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X plc has been performing well for many years, with staff enjoying significant bonuses. However, recent strategic analysis by the Board of X plc has identified that there are a number of rival organisations starting to gain a share in $x\text{'}$s traditional markets. They feel that, unless $x$ significantly updates its working practises, it will lose its market position within three years. B was recently hired as CEO of X plc$.$ She was selected because the company felt that she was the best candidate to lead $x$ plc through a period of major change.

After a thorough review of X$\text{'}$s operations, B created a powerful group of managers and directors across the organisation to help her implement her proposed, wideranging changes. She spent a significant amount of time explaining the process of change that was to be implemented, with a series of staff meetings under the slogan 'changing $x$ for the new markets'. At these meeting she involved staff and tried to build their ideas into the final change strategy. The Board refused to allow B to explain the new entrants to the market, as they felt that the company would see a drop in its share price if this information was leaked to the markets.

B backed up her proposed changes with a series of interim goals. When the organisation reached these targets, she planned to widely publicise them within the organisation in order to improve motivation amongst the staff.

Unfortunately B struggled to motivate the staff and, in spite of her staff meetings, little change occurred. After six months, B had failed to reach any of her interim goals. She decided to step aside and left the company.

Kotter suggested that there were eight steps required to successfully lead change. B$\text{'}$s failure to achieve which of these eight steps led to the ultimate failure of the change process at $x$ plc$?$

$$ Creation of a guiding coalition

Communicating the vision

Establishing a sense of urgency

Generating shortterm wins