Leading Change and Innovation 4-1Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations

After studying this chapter, you should be able to:  Understand the different reasons for resisting change.  Understand the psychological processes involved in making major changes.  Understand how to develop an appealing vision for the organization. Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-2

 Understand how to implement a major change in an organization.  Understand the characteristics of a learning organization.  Understand how leaders can increase learning and innovation in organizations. Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-3

Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-4 Understand the different reasons for resisting change

 No clear justification for change  Feasibility of proposed change  Unsuccessful earlier change efforts  Lacking self-confidence  Tangible cost/benefit  Individual loss  Inconsistency with individual values  Lack of trust Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-5

Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-6 Understand the psychological processes involved in making major changes

 Unfreeze  Change  Refreeze Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-7

 Denial  Anger  Mourning  Adaption Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-8

 General Self-Confidence  “Inoculation” hypothesis  Less resilience hypothesis Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-9

Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-10 Understand how to develop an appealing vision for the organization

Qualities of an effective vision  Simple and idealistic  Appeals to values  Emphasizes future objective  Challenging  Realistic  Addresses what is important  Focused but not confining Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-11

 Mission Statement  Value Statement  Slogans  Strategic Objectives  Project Objectives Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-12

 Key stakeholders  Shared values and ideals  Strategic objectives with wide appeal  Relevant elements in the old ideology  Link vision to core competencies  Continually assess and refine the vision Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-13

Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-14 Understand how to implement a major change in an organization

 Determine what to change  Systems Dynamics  Responsibility  Pace and Sequencing Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-15

 Create urgency  Communicate vision  Identify supporters and opponents  Build coalition  Use change agents  Make symbolic changes Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-16

 Prepare people for change  Deal with stress  Provide early successes  Monitor progress  Communicate progress  Demonstrate optimism Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-17

Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-18 Understand the characteristics of a learning organization

 Internal creation  External acquisition  Knowledge Diffusion  Learning Organizations Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-19

Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-20 Understand how leaders can increase learning and innovation in organizations

 Appreciation  Learning at various levels  Mental models  Leverage learning  Knowledge sharing  Innovation goals  Reward entrepreneurial behavior Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations4-21