Innovation & Change

MGT 4153Dr. Rebecca Long

Innovation & Change

Forces Driving the Need for Change

Long2 More Large-Scale Changes in OrganizationsStructure change Mergers, joint ventures, consortiaStrategic change Horizontal organizing, teams, networksCulture change New technologies, productsKnowledge management, enterprise New business processesresource planning E-businessQuality programs Learning organizations More ThreatsMore domestic competitionIncreased SpeedInternational competitionGlobal Changes, Competition and Markets Technological Change International Economic Integration Maturation of Markets in Developed Countries1,349,585,838 China Unites States 308,000,000 Fall of Communist and Socialist Regimes More OpportunitiesBigger marketsFewer barriersMore international marketsTypes of ChangeLong3ContinuousprogressionParadigm-breakingburstThrough normal structure and managementprocessesTransform entireorganizationAffect organizationalpartCreate new structureand managementTechnologyimprovementsBreakthroughtechnologyProductimprovementNew products,new marketsIncremental ChangeRadical ChangeFour Areas for ChangeLong4TechnologyChanges in production process

Products and ServicesChanges in outputs

Strategy and StructureAdministrative changes

CultureChanges in values, attitudes, behaviors

Elements for Successful ChangeLong5EnvironmentSuppliersProfessionalAssociationsConsultantsResearchliteratureCustomersCompetitionLegislationRegulationLabor force1. Ideas2. Needs3. Adoption4.Implementation5. ResourcesInternalCreativity andInventionsPerceivedProblems orOpportunitiesOrganizationAmbidextrous Technical ChangeLong6New Product Success RateLong7Enormous uncertainty in development of new products;RCAs VideoDisc Lost $500 millionTime, Inc.s TV-Cable Week lost $47 millionPfizer invested 70+ million, anti-aging drug, flopped in final testing5,000 new food items each year, failure is 70-80%

100 Ideas (by Product Dev. and Management Assoc.)33 developed projects28 pass all testing24 fully commercialized14 succeed in marketplaceHorizontal Linkage Model for New Product InnovationsSpecialization, Boundary Spanning, Horizontal CoordinationLong8EnvironmentTechnicalDevelopment

EnvironmentCustomerNeeds

OrganizationGeneralManagerR&D

Marketing

Production

LinkageLinkageLinkageLinkageLinkageDual-Core Approach to Organization ChangeLong9Type of Innovation DesiredAdministrativeStructureTechnologyDirection of Change: Top-Down Bottom-UpExamples of Change: Strategy Production Downsizing techniques Structure WorkflowBest Organizational Design for Change: Mechanistic OrganicAdministrativeCoreTechnicalCoreCulture ChangeLong10Reengineering and Horizontal Organization

Diversity

The Learning Organization

OD Culture Change InterventionsLong11Large Group Intervention

Team Building

Interdepartmental ActivitiesBarriers to ChangeLong12Excessive focus on costs

Failure to perceive benefits

Lack of coordination and cooperation

Uncertainty avoidance

Fear of lossTechniques for ChangeLong13Establish a sense of urgency for change.

Establish a coalition to guide the change.

Create a vision and strategy for change.

Find an idea that fits the need.

Develop plans to overcome resistance.

Create change teams.

Foster idea champions.Who Moved My CheeseLife is no straight and easy corridor alongWhich we travel free and unhampered,But a maze of passagesThrough which we must seek our way,Lost and confused in a blind alley.14Who Moved My CheeseBut always, if we have faith,A door will open for us,Not perhaps one that we ourselves Would ever have thought of,But one that will ultimatelyProve good for us. (A. J. Cronin)

Who Moved My CheeseCharacters:SniffScurryHemHawWho Moved My CheeseA Gathering in ChicagoAngela-Most PopularNathan-Family BusinessCarlos-Football CaptainMichael-Story TellerWho Moved My Cheese-1

Having Cheese Makes You HappyWho Moved My Cheese-2

The More Important Your Cheese Is To YouThe More You Want To Hold On To ItWho Moved My Cheese-3

If You Do Not Change,You Can BecomeExtinctWho Moved My Cheese-4

What Would You DoIf You Werent Afraid?Who Moved My Cheese-5

Smell The Cheese OftenSo You KnowWhen It Is Getting OldWho Moved My Cheese-6

Movement In ANew DirectionHelps You FindNew CheeseWho Moved My Cheese-7

When You Move Beyond Your Fear,You Feel FreeWho Moved My Cheese-8

Imagining MyselfEnjoying New CheeseEven Before I Find ItLeads Me To ItWho Moved My Cheese-9

The Quicker You Let GoOf Old Cheese,The Sooner You FindNew CheeseWho Moved My Cheese-10

It Is Safer ToSearch In The MazeThan Remain In ACheese-less SituationWho Moved My Cheese-11

Old Beliefs Do Not Lead YouTo New CheeseWho Moved My Cheese-12

When You See ThatYou Can Find AndEnjoy New Cheese,You Change CourseWho Moved My Cheese-13

Noticing Small Changes EarlyHelps You Adapt ToThe Bigger ChangesThat Are to ComeWho Moved My CheeseChange Happens (They Keep Moving The Cheese)Anticipate Change (Get Ready For The Cheese To Move)Monitor Change (Smell The Cheese Often So YouKnow When It Is Getting Old)Adapt To Change Quickly (The Quicker You Let Go Of Old Cheese, The Sooner You Can Enjoy New Cheese)Who Moved My CheeseChange (Move With The Cheese)Enjoy Change! (Savor The Adventure AndEnjoy The Taste Of New Cheese!)Be Ready To Change Quickly And Enjoy It Again & Again (They Keep Moving The Cheese)32Who Moved My Cheese

Move WithThe CheeseAnd Enjoy It!Who Moved My CheeseFeed-back about story?Who are you in the story? Why?Apply it to your position in your organization.How many of you are afraid of change?How many think others are afraid of change?Did Hem ever change and find new cheese?

34Who Moved My CheeseCan cheese be old behavior?Instead of changing jobs, maybe we should be changing the way we are doing our jobs?Idea: Instead of complaining, what about saying, They just moved our cheese. Let us look for New Cheese!35