1. Chapter 15
Leading Change

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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

8. The Innovative Organization The Creative Individual
Ex 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

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

10. Downsizing
Intentionally reducing the size of a company’s workforce