MAN Chapter 7: innovation and change

Errors in Leading Change (refreezing phase)

-Declaring victory too soon -Not anchoring changes in the corporation's culture

Errors in Leading Change (change phase)

-Lack of a vision -Undercommunicating the vision by a factor of ten -Not removing obstacles to the new vision -Not systematically planning for and creating short-term wins

Errors in Leading Change (unfreezing phase)

-Not establishing a great sense of urgency -Not creating a powerful enough coalition

summary:

-Organizational innovation refers to the successful implementation of creative ideas -Innovation can be managed by first managing its sources -Organizational decline occurs when firms fail to recognize the need for change -Change is a function of: Forces that promote change Opposing forces that slow or resist change

managing innovation

1) Build a creative work environment 2)Use experiential approach to manage innovation during discontinuous change 3)Use compression approach to manage innovation during incremental change How do you encourage and manage innovation? By using ideas in silde above

Change Tools and Techniques (3)

1) results-driven change: Created quickly by focusing on the measurement and improvement of results 2)General Electric workout:Three-day meeting in which managers and employees generate and act on solutions to specific business problems 3) Organizational development: -Philosophy and collection of planned change interventions -Designed to improve an organization's long-term health and performance

S-Curve Pattern of Innovation

1)Characterized by slow initial progress, followed by rapid progress, and then slow progress again -Slow progress results when a technology matures and reaches its limits 2) Slope of the curve -Steep slope - Little effort increases performance -Flat slope - Further developmental efforts lead to small increases in performance KNOW SLOPES and CYCLE for S-PATTERN

Technology cycle

Begins with the birth of a new technology -Ends when the technology reaches its limits and is replaced by a newer and better technology

innovation methods

Experiential approach -Periods of discontinuous change -Highly uncertain environments -Goal = establishment of a dominant design Compression approach -More certain environments -Goal = lower costs, incremental improvements

components of creative work environment

Iger: Be in a space where creativity drives the product

innovation streams (graph)

Innovation over time: starts at bottom - technological discontinuity , then discontinuous change (design competition, ex. Wireless charging), then incremental change You don't have to be first to market as long as you do it better. Disney: gaining IP and going direct to consumer

define innovation and its benefits

Innovation= the process of uncovering new ways to do things -Creativity + Work = Innovation Benefits: Enter new markets Grow larger/faster Realize efficiencies

Organizational Decline

Occurs when companies fail to anticipate, recognize, neutralize, or adapt to internal or external pressures Stages 1 Blinded 2 Inaction 3 Faulty action 4 Crisis 5 Dissolution In first four stages: a company can still bounce back

innovation stream (technological, discontinuous, dominant)

Patterns of innovation over time that can create sustainable competitive advantage -Technological discontinuity: Unique combination of existing technologies creates a significant breakthrough in performance -Discontinuous change: Characterized by design competition and technological substitution -Dominant design: New technological design/process that becomes the accepted market standard doesn't mean it's the best, it can mean the most common (critical mass: means more presence), dominant: can be first to market or come out of the development of standards

Organizational innovation

Successful implementation of creative ideas in organizations

Types of Forces and Resistance to Change

Types of forces 1)Change forces: Produce differences in the form, quality, or condition of a firm over time 2)Resistance forces: Support the existing conditions in organizations 3)Resistance to change -Results from self-interest, misunderstanding and distrust, and a general intolerance for change

S-curves and technological innovation (graph)

Used to plot innovation over time (memorize chart) S-curves: the more effort put into a new technology... to what extent does that increase performance A: progress is slow with lots of effort required for performance return (Money, time, feedback limits) B: less effort required for more return as technology matures C: performance flattens out indicated further efforts to develop technology will only result in small efforts to performance Dotted line: phasing out old technology because new technology is coming out, dotted line means both old and new technologies will co-exist at one point at the same time.

Managing Resistance to Change

education negotiation top-management support communication participation coercion

Managing Organizational Change (3)

unfreezing: Getting the people affected by change to believe that change is needed Change intervention: Getting workers and managers to change their behaviors and work practices refreezing: Supporting and reinforcing new changes so that they stick