Organizational Culture for Change

1
Organizational Culture for Change

• John M. Mason
• And
• Kathryn Jablokow
• Penn State University

2
Competition by Innovation

• Modern Oligopoly
• Continuous innovation to
• maintain market share
• Established levels of R D

3
Sustaining Technological Innovation

• Improved Product Performance
• Continuous and Ongoing
• Budgeting, Planning, and Surveys

4
Disruptive Technological Innovation

• Changes the way people do things
• In their lives
• How they organize things
• How they conduct business
• How they relate to others

5
Technology and Intellectual Capital

• Technologythe processes by which an
  organization transforms labor, capital,
  materials, and information into products and
  services of greater value
• Christensen
• The Innovators Dilemma

6
Technology and Intellectual Capital

• Intellectual Capitalis the knowledge, applied
  experience, enterprise processes and technology,
  customer relationships, and professional skills
  which are valuable assets to an organization.
• The Journal of Intellectual Capital

7
The Culture of Innovation

• Intellectual Capital is the major asset of the
  modern firm.
• If competition is based upon innovation, then an
  organization must continually increase its base
  of knowledge or information.
• Organization must invest in developing new
  information to add to its knowledge base.

8
Innovative Types

• Sustaining Technological Innovationinformation
  generated is within the bounds of an existing
  product base.
• Surveys
• Competitor Offerings
• Industry Trends

9
Innovative Types

• Disruptive Technological Innovationinformation
  generated outside the bounds of existing product
  base.
• Changes in assumptions
• Practical technologies
• Marketing questions
• Complementary products

10
Networks

• Information thrives in an environment in which
  more people have access to it.
• Dialogue increases
• Productivity rises
• People can use their strengths
• People feel better about themselves

11
Role of Senior Management

• Culture of Innovation starts at the top!
• Sets goals and objectives
• Identifies who gets hired and who
• gets promoted
• In a world of greater delegation leaders
  need to support
• If the top does not initiate, subcultures
• grow up and coordination failures
• occur

12
Time Pacing

• Based upon the passage of time and not external
  events.
• Time pacing relies on choreographed transitions
  to switch smoothly from engineering to
  manufacturing, from product to product, from one
  market to the next, from one business to the
  next Brown and Eisenhardt, 1998

13
Rhythm of Time Pacing

• Time periodshort enough to make the firm
  competitive but long enough to be realistic.
• Influenced by seasonality, consumer cycles, trade
  show dates, and competitive pressures.
• Example the integrated circuit.

14
Organization for Disruptive Technological Change

• Where do these fit into the organization?
• Major differencethe market served
• Small versus large
• Generally not major customers
• Dont know what final use will be

15
Portfolio of Innovations

• Sustaining innovationsgenerally done internally.
• Disruptive innovations
• Organizational separation
• Subsidiaries
• Joint ventures, etc.
• Financial Investment

16
Disruptive innovation and Time Pacing

• Some need for regular introduction
• Cant just let projects go on and on
• Real Option approach
• Commercialization must be realized within a
  reasonable time

17
Human Resource Management

• Problem-Solving Types
• Adaptors versus Innovators
• Strategic Leadership
• Stages of organizational evolution and renewal
• Executive Development
• The right people for the appropriate time

18
Conclusions

1. Competition requires innovation that is
   continuous and relentless.
2. Organizations must be intentional and universal
   in their efforts to innovate.
3. The culture for innovation begins at the very
   top.
4. The culture is inclusive management, structure,
   finance, human resource management, marketing,
   and other areas of an organization must be a
   part.