Chapter 13: Managing Change and Innovation

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Chapter 13Managing Change and Innovation
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Learning Objectives

• Forces for change
• Calm waters versus white-water rapids
  metaphors
• Change agents
• Types of change
• Why people resist change
• Techniques for reducing resistance to change
• Innovation versus creativity
• Stimulating and nurturing innovation

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External Forces for Change

• Marketplace
• Governmental laws and regulations
• Technology
• Labor markets
• Economy

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What Can Change?
Structure
People
Technology
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Internal Forces for Change

• Business strategy
• Workforce
• Technology and Equipment
• Employee attitudes

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Change Agents

• What are change agents?
• Who can be a change agent?
• External vs. internal change agents
• Evolution of change agents

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Calm Waters vs. White Water Rapids Metaphors
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The Change Process

• The Calm Waters Metaphor
• Change viewed as a break in the organizations
  equilibrium state
• Unfreezing the status quo
• Changing to a new state
• Refreezing to make the change permanent
• White-Water Rapids Metaphor
• No stability and predictability
• Organizations must constantly change to survive

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The Change Process
Unfreezing
Changing
Refreezing
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What Can a Manager Change?

• Specialization
• Span of control
• Formalization
• Centralization
• Departmentalization

Structure

• Work processes
• Methods
• Equipment

Technology

• Attitudes
• Expectations
• Perceptions
• Behavior

People
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Resistance to Change

• Uncertainty and Ambiguity
• Concern Over Personal Loss
• Belief That Change Is Not Beneficial

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Fear of Change
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Techniques for Reducing Resistance to Change

1. Education and Communication
2. Facilitation and support
3. Participation
4. Negotiation
5. Manipulation and Co-optation
6. Coercion

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Case Study Ann Lymans Proposal

• Why do Anns colleagues resist change at CPC? At
  root, what are the sources of resistance?
• Design a proposal for influencing Anns
  colleagues and superiors, drawing on one or more
  of the techniques for reducing resistance to
  change- education/communication -
  facilitation/support
• - participation- negotiation-
  manipulation/co-optation- coercion Which
  would you draw on, and why? Give specific
  examples of how the techniques you chose would
  look like in practice.

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• Combining new ideas in unique ways or associating
  ideas in unusual ways

• Turning creative ideas into useful products,
  services, or methods of operation

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Three Sets of VariablesThat Stimulate Innovation
Cultural
Structural
Human Resources
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Innovation Variables
Structural Variables

• Organic structures
• Abundant resources
• High interunit communication

Cultural Variables

• Acceptance of ambiguity
• Tolerance of the impractical
• Low external controls
• Tolerance of risks
• Tolerance of conflicts
• Focus on ends
• Open-system focus

Stimulates Innovation
Human Resource Variables

• High commitment to
• training and development
• High job security
• Creative people

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IDEO Video

• How does IDEO stimulate creativity and
  innovation? Look for aspects of
• Culture
• Structure
• Human resources
• ANYTHING ELSE!!