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Chapter 8
Managing Change
and Innovation
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
(c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl...
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BM_08--revised

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BM_08--revised

  1. 1. Chapter 8 Managing Change and Innovation
  2. 2. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Objectives • Define organizational change and explain the forces driving innovation and change in today’s organizations • Identify 3 innovation strategies that mangers implement for changing products and technologies • Explain the value of creativity, idea incubators, horizontal linkages, open innovation, idea champions and new venture teams for innovation
  3. 3. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Objectives • Discuss why changes in people and culture are critical to any change process • Define organization development and large- group interventions • Explain the organization development stages of unfreezing, changing and refreezing • Identify sources of resistance to change • Explain force-field analysis and other implementation tactics that can be used to
  4. 4. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. New Manager’s Question 1 • When a company makes a new product, the main concern after that is marketing it well. 1 2 3 4 5 Mostly Yes Mostly No
  5. 5. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. New Manager’s Question 2 • The most important thing for a company to be innovative is to encourage lots of creative ideas. 1 2 3 4 5 Mostly Yes Mostly No
  6. 6. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. New Manager’s Question 3 • Changing an organization is not as hard as people make out. 1 2 3 4 5 Mostly Yes Mostly No
  7. 7. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Innovation and Change in the Workplace • The 1990 Knowledge Economy is turning into the Creativity Economy • Change comes from inside/outside forces • Organizations can initiate change • Change must be embraced • Successful companies innovate
  8. 8. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Change • The adoption of a new idea or behavior by an organization • Organizations must be ambidextrous – Incorporating structures and processes for creativity and innovation • Managers encourage flexibility and freedom to innovate and propose new ideas
  9. 9. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Changing Things: New Products and Technologies • Product Change – a change in the organization’s product or service outputs. • Technology Change – a change in the organization’s production process. – Designed to make the production of a product or service more efficient
  10. 10. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Critical Innovation Strategies • Exploration – Involves designing the organization to encourage creativity and the initiation of new ideas – Stage where ideas for new products & technologies are born – Managers establish conditions that encourage creativity & allow new ideas to spring forth – Creativity – novel ideas that meet perceived needs or offer opportunities – Idea incubator – a safe harbor where employees can develop ideas
  11. 11. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Characteristics of Creative People and Organizations
  12. 12. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The World’s Most Innovative Companies
  13. 13. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Critical Innovation Strategies • Cooperation – Creating conditions and systems to facilitate internal & external coordination and knowledge sharing – 3 characteristics of innovative companies • People in marketing have a good understanding of customers needs • Technical specialists are aware of recent technological developments & make effective use of new technology • Members from key depts. cooperate in the development of the new product or service
  14. 14. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cooperation • Horizontal linkage model – people from several depts meets frequently in teams & task forces to share ideas & solve problems. • Fast-cycle team – multifunctional team that works under stringent timelines • Open innovation – extending the search for & commercialization of ideas beyond the organization.
  15. 15. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Coordination Model for Innovation
  16. 16. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Critical Innovation Strategies • Entrepreneurship – Put in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation – Mangers give employees a degree of autonomy by rewarding learning and risk taking – Foster idea champions • Person who sees the need for & champions productive change within the organization
  17. 17. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Four Roles in Organizational Change
  18. 18. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Critical Innovation Strategies • Entrepreneurship – Facilitated through a new-venture team • Unit separate from the rest of the organization • Responsible for developing & initiating a major innovation – Variation of new-venture team – skunkworks • Separate small, informal, highly autonomous and often secretive group that focuses on breakthrough ideas for the business – Related idea – new-venture fund • Provides resources from which individuals & groups can draw to develop new ideas, products or businesses
  19. 19. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Three Critical Innovation Strategies
  20. 20. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Changing People and Culture • Changes in how employees think – Changes in mind-set • People change = Training and Development • Culture change = Organizational Development • Large culture change is not easy
  21. 21. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Training and Development • Offer training programs – Teamwork, diversity, emotional intelligence, etc. • Emphasize training managers in the hope that the managers’ behavior & attitudes influence others
  22. 22. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Development • Planned, systematic process of change using behavioral science to improve an organization’s health & effectiveness • Addresses three types of problems:  Mergers and acquisitions  Organizational decline and revitalization  Conflict management
  23. 23. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. • Team-building activities • Survey-feedback activities • Large-group interventions • There is a difference between the traditional model & large group intervention OD Activities
  24. 24. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. OD Approaches to Culture Change
  25. 25. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. • Unfreezing – participants must be made aware of problems & be willing to change – Change agent – OD specialist – performs a systematic diagnosis of the organization to identify work-related problems • Changing – individuals experiment with new behavior & learn new skills (intervention) • Refreezing – individuals acquire new attitudes or values & are rewarded for them OD Steps
  26. 26. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implementing Change • Outline the Need for Change – Show the performance gap – disparity between existing & desired performance levels • Understand the Resistance to Change – Self-Interest – fear of personal loss – Lack of Understanding and Trust – intentions/purpose – Uncertainty – lack of information about future events – Different Assessments and Goals – individuals affected
  27. 27. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Force-Field Analysis • Driving forces – problems or opportunities that provide motivation for change • Restraining forces – barriers to change
  28. 28. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Tactics for Overcoming Resistance to Change

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