1. Managing Change and Innovation
Chapter 11
Managing Change and Innovation

2. Introduction
If organizations don’t successfully change and innovate, they die

3. Innovation and the Changing Workplace
The adoption of a new idea or behavior by an organization
Change and innovation can come from outside forces
Managers want to initiate change from the inside
Disruptive innovation is a goal for global competition

4. Innovation and the Changing Workplace
Change is not easy
Ambidextrous approach: Incorporating structures and processes that are appropriate for:
Creative impulse and for the systematic implementation
Managers encourage flexibility and freedom to innovate

5. Changing Things: New Products and Technologies
Product change – a change in the organization’s product or service outputs
Technology change – a change in the organization’s production process
Three innovation strategies: exploration, cooperation, and entrepreneurship

6. 11.1 Three Innovation Strategies

7. Exploration
Creativity – novel ideas that meet perceived needs or offer opportunities
Idea incubator – a safe harbor where employees can develop ideas without interference from company bureaucracy or politics

8. 11.2 Characteristics of Creative People and Organizations

9. 11.3 The World’s Most Innovative Companies 2013

10. Cooperation Internal coordination
Horizontal linkage model – simultaneously contribute to new products and technologies
External coordination
Includes customers and partners, suppliers
Open innovation – commercialization of ideas beyond the organization

11. 11.4 Coordination Model for Innovation

12. Innovation Roles
Managers should support entrepreneurship activities and foster idea champions
Energy and effort is required to promote a new idea
Sponsors approve and protect ideas when critics challenge the concept

13. Innovation Roles New-venture teams give free rein to creativity
Skunkworks are informal, autonomous, secretive groups that focus on breakthrough ideas
New-venture funds provide resources for new ideas

14. Changing People and Culture
Changes in how employees think
Changes in mind-set
People change = Training and development
Culture change = Organizational development
Large culture change is not easy

15. Training and Development
Training – Frequently used approach to changing people’s mind-sets
Training and development is emphasized for managers
Behavior and attitudes will influence people and lead to culture change

16. Organizational Development
Planned, systematic process of change using behavioral science
Addresses three types of problems:
Mergers and acquisitions
Organizational decline and revitalization
Conflict management

17. OD Activities Team-building activities Survey-feedback activities
Large-group interventions
OD Steps:
Unfreezing
Changing
Refreezing

18. 11.5 OD Approaches to Culture Change

19. Implementing Change Need for change
Disparity between existing and desired performance levels
Understand the resistance to change
Self-interest
Lack of understanding and trust
Uncertainty
Different assessments and goals

20. Force-Field Analysis
Change is a result of the competition between driving and restraining forces
Driving forces – problems or opportunities that provide motivation for change
Restraining forces – barriers to change

21. 11.6 Using Force-Field Analysis to Change from Traditional to Just-in-Time Inventory System

22. 11.7 Tactics for Implementing Change