MODULE 23 INNOVATION AND ORGANIZATIONAL CHANGE

1. MODULE 23INNOVATION AND ORGANIZATIONAL CHANGE “Change can be your best friend” • What are the roles of innovation and change in organizations? • How do managers lead the processes of organizational change?

2. INNOVATION AND ORGANIZATIONAL CHANGERoles of Innovation and Organizational ChangeMODULE GUIDE 23.1 • Creativity and innovation are sources of competitive advantage. • Innovative organizations share many common characteristics. • Organizations pursue both transformational and incremental changes. • Change in organizations can move from top down, bottom up, or both.

3. INNOVATION AND ORGANIZATIONAL CHANGERoles of Innovation and Organizational Change • Creativity • the generation of a novel idea or unique approach that solves a problem or crafts an opportunity. • Innovation • the process of taking a new idea and putting it into practice. • Process Innovations • result in better ways of doing things. • Product Innovations • result in new or improved goods or services. • Commercializing Innovations • turns ideas into economic value

4. INNOVATION AND ORGANIZATIONAL CHANGERoles of Innovation and Organizational Change

5. INNOVATION AND ORGANIZATIONAL CHANGERoles of Innovation and Organizational Change • Critical Innovation Roles in Organizations • Idea generators—provide new insights and discoveries. • Information gatekeepers—stay abreast of outside developments. • Product champions—advocate for new products or processes. • Project managers—keep innovation projects on track. • Innovation leaders—keep innovation values, goals visible.

6. INNOVATION AND ORGANIZATIONAL CHANGERoles of Innovation and Organizational Change • Types of Change • Transformational Change • makes radical changes in organizational directions • Incremental Change • continuing adjustments to existing ways and practices. • Top-down Change • is initiated by senior management • Bottom-up change • is initiated by empowered persons working at all organizational levels.

7. INNOVATION AND ORGANIZATIONAL CHANGERoles of Innovation and Organizational Change MANAGEMENT TIPS • How to Lead Transformational Change • Establish a sense of urgency for change. • Form a powerful coalition to lead the change. • Create and communicate a change vision. • Empower others to move change forward. • Celebrate short-term wins and recognize those who help. • Build on success; align people and systems with new ways. • Stay with it; keep the message consistent; champion the vision.

8. INNOVATION AND ORGANIZATIONAL CHANGELeading the Processes of Organizational ChangeMODULE GUIDE 23.2 • Adaptive organizations need change leaders, not status quo managers. • Unfreezing, changing, and refreezing are three phases of • planned change. • Managers use force-coercion, rational persuasion, and shared power change strategies. • Change leaders identify and deal positively with resistance to change. • Organization development is a way of building sustainable capacities for change.

9. INNOVATION AND ORGANIZATIONAL CHANGELeading the Processes of Organizational Change • Change Leader • tries to change the behavior of another person or social system. • Planned Change • aligns the organization with anticipated future challenges. • Unfreezing • is the phase during which a situation is prepared for change.

10. INNOVATION AND ORGANIZATIONAL CHANGELeading the Processes of Organizational Change Lewin’s Three Phases of Change

11. INNOVATION AND ORGANIZATIONAL CHANGELeading the Processes of Organizational Change • Checkpoints for Successful Change • Benefit—make sure people involved see a clear advantage in the change. • Compatibility—keep the change as close as possible to existing values and experiences. • Simplicity—make the change as easy as possible to understand and use. • Triability—allow people to try the change step-by-step, making adjustments as they go. • Change leader's task: • create a felt need for change

12. INNOVATION AND ORGANIZATIONAL CHANGELeading the Processes of Organizational Change Change Strategies

13. INNOVATION AND ORGANIZATIONAL CHANGELeading 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

14. INNOVATION AND ORGANIZATIONAL CHANGELeading the Processes of Organizational Change Organizational Development • a comprehensive and participatory approach to change that involves organization members in a data-based process of diagnosis, intervention, and evaluation.

15. INNOVATION AND ORGANIZATIONAL CHANGELeading the Processes of Organizational Change