University:
Massachusetts Institute of Technology
Course:
15.992 | S-Lab: Laboratory for Sustainable Business
Academic year:

2023
Views:

159

Pages:

31
Author:

Chris Parker

Chapter 10 Innovation and Change What Would You Do?      IBM must change Share of personal computer market was once 70 percent is now 7 percent How do you quickly and effectively create change? The strong corporate culture will likely produce resistance to change What would you do? Learning Objectives: Organizational Innovation After reading the next two sections on organizational innovation, you should be able to: 1. explain why innovation matters to companies 2. discuss the different methods that managers can use to effectively manage innovation in their organizations Why Innovation Matters Innovation streams Technology cycles Technology Cycles  Technology cycle   starts with a new technology and ends when that technology reaches its limits and is replaced with better technology S-curve pattern of innovation  a pattern of innovation characterized by slow initial progress, then rapid progress, then slow progress again as technology matures Technology Cycle S-Curve Pattern of Innovation Innovation Streams Patterns of innovation that can create sustainable competitive advantage Technological discontinuity Era of ferment Technological substitution Design competition Design Competition Dominant design Incremental change Managing Innovation   Managing innovation during discontinuous change Managing innovation during incremental change Managing Innovation During Discontinuous Change  Experiential approach to innovation   Design iteration   in an uncertain environment uses intuition, flexible options and hands-on experience to increase learning a cycle of repetition that improves on a design prototype Testing  systematic comparison of different designs Managing Innovation During Discontinuous Change  Milestones   Formal project review points used to assess progress and performance Multifunctional teams  Work teams composed of people form different departments 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 Learning Objectives: Organizational Change After reading these next two sections on organizational change, you should be able to: 3. discuss why change occurs and why it matters 4. Discuss the different methods that managers can use to better manage change as it occurs Change & Resistance Forces Change forces  forces that produce differences in the form, quality, or condition of an organization over time Resistance forces  forces that support the existing state of conditions in organizations How Change is Created Organizational Decline: The Risk of Not Changing      Blinded stage Inaction stage Faulty action stage Crisis stage Dissolution stage Managing Change     Managing resistance to change Change tools and techniques Managing conversations to promote change What not to do when leading change Managing Resistance to Change   Lewin’s framework Methods of managing resistance to change Lewin’s Change Process  Unfreezing   Change and intervention   getting those affected by the change to believe change is needed getting people to change their behaviours Refreezing  supporting and reinforcing the new changes so they “stick” Methods of Managing Resistance to Change      Education and communication Participation Negotiation Top management support Coercion Change Tools and Techniques      Results-driven change General Electric Workout Transition management team (TMT) Organizational development Change agent Results-Driven Change       Create measurable short-term goals Use action steps likely to improve performance Immediate improvements important Consultants and staffers help managers Test action steps to see they lead to improvement Few resources required to get started General Electric Workout    Boss discusses agenda, targets specific problems, then leaves Outside facilitator works with subgroups to discuss solutions “Town meeting” on day three   subgroups present solutions boss must decide on the spot Transition Management Team (TMT)         Establish context for change Stimulate conversation Provide appropriate resources Coordinate and align projects Ensure congruence of messages and activities Provide opportunities for joint creation Anticipate, identify, and address people problems Prepare the critical mass Organizational Development (OD)    A philosophy and collection of planned change interventions Focuses on organization’s long-term survival Change agent   person formally in charge of guiding a change can be an internal or external person General Steps for OD Interventions         Entry Start-up Assessment and feedback Action planning Intervention Evaluation Adoption Separation Different Kinds of Organizational Development Interventions  Large System    Small Group    Sociotechnical Systems Survey Feedback Team Building Unit Goal Setting Person-Focused   Counselling/Coaching Training What Really Works Change the Work Setting or Change the People? Do Both! Changing the work setting Changing the People Changing Individual Behaviour and Organizational Performance Managing Conversations to Promote Change Organization dialogue  process by which people in an organization talk effectively with each other     initiative conversations conversations for understanding conversations for performance conversations for closure Errors Managers Make when Leading Change Unfreezing   not enough sense of urgency not a powerful enough guiding coalition Change     lacking a vision undercommunicating the vision not removing obstacles to the vision not planning for and creating short-term wins Refreezing   declaring victory too soon not anchoring changes in corporate culture What Really Happened?      Changed bonus system Cut workforce from 40,000 to 20,000 Focused on participation to reduce resistance Used coercion selectively Improved job of bringing new technologies to market