Managing Change and Innovation Chapter 11 Managing Change and Innovation

Innovation and Change in the Workplace If organizations don’t successfully change and innovate, they die Change and innovation can come from outside forces Managers want to initiate change from the inside Disruptive innovation is a goal for global competition Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Organizational Change The adoption of a new idea or behavior by an organization Change is not easy, organizations must take an ambidextrous approach Managers encourage flexibility and freedom to innovate Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Changing Things: New Products and Technologies Product Change – a change in the organization’s product or service outputs Technology Change – a change in the organization’s production process Three innovation strategies: exploration, cooperation, and entrepreneurship Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

11.1 Three Innovation Strategies Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

11.2 Characteristics of Creative People and Organizations Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

11.3 The World’s Most Innovative Companies Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Exploration Creativity – novel ideas that meet perceived needs or offer opportunities Idea incubator – a safe harbor where employees can develop ideas and experiment Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Cooperation Horizontal coordination mechanisms – simultaneously contribute to innovation Internal and external Open innovation – commercialization of ideas beyond the organization Includes customers and partners Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

11.4 Coordination Model for Innovation Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Entrepreneurship Managers should support entrepreneurship activities and foster idea champions Energy and effort is required to promote a new idea Sponsors approve and protect ideas when critics challenge the concept New-venture teams give free rein to creativity New-venture funds provide resources for new ideas Skunkworks are informal, autonomous, secretive groups that focus on breakthrough ideas Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

11.5 Four Roles in Organizational Change Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Changing People and Culture Changes in how employees think Changes in mind-set People change = Training and Development Culture change = Organizational Development Large culture change is not easy Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Organizational Development Planned, systematic process of change using behavioral science Addresses three types of problems: Mergers and acquisitions Organizational decline and revitalization Conflict management Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

OD Activities Team-building activities Survey-feedback activities OD Steps: Unfreezing Changing Refreezing Team-building activities Survey-feedback activities Large-group interventions Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

11.6 OD Approaches to Culture Change Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Implementing Change Outline the Need for Change Show the performance gap Understand the Resistance to Change Self-Interest Lack of Understanding and Trust Uncertainty Different Assessments and Goals Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Restraining forces – barriers to change 11.7 Force-Field Analysis Driving forces – problems or opportunities that provide motivation for change Restraining forces – barriers to change Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

11.8 Tactics for Overcoming Resistance to Change Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.