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MGMT5
© 2012 Cengage Learning
Innovation and Change7
© 2012 Cengage Learning
1. explain why innovation matters to companies
2. discuss the different methods that managers can use to manage innovation in their organizations effectively
3. discuss why not changing can lead to organizational decline
4. discuss the different methods that managers can use to better manage change as it occurs
Organizational Innovation
1. explain why innovation matters to companies
2. discuss the different methods that managers can use to manage innovation in their organizations effectively
© 2012 Cengage Learning
Technology Cycles
• Begins with the birth of a new technology…
• …ends when that technology reaches limit and dies.
© 2012 Cengage Learning
S-Curves and Technological Innovation
© 2012 Cengage Learning
Innovation Streams: Technology Cycles over Time
© 2012 Cengage Learning
Emergence of Dominant Design
• There are winners and losers– technological lockout
• Signals a shift from design experimentation and competition to incremental change
© 2012 Cengage Learning
Managing Innovation
• During discontinuous change, companies must find a way to anticipate and survive technological changes.
• Companies must also manage incremental change and innovation.
© 2012 Cengage Learning
Components of Creative Work Environments
© 2012 Cengage Learning
Experiential Approach
Assumes that innovation is occurring within a highly uncertain environment; the key to
fast product innovation is to use innovation, flexible options, and hands-on experience.
•Design iteration•Product prototype•Testing•Milestones•Multifunctional teams
© 2012 Cengage Learning
Compression Approach
Assumes that innovation is a predictable process, that incremental innovation can be planned, and that compressing the time it
takes to complete steps can speed up innovation.
•Generational change•Supplier involvement•Shorten the time of individual steps•Overlapping steps
© 2012 Cengage Learning
Organizational Change
3. discuss why not changing can lead to organizational decline
4. discuss the different methods that managers can use to better manage change as it occurs
© 2012 Cengage Learning
The Risk of Not Changing
Organizational declines occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal and external pressures that threaten their
survival. •Blinded stage•Inaction stage•Faulty action stage•Crisis stage•Dissolution stage
© 2012 Cengage Learning
Forces
• Change forces– lead to differences in the form, quality, or
condition of an organization over time
• Resistance forces– caused by self-interest, misunderstanding, and
distrust
© 2012 Cengage Learning
Resistance to Change
• Self-interest
• Misunderstanding and distrust
• General intolerance for change
© 2012 Cengage Learning
Organizational Change Process
• Unfreezing
• Change intervention
• Refreezing
© 2012 Cengage Learning
Managing Resistance to Change
• Educate employees• Communication change-relate d
information• Have those affected by change
participate in planning and implementing
• Let employees discuss and agree on who will do what after change
• Coercion
© 2012 Cengage Learning
Mistakes Managers Make
• Not establishing a great enough sense of urgency• Not creating a powerful enough coalition• Lacking a vision• Undercommunicating the vision by a factor of 10• Not removing obstacles to the new vision• Not systematically planning for and creating
short-term wins• Declaring victory too soon• Not anchoring changes in the corporation’s
culture
© 2012 Cengage Learning
Change Tools and Techniques
Results-driven change• supplants emphasis on activity with focus
on quickly measuring and improving results
General Electric Workout• three-day meeting that generates
solutions to specific business problems
© 2012 Cengage Learning
© 2012 Cengage Learning
General Steps for Organizational Development Intervention
© 2012 Cengage Learning
Different Kinds of Organizational Development Interventions
<click screenshot for video>
REELTOREAL
Field of Dreams
1. When someone suggests an idea to you that you don’t completely understand, how open are you to considering it?
2. Which character is the most resistant to the idea of changing the farm into a ball field? Why?
3. Which characters demonstrate the most creativity and vision?
© 2012 Cengage Learning
<click screenshot for video>
REELTOREAL
Holden Outerwear
1. Identify the type of change that Holden’s leaders are managing on a daily basis.
2. What resistance has Holden encountered while introducing innovative garment designs? How was it able to overcome that resistance?
© 2012 Cengage Learning
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