Five Degrees of Change

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(leadership and management)

Need to keep in mind where your organisation stands in relation to the 5 degrees of change, ie

1 Little change - making goods and services with long product life-cycles

2 Continuous improvement - constant incremental changes in products and ways of operating

3 Non-incremental change within businesses - in addition to 2, regularly introducing new product lines and significantly improving in how the business is run

4 Whole new businesses - in addition to 2 and 3, inventing not just new product lines but new businesses

5 Whole new business models - in addition to 2, 3 and 4, inventing not just new businesses but new economic and organisational models

Comments

. Winning in the past meant effective management of just 1 and 2 degrees of change. This requires good management

. Winning now in most industries means handling 1, 2 and 3 degrees of change well. This requires both good management and visionary leadership

. Sustaining success in the new economy demands the maintenance of all 5 degrees. This requires good management, visionary leadership plus a form of leadership that can unleash huge amounts of intellectual, physical and emotional energy

(source: John Kotter, 2003)