1. Agenda Chapter 9 (a bad vibe in the USA – why?) Exams / Projects Cases (hand-in)

2. Introduction We do not have to change, because staying in business is not compulsory. W. Edwards Deming

3. Class task 1. Chapter 9 (Innovation + Change) 2. What should a new business classroom look like? (underlying theme: Changing nature of education)

4. Innovation Yea not busy being born – is busy dying (Bob Dylan) Product / Process Innovation Innovation Lab (new building) Innovation Process: Imagine, Design, Experimentation, Feasibility, Final Innovation Process

5. Organizational Change A recent study n=309 HRM executives 100% were going through – merger, acquisition, divestiture, global competition, restructuring

6. Types of Change \ Reactive Change – respond to environment Planned Change – anticipated moves to environment Incremental Change – minor adjustments Transformational Change – major and comprehensive

7. What do Organizations Change? Examples … Culture Structure Technology Physical Settings People Reflect on your presentation organization – did they go through any change?

8. Scenario – One Family Imagine that Canada has just been “Merged” with the USA Reason: Allows for some savings in overhead Head office is going to Washington People now called North Americans (shortened to Americans) How would people from Canada feel? How would people from the USA feel? Who else is affected by change? Would this be a good thing / bad thing? Why?

9. Loss of Face Lack of Purpose Disrupted Habits Fear of the unknown Work Overload Loss of control Individual resistance Sources of Individual Resistance to Change

10. Threat to established resource allocations Structural inertia Threat to expertise Limited focus of change Group inertia Organizational resistance Threat to established power relationships Sources of Organizational Resistance to Change Which ones would be happening with the change?

11. Sources of Resistance to Change Level One Level Two HonestDisagreement Lack of Information EmotionalIssues PersonalReasons

12. Power of Emotional Appeals Cognitive – Emotional Emotional Arguments – danger, loss, unpleasantness, risk Metaphors – machine, family, turn out the lights Emotional Modes – pictures, slogans, music, colour Humour – appropriate / un Display emotions – smiles, speech tone, expressive

13. Change Agent Task In a group, prepare an emotional argument to persuade Canadians to change our flag to … Your group maybe asked to present their emotional appeal http://www.youtube.com/watch?v=pnpVH7kIb_8

14. Unfreezing Movement Refreezing Lewin’s Three-Step Change Model Unfreezing: getting ready for change GOAL - minimizing resistance Moving: Making the change GOAL - changing people (individuals and groups); tasks; structure; technology Refreezing: Stabilizing the change GOAL - reinforcing outcomes, evaluating results, making constructive modifications

15. Status Quo Desired State Driving Forces Restraining Forces Time Unfreezing the Status Quo

17. Unfreezing Arouse dissatisfaction with the current state tell them about deficiencies in organization Activate and strengthen top management support need to break down power centres Use participation in decision making get people involved Build in rewards tie rewards to change/use recognition, status symbols, praise to get people to go along

18. Moving Establish goals e.g. make business profitable by end of next year Institute smaller, acceptable changes that reinforce and support change e.g. procedures and rules, job descriptions, reporting relationships Develop management structures for change e.g. plans, strategies, mechanisms that ensure change occurs Maintain open, two-way communication

19. Refreezing Build success experiences Set targets for change, and have everyone work toward targets Reward desired behaviour GOOD - reward behaviour that reinforces changes BAD - reward old system (e.g., people relying on old systems while computerization is going on) Develop structures to institutionalize the change Organizational retreats, appropriate computer technology, performance appraisals that examine change efforts Make change work

20. Management Smarts 9.1 1. Sense of Urgency 2. Powerful Coalition 3. Vision – create and communicate 4. Empower others 5. Celebrate Short-term wins 6. Build on success – alignment 7. Keep on message – don’t declare victory too soon

22. Next Class Have a great holiday season Say HELLO in the halls!