change and innovation by prof. esponilla

8/8/2019 Change and Innovation by Prof. Esponilla

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CHANGE ANDCHANGE AND

INNOVATIONINNOVATION


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Learning Outcomes:Learning Outcomes:

Describe what change variables are within amanagers control;

Identify external and internal forces of change;Explain how managers can serve as change agents;Contrast the calm waters and whitewater

rapids metaphors for change;Explain why people are likely to resist change.


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Learning Outcomes:Learning Outcomes:

Describe techniques for reducing resistance to change;

Identify what is meant by the term organizationaldevelopment and specify four popular techniques;

Explain how organizations can stimulate innovation.


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BackgroundBackground

WhyWhychange?change? Change management theoryChange management theory Change at UWLChange at UWL

A change management frameworkA change management framework ConclusionConclusion -- reflectionsreflections

OVERVIEWOVERVIEW


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Fact of lifeFact of life

Environmental factorsEnvironmental factors

Government, university, socialGovernment, university, social

The Boss wants itThe Boss wants it Things could be betterThings could be better

WHY CHANGE?WHY CHANGE?


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Define the currentstate (OSA, SWOT)Definethe currentstate (OSA, SWOT)

Definethefuture state (Scenarios)Definethefuturestate (Scenarios)Determine keysponsorsandDetermine keysponsorsand

implementersimplementers

Adjustenvironment,feedback,rewardsAdjustenvironment,feedback,rewards

ReviewprogressagainstmetricsReviewprogressagainstmetrics

CHANGE MANAGEMENT THEORYCHANGE MANAGEMENT THEORY

WHATS MISSING?


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What is change?What is change?

OrganizationalchangeAnyalterationsinthepeople,structure,ortechnologyofanorganization

Characteristicsofchange1. Isconstantyetvariesindegreeand

direction

2. Producesuncertaintyyetisnotcompletelyunpredictable3.Createsboththreatsand

opportunities


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The manager as change agentThe manager as change agent

ChangeagentsPeoplewhoactascatalystsandassumethe

responsibilityforchangingprocessarecalled

changeagents.

TypesofchangeagentsManagers:internalentrepreneurs

Non-managers:changespecialists Outsideconsultants:changeimplmentations experts


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Communication!Communication!

IATUL June 04


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Limitedstaffparticipation,hierarchyLimitedstaffparticipation,hierarchyruledruled

NotmovingwiththetimesNotmovingwiththetimes Newservicesneeded,limitedresourcesNewservicesneeded,limitedresources ClientsClients--littleinvolvement,nolittleinvolvement,no

measuresmeasures

VirtuallynostaffdevelopmentVirtuallynostaffdevelopment Libraryaproblem,notasolutionLibraryaproblem,notasolution Culture?Culture?Whotalkedaboutculture?Whotalkedaboutculture? Orleadership?OrVision?Or..Orleadership?OrVision?Or..

CHANGE ATCHANGE AT FAILURESFAILURES-- WHY?WHY?


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SomesuccessfulimprovementSomesuccessfulimprovementprojectsprojects

e.g.staffdevelopment,performancee.g.staffdevelopment,performanceappraisalappraisal

Whatwelearned:Whatwelearned: AllowtimeAllowtime AcceptdifferentperceptionsAcceptdifferentperceptions TrainingandfacilitatingvitalTrainingandfacilitatingvital

CHANGE AT UWLCHANGE AT UWL -- Pre QAPre QA


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Business Excellence Framework


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learningand

adapting

monitoring

andevaluatingimplementing

anddoing

thinkingand

planning


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learningand

adapting

monitoring

andevaluatingimplementing

anddoing

thinkingand

planning

Define the current state

Define the future state

Determine key sponsors

And implementers

Adjust environment feedback

and rewards

Review progress against

metrics


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Its easy to make mistakes when attempting toIts easy to make mistakes when attempting toimplement change . . .implement change . . .

*Failedtoprovidevisiblesupportandreinforcethechangewithother managers

*Didnottakethetimetounderstandhowcurrentbusinessprocesseswouldbeaffectedbychange

*Delayeddecision-making,whichleadstolowmoraleandslowprojectprogress

*Werenotdirectlynoractivelyinvolvedwithchangeproject*Failedtoanticipatetheimpactonemployees*Underestimatedthetimeandresourcesneeded*Abdicatedownershipoftheprojecttoanothermanager*Failedtocommunicateboththebusinessreasonsforthe

changeandtheexpectedoutcometoemployeesandothermanagers

*Changedtheprojectdirectionmid-stream*Didnotsetclearboundariesandobjectivesfortheproject


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Managing resistance toManaging resistance tochangechange

Whydopeopleresistchange?

Theambiguityanduncertaintythatchangeintroduces.

ThecomfortofoldhabitsAconcernoverpersonallossofstatus,money,

authority,friendships,andpersonalconvenience.

Theperceptionthatchangeisincompatiblewiththegoalsandinterestoftheorganization.


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Issues in managing changeIssues in managing change

Makingchangehappensuccessfully:

Embracechangebecomeachange-capableorganization.

Createasimple,compellingmessageexplainingwhychangeisnecessary.

Communicateconstantlyandhonestly. Fosterasmuchemployeeparticipationas

possiblegetallemployeescommitted.

Encourageemployeestobeflexible. Removethosewhoresistandcannotbechanged.


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Change ManagementChange Management -- ElementsElements

ChangeManagementismadeupofthreeequalelements:

-Change PlanWhatandwhyyouwanttochange

-DeploymentPlanHowyouwillgettheunittochange

- ImplementationPlanHowtheunitwillexecuteWhattheunitwilldo


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Characteristics of changeCharacteristics of change--capablecapableorganizationorganization

Linkthepresentandthefuture.

Makelearningawayoflife.

Activelysupportandencourageday-to-dayimprovementsandchanges.

Ensurediverseteams.

Encouragemavericks.

Shelterbreakthroughs.

Integratetechnology.

Buildanddeepentrust.


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Why Innovation?Why Innovation?

Togetpeoplethinkingnotonly

aboutdoingtheirjobs,buthowtomaketheirjobbetter,


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iNniNnoovvaattiioonn

What is it?concerned with the new or the novel.

Distinction between innovation and invention?

Is innovation technology based? Many of the more

significant innovations of the 20th century areorganizational rather than technology based.

*** Simply meansputtingideasinto valuableaction.*** Introduction of methods, things orideasbrought about by change


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Some useful definitionsSome useful definitions

FritzMachlupwrotein1962,Oughtweperhapstoavoid theterminnovationsinceitissopromiscuouslyusedforavarietyofmeanings.

BuildingonSchumpetersusefuldefinitionbetweeninventionandinnovation Inventionimpliesbringingsomethingnewintobeing;innovationimpliesbringingsomethingnewintouse.

Innovationhasbeendefinedasthesuccessfulintroductionintoanappliedsituationofmeansorendsthatarenewtothatsituation.

(Mohr,1969,quotedinCummingsandOConnell,1978,p.34)


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Aninnovationmaythereforebeathing!

Whetherartefact, productorprocess

orindeed service, systemorinfrastructure

Theinnovationprocess shouldalsoberemembered.

Needtodifferentiatebetweentypesofinnovationandstagesofadoptiontofacilitate developing usefultheoriesoforganizationaldevelopment.

Distinguishbetween:Productand processinnovationsTechnicalandorganizationalinnovationsRadicalandincrementalinnovations


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Categories of ChangeCategories of Change

(Exhibit 13(Exhibit 13--1)1)

STRUCTURE

Authority

relationships

Coordinating

mechanisms

Jobredesign

Spans of

control

PEOPLE

Attitudes

Expectations

Perceptions

Behaviour

TECHNOLOGY

Workprocesses

Work methods

Equipment


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External Forces of ChangeExternal Forces of Change

Marketplace Government lawsandregulations

Technology

Economic


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Internal Forces of ChangeInternal Forces of Change

Corporatestrategy

Theworkforce

Technologyandequipment Employeeattitudes


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Change AgentsChange Agents

OutsideConsultants

StaffSpecialistsManagers

C


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The Calm Waters MetaphorThe Calm Waters Metaphor

Unfreezing Changing Refreezing

Lewins Three-Step Process


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Lack ofStability

The White-Water Rapids

Metaphor

Lack ofPredictability

VirtualChaos

ConstantChange

C


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Resistance to ChangeResistance to Change

Fear of losing

something

of value

Individual

Resistance

Belief that change

Is not good for

organization

Fearof

unknown


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ReducingResistance to ChangeReducingResistance to Change

Educationand communication

Participation

Facilitationandsupport Negotiation

Manipulationand co-optation

Coercion


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Management of Innovation

Some Important Issues

Within an organisationFundamental tensionbetweenstability andcreativity

Conflict between top andlower tiers?

Betweenstrategy making andlocal autonomy?


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Mainsourcesandstrategies

forinnovation

Innovationisworkrather thangenius,andvery much a

matterofdiscipline (PeterF Drucker, 1985)

Concept of uncertainty matrix offers characteristicswhich reduce

therisks ofinnovation (AlanWPearson, ).

Knowledge creationandinnovation: Fourstandpoints


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Managingand Facilitating Innovation:Managingand Facilitating Innovation:

NewBusiness Ideasand IPRNewBusiness Ideasand IPR

Strategic InnovationStrategic Innovation

What allsuccessfulentrepreneurs haveisnot a certainkind of

personalitybut a commitment to thesystematic practice ofinnovation.

Allsizes ofbusinessesengagein highlysuccessfulentrepreneurship.

Henceit isanactivity!! At the heart of that activityisinnovation.Sources of innovation:

*Withina company: Unexpected occurences

Incongruities

Process needs

Industry and market changes

*Outsidea company: Demographic changesChanges in perception

New knowledge


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ManagingManaging Innovation:Innovation:an uncertainty reduction processan uncertainty reduction process

Innovationmeanschange.Suchchangescanbeincrementalorradical,evolutionaryorrevolutionary,enablingordisruptive.Theycanhave

differenteffectsuponproducersandusers.

intuitive..tumultousprocessIndividualdiscoveriestendtobehighlyindividualisticandserendipitous,advanceschaoticandinteractive,andspecificoutcomesunpredictableandchancyuntiltheverylastmoment(Quinn, 1986).

Technologicalinnovationisthereforeamessyprocess!


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InnovativeBright Ideas:InnovativeBright Ideas:

Makinginformaldecisions.

Defining utilityneeds.

Realizingreturn oninvestment.

Allocationstrategies.

Hadsomething to do with MBO.

According to Thurston,Bright Ideassets upaprocess to get thoseideasin

front of theright people. Its theinternalversion of technology transfer, he

said.


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Innovation starts when people convert problems to ideas.New ideas are born through questions, problems and obstacles.The process of innovation is indebted to the trouble that comesabout when we are surrounded by that which is not solved, notsmooth and not simple. Therefore, in order for the innovationprocess to flourish, it needs a climate that encourages inquiryand welcomes problems.

Innovation needs a system. All organizations have innovationsystems. Some are formal, designed by the leadership, andsome are informal, taking place outside established channels.Informal channels are untidy and inefficient, yet innovation isalways associated with them.

Passion is the fuel, and pain is the hidden ingredient. Ideasdo not propel themselves; passion makes them go. Passion, inaddition to talent and skill, is a valuable company asset. Passionis what transforms other resources into profits, but it nevershows up on a balance sheet. Unfortunately, there seems to besome universal law that says when pursuing a passion orfollowing a dream, pain is part of the process. Innovation leadersneed to take the pain with the passion and learn to manage botheffectively.

PRINCIPLES OF INNOVATION:


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Co-locating drives effective exchange. Co-locationrefers to physical proximity between people. It is a key forbuilding the trust that is essential to the innovationprocess. It also increases the possibility for greaterexchange of information, cross-fertilization of ideas, and

stimulation of creative thinking in one another and critiqueofideas during theirformative stage.

Differences should be leveraged. The differences thatnormally divide people such as language, culture,race, gender and thinking and problem solving styles can be a boon to innovation. When differences are usedconstructively and people move beyond fear, suspicion,mistrust and prejudice, differences can be leveraged toenhance and sustain the innovation process.

PRINCIPLES OF INNOVATION:


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Industrial Innovative Concepts:Industrial Innovative Concepts:


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Stimulating and nurturingStimulating and nurturinginnovationinnovation

Structuralvariables:

Adoptanorganicstructure

MakeavailableplentifulresourcesEngageinfrequentinter-unit

communicationMinimizeextremetimepressureson

creativeactivitiesProvideexplicitsupportforcreativity


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Culturalvariables:

Acceptambiguity Toleratetheimpractical Havelowexternalcontrols Toleraterisktaking Tolerateconflict

Focusonendsratherthanmeans Developanopen-systemfocus Providepositivefeedback


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Humanresourcevariables:

Activelypromotetraininganddevelopment

tokeepemployeesskillscurrent.

Offerhighjobsecuritytoencouragerisk

taking.Encourageindividualtobechampionsofchange.


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ACTIONACTION

DREAMSDREAMS

PASSIONATE DESIREPASSIONATE DESIRE

STRATEGYSTRATEGY

&&INNOVATIONINNOVATION

REALITYREALITY


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Types of InnovationTypes of Innovation

ProductsandservicesInnovationapplied toproducts orservices ormarket relatedactivities

OperationalInnovation that improves theeffectivenessandefficiency of coreprocessesand

functions

Business modelInnovation that fundamentallytransforms thewayabusinessworks ordrives

revenue.


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What do innovators do?What do innovators do?

Connectunconnectable Dream,Dream,Dream Seebeyondwhatisvisible Expecttheunexpected Enjoycontradictions,shunconsistency Remember:Experimentsneverfail,

minddoes


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Createanexternalfocus

-definesuccessinmarketterms

Beaclearthinker-simplifystrategyintospecificactions,makedecisionsandcommunicatepriorities

Haveimaginationandcourage-takerisksonpeopleandideas

Energizeteamsthroughinclusiveness

-connectwithpeople,buildbothloyaltyandcommittment

Developexpertiseinafunctionordomain-usedepthasasourceofconfidencetodrivechange

Focus onPeople

Traits

ofanInnovatio

n

Leader


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How to be an InnovativeHow to be an InnovativeOrganizationOrganization

CreateaStrategicVision EstablishInnovationasaPriority Create OrganizationalStructures

thatPromoteCollaboration

EstablishProcessestoConvertIdeastoInnovations

AllocateResources TrainWorkforceonCreativityTools Measure &CommunicateResults RecognizeCreative Behavior RewardInnovativeResults


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Stress

in theWorkplace

Constraints

Opportunities

Demands


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StressorsStressors

Personal

Personality

FamilyFinances

Organizational

TaskdemandsRoledemands

Interpersonal

Structure

Leadership

STRESS


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Ways to Reduce StressWays to Reduce Stress

Propermatch ofemployees to job

Clearexpectations

Employeeassistanceprograms Wellnessprograms


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What IsCreativity?

Combiningnewideasin

uniqueways ormaking

unusual connections

What Is

Innovation?

Process of taking creative

ideaand makinginto a

usefulproduct,service,

ormethod of operation


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InnovationProcessInnovationProcess

Perception

Innovation

Incubation

Inspiration


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INOVATION MUST FIRSTBEGIN BY CHANGING

YOURPERSONAL

CULTURE,BEHAVIORS

AND ATTITUDES..

change and innovation by prof. esponilla

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