Slide 1 - Chapter 7Innovation and Change

• © 2015 Cengage Learning
• MGMT7

Slide 2 - © 2015 Cengage Learning

• 7-1 explain why innovation matters to companies
• 7-2 discuss the different methods that managers can use to manage innovation in their organizations effectively
• 7-3 discuss why not changing can lead to organizational decline
• 7-4 discuss the different methods that managers can use to better manage change as it occurs

Slide 3 - Technology Cycles

• Begins with the birth of a new technology…
• …ends when that technology reaches limit and dies.
• © 2015 Cengage Learning
• 7-1

Slide 4 - S-Curves and Technological Innovation

• © 2015 Cengage Learning
• 7-1

Slide 5 - Innovation Streams: Technology Cycles over Time

• 7-1
• © 2015 Cengage Learning

Slide 6 - Emergence of Dominant Design

• There are winners and losers
• technological lockout
• Signals a shift from design experimentation and competition to incremental change
• © 2015 Cengage Learning
• 7-1

Slide 7 - Managing Innovation

• During discontinuous change, companies must find a way to anticipate and survive technological changes.
• Companies must also manage incremental change and innovation.
• © 2015 Cengage Learning
• 7-2

Slide 8 - Components of Creative Work Enviroments

• 7-2
• © 2015 Cengage Learning

Slide 9 - Experiential Approach

• Design iteration
• Product prototype
• Testing
• Milestones
• Multifunctional teams
• © 2015 Cengage Learning
• 7-2

Slide 10 - Compression Approach

• Generational change
• Supplier involvement
• Shorten the time of individual steps
• Overlapping steps
• © 2015 Cengage Learning
• 7-2

Slide 11 - The Risk of Not Changing

• Organizational declines occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal and external pressures that threaten their survival.
• Blinded stage
• Inaction stage
• Faulty action stage
• Crisis stage
• Dissolution stage
• © 2015 Cengage Learning
• 7-3

Slide 12 - Forces

• Change forces
• lead to differences in the form, quality, or condition of an organization over time
• Resistance forces
• caused by self-interest, misunderstanding, and distrust
• © 2015 Cengage Learning
• 7-4

Slide 13 - Resistance to Change

• Self-interest
• Misunderstanding and distrust
• General intolerance for change
• © 2015 Cengage Learning
• 7-4

Slide 14 - Organizational Change Process

• Unfreezing
• Change intervention
• Refreezing
• © 2015 Cengage Learning
• 7-4

Slide 15 - Managing Resistance to Change

• Educate employees
• Communication change-relate d information
• Have those affected by change participate in planning and implementing
• Let employees discuss and agree on who will do what after change
• Coercion
• © 2015 Cengage Learning
• 7-4

Slide 16 - Mistakes Managers Make

• Not establishing a great enough sense of urgency
• Not creating a powerful enough coalition
• Lacking a vision
• Undercommunicating the vision by a factor of 10
• Not removing obstacles to the new vision
• Not systematically planning for and creating short-term wins
• Declaring victory too soon
• Not anchoring changes in the corporation’s culture
• © 2015 Cengage Learning
• 7-4

Slide 17 - Change Tools and Techniques

• Results-driven change
• supplants emphasis on activity with focus on quickly measuring and improving results
• General Electric Workout
• three-day meeting that generates solutions to specific business problems
• © 2015 Cengage Learning
• 7-4

Slide 18 - General Steps for Organizational Development Interventions

• 7-4
• © 2015 Cengage Learning

Slide 19 - Different Kinds of Organizational Development Interventions

• 7-4
• © 2015 Cengage Learning

Slide 20 - Holden Outerwear

• Identify the type of change that Holden’s leaders are managing on a daily basis.
• What resistance has Holden encountered while introducing innovative garment designs? How was it able to overcome that resistance?

Slide 21 - Holden Outerwear