- Slides: 39
“INNOVATION, CHANGE AND DEVELOPMENT”
“Organizational Innovation” Definition: Innovation is the successful implication of creative ideas in an organization. A creation (a new device or process) resulting from study and experimentation The creation of something in the mind. The act of starting something for the first time; introducing something new; "she looked forward to her initiation as an adult"; "the foundation of a new scientific society"; "he regards the fork as a modern introduction"
Organizational innovation: Organizational innovation, like American Blimp’s new Lightship, is the successful implication of creative ideas in an organization. After reading the next two sections on organizational innovation, you should be able to: To explain “Why innovation matters” to companies. Discuss the different “Manage innovations” in the organizations.
1: Why innovation matters: When was the last time you used a record player to listen to music, tuned up your car, backed cookies from scratch, or manually changes the channel on your T. V? Because of product innovation and advanced in technology, it’s hard to remember, isn’t it? In fact, since compact discs began replacing vinyl record albums nearly a decade age, many of you may never have played a record album. Lots of people used to turn up their own cars become it was easy, quick, and cheap.
Technological cycle: Technology: Definition: Technology is the knowledge, tools and techniques used to transform inputs (raw materials, information etc) into outputs (products, services etc). Technology cycle: Definition: A technology cycle begins with the “birth” of a new technology and “ends” when that technology reaches its limits and “dies” as it is replaced by a newer, substantially better technology.
S-curve pattern of Innovation: Definition: A pattern of technological innovation characterized by slow initial progress, then rapid progress, and then again by slow progress as a technology matures and reaches its limits.
Innovation streams: Definition: Innovation streams as patterns of innovation over time that can create sustainable competitive advantage.
2: Managing Innovation The previous discussion of technology cycle and innovation streams showed that managers must be equally good at managing innovation is two very different circumstances. First, during eras of ferment, companies must find a way to anticipate and serve the technological discontinuities that can suddenly transform industry leaders into losers and industry unknowns into industry powerhouses. Companies that can’t manage innovation following technological discontinuities risk quick organizational decline and dissolution. Second, after a new dominant design emerges following an era of ferment, companies must manage the very different process of incremental improvement and innovation. Companies that can’t manage incremental innovation slowly deteriorate as they fall farther behind industry leaders.
Managing Sources of Innovation: Innovation comes from great ideas. So a starting point for managing innovation is to manage the sources of innovation, that is, where new ideas come from. One place that new ideas originate is with brilliant inventors.
Managing Innovation during Discontinuous Change: Experimental approach to innovation: It is an approach to innovation that assumes a highly uncertain environment, and uses intuition, flexible options, and hands-on experience to reduce uncertainty and understanding. Design iteration: Design iteration is repetition in which a company tests a prototype of a new product or service, improve on the design, and then builds and tests the improved prototype.
Testing: Testing is a systematic comparison of different product designs or design iterations. Milestones: Milestones are formal project review points used to assess progress and performance. Multifunctional teams: Multifunctional teams are work teams composed of people from different departments.
Managing Innovation during Incremental Change: Compression approach to innovation is an approach that assumes that incremental innovation can be planned using a series of steps, and that compressing those steps can speed innovation. Generational change: Generational change occurs when change based on the incremental improvement to a dominant technological design such that the improving technology is fully backward compatible with the older technology.
“Change” The need for change: How do organizations know when they should change? What case should organization look for?
Forces of Change: Force Examples Nature of the work force Technology Economic shocks Competition Social trends World politics More cultural diversity Aging population Increased immigration and outsourcing Faster, cheaper, and more mobile computers and handheld devices Emergence and growth of social networking sites Deciphering of the human genetic code Rise and fall of global housing market Financial sector collapse Global recession Global competitors Mergers and consolidations Increased government regulation of commerce Increased environmental awareness Liberalization of attitudes towards gay, lesbian, and transgender employees More multitasking and connectivity Rising health care costs Negative social attitudes toward business and executives Opening of markets in China
Types of change: Adaptive change: Innovation Changes: Radically innovative change:
“A Systems Model of Change”
A Systems approach takes a “big picture” perspective of organizational change. It is based on the notion that any change, no matter how larger or small, has a cascading impact throughout an organization. Inputs, Target elements of change, Outputs
Inputs: All organizational changes should be consistent with an organization’s Mission, Vision, and Resulting strategic plan.
Target elements of change: Target elements of change represent the components of an organization that may be changed. Change can be directed at realigning: Organizing arrangements, Social factors, Goals, People.
Outputs: Outputs represent the desired and results of a change. Once again, these end results should be consistent with an organization’s strategic plan. Change may be directed at: The organizational level, Department/group level, Individual level.
Lewin’s Change Model” The three stages are: Unfreezing, Changing, and Refreezing.
Assumptions of this Model: The change process involves learning something new, as well as discontinuing current attitudes, behaviors, or organizational practices. Change will not occur unless there is motivation to change. This is often the most difficult part of the change process. People are the hub of all organizational changes. Any change, whether in terms of structure, group process, reward systems, or job design, requires individuals to change. Resistance to change is found even when the goals of change are highly desirable. Effective change requires reinforcing new behavior, attitudes, and organizational practices.
Unfreezing: Unfreezing the focus of this stage to create the motivation to change. In so doing, individuals are encouraged to replace old behavioral and attitudes with those desired by management. Managers can be the Unfreezing process by disconfirming the usefulness or appropriateness of employees’ present behaviors or attitudes. In other words, employees need to become dissatisfied with the old way of doing things. Benchmarking is a technique that can be used to help unfreeze an organization.
Changing: Because change involves learning, this stage entails providing employees with new information, new behavioral models, or new ways of looking at things. The purpose is to help employees learn new concepts or points of view. Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change. Experts recommend that it is best to convey the ideas that change is a continuous learning process rather than a one-time event.
Refreezing: Change is stabilized during refreezing by helping employees integrate the changed behavior or attitude into their normal way of doing things. This is accomplished by first giving employees the chance to exhibit the new behaviors or attitudes. Once exhibited, positive reinforcement is used to reinforce the desired change. Additional coaching and modeling also are used at this point to reinforce the stability of the change.
Kotter’s Eight Steps for Leading Organizational Change:
Steps Description 1. Establish a sense of urgency 1. Create the guiding coalition 1. Develop a vision and strategy 1. Communicate the change vision Unfreeze the organization by creating a compelling reason for why change is needed. 1. Empower broadbased action Eliminate barriers to change, and use target elements of change to transfer the organization. Encourage risk taking and creative problem solving. 1. Generate short-term wins 1. Consolidate gains and produce more change Plan for and create short-term “wins” or improvements. Recognize and reward people who contributed to the wins. 1. Anchor new approaches in the culture Create a cross-functional, cross-level group people with enough power to lead the change. Create a vision and strategic plan to guide the change process. Create and implement a communication strategy that consistently communicates the new vision and strategic plan. The guiding coalition uses credibility from short-term wins to create more change. Additional people are brought into the change process as change cascades throughout the organization. Attempts are made to reinvigorate the change process. Reinforce the changes by highlighting connections between new behavior and processes and organizational success. Develop methods to ensure leadership development and
Sources of Resistance to Change: Individual Sources: “Habit” “Security” “Economic factors” “Fear of the unknown” “Selective information processing”
Organizational Sources: “Structural inertia” “Limited focus of change “Group inertia “Threat to expertise “Threat to established power relationships
Overcoming Resistance to Change: Education and Communication: Participation: Building Support and Commitment: Develop Positive Relationships: Implementing Changes Fairly: Manipulation and Cooptation: Coercion:
“Organizational development” Definition: Organization development is a set of techniques or tools that are used to implement organizational change. Organization development is a system-wide application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structures, and processes for improving an organization's effectiveness. "
Weisbord Presents a Six-Step Model for Understanding organizations: Weisbord presents a six-step model for understanding organization: Purposes: Structure: Relationship: Rewards: Leadership: Helpful mechanism:
Beckhard Lists Six Such Assumptions: Beckhard lists six such assumptions: The basic building blocks of an organization are groups (teams). Therefore, the basic units of change are groups, not individuals. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. Decision making in a healthy organization is located where the information sources are, rather than in a particular role or level of hierarchy.
Organizations, subunits of organizations, and individuals continuously manage their affairs against goals. Controls are interim measurements, not the basis of managerial strategy. One goal of a healthy organization is to develop generally open communication, mutual trust, and confidence between and across levels. People support what they help create. People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change.
Four identifying characteristics of OD: OD Is Value-Loaded: OD Is a Diagnosis/Prescription Cycle: OD Is Processed-Oriented: OD Research and Practical Implications: