Managing Change and Disruptive Innovation

Lt Col Farhan Iqbal

Activity
• Group Activity - presentations
Activity
• An Advertisement – Change is beautiful
https://www.youtube.com/watch?v=aS_wwC8P12I

• An Advertisement – Change the conversation

https://www.youtube.com/watch?v=6_FIPOkczio

• An Advertisement – An organization needs change

https://www.youtube.com/watch?v=FUigIjOnqSc

• Video – Change is your only constant – Trent Clark – 6 minutes

https://www.ted.com/talks/trent_clark_change_is_your_only_constant

• How COVID has changed your personal and work life?

• Write a paragraph on it – personal and organizational. What changes at home often? Discuss it among yourself.

• Video – Embracing change – Marco Marsans – 14 minutes

https://www.ted.com/talks/marco_marsans_embracing_change
The Case for Change
• In today’s world, big companies, small businesses, universities and colleges, state and city
governments, and even the military are forced to innovate. Although innovation has always
been a part of the manager’s job, it has become even more critical in recent years.
• The Indian Army under her new Chief of Army Staff, Gen Manoj Pande (May 2022, Engineer Corps), is
bent on changing and innovating, moving into space, cyberspace, AI (The WEEK, 26th No 2023,
theweek.in)
• The Pakistan Army role in the caretaker’s economic development. Establishment of economic zone
near DHA City (Nov 2023).
• Organizational change - Any alteration of people, structure, or technology in an organization
• Amazon is now using robots. Using technology for Amazon Shop
• The grocery store at the corner has changed to Imtiaz Supermarket, Metro, and others
• Creating a new line of business or a startup – new people, structure,
• Ford. Experimented to know customer and prospective customer needs. Realize that new employees
and old have different behaviors toward work. Introduced car-sharing services with electric bikes that
recharge during traveling. Move while using both for different parts of routes
• Change Agent. Someone who acts as a catalyst and assumes the responsibility for
managing the change process
The Case for Change
External
• Changing consumer needs and wants .
Burger king changed its menu not desired by
guest
• New governmental laws. Schools in COVID
• Changing technology . Electric cars – lithium
batteries by Tesla compared to solid state
batteries
• Economic changes – WTF sanctions, Dollar
Rate, Oil prices
Internal
• New organizational strategy. DHA IBD, KHI
in IT business (GPON)
• Change in composition of
workforce. Inclusion of people from diverse
background, sexual orientation, age, disabled
• New equipment. 3D printer technology for
prosthetics and Apple computer casings.
• Changing employee attitudes. Gen Z
entering workforce demanding
autonomy, flexibility in workplace and
timings, more perks
The Change Process
• Calm Water Metaphor
• Occasional disruption requires planning
dealing with change
• Kurt Lewin three step process
• Unfreezing the status quo. Preparing
for the need change. Increase the
driving force, decreasing the resisting force or both
• Example: the copilot of German wing intl flight intentional crashed the plane in
mountain new rule: two members of crew in the cockpit all the time.
• PIA plane crash at Karachi Model Colony

• Read Research Article on: Rethinking Unfreezing by Cummins. Read Abstract, Intro and
Conclusion..Make notes
The Change Process
• White Water Rapids
• Sometimes weather forecast is perfect. Other times it is not.
Similarly, the economy and culture is fast changing, you cannot
predict future
• Information access is wide and collating it is challenging. The
Internet, video on demand, cell phones, iPads, digital video
recorders, music and news streaming services, and other changing
technologies have made data collection much more challenging
• White water rapids is increasingly dominated by information, ideas,
and knowledge. The stability and predictability does not exist.
Disruptions are not occasional and temporary and return to calm
water is not possible.
• Technology sector. New Rules, apps, markets, software sales.
Google abandon Oracle for SAP, rapid stock increase of SAP.
• Is white water rapids a metaphor for tech companies. NO. Even
Non-tech companies like Dunkin Donuts faced it.
• Developing products that have appeal to large no of customers across
globe. Increased operating cost that is varied globally. Varying employee
behavior across globe and resultant slow service.
Activity
• Write down 3 points each that makes you think that change is scary and what
you could do about it (group activity)

• Video – Why change is so scary and how to unlock its potential – Maya
Shankar – 14 minutes
https://www.youtube.com/watch?v=Tt0arZN6EBM
Types of Change – How one responds
• Reactive. Once a change need has dashed in to and require you to change.
German aircraft crash or PIA crash
• Proactive. Once you feel that the change might be needed and you plan to
change before hand. Ex Ford company, Tech coy venturing in AI
 Reactive Vs Proactive Change
Strategy. How DHA should compete with Bahria. Requires
strategical change. Diversion of funds, completing projects in
time, Master plan layout. Inclusion of civic amenities. AirBLue
offering in 2021: Rs 4900 one side from KHI to IBD

Structure. Reporting mechanism, job redesign, coordination

mechanism, employee empowerment. Changing from govt
dept to private enterprise.
Example: What would it take Pakistan Post Office to compete
tother companies like TCS, FEDEx

Technology. At Textile, we wanted to introduce new

technology in sewing and cutting. Introduced SAP system at
another company for financial reporting. Use of Robots at
Amazon

People. Attitudes, perception, behavior, expectation. OD is

the term that focus on how people interact with each other,
life styles etc
Most Popular OD Change
Managing Change
• People Resist Change
• Uncertainty, Habit, fear of losing you invested, person belief that change is not good for
organization (may be vested interest.. Example of Rajby textile)
• Activity - Reading – Let us get Real

• Make Change appealing to people.

• How you can make change appealing to your under commands? (Group Activity)
Managing Change
Making your company a change capable organization
Making changes in Culture
Stimulating Innovation
• Companies that are renowned for innovation: Apple, Google
• Creativity refers to the ability to combine ideas in a unique way or to make
unusual associations between ideas
• A creative organization develops unique ways of working or novel solutions to
problems. But creativity by itself isn’t enough.
• The outcomes of the creative process need to be turned into useful products
or work methods, which is defined as innovation
• When managers talk about changing an organization to make it more creative, they
usually mean they want to stimulate and nurture innovation
• Getting the desired outputs (innovative products and work methods) involves
transforming inputs. These inputs include creative people and groups within
the organization. But having creative people isn’t enough. It takes the right
environment to help transform those inputs into innovative products or work
methods
Stimulating Innovation
The Disruptive Innovation
• Disruptive innovation describes innovations in products, services or
processes that radically change an industry’s rules of the game.
• Oftentimes, a smaller company with fewer resources successfully
challenges established companies. Those smaller companies prove
themselves to be disruptive by serving overlooked segments of possible
consumers with products or services at relatively low prices.
• Creative Destruction - Joseph Shumpeter some 70 years ago. how
capitalism builds on processes that destroy old technologies but replaces
them with new and better ones – disruptive innovation
The Disruptive Innovation Examples

Let us watch a video

by
Clayton Christenson
https://www.youtube.com/wat
ch?v=rpkoCZ4vBSI
The Disruptive Innovation - IMPLICATIONS
• Disruptive innovation has the potential to upend entrepreneurs, corporate managers,
and even your career plans
• Entrepreneurs
• Think opportunity!
• Entrepreneurs thrive on change and innovation. Major disruptions open the door for new products
and services to replace established and mature businesses. If you’re looking to create a new
business with a large potential upside, look for established businesses that can be disrupted with a
cheaper, simpler, smaller, or more convenient substitute.
• Corporate Managers
• Disruptive response must be carried out by a separate group that is physically and structurally
disconnected from the businesses’ main operations.
• set up an autonomous organization charged with building a new and independent business around
the disruptive technology
• These are called skunk works - A small group within a large organization, given a high degree of
autonomy and unhampered by corporate bureaucracy, whose mission is to develop a project
primarily for the sake of radical innovation. IBM succeeded in making a new team outside HQ and
develop personal computer. Apple Macintosh is another example. Google X Lab with a task of
developing self driven car. Johnson and Johnson bought numerous small companies, kept them
independent and provided with large autonomy.
Activity

• Video – What Leaders Need to Know about Change – taylor Harrell – 20

minutes
https://www.youtube.com/watch?v=4EvkGX_lr1A
The Disruptive Innovation - IMPLICATIONS

• Never get comfortable with a single employer. You can’t build your hopes on
working in one organization for your entire career. Life time employment days
are gone in private companies.
• Keep your skills current. Disruptive technologies will continue to make
established jobs and professions obsolete
• You are responsible for your future. Don’t assume your employer is going to
be looking out for your long-term interests. Your personal skill development,
career progression, and retirement plans are all decisions that you need to
make.
• Take risks while you’re young. Few people have achieved great results without
taking a risk. They quit a secure job, or went back to school, or moved to a
new city, or started a business.