Chapter 8

Managing Change and Innovation

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 Introduction
If organizations dont successfully change
and innovate, they die

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Innovation and the Changing
Workplace
The adoption of a new idea or behavior by
an organization
Change and innovation can come from
outside forces
Managers want to initiate change from
the inside
Disruptive innovation is a goal for
global competition

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Innovation and the Changing
Workplace
Change is not easy
Ambidextrous approach: Incorporating
structures and processes that are
appropriate for:
Creative impulse and for the systematic
implementation
Managers encourage flexibility and
freedom to innovate

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 Changing Things: New
Products and Technologies
Product change a change in the
organizations product or service outputs
Technology change a change in the
organizations production process
Three innovation strategies:
exploration, cooperation, and
entrepreneurship

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 8.1 - Three Innovation
Strategies

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 Exploration
Creativity novel ideas that meet
perceived needs or offer opportunities
Idea incubator a safe harbor where
employees can develop ideas without
interference from company bureaucracy
or politics

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8.2 - Characteristics of Creative
People and Organizations

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 8.3 - The Worlds Most
Innovative Companies 2010

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 Cooperation
Internal coordination
Horizontal linkage model
simultaneously contribute to new products
and technologies
External coordination
Includes customers and partners, suppliers
Open innovation commercialization of
ideas beyond the organization

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 8.4 - Coordination Model for
Innovation

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 Innovation Roles
Managers should support
entrepreneurship activities and foster
idea champions
Energy and effort is required to promote a
new idea
Sponsors approve and protect ideas
when critics challenge the concept

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 Innovation Roles
New-venture teams give free rein to
creativity
Skunkworks are informal, autonomous,
secretive groups that focus on
breakthrough ideas
New-venture funds provide resources for
new ideas

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 8.5 - Four Roles in
Organizational Change

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 Changing People and
Culture
Changes in how employees think
Changes in mind-set

People change = Training and

development
Culture change = Organizational
development
Large culture change is not easy

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 Training and Development
Training Frequently used approach to
changing peoples mind-sets
Training and development is emphasized
for managers
Behavior and attitudes will influence
people and lead to culture change

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 Organizational Development
Planned, systematic process of change
using behavioral science
Addresses three types of problems:
Mergers and acquisitions
Organizational decline and revitalization
Conflict management

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 OD Activities
Team-building activities
Survey-feedback activities
Large-group interventions
OD Steps:
Unfreezing
Changing
Refreezing

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 8.6 - OD Approaches to
Culture Change

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 Implementing Change
Need for change
Disparity between existing and desired
performance levels
Understand the resistance to change
Self-interest
Lack of understanding and trust
Uncertainty
Different assessments and goals

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8.7 - Using Force-Field Analysis to
Change from Traditional to Just-in-
Time Inventory System
Change is a result of the competition
between driving and restraining forces
Driving forces problems or
opportunities that provide motivation for
change
Restraining forces barriers to change

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8.7 - Using Force-Field Analysis to
Change from Traditional to Just-in-
Time Inventory System contd

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 8.8 - Tactics for Overcoming
Resistance to Change

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