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Managing Change and Innovation
CHAPTER 10
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Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
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• Define organizational change and explain the forces driving innovation and change in today’s organization.
• Identify the three innovation strategies managers implement for changing products and technologies.
• Explain the value of creativity, idea incubators, horizontal linkages, open innovation, idea champions, and new-venture teams for innovation.
• Discuss why changes in people and culture are critical to any change process.
• Define organizational development (OD) and large group interventions.
• Explain the OD stages of unfreezing, changing, and refreezing.
• Identify sources of resistance to change.
• Explain force-field analysis and other implementation tactics that can be used to overcome resistance.
Learning Outcomes
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Innovation and the Changing Workplace
• In today’s dynamic environment, managing change and innovation is key
• Organizations must embrace many types of change
• Today’s successful companies are continually innovating
• Organizational change requires the adoption of new ideas and/or behavior
• Many organizations struggle with changing successfully…..
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Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
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Changing Things: New Products and Technologies
There are three critical innovation strategies for changing products and technologies.
Exploration is where ideas for new products and technologies are born.
Cooperation guides internal and external coordination.
Entrepreneurship is the culture of generating and pushing forward new ideas.
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Ambidextrous Change
Incorporating structures and processes that are appropriate for both the creative
impulse and for the systematic implementation of innovations.
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Characteristics of Creative People an
Organizations
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The World’s Most Innovative Companies
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Coordination Model for Innovation
Horizontal linkage model – an approach to product change that emphasizes shared development of
innovations among several departments.
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Four Roles in Organizational Change
New Venture Team – separate team responsible for developing and initiating innovations
Skunkworks – separate, small, informal group that focuses on breakthrough ideas
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Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
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Changing People and Culture
• Training and Development
• Organization Development (OD)
• Three challenges requiring OD Development
– Mergers/acquisitions
– Organizational decline/ revitalization
– Conflict Management
• Organizational Development activities may include team-building, surveys, or large-group interventions
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Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
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OD Approaches to Culture Change
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Organizational Development Steps
1. Unfreezing. Expose the problem and the need for change.
2. Changing. Experiment with new behaviors and learn new skills.
3. Refreezing. Acquire new attitudes and values with organizational reward.
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Implementing Change
• Need for Change. Many people are not willing to change. Managers must recognize the need and make others aware.
• Resistance to Change. Getting others to understand the need for change is the first step.
– Self-interest
– Lack of Understanding and Trust
– Uncertainty
– Different Assessment and Goals
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Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
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Force-Field Analysis
• Change was a result of the competition between driving and restraining forces.
• Driving forces are the problems and opportunities that provide motivation to change.
• Restraining forces are the various barriers to change.
• Managers should recognize the driving force and the restraining forces.
• As barriers are reduced, behavior will shift.
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Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
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Tactics for Overcoming Resistance to Change
Communication, education
Participation
Negotiation
Coercion
Top Management Support
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