1. Managing Change and Innovation
Chapter 11
Managing Change and Innovation

2. 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
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3. 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
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4. 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
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5. 11.1 Three Innovation Strategies
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6. 11.2 Characteristics of Creative People and Organizations
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7. 11.3 The World’s Most Innovative Companies
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8. Exploration
Creativity – novel ideas that meet perceived needs or offer opportunities
Idea incubator – a safe harbor where employees can develop ideas and experiment
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9. Cooperation
Horizontal coordination mechanisms – simultaneously contribute to innovation
Internal and external
Open innovation – commercialization of ideas beyond the organization
Includes customers and partners
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10. 11.4 Coordination Model for Innovation
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11. 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
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12. 11.5 Four Roles in Organizational Change
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13. 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
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14. Organizational Development
Planned, systematic process of change using behavioral science
Addresses three types of problems:
Mergers and acquisitions
Organizational decline and revitalization
Conflict management
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15. OD Activities Team-building activities Survey-feedback activities
OD Steps:
Unfreezing
Changing
Refreezing
Team-building activities
Survey-feedback activities
Large-group interventions
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16. 11.6 OD Approaches to Culture Change
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17. 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
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18. 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
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19. 11.8 Tactics for Overcoming Resistance to Change
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