Chapter 13:Managing Change

and Innovation

Learning Objectives

• Forces for change• “Calm waters” versus “white-water rapids” metaphors• Change agents• Types of change• Why people resist change• Techniques for reducing resistance to change• Innovation versus creativity• Stimulating and nurturing innovation

External Forces for Change

• Marketplace• Governmental laws and

regulations• Technology• Labor markets• Economy

What Can Change?

People Structure

Technology

Internal Forces for Change

• Business strategy

• Workforce

• Technology and Equipment

• Employee attitudes

Change Agents

• What are “change agents”?

• Who can be a change agent?

• External vs. internal change agents

• Evolution of change agents

Calm Waters vs. White Water Rapids Metaphors

The Change Process• The Calm Waters Metaphor– Change viewed as a break in the

organization’s equilibrium state• Unfreezing the status quo• Changing to a new state• Refreezing to make the change permanent

• White-Water Rapids Metaphor– No stability and predictability– Organizations must constantly change to

survive

The Change ProcessThe Change ProcessUnfreezing Changing Refreezing

What Can a Manager What Can a Manager Change?Change?

Structure

•Specialization•Span of control•Formalization•Centralization•Departmentalization

Technology

•Work processes•Methods•Equipment

People

•Attitudes•Expectations•Perceptions•Behavior

Resistance to Change

Uncertainty and Ambiguity

Concern Over Personal Loss

Belief That Change Is Not Beneficial

Fear of Change

Techniques for Reducing Resistance to Change

1. Education and Communication2. Facilitation and support3. Participation4. Negotiation5. Manipulation and Co-optation6. Coercion

Case Study: Ann Lyman’s Proposal

1. Why do Ann’s colleagues resist change at CPC? At root, what are the sources of resistance?

2. Design a proposal for influencing Ann’s colleagues and superiors, drawing on one or more of the techniques for reducing resistance to change:

- education/communication - facilitation/support

3. - participation- negotiation- manipulation/co-optation- coercion

Which would you draw on, and why? Give specific examples of how the techniques you chose would “look like” in practice.

What IsCreativity?

• Combining new ideas in unique ways or associating ideas in unusual ways

What IsInnovation?

• Turning creative ideas into useful products, services, or methods of operation

HumanResources

Cultural

Three Sets of VariablesThat Stimulate Innovation

Structural

Innovation VariablesInnovation Variables•Organic structures•Abundant resources•High interunit communication

•Acceptance of ambiguity•Tolerance of the impractical•Low external controls•Tolerance of risks•Tolerance of conflicts•Focus on ends•Open-system focus

•High commitment totraining and development•High job security•Creative people

Structural Variables

Cultural Variables

Human Resource Variables

StimulatesInnovation

IDEO Video

• How does IDEO stimulate creativity and innovation? Look for aspects of:– Culture– Structure– Human resources– ANYTHING ELSE!!