Organizational Change

John Kotter's 8 step model process for ELC

Steps

Transformation Suggestions

1. Increase urgency

Examine sustainability market and competitive realities.

Identify and discuss economic crisis that has hit ELC after a 13% fallen in shares and 30% fall in income, and 6% decrease in sales (in the last three years).

Discuss about potential opportunities in improving creativity and innovation and create a global focus while building an interdependent organization across brands and regions.

Provide evidence from outside the organization that change is necessary.

2. Build the Guiding Team

Assemble a group within all levels of the organization to channel the new vision throughout the organization.

Generate short term wins within each brand and as a whole

3. Get the Vision Right

Emphasize the new CEO's vision to help direct the change effort

Develop strategies for achieving that vision of being global leader in luxury beauty in a well-diversified brand-building powerhouse.

Re-launching image

Raise awareness

Strengthened the diversified products offers within each brand.

4. Communicate for Buy-in

Create simple imaginable, desirable, attainable and communicable goals within the organization.

Cultivate or acquire tomorrow's winning brands and products.

Create an environment that fosters personal growth and well being.

5. Empowering Action

Remove obstacles to the change.

Improve capability to provide CSR reports of sustainable brands such as Aveda, without being compromised by ELC policy.

Relocate resources towards the biggest opportunities.

Recognize/ Identify local relevance.

Appeal a bigger market (besides the luxury market)

6. Create short term wins

Plan for and achieve micro visible performance improvements within each brand (Aveda and Origins in this case)

Recognize and reward those CEO's involved in bringing the improvements to life within the orbits branding structure.

Drive step-change improvement