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Chapter7
ChangeandInnovation
MANA3335
ManagingOrganizationalChange
2
Lewin’s Model:
• Unfreezing: Believe that change is needed
• Change intervention: Change behaviours
and work practices
• Refreezing: Supporting and reinforcing
new changes
MANA3335
Reactionstochange
3
MANA3335
Supporters
are positive about the
change
Resisters
take a purely negative
view about the change
Fence-Sitters
can see both potential
benefits and drawbacks
Asachangeagent,it’scriticaltoidentifyOTHERS’changereadiness
Battilana, J., & Casciaro, T. (2013). The network secrets of great change agents. Harvard Business Review, 91(7), 62-68.
MANA3335
• Self-interest
• Misunderstanding and distrust
• General intolerance for change
• Legitimate concerns
Whydopeopleresist?
MANA3335
• Self-interest
• Misunderstanding and distrust
• General intolerance for change
• Legitimate concerns
Whydopeopleresist? How should resistance be managed?
• Education
• Communication
• Participation & Negotiation
• Convey top-management support
• Coercion (use of formal power
and authority to force change)
MANA3335
“I’ll be able to make the changes needed to support this strategy. “Personal Confidence
Change Appropriateness “This strategy makes sense and will help the company.”
Management Support “Senior leaders support the strategy.”
Personal Benefit “I will benefit personally from this change.”
Holt, Armenakis, Feild, & Harris (2007)
What does it mean to be ready for change?
MANA3335
Managingchangethetraditionalway
1. Establish a great enough sense of urgency
2. Create a powerful coalition (guiding team)
3. Have a compelling vision
4. Communicate the vision by a factor of ten
5. Empower action - removing obstacles
6. Create short-term wins (systematically plan)
7. Don’t declare victory too soon
8. Anchor changes in the corporation’s culture
– Make it stick!
John Kotter
MANA3335
Networksarehoworganizationsreallywork
Adapted from Rob Cross – What is O.N.A.? http://www.robcross.org/network_ona.htm
Exploration & Production
Senior Vice President
Jones
Drilling
Taylor
Production
Stock
Exploration
Williams
Sen
Moore
Miller
Andrews
Cross
Petrophysical
Smith
Cohen
G & G
Hughes
Ramirez
Bell
Cole
Hussain
Kelly
Paine
O’Brien
Production Resevoir
Shapiro
Shapiro Paine
Stock
O’Brien
Cole Jones
Kelly
Smith
Hughes
RamirezMoore
Hussain
Bell Sen
Taylor
Miller
Williams
Andrews
Cohen
Cross
MANA3335
DukeUniversitySchoolofNursingCaseStudy
Will the current way of working support the
future of the organization?
How do we implement change through our
current network?
Who can we identify to help us accelerate
change?
10
For more information, see:
• CCL White Paper: Analytics for Change: How Networks and Data Science Will Revolutionize Organizational Change
• Impact Story: Duke University School of Nursing Leveraging Networks for Change
MANA3335
11
• We are a network of independent
contractors or individual contributors.
• This network supports individual
creativity and everyone pursuing their
own unique interests and passions.
Implications for change:
• Diffuse network – everyone must see
need for change
• Key individuals can help accelerate this
process, but people will be brought on
board one-by-one and not as groups
• Network has to change to support
new strategic vision
Size represents number of
connections
Color represents the Relative Change
Readiness
MANA3335
CentralityinSense-MakingNetwork
Identify and Develop Change Agents
Actions Plans to Rewire Current Patterns
• Restructure physical environment
• Redesign formal work structures and processes
• Build a strategic change network
MANA3335
Definitions
• Creativity: Production of novel and useful ideas
• Innovation: The successful implementation of creative ideas in an organization
What do companies struggle with more?
MANA3335
WhyInnovationMatters
Organizational decline – risk of not changing
MANA3335
Howdoesinnovationhappen?
Technology Cycle
• Begins with the birth of a new technology
• Ends when technology reaches its limits and is
replaced by a newer, better technology
S-curve pattern of innovation
• Slow initial progress, then rapid progress
• Slow progress again as a technology matures
and reaches its limits
• Occurs when there are major advances in the
knowledge, tools, and techniques of a field
S-Curve
MANA3335
iPod
cassette audio player
Portable CD player
MiniDisc
MP3 Players
InnovationStreams
Patterns of innovation that over time can create sustainable competitive advantage
DISCONTINUOUS CHANGE
Technological
substitution
INCREMENTAL
CHANGE
- Innovate by
lowering costs and
improving
functioning
- Currently 7th
Generation of iPod
Technological
discontinuity
design competition
MANA3335
Managingdiscontinuouschange
• Change in which a technological discontinuity created a significant breakthrough in
performance or function
• Experiential approach to innovation
• Assumes innovation occurs within a highly uncertain environment
• Uses intuition, flexible options, and hands-on experience
• Reduces uncertainty and accelerates learning and understanding
• Key aspects –
• Design iterations
• Testing
• Milestones
• Multifunctional teams
• Powerful leaders
MANA3335
Managingincrementalchange
• Change that focuses on continuous improvement
• Compression approach innovation
• Assumes that innovation can be planned using a series of steps
• Compressing the steps can speed innovation
• Aspects
• Planning, supplier involvement
• Shortening the time of individual steps
• Overlapping steps and multifunctional teams
• Results in generational change (incremental improvements to a dominant design
and achieving backward compatibility with older technology)
MANA3335
Fostercreativeworkenvironments
Workplace cultures in which workers perceive that
new ideas are welcomed, valued, and encouraged
Components
• Encouragement
• Freedom
• Challenging Work
• Lack of Organizational Impediments
MANA3335
Whatistheroleofresourcesinnovation?
Necessity is the mother of invention
It takes money to make money
MANA3335
Whatistheroleofresourcesinnovation?
Necessity is the mother of invention
MANA3335
Whatistheroleofresourcesinnovation?
Necessity is the mother of invention
MANA3335
Whatistheroleofresourcesinnovation?
Necessity is the mother of invention
MANA3335
Whatistheroleofresourcesinnovation?
Necessity is the mother of invention
MANA3335
Whatistheroleofresourcesinnovation?
Necessity is the mother of invention
MANA3335
Whatistheroleofresourcesinnovation?
Necessity is the mother of invention
MANA3335
Necessity is the mother of invention
• Ideas are free (well, sorta) and innovation is contingent upon good ideas
• Flexibility (Less Bureaucracy)
• Urgency (Less Complacency)
• Fewer Expectations and (sometimes) Less Pressure
• Smaller can mean greater ownership over an idea
MANA3335
Whatistheroleofresourcesinnovation?
Necessity is the mother of invention
It takes money to make money
MANA3335
It takes money to make money
• Acquire Creative Talent
• Ability to Fail and Survive
• Ability to Fully Pursue an Idea
• Ability to Pursue Multiple Ideas
• eg up in Economic Downturns
• Toys, Gadgets, & Gizmos
• Focus Groups
• Marketing
MANA3335
If you Lack Resources…
• Hire creative talent
• Don’t spread yourself too thin…focus
• Spend time on less expensive
components of creativity (talking,
sketching, drafting)
• Allow for exploration when possible
If you Have Resources…
• Hire creative talent
• Set high expectations
• Provide resources to fully explore ideas
• Provide resources to simultaneously
explore multiple (but related) ideas
• Provide time to explore, test, and play
• Reward and recognize appropriately –
even when things fail

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Chapter 7 change and innovation

  • 2. MANA3335 ManagingOrganizationalChange 2 Lewin’s Model: • Unfreezing: Believe that change is needed • Change intervention: Change behaviours and work practices • Refreezing: Supporting and reinforcing new changes
  • 4. MANA3335 Supporters are positive about the change Resisters take a purely negative view about the change Fence-Sitters can see both potential benefits and drawbacks Asachangeagent,it’scriticaltoidentifyOTHERS’changereadiness Battilana, J., & Casciaro, T. (2013). The network secrets of great change agents. Harvard Business Review, 91(7), 62-68.
  • 5. MANA3335 • Self-interest • Misunderstanding and distrust • General intolerance for change • Legitimate concerns Whydopeopleresist?
  • 6. MANA3335 • Self-interest • Misunderstanding and distrust • General intolerance for change • Legitimate concerns Whydopeopleresist? How should resistance be managed? • Education • Communication • Participation & Negotiation • Convey top-management support • Coercion (use of formal power and authority to force change)
  • 7. MANA3335 “I’ll be able to make the changes needed to support this strategy. “Personal Confidence Change Appropriateness “This strategy makes sense and will help the company.” Management Support “Senior leaders support the strategy.” Personal Benefit “I will benefit personally from this change.” Holt, Armenakis, Feild, & Harris (2007) What does it mean to be ready for change?
  • 8. MANA3335 Managingchangethetraditionalway 1. Establish a great enough sense of urgency 2. Create a powerful coalition (guiding team) 3. Have a compelling vision 4. Communicate the vision by a factor of ten 5. Empower action - removing obstacles 6. Create short-term wins (systematically plan) 7. Don’t declare victory too soon 8. Anchor changes in the corporation’s culture – Make it stick! John Kotter
  • 9. MANA3335 Networksarehoworganizationsreallywork Adapted from Rob Cross – What is O.N.A.? http://www.robcross.org/network_ona.htm Exploration & Production Senior Vice President Jones Drilling Taylor Production Stock Exploration Williams Sen Moore Miller Andrews Cross Petrophysical Smith Cohen G & G Hughes Ramirez Bell Cole Hussain Kelly Paine O’Brien Production Resevoir Shapiro Shapiro Paine Stock O’Brien Cole Jones Kelly Smith Hughes RamirezMoore Hussain Bell Sen Taylor Miller Williams Andrews Cohen Cross
  • 10. MANA3335 DukeUniversitySchoolofNursingCaseStudy Will the current way of working support the future of the organization? How do we implement change through our current network? Who can we identify to help us accelerate change? 10 For more information, see: • CCL White Paper: Analytics for Change: How Networks and Data Science Will Revolutionize Organizational Change • Impact Story: Duke University School of Nursing Leveraging Networks for Change
  • 11. MANA3335 11 • We are a network of independent contractors or individual contributors. • This network supports individual creativity and everyone pursuing their own unique interests and passions. Implications for change: • Diffuse network – everyone must see need for change • Key individuals can help accelerate this process, but people will be brought on board one-by-one and not as groups • Network has to change to support new strategic vision Size represents number of connections Color represents the Relative Change Readiness
  • 12. MANA3335 CentralityinSense-MakingNetwork Identify and Develop Change Agents Actions Plans to Rewire Current Patterns • Restructure physical environment • Redesign formal work structures and processes • Build a strategic change network
  • 13. MANA3335 Definitions • Creativity: Production of novel and useful ideas • Innovation: The successful implementation of creative ideas in an organization What do companies struggle with more?
  • 15. MANA3335 Howdoesinnovationhappen? Technology Cycle • Begins with the birth of a new technology • Ends when technology reaches its limits and is replaced by a newer, better technology S-curve pattern of innovation • Slow initial progress, then rapid progress • Slow progress again as a technology matures and reaches its limits • Occurs when there are major advances in the knowledge, tools, and techniques of a field S-Curve
  • 16. MANA3335 iPod cassette audio player Portable CD player MiniDisc MP3 Players InnovationStreams Patterns of innovation that over time can create sustainable competitive advantage DISCONTINUOUS CHANGE Technological substitution INCREMENTAL CHANGE - Innovate by lowering costs and improving functioning - Currently 7th Generation of iPod Technological discontinuity design competition
  • 17. MANA3335 Managingdiscontinuouschange • Change in which a technological discontinuity created a significant breakthrough in performance or function • Experiential approach to innovation • Assumes innovation occurs within a highly uncertain environment • Uses intuition, flexible options, and hands-on experience • Reduces uncertainty and accelerates learning and understanding • Key aspects – • Design iterations • Testing • Milestones • Multifunctional teams • Powerful leaders
  • 18. MANA3335 Managingincrementalchange • Change that focuses on continuous improvement • Compression approach innovation • Assumes that innovation can be planned using a series of steps • Compressing the steps can speed innovation • Aspects • Planning, supplier involvement • Shortening the time of individual steps • Overlapping steps and multifunctional teams • Results in generational change (incremental improvements to a dominant design and achieving backward compatibility with older technology)
  • 19. MANA3335 Fostercreativeworkenvironments Workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged Components • Encouragement • Freedom • Challenging Work • Lack of Organizational Impediments
  • 20. MANA3335 Whatistheroleofresourcesinnovation? Necessity is the mother of invention It takes money to make money
  • 27. MANA3335 Necessity is the mother of invention • Ideas are free (well, sorta) and innovation is contingent upon good ideas • Flexibility (Less Bureaucracy) • Urgency (Less Complacency) • Fewer Expectations and (sometimes) Less Pressure • Smaller can mean greater ownership over an idea
  • 28. MANA3335 Whatistheroleofresourcesinnovation? Necessity is the mother of invention It takes money to make money
  • 29. MANA3335 It takes money to make money • Acquire Creative Talent • Ability to Fail and Survive • Ability to Fully Pursue an Idea • Ability to Pursue Multiple Ideas • eg up in Economic Downturns • Toys, Gadgets, & Gizmos • Focus Groups • Marketing
  • 30. MANA3335 If you Lack Resources… • Hire creative talent • Don’t spread yourself too thin…focus • Spend time on less expensive components of creativity (talking, sketching, drafting) • Allow for exploration when possible If you Have Resources… • Hire creative talent • Set high expectations • Provide resources to fully explore ideas • Provide resources to simultaneously explore multiple (but related) ideas • Provide time to explore, test, and play • Reward and recognize appropriately – even when things fail

Editor's Notes

  1. AMAZON In 1994 a soon-t0-be billionaire named Jeff Bezos started an online bookstore in his garage at a home located at 10704 NE 28th in Bellevue, Washington. That company would sell its first book in 1995 under the url Amazon.com. In 1997 Jeff Bezos took his little online bookstore public. Today Bezos is one of the richest men in the world and Amazon is the world’s largest online retailer.
  2. APPLE Steve Jobs and Steve Wozniak were only 21 and 26-years-old when they launched Apple in 1976. They started by building the first Apple Computer at a garage located at 2066 Crist Dr. in Los Altos, California Apple Computers sold 50 units of Wozniak’s Apple I Computer at $500 apiece to a local retailer. “The Steves” and their small team hand-built 50 computers in 30 days from a garage in Cupertino, CA. Today, Apple is the most valuable technology company in the world and could possibly become the first company with a market valuation of $1 trillion.
  3. GOOGLE If you used Google Maps before it existed to find the company’s headquarters it would lead you to a garage located at 232 Santa Margarita Ave in. Menlo Park, California. That address belongs to Susan Wojcicki. Founders Larry Page and Sergey Brin attempted to sell their “side project” to Excite for $1 million, but the company rejected what would become one of the most well-known and profitable company’s in the world. Google is now worth hundreds of billions of dollars.
  4. MICROSOFT n 1975, Bill Gates and Paul Allen founded Microsoft, with just a few resources and some garage space. Unlike Apple who developed both software and hardware, Microsoft focused on the software market. Working with IBM, the company licensed their first OS for a mere $80,000.
  5. DISNEY Disney didn’t start as a theme park or even a glamorous Hollywood movie studio. Instead, Walt Disney started his company 45 minutes down the road from his Disneyland Park in Anaheim, CA. Disney was living at 4651 Kingswell Ave. in Los Angeles, California, when he started his company in a garage owned by his uncle, Robert Disney. Walt and his brother Roy moved in with their uncle and set up “The First Disney Studio” in the one-car garage. It was in that garage that the men started filming the Alice Comedies which were part of the original Alice’s Wonderland. Disney is now the largest grossing entertainment company in the world.
  6. Harley Davidson In 1901, 21-year-old William S. Harley drew up plans to create a small engine to power a bicycle. Two years after those plans were drawn up, Harley and his childhood friend, Arthur Davidson, created their first motorcycle at an undisclosed garage in Milwaukee, Wisconsin. The motorcycle was build in their friend’s 10 by 15-foot wooden shed. They officially founded Harley-Davidson in 1903 and today it is the most recognizable motorcycle company in the world.