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Procter & Gamble is determined to lead the market in diaper

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Procter & Gamble is determined to lead the market in diapers ... atomic bomb, bikini, transistor. 1951-1960. DNA, oral contraceptive, Tylenol. 1961-1970 ... – PowerPoint PPT presentation

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Title: Procter & Gamble is determined to lead the market in diaper


1
Chapter 10
  • Innovation and Change

2
What Would You Do? Product Innovation at
Kimberly-Clark
  • Procter Gamble is determined to lead the market
    in diapers
  • PG responds aggressively to new innovations by
    Kimberly-Clark
  • Other products, such as toilet paper are
    perceived to have little room for innovation

3
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.

4
Why Innovation Matters
Technology Cycles
Innovation Streams
5
Blast From The PastTechnological Innovation in
the 20th Century
  • 1900-1910
  • airplane, plastic, air conditioner
  • 1911-1920
  • mammogram, zipper, sonar
  • 1921-1930
  • talking movies, penicillin, jet engine
  • 1931-1940
  • radar, helicopter, computer
  • 1941-1950
  • atomic bomb, bikini, transistor
  • 1951-1960
  • DNA, oral contraceptive, Tylenol
  • 1961-1970
  • video recorder, handheld calculator, computer
    mouse
  • 1971-1980
  • compact disc, gene splicing, laser printer
  • 1981-1990
  • MS-DOS, space shuttle, CD-ROM
  • 1991-2000
  • taxol, Pentium processor, Java
  • 2001-Today
  • mapping of human genome, first cloning of human
    embryo

6
Technology CycleS-curve pattern of innovation
Adapted from Exhibit 10.1
7
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 Exhibit 10.3
8
Managing Innovation
Managing Sources of Innovation
Managing Innovation During Discontinuous Change
Managing Innovation During Incremental Change
9
Managing Sources of Innovation
  • Creative work environments
  • workplace cultures in which workers perceive that
    new ideas are encouraged
  • Flow
  • the psychological state of effortlessness

10
Components of Creative Work Environments
Adapted from Exhibit 10.4
11
Been There, Done That
John Cleese on Innovations Creativity
  • We need to have a positive attitudes towards
    mistakes
  • Fear of failure hurts creativity
  • Mistakes should be fixed, not concealed

12
Managing Innovation During Discontinuous Change
  • Discontinuous Change
  • technology discontinuity creates a significant
    breakthrough
  • Use the experiential approach to innovation
  • innovation created by intuition, flexible
    options, and hands-on experience in an uncertain
    environment

13
Experiential Approach to Innovation
Design Iteration
Testing
Milestones
Multifunctional Teams
Powerful Leaders
14
Managing Innovation during Incremental Change
  • Compression approach to innovation
  • assumes that innovation is a predictable process
    that can be planned in steps
  • Generational change
  • based on incremental improvements to a dominant
    technological design and achieving backward
    compatibility with older technology

15
Compression Approach to Innovation
Planning
Supplier Involvement
Shortening the Time of Individual Steps
Overlapping Steps
Multifunctional Teams
16
Comparing Experiential and Compression Approaches
  • Experiential Approach
  • Highly uncertain environment
  • Goals speed, significant improvements
  • Approach build something new and significantly
    better
  • Design iterations
  • Testing
  • Milestones
  • Multifunctional teams
  • Powerful leaders
  • Compression Approach
  • Certain environment
  • Goals speed, lower costs, incremental
    improvements
  • Approach compress time and steps, small
    improvements
  • Planning
  • Supplier involvement
  • Shortening time of steps
  • Overlapping steps
  • Multifunctional Teams

Approach
Assumptions
Steps
Adapted from Exhibit 10.5
17
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.

18
Change Resistance Forces
No Change
Discontinuous Change
Strong
Resistance Forces
Sporadic Change
Continuous Change
Weak
Strong
Weak
Change Forces
Adapted from Exhibit 10.6
19
Organizational Decline
Blinded Stage
20
Managing Change
Managing Resistance to Change
Change Tools and Techniques
Managing Conversations to Promote Change
What Not to Do When Leading Change
21
Managing Resistance to Change
  • Lewins Framework
  • Methods of Managing Resistance to Change

22
Lewins Change Process
Unfreezing
Change Intervention
Refreezing
  • Share reasons
  • Empathize
  • Communicate
  • Benefits
  • Champion
  • Input
  • Timing
  • Security
  • Training
  • Pace
  • Top management support
  • Publicize success
  • Employee Services

23
Methods of Managing Resistance to Change
  • Education Communication
  • Participation
  • Negotiation
  • Top Management Support
  • Coercion

24
Change Tools and Techniques
Results-Driven Change
General Electric Workout
Transition Management Team
Organizational Development
Change Agent
25
Results-Driven Change
  • Creates quick change by focusing on measurement
    and improvement of results
  • create measurable, short-term goals
  • use action steps likely to improve performance
  • importance of immediate improvements
  • consultants and staffers help managers
  • test actions steps to see if yield improvements
  • few resources required to get change started

26
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

27
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

28
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

29
General Steps for OD Interventions
30
Types of OD Interventions
  • Large System
  • Sociotechnical Systems
  • Survey Feedback
  • Small Group
  • Team Building
  • Unit Goal Setting
  • Person-Focused
  • Counseling/Coaching
  • Training

31
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
32
What Really Works? (Contd.)
Change the Work Setting or Change the People? Do
Both!
Changing Individual Behavior Organizational
Performance
10 20 30 40 50 60 70 80 90 100
Probability of success
76
33
Managing Conversations to Initiate Change
Conversations for Understanding Generating Unders
tanding
Initiate Conversation Starting a Change
Potential Breakdown Nothing Happens
Potential Breakdown Unclear Conditions of
Satisfaction
Potential Breakdown Omitting Closure
Conversations for Performance Getting into Action
Conversations for Closure Completing the Change
Potential Breakdown Agreement Isnt Action Lack
of Rigor
Adapted from Exhibit 10.13
34
What Not to Do When Leading Change
Unfreezing
Change
Refreezing
  • Not establishing a great enough sense of urgency
  • Not creating a powerful enough guiding coalition
  • Lacking a vision
  • Under-communicating the vision by a factor of ten
  • Not removing obstacles to the new vision
  • Not systematically planning for creating
    short-term wins
  • Declaring victory too soon
  • Not anchoring the changes in the corporations
    culture

35
What Really Happened? Product Innovation at
Kimberly-Clark
  • Kimberly-Clark creates a stream of its own
    innovative ideas year after year
  • Developed Cottonelle Fresh Rollwipes,
    premoistened toilet paper
  • disperses or breaks apart in water
  • protected by 30 patents
  • Significantly improves technology behind
    existing personal care products
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