Transcript Chapter 7 part 2 Managing Change PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2006 Thomson Business and Economics. All rights.

Chapter 7 part 2
Managing Change
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Copyright © 2006 Thomson Business and Economics.
All rights reserved.
Change
•
Forces for Change
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–
•
Changes in the business environment creates the
necessity for change in a firm’s strategy which requires
altering the functions and structure of the firm
(technology and people) to support the strategy.
A competitive firm creates an organizational structure
that supports its strategy which, in turn, is constantly
revised to respond to environmental change.
Some Great Quotes:
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“ Do not fear change, for it is an unchangeable law of
progress” Anonymous
“Things do not change, we do” Thoreau
“God grant me the courage to change things, and the
peace of mind to accept the things I cannot, and the
wisdom to know the difference.” Anonymous
“The only constant is change”. Anonymous
Copyright © 2006 Thomson Business and Economics. All rights reserved.
7–2
Types of Organizational Change
Exhibit 7–1
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7–3
Forms of Change
• Incremental Change
– Continual improvement that takes place within
already accepted frameworks, value systems, or
organizational structure that is necessary for
survival and success.
• Radical Change
– Rapid change in strategy, structure, technology,
or people.
– Radical change alters accepted frameworks,
value systems, or organizational structure.
Copyright © 2006 Thomson Business and Economics. All rights reserved.
7–4
Change
Process
Change = Grieving Process
1.
2.
3.
4.
5.
6.
7.
Anger  Listen
Bargaining  Stay the course
Anxiety Feed them information as it comes
Sadness  Encourage Sharing & Sympathize
Disorientation  Extra support, Listen
Depression  Help people understand what control they do have.
Re-commitment
Keys – Information and Communication (2 Way)
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7–5
Resistance to Change and Ways to Overcome Resistance
Exhibit 7–3
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7–6
Innovation
•
Innovative Organizational Structures
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–
–
–
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•
Flat organizations with limited bureaucracy
Generalist division of labor
Coordinate with cross functional teams
Informal with decentralized authority
Create separate systems for innovative groups
Attract and retain creative employees
Reward innovation and creativity
Innovative Organizational Cultures
–
–
–
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Encourage risk-taking
Foster intrapreneurship
Have open systems
Focus on ends rather than means
Accept ambiguous and impractical ideas
Tolerate conflict
Copyright © 2006 Thomson Business and Economics. All rights reserved.
7–7
3M’s Rules for an Innovative Culture
•
•
•
•
•
•
Set goals for innovation
Commit to research and development
Inspire intrapreneurship
Facilitate, don’t obstruct
Focus on the customer
Tolerate failure
“3M Leadership - Of all the pathways to
growth, investing in our people is most
important. The premise is very simple — if
your people grow, your company will grow.
The key: linking growth in individuals to
those things that unlock energy and
activities that our customers
value.Leadership development remains at
the top of the company's agenda.” (source:
3M.com)
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3M – 25% of
Revenue from
R&D in last 5
Years.
($20B = $5B)
7–8