CHAPTER ELEVEN Innovation and Change Copyright ©2006 by South-Western, a division of Thomson Learning.

Transcript CHAPTER ELEVEN Innovation and Change Copyright ©2006 by South-Western, a division of Thomson Learning.

CHAPTER ELEVEN

What Would You Do?

As the director of glass and glass ceramics at Corning…

  

It’s your job to maintain innovation--the key to Corning’s strategy You have to find the right balance between creativity and keeping Corning happy

What should you do to continue to encourage creativity? How do you decide which ideas deserve R&D time and Corning’s dollars?

Organizational Innovation

After reading the next two sections, you should be able to:

explain why innovation matters to companies. discuss the different methods that managers can use to effectively manage innovation in their organizations.

Why Innovation Matters

Technology Cycles Innovation Streams 1

1.1

Technology Cycles

Discontinuity C B A New Technology

Adapted from Exhibit 9.1

Innovation Streams

1.2

Technological Substitution Era of Incremental Change (2) Technological Discontinuity (1) Technological Discontinuity (2) Variation Selection Dominant Design (2) Era of Incremental Change (1) Variation Selection Dominant Design (1) Era of Ferment (1) Era of Ferment (2) Adapted from Exhibit 9.3

Technological Innovation Since 1900

1900-1910

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1911-1920

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1921-1930

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1931-1940

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airplane, plastic, air conditioner mammogram, zipper, sonar talking movies, penicillin, jet engine radar, helicopter, computer

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video recorder, handheld calculator, computer mouse

1971-1980

compact disc, gene splicing, laser printer

1981-1990

MS-DOS, space shuttle, CD-ROM

1941-1950 1991-2000

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atomic bomb, bikini, transistor

1961-1970

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taxol, Pentium processor, Java

1951-1960

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DNA, oral contraceptive, Tylenol

2001-Today

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mapping of human genome , first cloning of human embryo

Managing Innovation

Managing Sources of Innovation Managing During Discontinuous Change Managing During Incremental Change 2

Managing Sources of Innovation

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Creative work environments

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workplace cultures in which workers perceive that new ideas are encouraged

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Flow

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the psychological state of effortlessness in which you become absorbed in your work 2.1

Components of Creative Work Environments

Organizational Encouragement Challenging Work Organizational Impediments Creative Work Environments Supervisory Encouragement Work Group Encouragement Valuable Resources 2.1

Adapted from Exhibit 9.4

Flo w

Managing Innovation During Discontinuous Change

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Discontinuous Change

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technological discontinuity creates a significant breakthrough

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Experiential approach to innovation

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the key to innovation is to use intuition, flexible options, and hands-on experience

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innovation is occurring within an uncertain environment 2.2

Managing Innovation During Discontinuous Change

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Highly uncertain environment Era of ferment —technological substitution and design competition

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Goals Speed Improvements in performance New dominant design Approach Build something new, different, and better 2.2

Experiential Approach to Innovation

Design Iterations Parts of Experiential Approach Testing Milestones Multifunctional Teams Powerful Leaders 2.2

Managing Innovation During Incremental Change

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Compression approach to innovation

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assumes that innovation is a predictable process that can be planned in steps Generational change

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based on incremental improvements to a dominant technological design and achieving backward compatibility with older technology 2.3

Managing Innovation During Incremental Change

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Certain environment Era of incremental change —established technology

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Goals Speed Lower costs Incremental improvements in performance Approach Compress time and steps needed to bring about small improvements 2.3

Compression Approach to Innovation

Parts of Compression Approach Planning Supplier Involvement Shortening Time of Individual Steps Overlapping Steps Multifunctional Teams 2.3

Organizational Change

After reading the next section, you should be able to:

discuss why change occurs and why it matters.

Resistance to Change

Self-Interest Bureaucratic Inertia Resistance to Change Habit Fear Peer Pressure

Managing Change

Managing resistance to change Different change tools and techniques What not to do when leading Change 3

Managing Resistance to Change

Unfreezing Change Refreezing

• • •

Share reasons Empathize Communicate

• • • • • • •

Benefits Champion Input Timing Security Training Pace

• •

Top management support Reinforce 3.1

Adapted from Exhibit 9.5

Reducing Resistance to Change

Education and Communication Participation and Involvement Facilitation and Support

Resistance to Organizational Change

Negotiation and Agreement Manipulation and Co-optation

Coercion

Change Tools and Techniques

Results-Driven Change General Electric Workout Transition Management Teams Organizational Development 3.2

Results-Driven Change

1. Create measurable short-term goals to improve performance 2. Use action steps only if likely to improve performance 3. Stress the importance of immediate improvements 4. Consultants and staffers should help managers achieve quick improvements in performance 5. Test action steps to see if they yield improvements 3.2

6. It takes few resources to get results-driven change started

Adapted from Exhibit 9.6

General Electric Workout

Phase

Boss sets agenda and identifies targets, then leaves Outside facilitator works with sub-groups, who debate solutions “Town Meeting”

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subgroups make suggestions boss must decide on the spot 3.2

Transition Management Team

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A team of employees whose full time job is managing change

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Anticipate and manage employee reactions to change

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Work with the CEO to…

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decide on change projects

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select and evaluate people in charge

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make sure change projects are complementary 3.2

Transition Management Team

Primary Responsibilities of TMT 6.

Establish a context for change and provide guidance.

Stimulate conversation.

Provide appropriate resources.

Coordinate and align projects.

Ensure congruence of messages, activities, policies, and behaviors.

Provide opportunities for joint creation.

Anticipate, identify, and address people problems.

Prepare the critical mass.

3.2

Adapted from Exhibit 9.7

Organizational Development

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A philosophy and collection of planned change interventions

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Designed to ensure an organization’s long-term survival

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Change Agent

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the person formally charged with guiding a change effort

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can be internal or external person 3.2

Organizational Development

General Steps for Organizational Development Interventions Entry Startup Assessment and Feedback Action Planning Intervention Evaluation Adoption Separation Adapted from Exhibit 9.8

3.2

Organizational Development

Types of OD Interventions Large System

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Sociotechnical Systems

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Survey Feedback Small Group

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Team Building

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Unit Goal Setting Person-Focused

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Counseling/Coaching

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Training Adapted from Exhibit 9.9

3.2

**What Not to Do When Leading Change**

UNFREEZING 1. Not establishing a great enough sense of urgency 2. Not creating a powerful enough guiding coalition CHANGE 3. Lacking a vision 4. Undercommunicating the vision 5. Not removing obstacles 6. Not planning for and creating short-term wins REFREEZING 7. Declaring victory too soon 8.

Not anchoring changes in the corporation’s culture Adapted from Exhibit 9.10

3.3

What Really Works Change the Work Setting or Change the People?

Changing the Work Setting

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

probability of success 55% Changing the People

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

probability of success

57% Changing Individual Behavior & Organizational Performance

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

probability of success

76%

CHAPTER ELEVEN Innovation and Change Copyright ©2006 by South-Western, a division of Thomson Learning.

Transcript CHAPTER ELEVEN Innovation and Change Copyright ©2006 by South-Western, a division of Thomson Learning.

CHAPTER ELEVEN

What Would You Do?

Organizational Innovation

Why Innovation Matters

Technology Cycles

Innovation Streams

Technological Innovation Since 1900

Managing Innovation

Managing Sources of Innovation

Creative work environments

Flow

Components of Creative Work Environments

Managing Innovation During Discontinuous Change

Managing Innovation During Discontinuous Change

Experiential Approach to Innovation

Managing Innovation During Incremental Change

Managing Innovation During Incremental Change

Compression Approach to Innovation

Organizational Change

Resistance to Change

Managing Change

Managing Resistance to Change

Reducing Resistance to Change

Change Tools and Techniques

Results-Driven Change

General Electric Workout

Transition Management Team

Transition Management Team

Organizational Development

Organizational Development

Organizational Development

What Not to Do When Leading Change

What Really Works Change the Work Setting or Change the People?

Directory

**What Not to Do When Leading Change**