3. Idea Champion

1. 3. Idea Champion Change does not occur by itself A person who sees the need for and Champions productive change within the organization

2. Four Roles in Organizational Change Championing an idea successfully requires roles in organizations • ____________ • Believes in idea • Visualizes benefits • Confronts • organization • realities of cost, benefits • Obtains financial & • political support • Overcomes obstacles • ____________ High-level manager • who removes • organizational • barriers • Approves and • protects idea within • organization • ____________ Provides reality test • Looks for short- • comings • Defines hard-nosed • criteria that idea • must pass • ____________ • Develops and • understands • technical aspects of ideas • Does not know how • to win support for • the idea or make a • business of it Sources: Based on Harold L. Angle and Andrew H. Van de Ven, “Suggestions for Managing the Innovation Journey,” in Research in the Management of Innovation: The Minnesota Studies, ed. A. H. Van de Ven, H. L. Angle, and Marshall Scott Poole (Cambridge, Mass.: Ballinger/Harper & Row, 1989); and Jay R. Galgraith, “Designing the Innovating Organization,” Organizational Dynamics (winter 1982) 5-25.

3. New Venture Teams • ______________ = Unit separate from the mainstream of the organization that is responsible for developing and initiating innovations • ______________ = separate small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business

4. New Venture Teams • ______________ = Fund providing resources from which individuals and groups can draw to develop new ideas, products, or businesses • ______________ = in-house program that provides a safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics • Someone with an idea has somewhere to go with it.

5. Open Innovation • Extending the search for and commercialization of new ideas beyondthe boundaries of the organization • The boundaries between an organization and its environment are becoming porous so that ideas flow back and forth among different companies that engage in partnerships, joint ventures, licensing agreements, and other alliances

6. Resistance to Change • __________________________ : • fear of personal loss is perhaps the biggest obstacle to organizational change – e.g. power, prestige, pay, or company benefit • __________________________ : • do not understand the intended purpose of a change or distrust the intentions • __________________________ : • lack of information about future events. Fear of the unknown – do not know how the change will affect them • __________________________ : • people who will be affected by innovation may assess the situation differently.

7. Force-Field Analysis Kurt Lewin • The process of determining which forces drive and which resist/restrain a proposed change • _________________________ • Lack of resources • Resistance from middle managers • Inadequate employee skills • ___________________ • Thought of as problems or opportunities that provide motivation for change

8. Traditional to Just-In-Time Inventory Systems

9. ________________ and ____________ ____________ – involves users and potential resisters in designing the change Change is technical; users need accurate information & analysis Users are unfamiliar with the idea Users need to feel involved; design requires information from others – help managers determine potential problems; understand the differences in perceptions of change among employees Tactics for Overcoming Resistance to Change Approach When to Use

10. __________________ : a more formal means of achieving cooperation. Uses formal bargaining to win acceptance and approval of a desired change __________________ : Managers use formal power to force employees to change. Resisters are told to accept the change or lose rewards or their jobs __________________ : symbolizes to all employees that the change is important for the organization Group has power over implementation (e.g. union); will lose out in the change Crisis exists; initiators clearly have power; other techniques have failed Involves multiple departments or reallocation of resources; users doubt legitimacy of change Tactics for Overcoming Resistance to Change Approach When to use

11. Types of Organizational Change Structure Strategy Products Technology Culture/People SOURCE: Based on Harold J. Leavitt, “Applied Organizational Change in Industry: Structural, Technical, and Human Approaches,” In New Perspectives in Organization Research, ed.W.W. Cooper, H.J. Leavitt, and Shelly II (New York: Wiley, 1964), 55-74.

12. Organizational Change • __________________: • Pertains to the organization’s production process or how the organization does its work • Designed to make the production of a product/ service more efficient • General rule = change is bottom up: ideas are developed at lower organization level and channeled upward for approval • Lower technical experts acts as idea champions – invent and champion technological improvements – loose, flexible, and decentralized • Companies face dilemma – use ambidextrous approach: incorporating structures and processes that are appropriate for both creation and the implementation of innovation – structured new venture teams.

13. Organizational Change • __________________ : • Horizontal linkage model: emphasizes shared development of innovations among several departments • Research, manufacturing, and marketing must simultaneously develop new products • Decisions about developing a new product are joint ones • Many firms include stakeholders – open innovation approach • Fast cycle team: response to the pressures in the environment for developing and commercializing products and services incredibly fast - speed is pivotal strategic weapon – strategic competitive advantage • Require parallel approach or simultaneous linkage among departments • Provided with high level of resources and empowerment to accomplish accelerated product development

14. Horizontal Linkage Model For New Product Innovation Organization Manufacturing Department Customers Market Conditions Research Department Marketing Department New Technology

15. Organizational Change • __________________ : • Pertains to the changes of: authority, goals, structural characteristics, administrative procedures, and management systems – e.g.: emailing policies, team-based structure, payroll systems • Successful change = through a top-down approach: expertise for administrative improvements originates from the middle/upper levels of the organization

16. Organizational Change • __________________ : • All changes (technology, products, and structure) do not happen on their own – requires changes in people • Training is the most frequently used tool for changing the organization’s mind-set • Culture/people change refers to changes in employees’ values, norms, attitudes, beliefs and behavior • Refers to how employees think – mindset • People change – pertains to few employees • Culture change – pertains to the organization as a whole

17. Organization Development (OD) Problems OD Can Address • Application of __________________ techniques to improve an organization’s health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem-solving capabilities • Focuses on __________________ aspects of the organization • Works to change ______________ - improves working relationships among employees

18. Organizational Development (OD) Mergers/acquisitions Decline/revitalization Conflict management • Mergers/acquisition: • Many managers fail to recognize the firms may have widely different values, beliefs, and practices • These differences create stress and anxiety for employees – these negative emotions affect future performance • Organizational decline/revitalization: • Companies undergoing these periods experience problems – lack of trust, high turnover, etc. • Conflict management: • occur anytime even in a healthy organization

19. OD Activities Team building Survey feedback Large group intervention

20. OD Steps: Three Stages for Achieving Behavioral and Attitudinal Change • _____________ • Participants must be aware of problems and be willing to change • Change agents/ OD experts perform systematic diagnosis – identifies work-related problems • _____________ • Individuals learn new skills • Change agent implement a plan for training managers and employees • _____________ • Acquiring of new attitudes/values and are rewarded • Impact of new behaviors are evaluated and reinforced • Changes are institutionalized in the organizational culture