Organizational change leadership in Kotter's Our Iceberg is Melting

¶ … Iceberg is Melting by John Kotter and Holger Rathgerber is a fable of penguins on a melting iceberg who must adapt to a new way of life -- or die. This is an allegory, according to the authors, of what all companies must do to grapple with a changing business environment. Given the seismic changes that have shaken the modern business community in recent months, from the increase in the price of oil to the credit crisis, the lessons faced by Kotter and Rathgerber's penguins should be heeded. First and foremost, on any sinking 'iceberg' leaders must create a sense of urgency, convincing everyone that there must be change, and soon. (an example of a company that failed to heed this sense of urgency might be American car companies like bankrupt, SUV-producing GM or Ford, who ignored the pension drain of retired older workers and the unstable situation in the Middle East that was driving up the price of gas).

Collective fears of inaction must overcome fears of change. Then, a leadership team must be created to guide the organization which is accountable, has the ability to assess the information, yet also has strong communication skills, so people understand the step-by-step process of how the change will occur. The team must develop a change vision that is different from the past (such as Toyota's decision to market hybrid technology, for example). The leadership must be able to make change happen in a concrete and logical fashion (budgeting, planning, and so forth) but also communicate with a visionary statement so that employees buy into the change, and are empowered to become active participants in the new organizational mission.