Chapter 11: Discussion Questions

1. Microsoft and Intel are giants of the computer industry. Why do you think that
these large companies have had such a hard time competing against disruptive
innovations such as mobile computing?

Response: Chapter 11 states that many disruptive innovations come from small
entrepreneurial firms like Square. It also states that change, especially major change
such as that associated with disruptive innovation, is not easy, and many organizations
struggle with changing successfully. In some cases, employees don’t have the desire or
motivation to come up with new ideas, or their ideas never get heard by managers who
could put them into practice. In other cases, managers learn about good ideas but have
trouble getting cooperation from employees for implementation. Especially managers
within corporations that've been around for years. Successful change requires that
organizations be capable of both creating and implementing ideas, which means the
organization must learn to be ambidextrous. An ambidextrous approach means
incorporating structures and processes that are appropriate for both the creative impulse
and for the systematic implementation of innovations. For example, a loose, flexible
structure and greater employee freedom are excellent for the creation and initiation of
ideas; however, these same conditions often make it difficult to implement a change
because employees are less likely to comply. With an ambidextrous approach,
managers encourage flexibility and freedom to innovate and propose new ideas with
creative departments and other mechanisms like innovation labs.

2. A manager of an international chemical company says that few new products in

her company have been successful. What would you advise the manager to do to
help increase the company’s success rate?

Response: I would let the manager know that innovation is a team sport and that a
company that successfully innovate usually have the following characteristics:
● People in research and marketing actively work with customers to understand their
needs and develop solutions. ● Technical specialists are aware of recent developments
and make effective use of new technology.
● A shared new product development process that is advocated and supported by top
management cuts across organizational functions and units.
● Members from key departments—research, manufacturing, marketing—cooperate in
the development of the new product or service.
● Each project is guided by a core cross-functional team from beginning to end.
I would recommend they use the horizontal linkage model. Employees from research,
manufacturing, and sales and marketing should meet frequently in teams and task
forces to share ideas and solve problems. Research people inform marketing of new
technical developments to find out whether they will be useful to customers. Marketing
people pass customer complaints to research to use in the design of new products and
to manufacturing people to develop new ideas for improving production speed and
 quality. Manufacturing informs other departments whether a product idea can be
manufactured within cost limits. Throughout the process, development teams keep in
close touch with customers. The textbook states that, a study by McKinsey found that 80
percent of successful innovators periodically test and validate customer preferences
during development of new products and services.

3. As a manager, how would you deal with resistance to change when you suspect
that employees’ fears of job loss are well founded?

Response: The text states that the fear of personal loss is perhaps the biggest obstacle
to organizational change. It goes on to say that reasons for resistance are legitimate in
the eyes of employees affected by the change. Managers should not ignore resistance;
instead, they should diagnose the reasons and design strategies to gain acceptance by
users. Strategies for overcoming resistance and implementing change typically involve
three approaches: making people aware of the need for change by creating a sense of
urgency, analyzing resistance through the force-field technique, and using selective
implementation tactics. I would make sure that employees have rational reasons for
change. I would then use the force-field analysis to identify the driving forces and the
restraining forces. Once that process is completed, I would use one of the following
implementation tactics: Top Management Support, Communication and Education,
Participation, Negotiation, Coercion (in a crisis situation when a rapid response is
urgent).

4. If you were a manager responsible for floor-cleaning products at a consumer

products company, how might you apply crowdsourcing to identify a new product
that would meet customer needs?

Response: Crowdsourcing is an open innovation approach used by Quirky, Netflix, Mod

Cloth, General Electric, Fiat, and even the U.S. government. It taps into ideas from
around the world and lets thousands or hundreds of thousands of people participate in
the innovation process, usually via the Internet. If I were a manager responsible for floor-
cleaning products at a consumer products company, I would allow customers to express
opinions on solutions through the company’s website. I would enlist the help of a crowd
through a survey. Customers and other individuals from the public would be able to
participate in a survey. Individuals who complete the survey would be entered into a
contest with a chance to win $100 worth of products. Using this method would help me
identify a new product that would meet customer needs. This crowd based model makes
the process of innovation much faster and the cost of failure much lower.

5. To tap into the experience of battle-tested soldiers, the U.S. Army recently has
begun encouraging personnel from all ranks to go online and collaboratively
rewrite some of the Army’s field manuals in a Wikipedia-like fashion. When the
rank and file showed little interest, one retired colonel suggested that top leaders
 should make soldiers participate. Does coercion seem like a good way to
implement this type of change? Discuss.

Response: No, coercion does not seem like a good way to implement this type of
change. In most cases, this approach should not be used because employees, in this
case soldiers, feel like victims, are angry at change managers, and may even sabotage
the changes. Rewriting the Army field manual would be a very important task and you
wouldn't want anyone jeopardizing that. Communication and education are used when
solid information about the change is needed by users and others who may resist
implementation. They should have a champion(s) educate personnel about the need for
this change. They should inform them about the why behind this change. They could
also try the participation method, which involves users and potential resistors in
designing the change. Research studies have shown that proactively engaging people in
upfront planning and decision making about changes that affect their work results in
much smoother implementation. Participation also helps managers determine potential
problems and understand the differences in perceptions of change among employees.
The only time I would suggest using coercion is in crisis situations when a rapid
response is urgent.

6. Analyze the driving and restraining forces of a change that you would like to make
in your life. Do you believe that understanding force-field analysis can help you
more effectively implement a significant change in your own behavior?

Response: The textbook states that force-field analysis grew from the work of Kurt
Lewin, who proposed that change was a result of the competition between driving and
restraining forces. Driving forces can be thought of as problems or opportunities that
provide motivation for change within the organization. Restraining forces are the various
barriers to change, such as a lack of resources, resistance from middle managers, or
inadequate employee skills.
Personally, I have been unemployed for quite some time and I would like to become
employed. Driving Forces include the reward of having an income and health insurance.
Motivation and technology. Some restraining forces are the pandemic and high volume
of applicants. I believe that understanding force-field analysis can help me more
effectively implement a significant change in my own behavior. I would have to analyze
both the forces that drive change (problems and opportunities) and the forces that resist
it (barriers to change). By selectively removing forces that restrain change, the driving
forces will be strong enough to enable implementation,

7. Why do you think research has shown that idea champions are so essential to the
initiation of change? Could they be equally important for implementation?
 Response: Chapter 11 defines an idea champion as a person who sees the need for
and champions productive change within the organization. Champions are passionately
committed to a new idea or product despite rejection by others. They will stop at nothing
to reach their goal. Idea champions often persevere through numerous challenges and
setbacks, which requires perseverance and passion, sometimes called grit. I believe that
champions are equally important for implementing change. Implementing change will
take persuading and influencing individuals who better to do that than those who truly
believe in the change taking place. The textbook provided a great example: When Texas
Instruments studied 50 of its new product introductions, a surprising fact emerged:
Without exception, every one that failed lacked a zealous champion. By contrast, most of
the new products that succeeded had such a champion. Managers made an immediate
decision: No new product would be approved unless someone championed it. Similarly,
at SRI International, a contract R&D firm, managers use the saying “No champion, no
product, no exception.” Research confirms that successful new ideas are generally those
that are backed by someone who believes in the idea wholeheartedly and is determined
to convince others of its value.

8. You are a manager, and you believe that the expense reimbursement system for
salespeople is far too slow, taking weeks instead of days. How would you go
about convincing other managers that this problem needs to be addressed?

Response: This example would be considered a technology change. A technology

change is defined as a change in the organization’s production process—how the
organization does its work. Technology changes are designed to make the production of
a product or service more efficient. Chapter 11 states that change does not occur by
itself. Personal energy and effort are required to promote a new idea successfully.
Research confirms that successful new ideas are generally those that are backed by
someone who believes in the idea wholeheartedly and is determined to convince others
of its value. I would make sure that I am a zealous champion for this idea. Champions
are passionately committed to a new idea or product despite rejection by others. I would
make sure that the other managers feel the need for change rather than just giving them
facts and figures. I would analyze the problems, opportunities, barriers and change. I
would then selectively remove forces that restrain change, the driving forces will be
strong enough to enable implementation. I would follow the 3 OD stages for achieving
behavioral and attitudinal change: (1) unfreezing, (2) changing, and (3) refreezing.
Unfreezing makes people throughout the organization aware of problems and the need
for change. This stage creates the motivation for people to change their attitudes and
behaviors. Changing occurs when individuals experiment with new behavior and learn
new skills to be used in the workplace. This process is sometimes known as
intervention, during which the change agent implements a specific plan for training
managers and employees. Freezing occurs when individuals acquire new attitudes or
values and are rewarded for them by the organization. The impact of new behaviors is
evaluated and reinforced. The change agent supplies new data that show positive
changes in performance.
 9. Do the underlying values of OD differ from assumptions associated with other
types of change? Discuss.

Response: Chapter 11 defines Organizational development (OD) as a planned,

systematic process of change that uses behavioral science knowledge and techniques
to improve an organization’s health and effectiveness through its ability to adapt to the
environment, improve internal relationships, and increase learning and problem-solving
capabilities. Chapter 11 goes on to say that in the newer approach, the focus is on the
entire system, which takes into account the organization’s interaction with its
environment. The sources of information for discussion are expanded to include
customers, suppliers, community members, and even competitors, and this information
is shared widely so that everyone has the same picture of the organization and its
environment. The acceleration of change when the entire system is involved can be
remarkable. In addition, learning occurs across all parts of the organization
simultaneously, rather than by individuals, small groups, or business units alone. The
result is that the large-group approach offers greater possibilities for fundamental, radical
transformation of the entire culture, whereas the traditional approach creates
incremental change in a few individuals or small groups at a time.

10. What do you see as the major advantages and disadvantages of a company
moving to open innovation?

Response: Chapter 11 defines open Innovation as extending the search for and
commercialization of new ideas beyond the boundaries of the organization and even
beyond the boundaries of the industry, sharing knowledge and resources with other
organizations and individuals outside the firm. Forward innovation is usually utilized by
forward-looking companies. Open innovation is a profitable way to innovate. Some major
advantages of open innovation are reduced costs, increased differentiation in the
market, increased revenue stream for the company, and accelerated time to market.
Open innovation can also increase competitive advantage. Some major disadvantages
are the possibility of revealing information not intended for sharing and the possibility
that the hosting company will lose their competitive advantage as a consequence of
revealing intellectual property.

Chapter 11: Ethical Dilemma

What Would You Do?

1. Go to the meeting and argue for abandoning crowdsourcing for now in favor of
maintaining the artistic integrity and values that Off the Hook has always stood
for.
 Response: I would not take this approach because the text states that over the past 18
months, Off the Hook’s sales had been stagnating. Crowsourcig made T-shirt design
more responsive to consumer desires. It reduced the uncertainty that surrounded new
designs, and it dramatically lowered costs. I believe that she should come up with a
solution on how to maintain the aesthetic integrity and values that Off the Hook has
always stood for while utilizing crowdsourcing. Crowdsourcing is an open innovation
approach that has been proven to work. Open innovation means extending the search
for and commercialization of new ideas beyond the boundaries of the organization and
even beyond the boundaries of the industry, sharing knowledge and resources with
other organizations and individuals outside the firm.

2. Accept the reality that because Rob strongly favors crowdsourcing, it’s a fait
accompli. Be a team player and help work out the details of the new design
approach. Prepare to lay off graphic designers as needed.

Response: I would accept that because Rob strongly favors crowdsourcing and for
good reasons, it’s a fait accompli. I would help work out a new design approach and find
out ways to utilize my top-notch graphic designers. If she wants to continue upholding
the values of the founder, Chris Woodhouse, she should not agree to convert to a fully
crowdsourcing model. Graphic designers will help ensure that each screen print is a
work of art. They should continue handing over winners’ designs to the in-house
designers, so that they can tweak the submissions until they meet the company’s usual
quality standards. At some point in the process, Ai-Lan should consider using the force-
field analysis. Force-field analysis is a technique for determining which forces drive a
proposed change and which forces restrain it.

3. Accept the fact that converting Off the Hook to a crowdsourcing business model
is inevitable, but because it violates your own personal values, start looking for a
new job elsewhere.

Response: I do not believe this is the way to go. Instead I believe that Ai-Lan should
stay and help the company make the best decision for both the company and its employees. Ai-
Lan should let Rob know that she felt that the designs were competent, and that none achieved
the aesthetic standards attained by her in-house designers. She should express why she
believes this is important for the brand and advocate for her designers. As stated before, they
should continue handing over winners’ designs to the in-house designers, so that they can
tweak the submissions until they meet the company’s usual quality standards.