LEADING CHANGE

AND INNOVATION
DATE: 2 ND OCTOBER 2020
 INTRODUCTION

Leading change is one of the most important and difficult responsibilities for managers and
administrators. It involves guiding, encouraging, and facilitating the collective efforts of members to
adapt and survive in an uncertain and sometimes hostile environment.

For some theorists, this is the essence of leadership. The subject became especially relevant in the
1980s when many private and public sector organizations were confronted with the need for major
changes to cope with globalization, deregulation, sweeping social and political changes, and the
technological revolution in products and services.
 TYPES OF CHANGE IN TEAMS AND
ORGANIZATIONS

ROLES OR ATTITUDES:

One useful distinction is between efforts to change attitudes versus efforts to change roles, structures, and
procedures. The attitude-centered approach involves changing attitudes and values with persuasive appeals,
training programs, team-building activities, or a culture change program.

In addition, technical or interpersonal skills may be increased with a training program. The underlying assumption
is that new attitudes and skills will cause behavior to change in a beneficial way.

The leader seeks to convert resisters into change agents who will transmit the vision to other people in the
organization.
 TYPES OF CHANGE IN TEAMS AND
ORGANIZATIONS
TECHNOLOGY:

Another type of change is in the technology used to do the work. Many organizations have attempted to improve
performance by implementing new information and decision support systems.

Examples include networked workstations, human resource information systems, inventory and order processing
systems, sales tracking systems

Such changes often fail to yield the desired benefits, because without consistent changes in work roles, attitudes,
and skills, the new technology will not be accepted and used in an effective way.
 TYPES OF CHANGE IN TEAMS AND
ORGANIZATIONS
STRATEGY:

Still another major type of change is in the competitive strategy for achieving the major objectives of the team or
organization. Examples of strategy changes for a company include introduction of new products or services,
entering new markets, use of new forms of marketing, initiation of Internet sales in addition to direct selling,
forming alliances or joint ventures with other organizations, and modifying relationships with suppliers (e.g.,
partnering with a few reliable suppliers).

To be successful, changes in the competitive strategy may require consistent changes in people, work roles,
organization structure, and technology.
 TYPES OF CHANGE IN TEAMS AND
ORGANIZATIONS
ECONOMICS OR PEOPLE:

Internal changes in an organization may emphasize economics or people. The first approach seeks to improve
financial performance with changes such as downsizing, restructuring, and adjustments in compensation and
incentives.

The second approach seeks to improve human capability, commitment, and creativity by increasing individual and
organizational learning, strengthening cultural values that support flexibility and innovation, and empowering
people to initiate improvements.
 CHANGE PROCESSES

Change process theories describe a typical pattern of events that occur from the beginning of a

change to the end, and in some cases they describe how earlier changes affect subsequent

changes.

The theories may identify distinct phases in the process, stages in the reaction of individuals, or

effects of repeated changes on people.

 STAGES IN THE CHANGE PROCESS

◼ Lewin’s Force-Field Model

◼ Unfreezing
◼ Changing
◼ Refreezing
◼ Stages in Reaction to Change
◼ Denial
◼ Anger
◼ Mourning
◼ Adaption
 STAGES IN THE CHANGE PROCESS

One of the earliest process theories was Lewin’s (1951) force-field model. He proposed that the change process
can be divided into three phases: unfreezing, changing, and refreezing.

In the unfreezing phase, people come to realize that the old ways of doing things are no longer adequate. This
recognition may occur as a result of an obvious crisis, or it may result from an effort to describe threats or
opportunities that were not evident to most people in the organization.

In the changing phase, people look for new ways of doing things and select a promising approach.

In the refreezing phase, the new approach is implemented and it becomes established. All three phases are
important for successful change.
 STAGES IN REACTION TO A CHANGE

Another process theory describes a typical pattern of reactions to changes imposed upon people. The theory
builds on observations about the typical sequence of reactions to sudden, traumatic events such as the death of
a loved one, the breakup of a marriage, or a natural disaster that destroys one’s home.

The reaction pattern has four stages: denial, anger, mourning, and adaptation.

The initial reaction is to deny that change will be necessary (“This isn’t happening” or “It’s just a temporary
setback”). The next stage is to get angry and look for someone to blame.

At the same time, people stubbornly resist giving up accustomed ways of doing things. In the third stage, people
stop denying that change is inevitable, acknowledge what has been lost, and mourn it. The final stage is to
accept the need to change and go on with one’s life.
 REASONS FOR REJECTING CHANGE

Proposed Change Is Not Necessary

Proposed Change Is Not Feasible

Change Is Not Cost Effective

Change Would Cause Personal Losses

Leaders Not Trusted

 HOW VISIONS INFLUENCE CHANGE

A vision should be simple and idealistic, a picture of a desirable future, not a complex plan

with quantitative objectives and detailed action steps. The vision should appeal to the values,

hopes, and ideals of organization members and other stakeholders whose support is needed.

The vision should emphasize distant ideological objectives rather than immediate tangible

benefits. The vision should be challenging but realistic.

 ELEMENTS OF VISION

◼ Value Statement

◼ Slogans

◼ Strategic Objectives

◼ Project Objectives
 ELEMENTS OF VISION

Value Statement:

◼ Coca-Cola Leadership: The courage to shape a better future

◼ Google: Focus on the user and all else will follow.

◼ Nike: It is our nature to innovate.

 ELEMENTS OF VISION

Slogans:

◼ I'm lovin' it (McDonalds)

◼ Just Do It (Nike)

◼ Finger Lickin' Good (KFC)

 ELEMENTS OF VISION

Strategic Objectives:
◼ Financial Growth: To exceed $10 million in the next 10 years.

◼ Financial Growth: To increase revenue by 10% annually.

◼ Current Customers: Expand sales to existing customers.

◼ Current Customers: Increase customer retention.

◼ Operations Management: Increase community outreach.

◼ Technology Management: Increase efficiencies through use of wireless or

virtual technology.
◼ Communication Management: Improve internal communications.