1 / 16

Chapter Eleven

Chapter Eleven. Innovation and Change. Forces Driving the Need for Major Organizational Change. Global Changes, Competition and Markets T echnological Change International Economic Integration Maturation of Markets in Developed Countries Fall of Communist and Socialist Regimes.

prince
Download Presentation

Chapter Eleven

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter Eleven Innovation and Change

  2. Forces Driving the Need for Major Organizational Change • Global Changes, Competition and Markets • Technological Change • International Economic Integration • Maturation of Markets in Developed Countries • Fall of Communist and Socialist Regimes More Threats More domestic competition Increased Speed International competition More Opportunities Bigger markets Fewer barriers More international markets More Large-Scale Changes in Organizations Structure changeMergers, joint ventures, consortia Strategic change Horizontal organizing, teams, networks Culture change New technologies, products Knowledge management, enterprise New business processes resource planning E-business Quality programs Learning organizations Source: Based on John P. Kotter, The New Rules: How to Succeed in Today’s Post-Corporate World (New York: The Free Press, 1995).

  3. Incremental vs. Radical Change Incremental Change Radical Change Continuous progression Paradigm-breaking burst Affect organizational part Transform entire organization Through normal structure and management processes Create new structure and management Technology improvements Breakthrough technology Product improvement New products, new markets Sources: Based on Alan D. Meyer, James B. Goes, and Geoffrey R. Brooks, “Organizations in Disequilibrium: Environmental Jolts and Industry Revolutions,” in George Huber and William H. Glick, eds., Organizational Change and Redesign (New York: Oxford University Press, 1992), 66-111; and Harry S. Dent, Jr., “Growth through New Product Development,” Small Business Reports (November 1990): 30-40.

  4. Four Types of Change • Technology • Changes in production process • Products and Services • Changes in outputs • Strategy and Structure • Administrative changes • Culture • Changes in values, attitudes, behaviors

  5. Elements for Successful Change • Organizational Change is considered the adoption of a new idea or behavior by an organization. • Organizational Innovation is the adoption of an idea or behavior that is new to the organization’s industry, market, or general environment. • 3M  15% • Google  Search engine • UPS  DIAD (Delivery Information Acquisition Device) • 6σ  3.4 mistakes per million parts produced

  6. Sequence of Elements for Successful Change Environment Internal Creativity and Inventions Suppliers Professional Associations Consultants Research literature Organization 1. Ideas 3. Adoption 4.Implementation 2. Needs Customers Competition Legislation Regulation Labor force 5. Resources Perceived Problems or Opportunities

  7. General Manager Creative Department (Organic Structure) Using Department (Mechanistic Structure) Division of Labor Between Departments to Achieve Changes in Technology • The Nokia Ventures Organization (NVO)隱藏天線 • Idea incubator (p.409) • Venture Teams (pp.409-410)

  8. Probability of New Product Success PROBABILITY • Technical completion • (technical objectives achieved) .57 • Commercialization • (full-scale marketing) .31 • Market Success • (earns economic returns) .12 Source: Based on Edwin Mansfield, J. Rapaport, J. Schnee, S. Wagner, and M. Hamburger, Research and Innovation in Modern Corporations (New York: Norton, 1971), 57.

  9. Organization Environment Environment Horizontal Linkage Model for New Product Innovations General Manager Technical Developments Customer Needs Linkage R&D Department Linkage Marketing Department Linkage Linkage Linkage Production Department

  10. Dual-Core Approach to Organization Change Type of Innovation Desired Administrative Structure Technology Administrative Core Technical Core Direction of Change: Top-Down Bottom-Up Examples of Change: Strategy Production Downsizing techniques Structure Workflow Best Organizational Design for Change: Mechanistic Organic

  11. Culture Change • Reengineering and Horizontal Organization • Diversity • The Learning Organization

  12. OD Culture Change Interventions • Large Group Intervention • Team Building • Interdepartmental Activities

  13. Stages of Commitment to Change • Preparation • Initial contact • Awareness • Acceptance • Understanding • Decision to implement • Commitment • Installation • Institutionalization

  14. Barriers to Change • Excessive focus on costs • Failure to perceive benefits • Lack of coordination and cooperation • Uncertainty avoidance • Fear of loss

  15. Techniques for Change Implementation • Establish a sense of urgency for change. • Establish a coalition to guide the change. • Create a vision and strategy for change. • Find an idea that fits the need. • Develop plans to overcome resistance. • Create change teams. • Foster idea champions.

  16. Workbook Activity Innovation Measures

More Related