1. Chapter ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Leading Change 15

2. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Your Leadership Challenge Recognize social and economic pressures for change in today’s organizations. Implement the eight-stage model of planned change. Use appreciative inquiry to engage people in creating change by focusing on the positive and learning from success. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3. 3 Your Leadership Challenge (cont.) 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. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4. Key Characteristics of Leaders Who Can Accomplish Successful Change Projects They define themselves as change leaders rather than people who want to maintain the status quo. They demonstrate courage. They believe in employees’ capacity to assume responsibility. They are able to assimilate and articulate values that promote adaptability. They recognize and learn from their own mistakes. They are capable of managing complexity, uncertainty, and ambiguity. They have vision and can describe their vision for the future in vivid terms. 4

5. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 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 Global outsourcing Mergers, joint ventures Consortia Virtual and global teams Strategic change Cultural change Learning organization

6. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Ex. 15.2 The Eight-Stage Model of Planned Organizational Change 1. Establish a sense of urgency 2. Form a powerful guiding coalition 3. Develop a compelling vision and strategy 4. Communicate the vision widely 5. Empower employees to act on the vision 6. Generate short-term wins 7. Keep up urgency to tackle bigger problems 8. Make the change stick

7. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appreciative Inquiry 7 A technique for leading change that engages individuals, teams, or the entire organization by reinforcing positive messages and focusing on learning from success.

8. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ex. 15.3 Four Stages of Appreciative Inquiry 8

9. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 Innovation Terms Creativity –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

10. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 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

11. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 Ex. 15.4 Characteristics of Innovative Organizations and Creative People The Innovative OrganizationThe Creative Individual AlignmentCommitment Focused approach Creative ValuesInterdependence Persistence Energy Unofficial activitySelf-confidence Nonconformity Curiosity Diverse stimuliOpen-mindedness Conceptual fluency Enjoys variety Within-company communicationSocial competence Emotionally expressive Loves people

12. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Open Innovation Including customers, strategic partners, suppliers, and other outsiders directly in the innovation process. 12

13. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Brainstorming & Electronic Brainstorming 13 Brainstorming: A technique that uses a face-to-face group to spontaneously suggest a broad range of ideas to solve a problem. Electronic brainstorming: Bringing people together in an interactive group over a computer network; sometimes called brainwriting.

14. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Personal Compact The reciprocal obligations and commitments that define the relationship between employees and the organization

15. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 Downsizing Intentionally reducing the size of a company’s workforce