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