1. MGMT5 © 2012 Cengage Learning Innovation and Change 7

2. © 2012 Cengage Learning 1.explain why innovation matters to companies 2.discuss the different methods that managers can use to manage innovation in their organizations effectively 3.discuss why not changing can lead to organizational decline 4.discuss the different methods that managers can use to better manage change as it occurs

3. Organizational Innovation 1.explain why innovation matters to companies 2.discuss the different methods that managers can use to manage innovation in their organizations effectively © 2012 Cengage Learning

4. Technology Cycles Begins with the birth of a new technology… …ends when that technology reaches limit and dies. © 2012 Cengage Learning

5. S-Curves and Technological Innovation © 2012 Cengage Learning

6. Innovation Streams: Technology Cycles over Time © 2012 Cengage Learning

7. Emergence of Dominant Design There are winners and losers –technological lockout Signals a shift from design experimentation and competition to incremental change © 2012 Cengage Learning

8. Managing Innovation During discontinuous change, companies must find a way to anticipate and survive technological changes. Companies must also manage incremental change and innovation. © 2012 Cengage Learning

9. Components of Creative Work Environments © 2012 Cengage Learning

10. Experiential Approach Assumes that innovation is occurring within a highly uncertain environment; the key to fast product innovation is to use innovation, flexible options, and hands-on experience. Design iteration Product prototype Testing Milestones Multifunctional teams © 2012 Cengage Learning

11. Compression Approach Assumes that innovation is a predictable process, that incremental innovation can be planned, and that compressing the time it takes to complete steps can speed up innovation. Generational change Supplier involvement Shorten the time of individual steps Overlapping steps © 2012 Cengage Learning

12. Organizational Change 3.discuss why not changing can lead to organizational decline 4. discuss the different methods that managers can use to better manage change as it occurs © 2012 Cengage Learning

13. The Risk of Not Changing Organizational declines occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal and external pressures that threaten their survival. Blinded stage Inaction stage Faulty action stage Crisis stage Dissolution stage © 2012 Cengage Learning

14. Forces Change forces –lead to differences in the form, quality, or condition of an organization over time Resistance forces –caused by self-interest, misunderstanding, and distrust © 2012 Cengage Learning

15. Resistance to Change Self-interest Misunderstanding and distrust General intolerance for change © 2012 Cengage Learning

16. Organizational Change Process Unfreezing Change intervention Refreezing © 2012 Cengage Learning

17. Managing Resistance to Change Educate employees Communication change-relate d information Have those affected by change participate in planning and implementing Let employees discuss and agree on who will do what after change Coercion © 2012 Cengage Learning

18. Mistakes Managers Make Not establishing a great enough sense of urgency Not creating a powerful enough coalition Lacking a vision Undercommunicating the vision by a factor of 10 Not removing obstacles to the new vision Not systematically planning for and creating short- term wins Declaring victory too soon Not anchoring changes in the corporation’s culture © 2012 Cengage Learning

19. Change Tools and Techniques Results-driven change supplants emphasis on activity with focus on quickly measuring and improving results General Electric Workout three-day meeting that generates solutions to specific business problems © 2012 Cengage Learning

20. General Steps for Organizational Development Intervention

21. © 2012 Cengage Learning Different Kinds of Organizational Development Interventions

22. REELTOREAL Field of Dreams 1.When someone suggests an idea to you that you don’t completely understand, how open are you to considering it? 2.Which character is the most resistant to the idea of changing the farm into a ball field? Why? 3.Which characters demonstrate the most creativity and vision? © 2012 Cengage Learning

23. REELTOREAL Holden Outerwear 1.Identify the type of change that Holden’s leaders are managing on a daily basis. 2.What resistance has Holden encountered while introducing innovative garment designs? How was it able to overcome that resistance? © 2012 Cengage Learning