1. MANAGEMENT
RICHARD L. DAFT

2. Managing Change and Innovation
Managing Change and Innovation
CHAPTER 10

3. 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.

4. 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.

5. 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.

6. Ambidextrous Change
Incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations.
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7. Characteristics of Creative People an Organizations
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8. The World’s Most Innovative Companies
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9. 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.

10. 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.

11. 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.

12. OD Approaches to Culture Change
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13. 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.
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14. 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
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15. 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.

16. 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.