Management 12e richard draft chapter 11

Chapter 11
Managing Change and Innovation

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Introduction


If organizations don’t 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
organization’s product or service outputs



Technology change – a change in the
organization’s production process



Three innovation strategies: exploration,
cooperation, and entrepreneurship

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11.1 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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11.2 Characteristics of Creative
People and Organizations

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11.3 The World’s Most
Innovative Companies 2013

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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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11.4 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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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 people’s 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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11.5 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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Force-Field Analysis
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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11.6 Using Force-Field Analysis to Change
from Traditional to Just-in-Time Inventory
System

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11.7 Tactics for Implementing
Change

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