Managing Change and Innovation


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Managing Change and Innovation

  1. 1. Managing Change and Innovation CHAPTER 11 0
  2. 2. Learning Objectives <ul><li>Define organizational change and explain the forces driving innovation and change in today’s organizations. </li></ul><ul><li>Identify three innovation strategies managers implement for changing products and technologies. </li></ul><ul><li>Explain the value of creativity, idea incubators, horizontal linkages, open innovation, idea champions, and new-venture teams for innovation. </li></ul><ul><li>Discuss why changes in people and culture are critical to any change process. </li></ul><ul><li>Define organizational development (OD) and large group interventions. </li></ul>0
  3. 3. Learning Objectives (contd . ) <ul><li>Explain the OD stages of unfreezing, changing, and refreezing. </li></ul><ul><li>Describe the sequence of change activities that must be performed in order for change to be successful. </li></ul><ul><li>Identify sources of resistance to change. </li></ul><ul><li>Explain force-field analysis and other implementation tactics that can be used to overcome resistance. </li></ul>0
  4. 4. Turbulent Times The Changing Work Place <ul><li>Today’s organizations need to continuously adapt to new situations if they are to survive and prosper </li></ul><ul><li>One of the most dramatic elements is the shift to a technology- driven workplace </li></ul><ul><li>Ideas, information, and relationships are becoming critically important </li></ul>0
  5. 5. Organizational Change <ul><li>The adoption of a new idea of behavior by an organization </li></ul><ul><li>A product change is a change in the organization’s product or service outputs. </li></ul><ul><li>A technology change is a change in the organization’s production process – how the organization does its work. </li></ul>0
  6. 6. Coordination Model for Innovation Exhibit 11.3 0
  7. 7. Idea Champion A person who sees the need for and champions productive change within the organization Change does not occur by itself 0
  8. 8. Four Roles in Organizational Change Exhibit 11.4 0
  9. 9. New Venture Teams <ul><li>New Venture Team = Unit separate from the mainstream of the organization that is responsible for developing and initiating innovations </li></ul><ul><li>Skunkworks = separate small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business </li></ul>0
  10. 10. New Venture Fund <ul><li>Fund providing resources from which individuals and groups can draw to develop new ideas, products, or businesses </li></ul><ul><li>Idea Incubator = in-house program that provides a safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics </li></ul>0
  11. 11. Model of Change Sequence of Events Exhibit 11.6 0
  12. 12. OD Activities Survey feedback Team building Large group intervention 0
  13. 13. OD Approaches to Cultural Change Exhibit 11.5 0
  14. 14. Three Stages for Achieving Behavioral and Attitudinal Change <ul><li>Unfreezing </li></ul><ul><li>Changing </li></ul><ul><li>Refreezing </li></ul>0
  15. 15. Forces for Change <ul><li>Environmental Forces </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Economic </li></ul></ul><ul><ul><li>International arena </li></ul></ul><ul><li>Internal Forces – activities and decisions </li></ul>0
  16. 16. Need for Change <ul><li>Performance gap = disparity between existing and desired performance levels. </li></ul><ul><ul><li>Current procedures are not up to standard </li></ul></ul><ul><ul><li>New idea or technology could improve current performance </li></ul></ul>Based on external or internal forces 0
  17. 17. Resistance to Change <ul><li>Self-Interest: fear of personal loss is perhaps the biggest obstacle to organizational change </li></ul><ul><li>Lack of Understanding and Trust : do not understand the intended purpose of a change or distrust the intentions </li></ul><ul><li>Uncertainty: lack of information about future events </li></ul><ul><li>Different Assessments and Goals: people who will be affected by innovation may assess the situation differently </li></ul>0
  18. 18. Force-Field Analysis <ul><li>The process of determining which forces drive and which resist a proposed change </li></ul><ul><li>Restraining Forces (Barriers) </li></ul><ul><li>Lack of resources </li></ul><ul><li>Resistance from middle managers </li></ul><ul><li>Inadequate employee skills </li></ul><ul><li>Driving Forces </li></ul><ul><li>Thought of as problems or opportunities that provide motivation for change </li></ul>Kurt Lewin 0
  19. 19. Traditional to Just-In-Time Inventory Systems Exhibit 11.7 0
  20. 20. Tactics for Overcoming Resistance to Change <ul><li>Communication </li></ul><ul><li>Education </li></ul><ul><li>Participation </li></ul><ul><li>Change is technical; users need accurate information & analysis </li></ul><ul><li>Users need to feel involved; design requires information from others; have power to resist </li></ul>Approach When to Use 0
  21. 21. Tactics for Overcoming Resistance to Change (contd.) <ul><li>Negotiation </li></ul><ul><li>Coercion </li></ul><ul><li>Top management support </li></ul><ul><li>Group has power over implementation; will lose out in the change </li></ul><ul><li>Crisis exists; initiators clearly have power; other techniques have failed </li></ul><ul><li>Involves multiple departments or reallocation of resources; users doubt legitimacy of change </li></ul>Approach When to use 0