MGT 4153 Dr. Rebecca Long

Forces Driving the Need for Change Long 2 More Large-Scale Changes in Organizations Structure change Mergers, joint ventures, consortia Strategic change Horizontal organizing, teams, networks Culture change New technologies, products Knowledge management, enterprise New business processes resource planning E-business Quality programs Learning organizations More Large-Scale Changes in Organizations Structure change Mergers, joint ventures, consortia Strategic change Horizontal organizing, teams, networks Culture change New technologies, products Knowledge management, enterprise New business processes resource planning E-business Quality programs Learning organizations More Threats More domestic competition Increased Speed International competition More Threats More domestic competition Increased Speed International competition Global Changes, Competition and Markets T echnological Change International Economic Integration Maturation of Markets in Developed Countries 1,349,585,838 – China Unites States – 308,000,000 Fall of Communist and Socialist Regimes Global Changes, Competition and Markets T echnological Change International Economic Integration Maturation of Markets in Developed Countries 1,349,585,838 – China Unites States – 308,000,000 Fall of Communist and Socialist Regimes More Opportunities Bigger markets Fewer barriers More international markets More Opportunities Bigger markets Fewer barriers More international markets

Types of Change Long 3 Continuous progression Continuous progression Paradigm-breaking burst Paradigm-breaking burst Through normal structure and management processes Through normal structure and management processes Transform entire organization Transform entire organization Affect organizational part Affect organizational part Create new structure and management Create new structure and management Technology improvements Technology improvements Breakthrough technology Breakthrough technology Product improvement Product improvement New products, new markets New products, new markets Incremental ChangeRadical Change

Four Areas for Change Long 4 Technology Changes in production process Products and Services Changes in outputs Strategy and Structure Administrative changes Culture Changes in values, attitudes, behaviors

Elements for Successful Change Long 5 Environment Suppliers Professional Associations Consultants Research literature Suppliers Professional Associations Consultants Research literature Customers Competition Legislation Regulation Labor force Customers Competition Legislation Regulation Labor force 1. Ideas 2. Needs 3. Adoption 4.Implementation 5. Resources Internal Creativity and Inventions Internal Creativity and Inventions Perceived Problems or Opportunities Perceived Problems or Opportunities Organization

Ambidextrous Technical Change Long 6 General Manager Creative Dept. ● Capabilities ● New Ideas (Organic Structure) Using Dept. ● Exploit capabilities ● Application (Mechanistic Structure)

New Product Success Rate Long 7 Enormous uncertainty in development of new products; RCA’s VideoDisc – Lost $500 million Time, Inc.’s TV-Cable Week lost $47 million Pfizer invested 70+ million, anti-aging drug, flopped in final testing 5,000 new food items each year, failure is 70-80% 100 Ideas (by Product Dev. and Management Assoc.) 33 developed projects 28 pass all testing 24 fully commercialized 14 succeed in marketplace

Horizontal Linkage Model for New Product Innovations Specialization, Boundary Spanning, Horizontal Coordination Long 8 Environment Technical Development Technical Development Environment Customer Needs Customer Needs Organization General Manager General Manager R&D Marketing Production Linkage

Dual-Core Approach to Organization Change Long 9 Type of Innovation Desired Administrative Structure Technology Direction of Change: Top-Down Bottom-Up Examples of Change: Strategy Production Downsizing techniques Structure Workflow Best Organizational Design for Change: Mechanistic Organic Administrative Core Technical Core

Culture Change Long 10 Reengineering and Horizontal Organization Diversity The Learning Organization

OD Culture Change Interventions Long 11 Large Group Intervention Team Building Interdepartmental Activities

Barriers to Change Long 12 Excessive focus on costs Failure to perceive benefits Lack of coordination and cooperation Uncertainty avoidance Fear of loss

Techniques for Change Long 13 Establish a sense of urgency for change. Establish a coalition to guide the change. Create a vision and strategy for change. Find an idea that fits the need. Develop plans to overcome resistance. Create change teams. Foster idea champions.

Who Moved My Cheese “Life is no straight and easy corridor along Which we travel free and unhampered, But a maze of passages Through which we must seek our way, Lost and confused in a blind alley.

Who Moved My Cheese But always, if we have faith, A door will open for us, Not perhaps one that we ourselves Would ever have thought of, But one that will ultimately Prove good for us.” (A. J. Cronin)

Who Moved My Cheese Characters: Sniff Scurry Hem Haw

Who Moved My Cheese A Gathering in Chicago Angela-Most Popular Nathan-Family Business Carlos-Football Captain Michael-Story Teller

Who Moved My Cheese-1 Having Cheese Makes You Happy

Who Moved My Cheese-2 The More Important Your Cheese Is To You The More You Want To Hold On To It

Who Moved My Cheese-3 If You Do Not Change, You Can Become Extinct

Who Moved My Cheese-4 What Would You Do If You Weren’t Afraid?

Who Moved My Cheese-5 Smell The Cheese Often So You Know When It Is Getting Old

Who Moved My Cheese-6 Movement In A New Direction Helps You Find New Cheese

Who Moved My Cheese-7 When You Move Beyond Your Fear, You Feel Free

Who Moved My Cheese-8 Imagining Myself Enjoying New Cheese Even Before I Find It Leads Me To It

Who Moved My Cheese-9 The Quicker You Let Go Of Old Cheese, The Sooner You Find New Cheese

Who Moved My Cheese-10 It Is Safer To Search In The Maze Than Remain In A Cheese-less Situation

Who Moved My Cheese-11 Old Beliefs Do Not Lead You To New Cheese

Who Moved My Cheese-12 When You See That You Can Find And Enjoy New Cheese, You Change Course

Who Moved My Cheese-13 Noticing Small Changes Early Helps You Adapt To The Bigger Changes That Are to Come

Who Moved My Cheese Change Happens (They Keep Moving The Cheese) Anticipate Change (Get Ready For The Cheese To Move) Monitor Change (Smell The Cheese Often So You Know When It Is Getting Old) Adapt To Change Quickly (The Quicker You Let Go Of Old Cheese, The Sooner You Can Enjoy New Cheese)

Who Moved My Cheese Change (Move With The Cheese) Enjoy Change! (Savor The Adventure And Enjoy The Taste Of New Cheese!) Be Ready To Change Quickly And Enjoy It Again & Again (They Keep Moving The Cheese)

Who Moved My Cheese Move With The Cheese And Enjoy It!

Who Moved My Cheese Feed-back about story? Who are you in the story? Why? Apply it to your position in your organization. How many of you are afraid of change? How many think others are afraid of change? Did Hem ever change and find new cheese?

Who Moved My Cheese Can “cheese” be old behavior? Instead of changing jobs, maybe we should be changing the way we are “doing” our jobs? Idea: Instead of complaining, what about saying, “They just moved our cheese. Let us look for New Cheese”!