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• Why do people resist change?
• Psychological Processes
• Developing an appealing vision
• Implementing major changes
• Characteristics of a learning
organization
• Increasing learning and
innovation
Attitudes and Roles
Attitude-Centered Approach
Role-Centered Approach
• Reorganizing the
workflow
• Redesigning jobs
• Modifying authority
relationships
• Changing the criteria
and procedures for
evaluation of work
• Changing the reward
system
TECHNOLOGY
Strategy
Introduction of new products or services
Entering new markets
Use of new forms of marketing
Forming alliances or joint ventures with
other organizations
People
Internal changes
Downsizing
Adjustments in compensation and incentives
Improving human capability
Encouraging commitment and creativity
Change
process
theories
Unfreezing
Changing
Refreezing
Lewin
“The reaction pattern”
Denial
Anger
Mourning
Adaptation
Reasons for resisting change
• The Change Is Not Necessary
• The Change Is Not Feasible
• The Change Is Not Cost
Effective
• The Change would cause
Personal Losses
• The Change Is Inconsistent
With Values
• Leaders are Not Trusted
Psychological Processes
• How do you cope with
change?
• Confidence
• Prior experience
• Risk tolerance
• Openness to new
experiences
• Internal locus of control
orientation
Develop an appealing vision
• A vision conveys an image of
what can be achieved, why it
is worthwhile, and how it
can be done
• Simple and idealistic, a
picture of a desirable future
• A vision should be
challenging but realistic
• Focused enough to guide
decisions and actions
• General enough to allow
initiative and creativity
Develop an appealing vision
• Involve key stakeholders
• Identify shared values and
ideals
• Identify strategic objectives
with wide appeal
• Identify relevant elements
in the old ideology
• Link the vision to core
competencies and prior
achievements
• Continually assess and refine
the vision
How to implement major
changes
• Create a sense of urgency about
the need for change
• Communicate a clear vision of the
benefits to be gained
• Identify likely supporters,
opponents, and reasons for
resistance
• Fill key positions with competent
change agents
• Use task forces to guide the
implementation of changes
• Prepare people for change by
explaining how it will affect them
• Monitor the progress of change
and make any necessary
adjustments
• Keep people informed about the
progress of change
• Demonstrate continued optimism
and commitment to the change
Characteristics of a Learning
Organization
• Organizations that learn
rapidly and use the
knowledge to become more
effective
• Values:
Learning
Innovation
Experimentation
Flexibility
Initiative
Increase Learning and
Innovation
Recruit talented, creative people and
empower them to be innovative
Encourage appreciation for flexibility
and innovation
Encourage and facilitate learning by
individuals and teams
Help people improve their mental
models
Evaluate new ideas with small
experiments
Leverage learning from surprises and
failures
Encourage and facilitate sharing of
knowledge and ideas
Preserve past learning and ensure
continued use of relevant knowledge
Set innovation goals
Reward entrepreneurial behavior

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Managing Change & Innovation in Organizations

  • 1.
  • 2. • Why do people resist change? • Psychological Processes • Developing an appealing vision • Implementing major changes • Characteristics of a learning organization • Increasing learning and innovation
  • 5. Role-Centered Approach • Reorganizing the workflow • Redesigning jobs • Modifying authority relationships • Changing the criteria and procedures for evaluation of work • Changing the reward system
  • 7. Strategy Introduction of new products or services Entering new markets Use of new forms of marketing Forming alliances or joint ventures with other organizations
  • 8. People Internal changes Downsizing Adjustments in compensation and incentives Improving human capability Encouraging commitment and creativity
  • 11. Reasons for resisting change • The Change Is Not Necessary • The Change Is Not Feasible • The Change Is Not Cost Effective • The Change would cause Personal Losses • The Change Is Inconsistent With Values • Leaders are Not Trusted
  • 12. Psychological Processes • How do you cope with change? • Confidence • Prior experience • Risk tolerance • Openness to new experiences • Internal locus of control orientation
  • 13. Develop an appealing vision • A vision conveys an image of what can be achieved, why it is worthwhile, and how it can be done • Simple and idealistic, a picture of a desirable future • A vision should be challenging but realistic • Focused enough to guide decisions and actions • General enough to allow initiative and creativity
  • 14. Develop an appealing vision • Involve key stakeholders • Identify shared values and ideals • Identify strategic objectives with wide appeal • Identify relevant elements in the old ideology • Link the vision to core competencies and prior achievements • Continually assess and refine the vision
  • 15. How to implement major changes • Create a sense of urgency about the need for change • Communicate a clear vision of the benefits to be gained • Identify likely supporters, opponents, and reasons for resistance • Fill key positions with competent change agents • Use task forces to guide the implementation of changes • Prepare people for change by explaining how it will affect them • Monitor the progress of change and make any necessary adjustments • Keep people informed about the progress of change • Demonstrate continued optimism and commitment to the change
  • 16. Characteristics of a Learning Organization • Organizations that learn rapidly and use the knowledge to become more effective • Values: Learning Innovation Experimentation Flexibility Initiative
  • 17. Increase Learning and Innovation Recruit talented, creative people and empower them to be innovative Encourage appreciation for flexibility and innovation Encourage and facilitate learning by individuals and teams Help people improve their mental models Evaluate new ideas with small experiments Leverage learning from surprises and failures Encourage and facilitate sharing of knowledge and ideas Preserve past learning and ensure continued use of relevant knowledge Set innovation goals Reward entrepreneurial behavior