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16/04/2015 1 Management of Change ICM - LEVEL 7 HIGHER DIPLOMA IN MANAGEMENT SUPPLEMENTARY TOPIC CHANGE LEADERSHIP AND INNOVATION LECTURER: ADRIAN MIFSUD MBA , BM DIP, MIM These Lecture Slides summarize the key points covered in the respective chapters in your recommended text; these slides do NOT substitute, at all, the required reading of the assigned chapter from the text. These slides also may contain additional supplementary material extracted from other texts and sources outside your text book. INTRODUCTION What are the challenges of change leadership and innovation? What is the nature of organizational change? How can planned organizational change be managed? What is organization development? How can stress be managed in a change environment?

Change Leadership and Innovation

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Page 1: Change Leadership and Innovation

16/04/2015

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Management of ChangeICM - LEVEL 7 HIGHER DIPLOMA IN MANAGEMENT

SUPPLEMENTARY TOPIC – CHANGE LEADERSHIP AND INNOVATION

LECTURER: ADRIAN MIFSUD M B A , B M D I P, M I M

These Lecture Slides summarize the key points covered in the respective chapters in your recommended text; these slides do NOT substitute, at all, the required reading of the assigned chapter from the text.

These slides also may contain additional supplementary material extracted from other texts and sources outside your text book.

INTRODUCTION

•What are the challenges of change leadership and

innovation?

•What is the nature of organizational change?

•How can planned organizational change be managed?

•What is organization development?

•How can stress be managed in a change environment?

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What are the challenges of change leadership and innovation?

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.

What are the challenges of change leadership and innovation?

Two forms of innovation:◦Process.◦Results in better ways of doing things.

◦Product.◦Results in the creation of new or improved goods and services.

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What are the challenges of change leadership and innovation?

Innovations require invention and application. ◦Invention.

◦ Act of discovery.

◦ Development of new ideas.

◦Application. ◦ Act of use.

◦ Implementation of new ideas.

What are the challenges of change leadership and innovation?

Leadership responsibilities for the innovation process:

◦ Imagining.

◦Designing.

◦Experimenting.

◦Assessing.

◦Scaling.

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What are the challenges of change leadership and innovation?

Four steps of the product innovation process:

Change leadership response cycle to change

Self-esteem

Time

1. Immobilisation – as

rumours of the change

circulate, the individual

feels some sense of shock

and possible disbelief – so

much so that they deem it

worthy of doing nothing.

1

7

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Change leadership response cycle to change

Self-esteem

Time

1

2. Minimisation: As the change

becomes clearer, people try to

fit in the change with their own

personal position and may try to

believe that it will not affect

them.2

Change leadership response cycle to change

Self-esteem

Time

1

2

3. Depression: as reality begins to

dawn staff may feel alienated

and angry, feelings of a lack of

control of events overtake people

and they feel depressed as they

try to reconcile what is

happening with their own

personal situation.

3

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Change leadership response cycle to change

Self-esteem

Time

1

2

3

4

4. Acceptance/letting go: The

lowest point in self-esteem finally

sees people starting to accept the

inevitable. Fear of the future is a

feature of this stage.

Change leadership response cycle to change

Self-esteem

Time

1

2

3

4

5

5. Testing out: Individuals begin

to interact with the change, they

start to ask questions to see

how they might work with the

change.

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Change leadership response cycle to change

Self-esteem

Time

1

2

3

4

5

6

6. Search for meaning:

Individuals begin to work with

the change and see how they

might be able to make the

change work for them – self

esteem begins to rise.

Change leadership response cycle to change

Self-esteem

Time

1

2

3

4

5

6

7

7. Internalisation: the

change is understood and

adopted within the

individual’s own

understanding – they now

know how to work with it

and feel a renewed sense

of confidence and self

esteem.

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What are the challenges of change leadership and innovation?

In highly innovative organizations …◦Corporate strategy and culture should:◦Emphasize an entrepreneurial spirit.

◦Expect innovation.

◦Accept failure.

◦Be willing to take risks.

What are the challenges of change leadership and innovation?

In highly innovative organizations …◦Organization structure should:◦Be organic.

◦Have lateral communications.

◦Use cross-functional teams and task forces.

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What are the challenges of change leadership and innovation?

In highly innovative organizations …◦Top management should:

◦ Understand the innovation process.

◦ Break down barriers to innovation.

◦ Take all possible steps to keep goals clear.

◦ Maintain the pressure to succeed.

◦ Be tolerant of criticism and differences of opinion.

What are the challenges of change leadership and innovation?

In highly innovative organizations …◦Staffing should fulfill five critical innovation roles:

◦ Idea generators.

◦ Information gatekeepers.

◦ Product champions.

◦ Project managers.

◦ Innovation leaders.

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What is the nature of organizational change?

Change leader.◦A change agent who takes leadership responsibility for changing the existing pattern of behaviour of another person or social system.

What is the nature of organizational change?

Change leadership.◦Forward-looking.

◦Proactive.

◦Embraces new ideas.

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What is the nature of organizational change?Change leaders versus status quo managers