Change leadership

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Management, 10/eJohn R. Schermerhorn, Jr.

Prepared by: Jim LoPresti University of Colorado, Boulder

Published by: John Wiley & Sons, Inc.

Chapter 10: Innovation and Organizational Change

Management 10/e - Chapter 10 2

Planning Ahead — Chapter 10 Study Questions

How do organizations accomplish innovation?

What is the nature of organizational change?

How can planned organizational change be managed?

What is organization development?


Study Question 1: How do organizations accomplish innovation?

Strategic leadership creates the capacity for ongoing strategic change.

Components of strategic leadership: Anticipate, envision, maintain flexibility. Think strategically. Work with others to initiate change. Build learning organizations as change leaders. Develop the ability to innovate successfully as

a core competency.



Sustainable competitive advantage relies on creativity and innovation.

Creativity is the generation of a novel idea or unique approach to solving problems or crafting opportunities.

Innovation is the process of creating new ideas and putting them into practice.



Three forms of innovation: Process.

Results in better ways of doing things. Product.

Results in the creation of new or improved goods and services. Business model innovation

Results in new ways of making money. Innovations require invention and application.

Invention. Act of discovery. Development of new ideas.

Application. Act of use. Implementation of new ideas.



Green innovation The process of turning ideas into innovations

that reduce the carbon footprint of an organization or its products.

Social Entrepreneurship• Pursues creative and innovative ways to

solve pressing social problems.



Leadership responsibilities for the innovation process: Imagining. Designing. Experimenting. Assessing. Scaling.

Commercializing innovation Process of turning new ideas into products or

processes that increase profits through sales or cost reductions.



Four steps of the product innovation

process: Idea creation.

Initial experimentation.

Feasibility determination.

Final application.


Figure 10.1 Process of commercializing innovation in organizations: the case of new product development.



In highly innovative organizations … Corporate strategy and culture should:

Emphasize an entrepreneurial spirit. Expect innovation. Accept failure. Be willing to take risks.

Organization structure should: Be organic. Have lateral communications. Use cross-functional teams and task forces.



In highly innovative organizations … Top management should:

Understand the innovation process. Be tolerant of criticism and differences of opinion. Take all possible steps to keep goals clear. Maintain the pressure to succeed. Break down barriers to innovation.

Staffing should fulfill five critical innovation roles:

Idea generators. Information gatekeepers. Product champions. Project managers. Innovation leaders.


Study Question 2: What is the nature of organizational change?

Change leader. A change agent who takes leadership

responsibility for changing the existing pattern of behavior of another person or social system.

Change leadership. Forward-looking. Proactive. Embraces new ideas.


Figure 10.2 Change leaders versus status quo managers.



Top-down change. Strategic and comprehensive change

that is initiated with the goals of comprehensive impact on the organization and its performance capabilities.

Driven by the organization’s top leadership.

Success depends on support of middle-level and lower-level workers.



Bottom-up change. The initiatives for change come from

any and all parts of the organization, not just top management.

Crucial for organizational innovation. Made possible by:

Employee empowerment. Employee involvement. Employee participation.



Integrated change leadership. Successful and enduring change combines

advantages of top-down and bottom-up approaches.

Top-down: Breaks up traditional patterns. Implements difficult economic adjustments.

Bottom-up: Builds capability for sustainable change. Builds capability for organizational learning.



Transformational and incremental change. Unplanned change.

Response to unanticipated events. Good leaders act on opportunities for reactive change.

Planned change Aligning the organization with anticipated future

challenges. Activated by proactive leaders who are sensitive to

performance gaps. Transformational change major and comprehensive

redirection. Incremental change adjusting existing systems and

practices.



How to lead transformational change: Establish a sense of urgency for change. Form a powerful coalition to lead the change. Create and communicate a change vision. Empower others to move change forward. Celebrate short-term “wins” and recognize

those who help. Build on success; align people and systems

with new ways. Stay with it; keep the message consistent;

champion the vision.



External forces for change: Globalization. Market competition. Local economic conditions. Government laws and regulations. Technological developments. Market trends. Social forces and values.

Internal forces for change: Arise when change in one part of the system creates

the need for change in another part of the system. May be in response to one or more external forces.



Organizational targets for

change:

Tasks

People

Culture

Technology

Structure


Study Question 3: How can planned organizational change be managed?

Phases of planned change Unfreezing

The phase in which a situation is prepared for change and felt needs for change are developed.

Changing The phase in which something new takes place in

the system, and change is actually implemented. Refreezing

The phase of stabilizing the change and creating the conditions for its long-term continuity.


Figure 10.3 Lewin’s three phases of planned organizational change.



Force-coercion strategy of change. Uses power bases of legitimacy, rewards and

punishments to induce change. Relies on belief that people are motivated by self-

interest. Direct forcing and political maneuvering. Produces limited and temporary results. Most useful in the unfreezing phase.



Rational persuasion strategy of change. Bringing about change through persuasion

backed by special knowledge, empirical data, and rational argument.

Relies on expert power. Relies on belief that reason guides people’s

decisions and actions. Useful in the unfreezing and refreezing phases. Produces longer-lasting and internalized

change.



Shared power strategy of change. Engages people in a collaborative process of

identifying values, assumptions, and goals from which support for change will naturally emerge.

Time consuming but likely to yield high commitment.

Involves others in examining sociocultural factors related to the issue at hand.

Relies on referent power and strong interpersonal skills in team situations.

Relies on belief that people respond to sociocultural norms and expectations of others.


Figure 10.4 Alternative change strategies and their leadership implications.



Reasons for people resisting change: Fear of the unknown Disrupted habits Loss of confidence Loss of control Poor timing Work overload Loss of face Lack of purpose



Methods for dealing with resistance to change: Education and communication Participation and involvement Facilitation and support Facilitation and agreement Manipulation and co-optation Explicit and implicit coercion



Checklist for dealing with resistance to change:Check the benefits – those involved see a

clear advantageCheck the compatibility – keep change

similar to existing values/processesCheck the simplicity – make it as easy as

possible to understandCheck the triability – allow people to

slowly try the change adjusting as progression is made


Study Question 4: What is organization development?

Organization development (OD)

a comprehensive approach to planned

organizational change that involves the

application of behavioral science in a

systematic and long-range effort to

improve organizational effectiveness.



Organization development goals: Outcome goals focus on task accomplishments. Process goals focus on the way people work

together. OD seeks to develop the organization members’

capacity for self-renewal. OD is committed to change through freedom of

choice, shared power, and self-reliance. OD takes advantage of knowledge about human

behavior in organizations.



The organization development

process: Establish a working relationship.

Diagnosis.

Intervention.

Evaluation.

Achieve a terminal relationship.


Figure 10.5 Organization development and the planned change process.



Action research The process of systematically collecting

data on an organization, feeding it back to the members for action planning, and evaluating results by collecting more data and repeating the process as necessary.

Is initiated when someone senses a performance gap.



Steps in the action research process: Problem sensing. Data gathering. Data analysis and feedback. Action planning. Action implementation. Evaluation and follow-up.


Figure 10.6 Action research as a foundation of organization development.



Individual OD interventions Sensitivity training (T-groups)

Management training

Role negotiation

Job redesign

Career planning



Team OD interventions

Team building

Process consultation

Inter-group team building



Organization-wide OD interventions

Survey feedback

Confrontation meeting

Structural redesign

Management by objectives (MBO)

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