Management ch 11 managing change and innovation

Turbulent Times The Changing Work Place  Today’s organizations need to continuously adapt to new situations if they are to survive and prosper  One of the most dramatic elements is the

Managing Change and Innovation

Turbulent Times

The Changing Work Place

 Today’s organizations need to continuously adapt to new situations if they are to survive and prosper

 One of the most dramatic elements is the shift to a technology- driven workplace

 Ideas, information, and relationships are becoming critically important

Managing Change

and Innovation

 How organizations respond to the environment through internal change and development

● Basic forces for Organizational Change

● Four major types of change

● How organizations can be designed to facilitate each



Topics Chapter 11

Organizational Change

 Today’s successful organizations

simultaneously embrace two types of

planned change

basic operational and work processes in different parts of the company

renewing the entire organization

Facilitate search, creativity, idea champions, venture teams, skunk works and idea incubators

Use force field analysis, tactics for overcoming

resistance

Forces for Change

Need for Change

 Performance gap = disparity between existing and desired performance levels.

● Current procedures are not up to standard

● New idea or technology could improve current performance

 Based on external or internal forces

Initiating Change

 Stage where the ideas that solve perceived needs are developed

 Search = process of learning about current

developments inside or outside the organization that can be used to meet the perceived need for change

 Creativity = generation of novel ideas that might meet perceived needs or offer opportunities for the organization

Critical phase of change management

Characteristics of Creative People

Four Roles in Organizational Change

to win support for

the idea or make a

business of it

Sponsor

·High-level manager who removes organizational barriers

·Approves and protects idea within

organization

Critic

· Provides reality test

· Looks for comings

short-· Defines nosed

hard-criteria that idea must pass

Sources: Based on Harold L Angle and Andrew H Van de Ven, “Suggestions for Managing the Innovation Journey,” in Research in the Management of Innovation: The Minnesota Studies, ed A H Van de Ven, H L Angle, and Marshall Scott Poole (Cambridge, Mass.: Ballinger/Harper & Row, 1989); and Jay R Galgraith, “Designing the Innovating

Champion

· Believes in idea

· Visualizes benefits

· Confronts organization realities of cost, benefits

· Obtains financial &

political support

· Overcomes obstacles

Championing an idea successfully requires roles in organizations

New Venture Teams

 New Venture Team = Unit separate from the mainstream of the organization that is

responsible for developing and initiating innovations

 Skunkworks = separate small, informal,

highly autonomous, and often secretive group that focuses on breakthrough ideas for the business

New Venture Fund

 Fund providing resources from which

individuals and groups can draw to develop new ideas, products, or businesses

 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

Open Innovation

environment are becoming porous so that ideas flow back and forth among different companies that

engage in partnerships, joint ventures, licensing agreements, and other alliances

 Uncertainty: lack of information about future events

 Different Assessments and Goals: people who will be

affected by innovation may assess the situation differently.

Traditional to Just-In-Time Inventory Systems

Tactics for Overcoming Resistance to Change

 Participation

 Change is technical; users need accurate information & analysis

 Users need to feel involved; design requires information from others; have power to resist

Tactics for Overcoming

 Crisis exists; initiators clearly have power;

other techniques have failed

 Involves multiple departments or reallocation of resources; users doubt legitimacy of change

Types of Organizational Change

Culture/People

Strategy

Structure Technology Products

SOURCE: Based on Harold J Leavitt, “Applied Organizational Change in Industry: Structural, Technical, and Human Approaches,” In New Perspectives in Organization Research, ed.W.W Cooper, H.J Leavitt, and Shelly II (New York: Wiley, 1964), 55-74.

Horizontal Linkage Model

For New Product Innovation

Research Department

Marketing Department

Manufacturing Department

New Technology

Customers Market Conditions

Organization

Structural Changes

 Any change in the way in which the

organization is designed and managed

Culture-People Changes

 Changes in structure, technologies, and

products or services do not happen on their own

 Changes in any of these areas require changes in people

Organization Development

Decline/revitalization

Problems OD Can Address

Application of behavioral science techniques to improve an organization’s health and effectiveness through its ability to cope with environmental

changes, improve internal relationships, and increase learning and problem-solving capabilities

OD Activities

Survey feedback Team building

Large group intervention

OD Approaches to Culture Change

Traditional Organizational Development Model

Large-Group Intervention Model

Change Process : Incremental Change Rapid transformation

Focus for action:

Gradual Individual, small group

Entire system

Organization & environment Widely shared

Fast Whole organization

SOURCE: Adapted from Barbara Benedict Bunker and Billie T Alban, “Conclusion: What Makes Large Group Interventions Effective,” The Journal of Applied Behavioral Science 28, no 4 (December 1992), 579-591.

Three Stages for Achieving

Behavioral and Attitudinal Change

 Unfreezing

 Changing

 Refreezing