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MGMT3 Chuck Williams. Chapter 7 Innovation and Change. Designed & Prepared by B-books, Ltd. Why Innovation Matters. Technology Cycles. Innovation Streams. 1. 1900-1910 airplane, plastic, air conditioner 1911-1920 mammogram, zipper, sonar 1921-1930

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chapter 7 innovation and change

MGMT3

Chuck Williams

Chapter 7Innovation and Change

Designed & Prepared byB-books, Ltd.

why innovation matters
Why Innovation Matters

TechnologyCycles

InnovationStreams

1

why innovation matters1
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

oral contraceptive, Tylenol

Why Innovation Matters
  • 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
  • first cloning of human embryo

1

technology cycles

Technology Cycle

A cycle that begins with the birth of a new technology and ends when that technology reaches its limits and is replaced by a newer, better technology.

Technology Cycles

1.1

s curves and technological innovation

Discontinuity

C

New

Technology

Performance

B

A

Effort

S-Curves and Technological Innovation

1.1

innovation streams

Innovation Streams

Patterns of innovation over time that can create sustainable competitive advantage.

Technological Discontinuity

When a scientific advance or unique combination of existing technologies that creates a significant breakthrough in performance or function.

Innovation Streams

1.2

innovation streams technology cycles over time
Innovation Streams: Technology Cycles over Time

Technological

Substitution

Technological Discontinuity (2)

Variation

Selection

Incremental Change (2)

Discontinuous Change (2)

Dominant Design (2)

Technological Discontinuity (1)

Variation

Selection

Incremental Change (1)

Discontinuous Change (1)

Dominant Design (2)

1.2

innovation streams1

TechnologicalSubstitution

DesignCompetition

Innovation Streams

Technological Discontinuities

Discontinuous Change

Dominant Design

1.2

managing innovation

ManagingSources of

innovation

Managing DuringDiscontinuous

Change

Managing DuringIncrementalChange

Managing Innovation

2

managing sources of innovation

Creative work environments

Workplace cultures in which workers perceive that new ideas are encouraged

Flow

The psychological state of effortlessness in which you become absorbed in your work and time seems to pass quickly

Managing Sources of Innovation

2.1

components of creative work environments

OrganizationalEncouragement

SupervisoryEncouragement

ChallengingWork

CreativeWorkEnvironments

Lack of Organiz.Impediments

Work GroupEncouragement

Freedom

Flow

Components of Creative Work Environments

2.1

managing innovation during discontinuous change
Managing Innovation During Discontinuous Change

Experiential approach to innovation

  • innovation is occurring within an uncertain environment
  • the key to innovation is to use:
    • intuition
    • flexible options
    • hands-on experience

2.2

experiential approach to innovation

Design Iterations

Testing

Parts ofExperientialApproach

Milestones

Multifunctional Teams

Powerful Leaders

Experiential Approach to Innovation

2.2

managing innovation during incremental change
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 design and achieving backward compatibility with older technology

2.3

compression approach to innovation

Planning

Supplier Involvement

Parts ofCompressionApproach

Shortening Time ofIndividual Steps

Overlapping Steps

Multifunctional Teams

Compression Approach to Innovation

2.3

managing innovation1

Experimental Approach

Compression

Approach

Environment

Goals

Approach

Steps

Speed

Lower costs

Incremental improvements in performance of dominantdesign

Speed

Performance Improvements

New dominant design

Managing Innovation

Uncertain discontinuouschange: technological substitution and design competition

Certain incremental changeestablished technology(i.e., dominant design)

Compress time/steps neededto bring about small improvements

Build something new,different, and better

Design iterations

Testing

Milestones

Multifunctional teams

Powerful leaders

Planning

Supplier involvement

Shorten time of steps

Overlapping steps

Multifunctional teams

2

five stages of organizational decline

Blinded

Inaction

Faulty Action

Crisis

Dissolution

Five Stages of Organizational Decline

3

managing change

Change Forces

Change

Resistance Forces

Managing Change

4

managing resistance to change
Managing Resistance to Change

Unfreezing

ChangeIntervention

Refreezing

  • Share reasons
  • Empathize
  • Communicate
  • Benefits
  • Champion
  • Input
  • Timing
  • Security
  • Training
  • Pace
  • Top management support
  • Reinforce

4.1

managing resistance to change1

Education and Communication

Participation

Negotiation

Managerial Support

Coercion

Managing Resistance to Change

4.1

errors made when leading change

Unfreezing

  • Not establishing a great enough sense of urgency.

2. Not creating a powerful enough guiding coalition.

Change

3. Lacking a vision.

4. Undercommunicating the vision by a factor of 10.

5. Not removing obstacles to the new vision.

6. Not systematically planning for and creating short-term wins.

Refreezing

7. Declaring victory too soon.

8. Not anchoring changes in the corporation’s culture.

Errors Made when Leading Change

4.2

change tools and techniques

Results-Driven Change

General Electric Workout

Transition Management Teams

Organizational Development

Change Tools and Techniques

4.3

results driven change

Create measurable short-term goals to improve performance

2. Use action steps only if likely to improve performance

  • Stress the importance of immediate improvements

4. Consultants and staffers should help managers achievequick improvements in performance

  • Test action steps to see if they yield improvements
  • It takes few resources to get results-driven change started
Results-Driven Change

4.3

transition management team

Beyond the Book

Transition Management Team
  • Ateam of employees whose full-time job is to manage and coordinate 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
organizational development
Organizational Development
  • A philosophy and collection of planned change interventions
  • Designed to improve an organization’s long-term health and performance
  • Change Agent
    • the person formally charged with guiding a change effort
    • can be an internal or external person

4.3

kinds of od interventions

LARGE SYSTEM INTERVENTIONS

Sociotechnical systems

Survey feedback

SMALL GROUP INTERVENTIONS

Team building

Unit goal setting

PERSON-FOCUSED INTERVENTIONS

Counseling/Coaching

Training

Kinds of OD Interventions

4.3

biz flix field of dreams

Beyond the Book

Biz Flix: Field of Dreams

When someone suggests an idea to you that you don't completely understand, how open are you to considering it?

Which character is the most resistant to the idea of changing the farm into a ball field? Which characters demonstrate the most creativity and vision?

Take Two Video

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