The first step in the eight-stage process is to create a sense of urgency. Kotter comments that a lack of urgency, or high levels of complacency, can prevent change efforts from developing at all. Kotter identifies nine sources of complacency: a lack of major crisis, visible wealth, low standards, narrow goals, incorrect performance indexes, lack of external feedback, low-confrontation culture, natural urges toward denial, and “happy talk” from upper-management. High complacency aligns with low urgency, so Kotter offers solutions to each of these complacency sources to increase urgency.

Organizations can artificially create a crisis, such as setting an unrealistic goal that causes disruption when it is not met. Selling signs of visible wealth, like fancy furniture or expansive headquarters, can give the impression that the company is not doing well. Increasing standards, broadening goals at all management levels, and using better metrics to measure performance can improve urgency while improving functionality. Encouraging confrontation, bringing in outside consultants or customers, and speaking frankly about the need for change can all stimulate discussion that overwhelms the urge toward denial and pushes conversations toward change.

Kotter comments that mid- and low-level management can rarely instigate change without immense effort and pre-existing dissatisfaction among top managers and executives.