Chapter Eleven

Innovation and Change

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 The Strategic Role of Change
Todays organization must poise
themselves to innovate and change
Innovate or perish
Powerful forces:
Technology
International economic integration
Maturing domestic markets
Globalization
To manage threats and opportunities,
organizations must change
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 Forces Driving the Need for Major
Organizational Change

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 Strategic Types of Change

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 Elements of Successful Change

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 Technology Change
To be both an organic and mechanistic,
managers implement an ambidextrous
approach
Structures and management processes that
push innovation

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 Techniques for Encouraging
Technology Change
Switching Structures create an organic
structure
Creative Departments department for
innovation
Venture Teams a small company within
the organization
Corporate Entrepreneurship promote
entrepreneurial spirit
Collaborative Teams collaboration for
innovation
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 New Products and Services
Reasons for success:
Innovating companies understand customers
Innovating companies successfully use
technology
Top management supports innovation
Horizontal Coordination Model:
Specialization
Boundary Spanning
Horizontal Coordination
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 New Product Success Rates

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 Horizontal Coordination for
Innovation

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 Achieving Competitive Advantage:
The Need for Speed
Rapid development of new products and
services is becoming a strategic weapon

Time-based competition means

delivering products and services faster
than competitors, giving companies a
competitive edge

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 Dual-Core Approach to
Organization Change

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 Forces for Culture Change

Reengineering and Horizontal

Organization

Diversity

The Learning Organization

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 OD Culture Change Interventions

Large Group Intervention

Team Building

Interdepartmental
Activities

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 Stages of Commitment
to Change

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 Barriers to Change
Excessive focus on costs
Failure to perceive benefits
Lack of coordination and cooperation
Uncertainty avoidance
Fear of loss
Leadership for Change: 80% of successful innovative
companies have top leaders who reinforce the value and
importance of innovation.
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 Techniques for Change
Implementation
1. Establish a sense of urgency for change.
2. Establish a coalition to guide the change.
3. Create a vision and strategy for change.
4. Find an idea that fits the need.
5. Develop plans to overcome resistance.
6. Create change teams.
7. Foster idea champions.

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 Design Essentials
Change, not stability is the challenge for
managers
There are four types of change
Organic structures foster innovation
A top-down approach is best for change and
strategy
Top managers must foster culture change
The implementation of change can be difficult

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2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.