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Research studies on the transtheoretical model suggest that, in general, for people to succeed at behaviour change, the pros of change should outweigh the cons before they move from the contemplation stage to the action stage of change. [11] Thus, the balance sheet is both an informal measure of readiness for change and an aid for decision-making.
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John P. Kotter, a pioneer of change management, invented the 8-Step Process for Leading Change. John P. Kotter, the Konosuke Matsushita Professor of Leadership, Emeritus, at the Harvard Business School is considered the most influential expert of change management. [29] He invented the 8-Step Process for Leading Change. It consists of eight stages:
The pros surpass the cons in the middle stages. The pros outweigh the cons in the Action stage. [27] The evaluation of pros and cons is part of the formation of decisional balance. During the change process, individuals gradually increase the pros and decrease the cons forming a more positive balance towards the target behaviour.
The need for business transformation may be caused by external changes in the market such as an organisation's products or services being out of date, funding or income streams being changed, new regulations coming into force or market competition becoming more intense.
Kotter asserts that to be useful or influential, short-term wins need to be "visible and unambiguous" as well as "closely related to the change effort". [ 9 ] : 121–2 Arguing against a belief that there is a "trade-off" between wins in the short-term and wins in the long-term, Kotter argues from experience that both are achievable.
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