Management Chapter 8
characteristics of a innovative company (5 things)
1) people in research and marketing actively work with customers to understand their needs and develop solutions 2) technical specialists are aware of recent developments and make effective use of new technology 3) a shared new-product development process that is advocated and supported by top management cuts across organizational functions and units 4) members from key departments- research, manufacturing, marketing- cooperate in the development of the new product of service 5) each project is guided by a core-cross functional team from beginning to end
four reasons people resist change
1) self-interest 2) lack of understanding and trust 3) uncertainty 4) different assessment and goals
successful companies often include who directly in the product and service development process? (3 things)
1) strategic partners 2) suppliers 3) other outsiders
OD consultants use of specialized techniques to help meet their goals. Three of the most popular and effective are the following:
1) team-building activities 2) survey-feedback activities 3) large-group interventions
five tactic for implementing change
1) top management support 2) communication, education 3) participation 4) negotiation 5) coercion
two tools that managers use to smooth the culture change process
1) training and development programs 2) organizational development
three underlying stages of organization development (OD) for achieving behavioral and attitudinal change
1) unfreezing 2) changing 3) refreezing
large-group intervention
An organization development (OD) approach that brings together people from different parts of the organization (and often including outside stakeholders) to discuss problems or opportunities and plan for change. Fastest-growing approach Focus is on the entire system
team building
An organization development (OD) intervention that enhances cohesiveness by helping groups of people learn to work together as a team.
change agent
An organization development (OD) specialist who contracts with an organization to help managers facilitate change.
disruptive innovation
Innovations in products, services, or processes that radically change competition in an industry, such as the advent of streaming video or e-books.
bottom-up approach
Involves encouraging the flow of ideas from lower levels and making sure that they get heard and acted upon by top executives.
failed innovation is often the result of what?
failed cooperation
what is the biggest obstacle to organizational change?
fear of personal loss
where is the horizontal linkage model increasingly important?
in a high-pressure business environment that requires rapidly developing and commercializing products and services
ambidextrous approach
incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations
internal innovation contests
increasingly popular way to realize product and service innovations
exploration (an innovation strategy) (4 things)
involves designing the organization to encourage creativity and the initiation of new ideas 1) creativity 2) bottom-up approach 3) internal concerns 4) idea incubators
participation
involves users and potential resisters in designing the change
keeping what close together help companies be more innovative
keep research and manufacturing close together
ideas for product and technology innovations typically originate where ? and need to flow how?
lower levels of the organization, flow horizontally across departments
coercion
managers use their formal employees to change shouldn't be used may be necessary in crisis situations
innovation roles (an innovation strategy) (4 things)
means that managers put in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation 1) idea champions 2) new venture teams 3) skunkworks 4) new venture fund
how often are employees' ideas implemented?
once every six years
creative departments
organizational departments that initiate change, such as research and development, engineering, design, and systems analysis give employees freedom and flexibility to propose and work on new ideas
grit
passion and perseverance in the pursuit of long-term goals
driving forces
problems or opportunities that provide motivation for change
new-venture fund
provides resources from which individuals and groups can draw to develop new ideas, products, or businesses
cooperation (an innovation strategy) (3 things)
refers to creating conditions and systems to facilitate internal and external coordination and knowledge sharing 1) horizontal coordination mechanisms 2) customers, partners 3) open innovation
many organizational problems are ____________
subtle
changing
the "intervention" stage of OD, when change agents teach people new behaviors and skills and guide them in using them in the workplace need to change both emotion and logic
organizational change
the adoption of a new idea or behavior by an organization
creativity
the generation of novel ideas that may meet perceived needs or respond to opportunities for the organization
restraining forces
the various barriers to change, such as a lack of resources, resistance from middle managers, or inadequate employee skills
even though successful companies want to provide training and development opportunities for everyone, they may emphasize _______
training and development for training and managers, with the idea that their attitudes will influence people throughout the organization and lead to culture change
negotiation
uses FORMAL bargaining to win acceptance and approval of a desired change necessary for companies with strong unions
Organization Development (OD)
A planned, systematic process of change that uses behavioral science techniques to improve an organization's health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem-solving capabilities.
open innovation
A process where people search for and commercialize innovative ideas beyond the boundaries of the organization.
skunkworks
A separate small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business.
Innovation by acquisition
A strategy to obtain innovation by buying other companies, recognizing that the cutting edge of innovation often happens with young, small, entrepreneurial companies rather than inside the walls of established firms.
two concepts that address the need for change in today's environment
1) disruptive information 2) ambidextrous approach
Three Innovation Strategies for New Products and Technologies
1) exploration 2) cooperation 3) innovation roles
how can managers directly influence whether entrepreneurship flourishes in the organization? (3 things)
1) expressing support of entrepreneurial activities 2) giving employees a degree of autonomy 3) rewarding learning and risk-taking
three strategies for overcoming resistance and implementing change
1) making people aware of the need for change by creating a sense of urgency 2) analyzing resistance through the force-field technique 3) using selective implementation tactics
OD can help managers address at least three types of current problems:
1) mergers/ acquisitions 2) organizational decline/ revitalization 3) conflict management
Force Field Analysis (kurt lewin)
A technique for determining which forces drive a proposed change and which forces restrain it. has driving forces and restraining forces by selectively removing forces that restrain change, the driving forces will be strong enough to enable implementation
product change
A change in an organization's products or services, such as the Whirlpool two-oven range or the Amazon Kindle Fire.
people change
A change in the attitudes and behaviors of a few employees.
reverse innovation
Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.
survey feedback
Where organization development (OD) change agents survey employees to gather their opinions regarding corporate values, leadership, participation, cohesiveness, and other aspects of the organization, then meet with small groups to share the results and brainstorm solutions to problems identified by the results.
unfreezing
The stage of organization development (OD) in which people are made aware of problems and the need for change. creates the motivation for people to change their attitudes and behaviors managers need to create sense of urgency to create a willingness to change often associated with diagnosis/ change agent
Six Thinking Hats (edward de bono)
This is a creative thinking technique that involves categorizing and focusing on different aspects of a problem. Each hat represents a way of thinking (white: facts, yellow: positives, black: negatives, red: emotions, green: new ideas, blue: organization)
communication and education
Used when solid information about the change is needed by users and others who may resist implementation
closed innovation
When an organization does all of their own research internally and keeps its innovative ideas as proprietary intellectual property. way of the past
top management support
When upper level managers in a corporation can concentrate on helping individuals within the system develop more entrepreneurial behavior.
technology change
a change in the organization's production process - how the organization does its work
What is the most straightforward way to enlist the help of a crowd?
a contest
need for change
a disparity between actual and desired performance
research shows that successful innovations are often accompanied by __________________
a high rate of failure
culture change
a major shift in the norms, values, attitudes, and mind-set of the entire organization
idea champion
a person who sees the need for and champions productive change within the organization
new-venture team
a unit separate from the mainstream organization that is responsible for initiating and developing innovations
Crowdsourcing
an approach in which many people contribute to the innovation process via the internet
idea incubator
an organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics
Companies based where will produce a great percentage of innovations in the current years
companies in emerging markets like China and India