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22/02/2013
1
Innovation and Change ManagementMGN240MGN240
Chapter One: Introduction
Prof. Ahmed Hanane, MBA, CMA, EngEmail: [email protected]
Agenda
• Introductions– Name– Your major– The biggest change you undertook on in your life
• Contact information – on a piece of paper – Full Name– Email
• Course Syllabus• Introduction to Innovation and change management
Course Syllabus – Key Points to remember
• Class Participation – 20%– One Minute feedback– Attendance– Class discussions
• Examination– Mid‐term – 30%– Final exam – 30%
• Group project – 20%• Behavioral expectations
– Integrity and Ethics– Use of tablets & cell phones
Course Expectations
1. Understand the importance of change and innovation in the business
2. How to manage change in a business environmentenvironment
3. How to conduct innovation processes and projects in various industries
4. How to monitor innovation projects
Chapter 1: Learning ObjectivesAfter completing this chapter, students will be able to:
1. Understand why change and innovation management arebecoming such a powerful and popular practices in business.
2. Understand the different phases of change.
3. Understand why effective change management is such achallenge.
4. Get a first look at change management models and thedifferences between them.
5. Recognize the key relationships between change andinnovation management.
01‐04
The PC example
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ChangeTo Make Different in Some Particular: ALTERTo Make Radically Different: TRANSFORMTo Give a Different Position, Course or
What is change management?
To Give a Different Position, Course or Direction-- Webster’s Collegiate Dictionary"Change is the only constant."– Heraclitus, Greek philosopher
Example of change – Moving fromopen to Robotic Surgery
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2 3
Process Change Is Multi‐Dimensional
• More Than– Designing a Process– Writing Procedures– Doing Some Training (If You’re Lucky)
I l P l• Involves People– May Affect Their Day‐to‐Day Activities– Can Change the Perception of Power– What’s in It for Me?
• Requires More Than Bodies, Need the Souls Also
Change Can Be Perceived As Positive or Negative
– Getting a Job After Graduating From College– Changing jobs– Changing countries – Getting Married
h ld– Having a Child– Child Leaving for College– Getting a New Computer– Losing a Job– Divorce– Death of a Parent
Example – GTE Corporation
Situation
A deregulation in the telephone industry that was capped by the antitrust settlement broke up the Bell system and triggered the great shake‐up at the GTE Corporation.
Trigger External environmental change triggered by government laws.
Driver/Barrier EnvironmentalDriver/Barrier Environmental
Actions Taken
The company was forced to refocus its telecommunications business and discontinue its other unrelated industrial businesses.
Results
GTE is attempting to integrate local phone service with cellular business to create a streamline network. This would allow customers to easily call almost anywhere.
You’ll never get me up on one of those
butterfly things!
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How do we process change? Why Do We Resist Change
• Change Is a Feature of the Cosmos – It Is Inevitable• But Human Crave Order and Look for It Everywhere • Human Behavior, in the Aggregate, Defines Culture• Culture Reflects This Need for Order
– Shared Meaning, Common Languages, Religious or Secular World‐views Help to Make the World Seem Less Unpredictable Than It Really May Be
• Therefore, Culture “Damps Down” Change
Common Reasons for Resistance
• Self‐interest• Fear of the Unknown• Conscientious Objection orObjection or Differing Perceptions
• Suspicion• Conservatism
Response to Change Is Highly Individual
• Mixture of Emotion and Rationalization
• Don’t Assume Others Will Respond the Same or That You Will, Under Different Circumstances
Change Management: Where to look?
• Past History in Putting Change in Place• Degree of Sponsorship• Authenticity of Sponsorship (Walk the Talk?)• Organizational and Individual Current StressOrganizational and Individual Current Stress• Who Will Be Impacted by the Change• Cultural Fit of the Change• Addressing “What’s in It for Me”• Communication of the Change and Its Progress• Skill Sets of the Change Agents
Change = Motivation X Vision X Next Steps
• Motivation – Some Good Reason to Give up the Status Quo
• Vision – A Clear and Practical Vision of the Desired Future StateDesired Future State
• Next Steps – an Understanding of the Next Steps Required to Progress Toward the Vision
• If One Is Missing, Little Change Will Take Place
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Change management methodologies
• When determining which of the latest techniques or innovations to adopt, there are four major factors to be considered.– Levels goals and strategies– Levels, goals, and strategies,– Measurement system,– Sequence of steps,– Implementation and organizational change,
In‐class example
• In trying to convince your parents to start using emails for a family reunion, think about the thefactors you have to consider before choosing a change management method
– Goals, and strategies,– Measurement system,– Sequence of steps,– Implementation and organizational change,
Change management models
• Kotter• Mckinsey’s 7S model• Lewin's Change Management Model• …
Kotter’s model
7S Model Lewin's Change Management Model
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Relationship between change and innovation
Companies need to:Prepare for changeIdentify itManage itAddress future problemsTake advantage ofTake advantage of
opportunities
Two type of changeGenerativeAdaptive
External triggers for change
Examples• SMEs in Morocco• Apple and Samsung battle• Auotoroutes du Maroc• Airline industry – Short
haul airliners•
Moroccan story –Coca Cola Plant
Good Results• Project closed on May 24th• Right on before the start of the
high season• Installation of Web‐conference
system for diagnosis• Higher capacity
Before After
Capacity 14000 bottles /Hour
33000 bottles /Hour
Downtime 14% 2%
Personnel 16 FTEs 5 FTEsDifficult: • Managing automation was difficult• More training was required• High operational costs• Project delay
• Success measurement – Quality, Quality, Quiality
Personnel 16 FTEs 5 FTEs
Process Manual Automated
Quality ‐inspection
Manual ControlTesting
100% automated qualityTesting
Internal triggers
Example• SAP installation• Salesforce.com • New CEO; Syngentay g• …
Alignment for better competitive strategy Change management ‐ Innovation
Being innovative is increasing the rate at which new products and services that customers value are successfully brought to market each year
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What did we learn today?