Innovation and Change

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Innovation and Change

• Chapter 10

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Topics

• Why is innovation important in organizations?
• How do we manage innovation effectively?
• How do we manage change in organizations?

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Why Innovation Matters
TechnologyCycles
InnovationStreams
Innovation Successful implementation of
creative ideas in organizations
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Technology Cycles
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Innovation Streams
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Technological innovations

• 1900-1910
• airplane, plastic, air conditioner
• 1911-1920
• mammogram, zipper, sonar
• 1921-1930
• talking movies, penicillin, jet engine
• 1931-1940
• radar, helicopter, computer
• 1941-1950
• atomic bomb, bikini, transistor
• 1951-1960
• DNA, oral contraceptive, Tylenol

• 1961-1970
• video recorder, handheld calculator, computer
  mouse
  
• 1971-1980
• compact disc, gene splicing, laser printer
• 1981-1990
• MS-DOS, space shuttle, CD-ROM
• 1991-2000
• taxol, Pentium processor, Java
• 2001-Today
• mapping of human genome, first cloning of human
  embryo

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Managing Innovation Effectively
Unpredictable changes
Predictable and gradual changes
Establishing creative work environments
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Components of Creative Work Environments
OrganizationalEncouragement
SupervisoryEncouragement
ChallengingWork
CreativeWorkEnvironments
Work GroupEncouragement
Lack of OrganizationalImpediments
Freedom to create and experiment
Flow
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Managing Innovation During Discontinuous Change

• Discontinuous Change
• technological discontinuity creates a significant
  breakthrough
  
• Experiential approach to innovation
• the key to innovation is to use intuition,
  flexible options, and hands-on experience
  
• innovation is occurring within an uncertain
  environment

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Managing Innovation During Discontinuous Change

• GoalsSpeedImprovements in performanceNew
  dominant design

• ApproachBuild something new, different,
  andbetter using design iteration, testing,
  milestones, teams, and powerful leaders

Example wireless medical devices such as
pacemakers
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Experiential Approach to Innovation
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Managing Innovation During Incremental Change

• Compression approach to innovation
• assumes that innovation is a predictable process
  that can be planned in steps
  
• Generational change
• based on incremental improvements to a dominant
  technological design and achieving backward
  compatibility with older technology

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Managing Innovation During Incremental Change

• GoalsSpeedLower costsIncremental improvements
  in performance

• ApproachCompress time and steps needed to
  bringabout small improvements

Example build a better ipod
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Compression Approach to Innovation
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Managing Change
Managing resistanceto change
Different changetools andtechniques
How can we ensure that change occurs successful
ly?
Why do people resist (or accept) change?
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Managing Resistance to Change
Unfreezing
Change
Refreezing

• Share reasons
• Empathize
• Communicate

• Benefits
• Champion
• Input
• Timing
• Security
• Training
• Pace

• Top management support
• Reinforce

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Managing Resistance to Change
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Change Tools and Techniques
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Results-Driven Change
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General Electric Workout

• Boss sets agenda and identifies targets, then
  leaves
  
• Outside facilitator works with sub-groups, who
  debate solutions
  
• Town Meeting
• subgroups make suggestions
• boss must decide on the spot

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Transition Management Team (TMT)

• A team of employees whose full-time job is
  managing change
  
• Anticipate and manage employee reactions to
  change
  
• Work with the CEO to
• decide on change projects
• select and evaluate people in charge
• make sure change projects are complementary

Responsibilities
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Transition Management Team Responsibilities

• Establish a context for change and provide
  guidance.
  
• Stimulate conversation.
• Provide appropriate resources.
• Coordinate and align projects.
• Ensure congruence of messages, activities,
  policies, and behaviors.
  
• Provide opportunities for joint creation.
• Anticipate, identify, and address people
  problems.
  
• Prepare the critical mass.

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Organizational Development (OD)

• A philosophy and collection of planned change
  interventions
  
• Designed to ensure organizations long-term
  survival
  
• Change Agent
• the person formally charged with guiding a change
  effort
  
• can be internal or external person

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Organizational Development General Steps

• Entry
• Startup
• Assessment and Feedback
• Action Planning
• Intervention
• Evaluation
• Adoption
• Separation

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Organizational Development Interventions

• Large System
• Sociotechnical Systems
• Survey Feedback
• Small Group
• Team Building
• Unit Goal Setting
• Person-Focused
• Counseling/Coaching
• Training