Innovation and Change

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Chapter 9

• Innovation and Change

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Learning ObjectivesOrganizational Innovation
After discussing this section, 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.

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Why Innovation Matters
Technology Cycles
Innovation Streams
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Technology CycleS-curve pattern of innovation
Adapted from Figure 9.1
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Innovation Streams
Technology Substitution (3)
Technology Substitution (2)
Technology Discontinuity (2)
Variation Selection
Era of Incremental Change (2)
Era of Ferment (2)
Dominant Design (2)
Adapted from Figure 9.3
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Managing Innovation
Managing Sources of Innovation
Managing Innovation During Discontinuous Change
Managing Innovation During Incremental Change
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Managing Sources of Innovation

• Creative work environments
• cultures in which workers perceive that new ideas
  are encouraged
• Flow
• the psychological state of effortlessness

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Components of Creative Work Environments
Organizational Encouragement
Challenging Work
Supervisory Encouragement
Creative Work Environments
Work Group Encouragement
Organizational Impediments
Freedom
Adapted from Figure 10.4
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Managing Innovation During Discontinuous Change

• Discontinuous Change
• technology discontinuity creates a significant
  breakthrough
• Use the experiential approach to innovation
• innovation created by hands-on experience in an
  uncertain environment

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Experiential Approach to Innovation
Design Iteration
Testing
Milestones
Multifunctional Teams
Powerful Leaders
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Managing Innovation during Incremental Change

• Incremental change
• focuses on systematically improving performance
• Compression approach to innovation
• assumes that innovation is a predictable process
  that can be planned in steps

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Compression Approach to Innovation
Planning
Supplier Involvement
Shortening the Time of Individual Steps
Overlapping Steps
Multifunctional Teams
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Learning ObjectivesOrganizational Change
After discussing this section, you should be able
to

• discuss why change occurs and why it matters.
• discuss the different methods that managers can
  use to better manage change as it occurs.

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Change Resistance Forces
Adapted from Figure 9.5
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Organizational Decline
Blinded Stage
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Managing Change
Managing Resistance to Change
Change Tools and Techniques
Managing Conversations to Promote Change
What Not to Do When Leading Change
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Managing Resistance to Change

• Lewins Framework
• Methods of Managing Resistance to Change

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Lewins Change Process
Unfreezing
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Methods of Managing Resistance to Change

• Education Communication
• Participation
• Negotiation
• Top Management Support
• Coercion

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Change Tools and Techniques
Results-Driven Change
General Electric Workout
Transition Management Team
Organizational Development
Change Agent
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Results-Driven Change

• Creates quick change by focusing on results
• Advantages
• results are measured and tested
• only beneficial changes are implemented
• quick, visible results motivate employees

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General Electric Three Day Workout

• Boss sets agenda and identifies targets, then
  leaves
• Outside facilitator works with sub-groups, who
  debate solutions
• Town Meeting on day three
• subgroups make suggestions
• boss must decide on the spot

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Transition Management Team (TMT)

• A team of employees whose full-time job is
  managing change
• Anticipate and manage employee reactions to
  change
• Top management determines change initiatives
• TMT accomplishes those initiatives

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Organizational Development (OD)

• A philosophy and collection of planned change
  interventions
• Designed to ensure organizations long-term
  survival
• Change Agent
• the person formally charged with guiding a change
  effort
• can be internal or external person

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General Steps for O D Interventions
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Types of OD Interventions

• Large System
• Sociotechnical Systems
• Survey Feedback
• Small Group
• Team Building
• Unit Goal Setting
• Person-Focused
• Counseling/Coaching
• Training

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What Not to Do When Leading Change