Chapter 15 Leading Change

Chapter Objectives Recognize social and economic pressures for change in today’s organizations. Implement the eight-stage model of planned major change and use everyday strategies for gradual change. Expand your own and others’ creativity and facilitate organizational innovation. Use techniques of communication, training and participation to overcome resistance to change. Effectively and humanely address the negative impact of change.

Ex. 15.1 Forces Driving the Need for Major Organizational Change Globalization, technological change, e-business, increased competition, changing markets More threats More domestic competition Increased speed International competition More opportunities Bigger markets Fewer barriers More international markets More large-scale change in organizations Reengineering Horizontal organizing – teams Networks Quality programs New technologies and products Mergers, joint ventures Consortia Virtual and global teams Strategic change Cultural change Learning organization

Ex. 15.2 The Eight-Stage Model of Planned Organizational Change 8. Make the change stick 1. Establish a sense of urgency 7. Keep up urgency to tackle bigger problems 2. Form a powerful guiding coalition 3. Develop a compelling vision and strategy 6. Generate short-term wins 5. Empower employees to act on the vision 4. Communicate the vision widely

Ex. 15.3 A Range of Everyday Change Strategies Disruptive self-expression Variable-term opportunism Private Leader working alone Public Leader working with others Verbal Jujitsu Strategic alliance-building

Innovation Terms Creativity Idea Incubator The generation of new ideas that result in improved efficiency and effectiveness of the organization Idea Incubator A safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics

Innovation Terms (contd.) Corporate Entrepreneurship Internal entrepreneurial spirit that includes values of exploration, experimentation, and risk taking Idea Champions People who passionately believe in a new idea and actively work to overcome obstacles and resistance

The Innovative Organization The Creative Individual Ex. 15.4 Characteristics of Innovative Organizations and Creative People The Innovative Organization The Creative Individual Alignment Commitment Focused approach Creative Values Interdependence Persistence Energy Unofficial activity Self-confidence Nonconformity Curiosity Diverse stimuli Open-mindedness Conceptual fluency Enjoys variety Within-company communication Social competence Emotionally expressive Loves people

Personal Compact The reciprocal obligations and commitments that define the relationship between employees and the organization

Downsizing Intentionally reducing the size of a company’s workforce