1. Chapter 16 Leading Change

2. Ex. 16.1 Forces Driving the Need for Major Organizational Change Globalization, technological change, e-business, increased competition, changing markets More threats More domestic competition Increased speed International competition More opportunities Bigger markets Fewer barriers More international markets More large-scale change in organizations Reengineering Horizontal organizing – teams Networks Quality programs New technologies and products Mergers, joint ventures Consortia Virtual and global teams Strategic change Cultural change Learning organization

3. Ex. 16.2 The Eight-Stage Model of Planned Organizational Change 1. Establish a sense of urgency 2. Form a powerful guiding coalition 3. Develop a compelling vision and strategy 4. Communicate the vision widely 5. Empower employees to act on the vision 6. Generate short-term wins 7. Consolidate gains, create greater change 8. Institutionalize changes in the org. culture

4. Ex. 16.3 A Range of Everyday Change Strategies Private Leader working alone Public Leader working with others Disruptive self- expression Variable-term opportunism Verbal Jujitsu Strategic alliance-building

5. Personal Compact The reciprocal obligations and commitments that define the relationship between employees and the organization Reasons people resist change: Self-interest Uncertainty Different assessments and goals

6. Downsizing Intentionally reducing the size of a company’s workforce

7. Innovation Terms Creativity  The generation of new ideas that result in improved efficiency and effectiveness of the organization Idea Incubator  A safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics

8. Innovation Terms (contd.) Corporate Entrepreneurship  Internal entrepreneurial spirit that includes values of exploration, experimentation, and risk taking Idea Champions  People who passionately believe in a new idea and actively work to overcome obstacles and resistance

9. Ex. 16.4 Characteristics of Innovative Organizations and Creative People The Innovative OrganizationThe Creative Individual Alignment (with purpose)Commitment Focused approach Self-initiated activityInterdependence Persistence Energy Unofficial activitySelf-confidence Nonconformity Curiosity Diverse stimuliOpen-mindedness Conceptual fluency Enjoys variety Within-company communicationSocial competence Emotionally expressive Loves people

10. Ex. 16.5 Stages in the Creative Process Recognition of problem/opportunity Evaluation and implementation InsightIncubation Information gathering