MGMT: Ch. 7

Aspects of experiential approach

- Design iterations - Testing - Milestones - Multifunctional teams - Powerful leaders

errors in change phase

- lack of a vision - under-communicating the vision by a factor of ten - not removing obstacles to the new vision - not systematically planning for and creating short-term wins

technology cycle

-Begins with the emergence of a new technology and its growth -Ends with its eventual death, replaced with new technology.

Managing Innovation

-Build a creative work environment. - Use experiential approach to manage innovation during discontinuous change. - Use compression approach to manage innovation during incremental change.

errors in refreezing phase

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

errors in unfreezing phase

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

Aspects of compression approach

-Planning -Supplier involvement -Shortening the time of individual steps -Overlapping steps -Multifunctioning teams

Lewin's Change Model

1. Unfreezing: create perception that change is needed -one of the most critical stages. 2. Changing: move towards new, desired behavior. -often the hardest stage. 3. Refreezing: solidify new behaviors as the new norm. -must be attended to; otherwise, change will be short-lived.

Resistance to change results from

1. self-interest 2. misunderstanding and distrust. 3. intolerance for change.

T/F In the context of managing resistance to change, an error in the refreezing stage is not systematically planning for and creating short term wins

FALSE

T/F More companies are likely to go out of business during an economic recession or slowdown than in a time of discontinuous change and changing standards

FALSE

Forces that are evenly balanced result in

State of inertia

Types of resistance forces

Support the status quo; usually limit change forces. Ex: employee fear of failure, organizational inertia, and hostility

technological substitution occurs when:

customers purchase new products to replace older technologies

S-Curve pattern of innovation

determines technological performance regarding its time and effort

____ is a change that occurs when incremental improvements are made to a dominant tech design such that the improved version of the tech is fully backward compatible with the older version

generational change

in the _____ of organizational decline, as organizational performance probs become more visible, management may recognize the need to change but still take no action

inaction stage

which is true of resistance to change

it decreases when change efforts receive significant managerial support

which of the following best defines an incremental change?

it is a phase in which companies innovate by lowering the cost and improving the functioning and performance of dominant design

_____ is a philosophy and collection of planned change interventions designed to improve an orgs long-term health and performance

organizational development

______ is a philosophy and collection of planned change interventions designed to improve an organizations long-term health and performance

organizational development

. Glaler, a large-scale cell phone manufacturer, has a robot in each of its outlets that studies a customer's usage history and suggests a model of Glaler's cell phone that is most likely to suit the customer. This scenario best illustrates _____.

organizational innovation

Wenayton, a company that manufactures and supplies ceramic kitchenware, uses broken and rejected pieces of ceramics to design its office interiors. It also uses novel ways to utilize solar energy for interior lighting. This scenario best illustrates _____.

organizational innovation

innovation streams

patterns of innovation over time that can create sustainable competitive advantage

Brandack is a leading manufacturer of storage devices. During a span of every five years, it produces one high- performance storage device. At the beginning of the five-year period, the device's performance improvement is slow. However, the improvement becomes rapid over time, and toward the end of the five-year period, it gradually begins to drop. In the context of technology cycles, this scenario best illustrates _____.

s-curve pattern

Kappawn, a cell phone manufacturer, observes that its customers have started purchasing only touchscreen cell phones. It hence stops manufacturing traditional cell phones and switches to the manufacture of touchscreen cell phones. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

tech substitution

The manual computer entry system for calculating employee attendance at Kartufly, an apparel retail store, has been replaced with a biometric system. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

tech substitution

_____ is the phase of an innovation stream in which a scientific advance or unique combo of existing techs creates a significant

technological discontinuity

Arthumt's carpool service application gained popularity among its customers within a few months of its release. However, the customers eventually discovered that the application caused the phone battery to heat up to abnormal levels. This made them switch to a newer and efficient application. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

technological lockout

When Pocdio, an application development software, was released, it was widely accepted by customers. However, a few months after its release, users began experiencing a lag in its user interface. Customers eventually stopped using this software and started to use newer and better alternatives. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

technological substitution

Technological lockout

the inability of a company to competitively sell its products because it relies on old technology or a non dominant design

Which of the following is an error that managers make in the REFREEZING phase?

they declare victory too soon

4 stages of S-curve pattern of innovation

1. Awareness and development of technology: Slow initial progress made as technology is developed. 2. Technological growth: Performance improves at accelerated rate 3. Technological maturity: limits of technology are reached; technological progress slows again 4. Decline of interest in technology: New technology is accepted as dominant; old technology replaced.

5 organizational decline stages

1. Blinded: key managers fail to recognize the internal or external changes. 2. Inaction: recognition of problems fails to prompt managers to act. 3. Faulty action: management uses belt-tightening plans to cut costs, increase efficiency, and restore profits. 4. Crisis: either bankruptcy, dissolutions, or restructuring becomes necessary. 5. Dissolution: company is dissolved because of failure to make needed changes.

Creative work environment components

1. Challenging work 2. Organizational Encouragement 3. Supervisory encouragement 4. Work group encouragement 5. Freedom 6. Lack of organizational impediments

Methods to effectively manage innovation

1. Design Iteration: cycle of repetition in which a company tests a prototype of a new product, improves on that design, and then builds and tests the improved prototype. 2. Testing: systematic comparison of different product designs or design iterations. 3. Milestones: formal project review points used to assess progress and performance. 4. Multifunctional teams: work teams composed of people from different departments. Accelerated learning by integrating technical marketing and manufacturing activities. 5. Powerful leaders: provide the vision, discipline, and motivation to keep the innovation process focused, on time, and on target.

How to manage resistance to change

1. Education and communication: Helps employees see logic and need for change effort; resistance caused by misinformation and/or poor communication 2. Participation: Brings employees impacted by change into decision-making process; have better understanding and commitment to change 3. Top-management support: Provide training, resources, and autonomy needed to make change happen 4. Negotiation: Exchanges something of value for lessening resistance to change effort; useful when resistance is from powerful source 5. Coercion: Formal power and authority to force others to change; involves direct threats or force; last resort

Change Tools and Techniques

1. Results-driven change: Change created quickly by focusing on measurement and improvement of results. 2. General electric fastworks: quickly experimenting with new ideas to solve customer problems and learn from repeated test and improvements. 3. Agile change: uses daily meetings to review progress of teams who break problems into small, clearly defined parts that team members work on in sprints. 4. Transition management teams: manage change process and coordinate change efforts throughout company. 5. Organizational development: collection of planned change interventions guided by change agent designed to improve an organizations long-term health and performance.

Discontinuous change

Characterized by - Technological substitutions: customers purchase new technologies to replace older ones -Design competition: older technology improves significantly in response to completive threat to be dominant design.

Lewin's Change Management Model: FREEZE/ REFREEZE

Establish stability after changes completed: • Forces brought back to equilibrium, then refrozen • Takes time, but employees become adapted and comfortable with new norms

T/F Organizational development takes a short range approach to change, and it assumes that top-mgmt support is necessary for the change to succeed

FALSE

T/F The compression approach to innovation assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding

FALSE

Lewin's Change Management Model: CHANGE

Imbalance introduced to forces: • Increase change forces; reduce resistance forces; or do both simultaneously • Getting workers and managers to change their behaviors and work practices

Organizational Innovation

Implementation on new, creative ideas in organizations Necessary for organizations to succeed

Lewin's Change Management Model: UNFREEZE

Making preparations for change: • Unfreeze change and resistance forces holding organization in state of equilibrium • Getting people affected by change to understand that change is needed • When unfreezing has occurred, change can be implemented

T/F Bankruptcy or dissolution is likely to occur in the crisis stage unless a company completely reorganizes the way it does business

TRUE

T/F Dominant tech designs can also emerge thru independent standards bodies

TRUE

T/F In contrast to change forces, resistance forces support the status quo, that is, the existing condition in an organization

TRUE

T/F In terms of change tools and techs, the GE workout is a special kind of results driven change

TRUE

T/F Nearly all technology cycles follow a typical S-curve pattern of innovation

TRUE

T/F Work group encouragement occurs when group members have diverse experience, education, and backgrounds and the group fosters mutual openness to ideas

TRUE

The chefs at Lorifusion, a continental restaurant, are given the freedom to try out new ways of presenting their dishes. This helps them avoid monotony and encourages them to innovate. The employees believe that this challenges their skills and keeps them interested and motivated. In the context of managing sources of innovation, which of the following concepts does this scenario best illustrate?

a creative work environment

which is true of S-curve pattern of innovation

a flat slope indicates that increased effort brings only small improvements in tech performance.

Product prototype

a full-scale, working model that is being tested for design, function, and reliability

Dominant design

a new technological design or process that becomes accepted market standard; emerges because of critical mass or through independent standards bodies.

Flow

a psychological state of effortlessness, in which you become completely absorbed in what you're doing and time seems to pass quickly

Technological Discontinuity

a scientific advance or a unique combination of existing technologies creates a significant breakthrough in performance or function

Experiential Approach

an approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding

Compression approach

an approach to innovation that assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation

in the context of organizational development, the purpose of small-group interventions is to:

assess how a group functions and help it work more effectively to accomplish goals

Generational change

change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology

. In the context of organizational development, the purpose of large-system interventions is to

change the character and performance of an org, business unit, or department

in the context of resistance to change, ____ is the use of formal power and authority to force others to change

coercion

In the context of organizational decline, which of the following is true of the crisis stage?

companies lack the resources to fully change how they run their business

___ are workforce cultures in which workers perceive that new ideas are welcomed, valued, encouraged

creative work environments

Mozbert is a company that manufactures and supplies wireless headsets. It started an online advertising campaign that explains the advantages and ease of using wireless headsets over wired headsets. As a mitigation plan, Beloway, a wired headset manufacturer, launched new offers and discounts to retain its customers. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

design competition

____ is a cycle of repetition in which a company tests a prototype of a new product or service, improves on the design, and then builds and tests the improved product or service prototype

design iteration

Cleanreef, a chain of stores that provides dry-cleaning services, has been the market leader in the country of Gregoramas for the past 20 years. None of its competitors have been able to match Cleanreef's technology, logistics, and pricing. In the context of innovation streams, Cleanreef most likely has a _____.

distinctive competence

Waltert, a cell phone manufacturer, has been the market leader in the country of Besmagia ever since cell phones were introduced in the country. None of the other domestic or foreign cell phone brands have been able to match the high quality and low price that Waltert's products offer. In the context of innovation streams, Waltert most likely has a _____.

distinctive competence

When a few domestic manufacturers of solar water heaters gained popularity in the country Likambea, solar water heaters replaced the old models of water heaters and became the accepted market standard for heaters. In the context of innovation streams, this scenario best illustrates _____.

dominant design

which best define the GE workout?

it is a three day meeting in which managers and employees from diff levels and parts of an org quickly generate and act on solutions to specific business probs

which best defines tech discontinuity

it is the phase of innovation stream in which a scientific advance or unique combo of existing technologies creates a significant breakthrough in performance or function

Types of change forces

lead to differences in form, quality, or condition of an organization over time; positive forces that facilitate change. Ex: New employees, changing markets, and competition.

Incremental change

lower costs and make improvements in dominant design; continues until next technological discontinuity

Organizational decline

occurs when companies fail to anticipate, recognize, neutralize or adapt to internal or external pressures.

Russeng, a travel agency, had a huge setback in its business as customers started to book travel tickets online and make their own itineraries using the information available on the Internet. It failed to take the necessary corrective measures to address this issue, and this led to an overall decrease in the company's performance. Which of the following concepts does this scenario best illustrate?

organizational decline

Maxsigma, a software company, released a text processing application. This application was user-friendly and widely accepted by its customers. However, a few months later, users found that it was susceptible to virus, and they switched to newer and more efficient text processing applications. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

technological lockout

Cinebravos, a television manufacturer in Ashtemston, observes that its customers have stopped purchasing its CRT television sets and that they have begun purchasing its LED and LCD television sets. It hence stops manufacturing CRT television sets entirely. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

technological substitution

The standalone scanners and printers at Indentom, a law firm, have been replaced with all-in-one printers that perform the functions of printing, scanning, and photocopying. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

technological substitution

Change agent

the person formally in charge of guiding a change effort

Change intervention

the process used to get workers and managers to change their behaviors and work practices

In the context of managing resistance to change, which of the following is an error that managers make during the UNFREEZING stage?

they do not establish a great enough sense of urgency

in the context of managing resistance to change, which of the following is an error that mangers make in the CHANGE phase?

they intercommunicate the vision by a factor of ten

Sun Technologies changed the operating system of their phones and insisted that all its current users switch to the new one. They started listing out the benefits of the new system in the update log in an attempt to make its users believe that the change was for the better. In the process of managing organizational change, Sun Technologies is in the__________phase

unfreezing

creative work environments

workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged