Change situations around the world impact every organization operating today. Therefore, most organizations recognize the need to experience change and transformation to survive. The main challenges that companies face are due to technological advancements, the social environment caused by globalization, the pace of competition and the demands related to customer expectations. It is difficult to overcome the obstacles related to change despite all the articles, books and publications dedicated to the topic. People are naturally resistant to fundamental change and often intimidated by the process; old models and traditional methods are no longer effective. “Leading Change: Why Transformation Efforts Fail” is an article written by John P. Kotter in the Harvard Business Review, which outlines eight critical factors to help leaders successfully transform a company. Because leadership requires the ability to influence other people to achieve a goal, leadership must take steps to cope with a new and more challenging global market environment. Kotter highlights the mistakes companies make when implementing change and why such efforts create failure; therefore, it is essential that leaders learn to apply change effectively for it to be beneficial in the long term (Kotter). The first mistake leaders make is not establishing a sense of urgency. Change communication typically begins when people begin to notice vulnerability in the organization; usually requires some type of necessary action. Individuals or groups begin to examine the market and competitive realities of the circumstances trying to identify a potential crisis or any major threats or opportunities. Kotter says that 75 percent…half of the document…contains general statements that I recognize from my experience with leadership. It's very frustrating to hear about a new idea without any kind of explanation for the change. I recognize that leading change is incredibly difficult, and Kotter seems to understand the structure of organizational change. If leaders follow his guidelines and recommendations for their organizations, they can improve business and become significantly better companies. Works CitedKotter, John P. “Leading Change: Why Transformation Efforts Fail.” Harvard Business Review, vol. 85 Number 1, 96-103. January 2007. Web. 05 August 2011..