I’ll tell you a story about what I did half an hour before you showed up.” That is, “I am saying it to you. It is verbal. I could write it down in two or three pages. It is about some kind of event.” Yes, that is an important tool.
But you could define it more broadly too. You are experiencing a story right now. The story is the meeting you are having with John. That’s the story. You are experiencing it, and the brain is clearly preprogrammed for absorbing that form of “story” because it has been doing this sort of thing for tens of thousands of years. So it is what people call “hardwired” to absorb and retain that form of story.
Another form of story comes through video. I have been using videos in my speeches for years now. They are videos of people and companies and sometimes they stand by themselves as a story and sometimes you have tell an audience what else was happening before or after what they see. This is not a story in the sense of occupying written pages. It’s not a verbal speech: grandfather telling the grand-children a “story.” But it can be a very, very powerful way to grab people’s attention, give them an idea or two, and leave it in the brain so that it might affect their behavior.
So, if you define a story in broad terms, if it is not the most powerful tool to change behavior that can create better performance, it is certainly close. If you define it narrowly, it is yet one more tool, albeit an important one.

How Managers Use Stories

Liu: I read your essay “The Power of Stories” you wrote for Forbes in 2004. I notice that you did not say that CEO should tell stories.
 
Kotter: I believe I said they usually don’t, or aren’t very good at it, at least in general.
 
Liu: Now some people are advocating that CEOs should tell stories. What do you think about it?
 
Kotter: I do know some CEOs who, as part of the many things they do, are good at telling a little story to illustrate a point, to make an idea more alive, to engage people more, and to have people understand something more clearly than when they say “A causes B, which leads to C.” But that is not what I am speaking of here.
I am saying that stories are tools that can be used by anyone and they can come in many forms besides a verbal recital. Stories can be given by somebody like myself, in written form, say in a book. They can also be videotapes that anybody can use. Both are quite independent of a “CEO telling stories.” So, do I think CEOs should tell stories? Sure, if they are good at it, but that’s just one of many ways that stories can be used to increase performance. Let’s not get too carried away with focusing on CEOs talking.
 
Liu: The two examples you use in your Forbes essay are Lou Gerstner and Sam Walton. What I see from these examples is that they didn’t tell stories as much as they turned themselves into stories.
 
Kotter: Very good. That is what I meant by role modeling. That is what I meant by “one of the things you are experiencing right now is the story of your meeting with John.” I think those two guys were a little bit more conscious of what they were doing than most, so they were more purposive and effective.
There is an expression in English—I don’t know if it is translated into other languages—“Show them, don’t tell them.” It is very often what great novelists do. They don’t say, “George has these six personality characteristics, period.” They write in a way that demonstrates it. It’s more powerful that way.
Lou Gerstner, for one, is a great example of someone who knows how to show and not just tell. I love the example of his turning off the video projector.1 That says it all. He created this little story through his actions one day which went out faster, stronger, and clearer than any memo he could ever send out. So yes, I think there are some CEOs who are very good at that—and more could be and should be.
 
Liu: Now there are workshops to teach managers and CEOs how to tell stories. Do you think that is helpful?
 
Kotter: In one of our one-week executive programs at Harvard, the facilitators spend a day focusing on helping the participants think about getting better at telling stories. How much value does it have? Honestly, I don’t know. I think it helps, but how much I don’t know.
 
Liu: Then should managers and CEOs learn storytelling, or is it OK to leave it to professional people, like trainers in the company?
 
Kotter: Sure, have them learn, have them use it as a tool, but be clear that a verbal telling of a story by a manager is just one way that stories can be tools to improve performance. Everybody tells stories. Some people tell them more often and better, but everybody tells stories. If a manager is bad at it, and you can give him a little bit of help, and it is not too expensive, it’s probably not a bad idea. But having an executive program that is called “Storytelling” and is three weeks long may not be the best way to help people.

Telling a Good Story

Liu: Do you have any advice on how to tell a good story?
 
Kotter: Using story as a tool—not just “telling a good story”—starts with the content. If you use a story, it has to have a point. What are you trying to achieve? Be clear with that.
I think, obviously, the more engaging the better: interesting, funny, and dramatic. That helps. If there are characters that people can identify with, that helps. Most stories have a beginning, a middle and an end. Structure helps.
I suspect experts on stories know a lot about that. I don’t. I haven’t dug into it. I haven’t analyzed the nature of storytelling.
 
Liu: To me, drama is an element of a good story. I can tell people that I had a meeting with John Kotter. But if I tell people, in the middle of the conversation, John Kotter stood up, left the sofa, and played on the piano just to illustrate something, it is more memorable.
 
Kotter: Correct.
 
Liu: That is drama.
 
Kotter: Correct.
 
Liu: And the story of Gerstner, that is drama.
 
Kotter: Correct. One of the concerns I have developed in the past, maybe for decades, is about the drama element. In a sense, the educational system of Harvard Business School was based on stories from the beginning, stories called “cases.” I think it is because somebody back then intuitively said that this could be a good tool for education.
But if you look at the cases that were written in the 1930s, 40s, and 50s, they were different from the cases today. One of the most famous cases from the 1950s was still alive when I joined the faculty in 1972. It was two pages long, with no numbers. It was a story like, “Here’s the situation. Fred does this. This is what happened next. So what should Fred do now?” Those sorts of cases don’t exist anymore. The typical case today is thick, is full of numbers, and is boring.
 
Liu: Is that inevitable, given the nature of MBA education today?
 
Kotter: No. There is no reason a case can’t be about a dramatic company, or dramatic problem, or solution to a problem.
 
Liu: But the beginning is always some catching scene.
 
Kotter: Should be. Or at least it greatly helps. Also, set the scene so readers can identify with the key person in the case, then go from there. That has not always been lost in how cases are written today, which is interesting.
Here is another way to see the problem. Who is a phenomenal storyteller? Steven Spielberg. Steven Spielberg will not be impressed by our cases. Even if he was trying to have people in DreamWorks—I don’t know how many people are employed in the firm—even if he wanted them to learn more about management, I can’t see him using our cases because he knows what a good story is and the power it can have.
Cases today are usually still stories. There are just less story-like than they were decades ago, which has to do with the development of analytical tools. And probably to some degree because economists have taken control of business schools.

Three Kinds of Leadership Story

Liu: I wrote an article a couple of years ago called “Learning Storytelling from Goizueta and Knight,” about Robert Goizueta from Coca-Cola and Phil Knight from Nike. Actually, in Nike there was a storytelling program, telling stories about what Knight and Bowerman did in early times. That was emotional and touching. I was amazed. In that article, I quoted Noel Tichy, who said he got an idea from Howard Gardner that leaders should tell three kinds of stories. The first is “Who am I?” to identify a leader’s values. The second is “Who are we?” to define the values of the leader’s organization. And the third one is “Where are we going?”—which is the vision.
 
Kotter: I like that. I am not sure those are the only categories but, intuitively, I like it. With entrepreneurs who are very successful, it is the second of the three I see them keen to latch on to.
I was just on the phone with a well-known company that’s been growing, but the entrepreneurial culture that helped make it so successful is beginning to die out, mostly because it has hired so many new people. One of the ways I have seen people deal with this problem is to come up with a good story, sometimes very much rooted in the earliest years of the company, that defines “Who we are.” Then they tell the story in various ways. For new hires, new-employee orientation is an important part. Done well, that strategy can be powerful.
One last thing on stories. I have executives trying to turn companies around come to me on a regular basis. What I have learned over the years is before they give me the company background, its problems, all on PowerPoint slides, I say, “Just tell me, what is the story?” That is my leading line: What is the story. Often it shapes the conversation in a way that makes it a lot easier for me to understand what’s going on, what their problems are, where they are trying to go, and how they had difficulty trying to get there.
It’s also not unusual for people to come to me and say, “Our problem is communicating our vision. We tried this and that. Two levels down, they clearly don’t understand.” I say, “Fine. How are you communicating?” They hand me something, usually a thick pile of paper. I look through it. It is PowerPoint slide after PowerPoint slide: little dots, short sentences, jargon . . . and I can’t figure out what they are talking about.
I find myself just spontaneously saying, “Have you ever tried wrapping this up as a story, and telling people at your meetings, and giving it to people to share the story with others?” In this case, it is more about the story of “Where we are trying to go.” So, it is your third category. If put in 100 PowerPoint slides, some people will be able to understand because they are very analytical and they have just been through Harvard Business School. But most people haven’t and won’t get it. Even among the people who do get it, I am not sure how well they can retain that information. A good story about this fabulous future you and I are going to create together can stick more.

Different Personalities in a Change Process

Liu: If we go back to Our Iceberg is Melting, are you saying that it’s just a new version of your old ideas?
 
Kotter: Well, yes and no. It is very much Leading Change and The Heart of Change. It throws in a few more little things that have to do with characters, and then offers everything in a very different package that is trying to leverage a good story, including the visual aspect. Putting in those drawings is not a random idea.
 
Liu: By characters, what do you mean?
 
Kotter: Nowhere in the other earlier books do we talk about people with specific abilities, personalities or the like, and how that affects change. The closest we come to is in the second step of leading change: when you create a guiding coalition, you want to get the right diversity of people to give you power to do something big. But it’s pretty abstract. We decided to take it further in the iceberg book, to explore different personalities and how they contribute to a change process, and how they each can, in their own way, provide leadership at certain times.
A company in Dallas has turned this into a one-day training program with my permission. There is a big module that asks you to think about which of the characters in the book you are most like, and which of the characters are most like the others on the team you actually work with daily. It is a very interesting and useful exercise. That is what I mean when I say we have added a little bit more. I suspect there are a few more things in the book that I am not even aware of, or did not arrive at consciously.

Maintaining a Sense of Urgency

Liu: What else are you working on?
 
Kotter: My next book, which will be out in September,2 is about urgency. In a highly successful large-scale change process, it is step one. I became convinced a few years ago that where people were most often getting stuck was literally in the beginning. They weren’t getting enough of a sense of urgency among enough people, and that stopped them from getting any momentum, getting the right group together who were willing to spend the time and emotional energy on change, creating a good change vision, and so on. Not only did they not do it, they also didn’t understand what they were missing.
So my new book is about urgency, and basically the argument is this: in an increasingly turbulent and fast-moving world, change is becoming more and more important. If you look at where people stumble, it’s right at the beginning. So more people need to know how to create and maintain a moderately high sense of urgency. In this book, I spell out the tactics that people use or don’t use.
 
Liu: What’s the lesson?
 
Kotter: Well, the bottom line is, No. 1: the average urgency level of the typical organization out there now is too low. No. 2: the lack of urgency is increasingly creating problems. No. 3: there are specific tactics that people use to increase urgency. And No. 4: the tactics are not only mind-oriented but heart-oriented; they are not just analytical, but also emotional. A lot of this is about bringing the outside in, getting the external reality inside, which almost inevitably overcomes complacency.
It is not enough just to create urgency and go on to the next step; you have to both create and maintain it throughout the process. Even more important, as the world moves faster, organizations have change going on all over the place, all the time. In such a world, it is a huge strategic advantage to have a relatively high state of urgency almost built into the organization’s DNA.

Combining Leadership and Management

Liu: In A Force for Change, you said not only is too much management and too little leadership bad, but too much leadership and too little management is also bad. You actually used China’s Cultural Revolution to illustrate this.
 
Kotter: Correct.
 
Liu: I am thinking about Enron and WorldCom. Is that too much leadership with too little management?
 
Kotter: I don’t know enough about the details in either one of those situations. But I do know an entrepreneurial situation where the key figure, basically the founder of the company, took an idea and created a new product, and the company took off. He was a good leader and really could get people to follow him. But because he didn’t put in the systems and structures—the management stuff—the firm eventually went off a cliff. Without management to help stabilize and, to some degree, guard the leadership, it’s risky. One of the biggest cliffs that anybody has run off in the twentieth century was the one you were just referring to.
 
Liu: But you were also saying that in this era we are short of leadership.
 
Kotter: Yes. A fundamental problem you find all the time is that the management is there in a firm, but the leadership process is not there, and that creates a particular set of predictable problems. The firm becomes too reactive. It has difficulty handling change, grappling with new opportunities, and ducking hazards. It is too stable, often becoming too internally focused, because management tends to deal with more of the inside than the outside. A lot of the smart companies today see the problem and are trying to deal with it by holding onto some intelligent management systems while starting to help more and more people to behave as leaders.

Aspects of Leadership Development

Liu: What is the most important thing for a company itself to do to train its potential leaders?
 
Kotter: There are many possibilities. The more that people at the top recognize that they simply have to develop the leadership potential, wherever the potential is, and keep developing it in themselves, the more they will find ways to do so. It can be inside HR programs or inviting outside speakers, but it is essential that it is incorporated into daily activities too. In the right sort of meetings, and with people telling good stories, you can create an environment that helps everybody take another little step toward becoming a better leader. So leadership development becomes a continuous process, not an event. That’s how you get leadership development.
 
Liu: So what you are saying is basically to keep a learning attitude, and put it into action to show people.
 
Kotter: And on a constant basis. Almost any setting, at any time, offers an opportunity for people to grow. If you can capitalize on those opportunities, people will start to grow.
An obvious place where you can help people grow their leadership potential is at yearly top management meetings. I make speeches in those settings all the time. It is amazing how often firms waste this opportunity, or send out messages that have nothing to do with good leadership. They set up a room with seats in a way where you end up with a lot of long, narrow rows that makes it look like a military command-and-control exercise. This is hardly appropriate for people who are as well educated as they are today, in an environment that is moving as fast as it is. We try to talk them into putting the chairs into a half-circle and do lots of subtle little things to encourage a new mindset.
 
Liu: There are different sayings about whether leadership can be taught or learned. I think most people, at least among leadership gurus, agree that leadership can be learned. What is your view?
 
Kotter: I have found that the best way to think of it is this way. Everybody is born with some leadership potential. For some of us, it is very small. For others, it is very big. So, potential is the first step.
The next step is developing that potential into skills. I have yet to find anybody that has developed all of his or her potential.
And the third step is actually using the skills in what you do each day. In my experience, this is very rarely done. People hold back for many reasons, including not having the courage to stick their necks out, or believing that leadership is the CEO’s job, not theirs.
So the aim of leadership development is twofold. First, it is to develop potential into skills. Second, it is to get people to use those skills as often and as aggressively as possible.

Kotter’s Leadership

Liu: Do you consider yourself a leader?
 
Kotter: I try to provide two kinds of leadership. One is thought leadership around the sorts of issues I write about. And the second, especially when I am in front of a crowd, is some actual leadership of groups and individuals. I try not just to give a speech to a crowd. I try to get people to, figuratively, stand up and start moving in a new direction because of the experience I put them through. So in that sense I am more a people leader, not just a thought leader. But I try to do a little bit of both.
 
Liu: What is your definition of leadership?
 
Kotter: Ultimately, leadership is mobilizing people to make great things happen. It is not about small things. I can get you to move your notebook four inches over there, but if I achieved that, nobody is going to say I just led you. Leadership tends to be about bigger problems and bigger issues, and about making great things happen.
It is also about mobilizing. People often do their thing, and slowly. Yet to make great things happen often takes a group effort, it takes energy, and it takes everybody marching toward a specific, sensible direction. And mobilizing is a good word, at least in English.
I like things short and simple. So, “mobilizing people to make challenging things happen.” There you go.

Endnotes

1 In “The Power of Stories” (Forbes, December 6, 2004), Kotter wrote: “When Lou Gerstner became IBM’s CEO, the company had become bureaucratic and inwardly focused. Early on, stories about Gerstner poured out of the executive suite, and everyone in the company realized in short order that things would be different. For example, at a first divisional meeting, where managers were accustomed to presenting great reams of overhead projections, Gerstner turned off the projector and insisted they all just talk. This story flew across the organization. Very quickly, having the best slides stopped being among the criteria for success at the company.”
2 A Sense of Urgency was published by Harvard Business School Press in September 2008.
..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset