Innovation and Organizational Change

Module 23, Innovation and Organizational Change MODULE 23 INNOVATION AND ORGANIZATIONAL CHANGE INNOVATION AND ORGANIZATIONAL CHANGE Roles of Innovation and Organizational Change MODULE GUIDE 23.1 “Change can be your best friend” z Creativity and innovation are sources of competitive advantage. z Innovative organizations share many common characteristics. z Organizations pursue both transformational and incremental changes. z Change in organizations can move from top down, bottom up, or both. • What are the roles of innovation and change in organizations? • How do managers lead the processes of organizational change? 1 INNOVATION AND ORGANIZATIONAL CHANGE 2 INNOVATION AND ORGANIZATIONAL CHANGE Roles of Innovation and Organizational Change Roles of Innovation and Organizational Change z Creativity z the generation of a novel idea or unique approach that solves a problem or crafts an opportunity. z Innovation z the process of taking a new idea and putting it into practice. z Process Innovations z result in better ways of doing things. z Product Innovations z result in new or improved goods or services. z Commercializing Innovations z turns ideas into economic value 3 4 1 Module 23, Innovation and Organizational Change INNOVATION AND ORGANIZATIONAL CHANGE INNOVATION AND ORGANIZATIONAL CHANGE Roles of Innovation and Organizational Change Roles of Innovation and Organizational Change z Critical Innovation Roles in Organizations z Types of Change z Idea generators—provide new insights and discoveries. z Information gatekeepers—stay abreast of outside developments. z Product champions—advocate for new products or processes. z Project managers—keep innovation projects on track. z Innovation leaders—keep innovation values, goals visible. z Transformational Change z makes radical changes in organizational directions z Incremental Change z continuing adjustments to existing ways and practices. z Top-down Change z is initiated by senior management z Bottom-up change z is initiated by empowered persons working at all organizational levels. 5 INNOVATION AND ORGANIZATIONAL CHANGE 6 INNOVATION AND ORGANIZATIONAL CHANGE Roles of Innovation and Organizational Change Leading the Processes of Organizational Change MANAGEMENT TIPS MODULE GUIDE 23.2 z Adaptive organizations need change leaders, not status quo managers. z Unfreezing, changing, and refreezing are three phases of z planned change. z Managers use force-coercion, rational persuasion, and shared power change strategies. z Change leaders identify and deal positively with resistance to change. z Organization development is a way of building sustainable capacities for change. z How to Lead Transformational Change z Establish a sense of urgency for change. z Form a powerful coalition to lead the change. z Create and communicate a change vision. z Empower others to move change forward. z Celebrate short-term wins and recognize those who help. z Build on success; align people and systems with new ways. z Stay with it; keep the message consistent; champion the vision. 7 8 2 Module 23, Innovation and Organizational Change INNOVATION AND ORGANIZATIONAL CHANGE INNOVATION AND ORGANIZATIONAL CHANGE Leading the Processes of Organizational Change Leading the Processes of Organizational Change z Change Leader z tries to change the behavior of another person or social system. z Planned Change z aligns the organization with anticipated future challenges. z Unfreezing z is the phase during which a situation is prepared for change. Lewin’s Three Phases of Change 9 INNOVATION AND ORGANIZATIONAL CHANGE 10 INNOVATION AND ORGANIZATIONAL CHANGE Leading the Processes of Organizational Change Leading the Processes of Organizational Change Change Strategies z Checkpoints for Successful Change z Benefit—make sure people involved see a clear advantage in the change. z Compatibility—keep the change as close as possible to existing values and experiences. z Simplicity—make the change as easy as possible to understand and use. z Triability—allow people to try the change step-bystep, making adjustments as they go. z Change leader's task: z create a felt need for change 11 12 3 Module 23, Innovation and Organizational Change INNOVATION AND ORGANIZATIONAL CHANGE INNOVATION AND ORGANIZATIONAL CHANGE Leading the Processes of Organizational Change Leading the Processes of Organizational Change Resistance to Change Why people may resist change • Fear of the unknown not understanding what is happening or what comes next • Disrupted habits feeling upset to see the end of the old ways of doing things • Loss of confidence feeling incapable of performing well under the new ways of doing things • Loss of control feeling that things are being done “to” you rather than “by” or “with” you • Poor timing feeling overwhelmed by the situation or that things are moving too fast • Work overload not having the physical or psychic energy to commit to the change • Loss of face feeling inadequate or humiliated because it appears that the old ways weren’t good ways • Lack of purpose not seeing a reason for the change and/or not understanding its benefits 13 Organizational Development z a comprehensive and participatory approach to change that involves organization members in a data-based process of diagnosis, intervention, and evaluation. 14 INNOVATION AND ORGANIZATIONAL CHANGE Leading the Processes of Organizational Change 15 4