MANAGEMENT RICHARD L. DAFT

Managing Change and Innovation Managing Change and Innovation CHAPTER 10

Learning Outcomes Define organizational change and explain the forces driving innovation and change in today’s organization. Identify the three innovation strategies managers 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. Discuss why changes in people and culture are critical to any change process. Define organizational development (OD) and large group interventions. Explain the OD 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 overcome resistance. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Innovation and the Changing Workplace In today’s dynamic environment, managing change and innovation is key Organizations must embrace many types of change Today’s successful companies are continually innovating Organizational change requires the adoption of new ideas and/or behavior Many organizations struggle with changing successfully….. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Changing Things: New Products and Technologies There are three critical innovation strategies for changing products and technologies. Exploration is where ideas for new products and technologies are born. Cooperation guides internal and external coordination. Entrepreneurship is the culture of generating and pushing forward new ideas. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Ambidextrous Change Incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Characteristics of Creative People an Organizations Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

The World’s Most Innovative Companies Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Coordination Model for Innovation Horizontal linkage model – an approach to product change that emphasizes shared development of innovations among several departments. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Four Roles in Organizational Change New Venture Team – separate team responsible for developing and initiating innovations Skunkworks – separate, small, informal group that focuses on breakthrough ideas Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Changing People and Culture Training and Development Organization Development (OD) Three challenges requiring OD Development Mergers/acquisitions Organizational decline/ revitalization Conflict Management Organizational Development activities may include team-building, surveys, or large-group interventions Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

OD Approaches to Culture Change Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Organizational Development Steps Unfreezing. Expose the problem and the need for change. Changing. Experiment with new behaviors and learn new skills. Refreezing. Acquire new attitudes and values with organizational reward. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Implementing Change Need for Change. Many people are not willing to change. Managers must recognize the need and make others aware. Resistance to Change. Getting others to understand the need for change is the first step. Self-interest Lack of Understanding and Trust Uncertainty Different Assessment and Goals Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Force-Field Analysis Change was a result of the competition between driving and restraining forces. Driving forces are the problems and opportunities that provide motivation to change. Restraining forces are the various barriers to change. Managers should recognize the driving force and the restraining forces. As barriers are reduced, behavior will shift. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

Tactics for Overcoming Resistance to Change Communication, education Participation Negotiation Coercion Top Management Support Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.