Agenda

Chapter 9 (a bad vibe in the USA – why?)

Exams / ProjectsCases (hand-in)

Introduction

We do not have to change, because staying in business is not compulsory.

W. Edwards Deming

Class task

1. Chapter 9 (Innovation + Change)

2. What should a new business classroom look like? (underlying theme: Changing nature of education)

Innovation Yea not busy being born – is busy

dying (Bob Dylan) Product / Process Innovation Innovation Lab (new building) Innovation Process: Imagine,

Design, Experimentation, Feasibility, Final

Organizational Change A recent study n=309 HRM executives 100% were going

through – merger, acquisition, divestiture, global competition, restructuring

Types of Change \ Reactive Change – respond to environment

Planned Change – anticipated moves to environment

Incremental Change – minor adjustments

Transformational Change – major and comprehensive

What do Organizations Change?

Examples … Culture Structure Technology Physical Settings People

Reflect on your presentation organization – did they go through any change?

Scenario – One Family Imagine that Canada has

just been “Merged” with the USA

Reason: Allows for some savings in overhead

Head office is going to Washington

People now called North Americans (shortened to Americans)

How would people from Canada feel?

How would people from the USA feel?

Who else is affected by change?

Would this be a good thing / bad thing? Why?

Loss of FaceLack of Purpose Disrupted Habits

Fear of the unknown

Work Overload

Loss of control

Individualresistance

Sources of Individual Resistance to Change

Threat to established

resourceallocations

Structuralinertia

Threat toexpertise

Limited focus ofchange

Group inertia

Organizationalresistance

Threat toestablished

powerrelationships

Sources of Organizational Resistance to Change

Which ones would be happening with the change?

Sources of Resistance to Change

Level OneLevel One Level TwoLevel Two

HonestHonestDisagreementDisagreement

Lack ofLack ofInformationInformation

EmotionalEmotionalIssuesIssues

PersonalPersonalReasonsReasons

Power of Emotional Appeals

Cognitive – Emotional Emotional Arguments – danger,

loss, unpleasantness, risk Metaphors – machine, family,

turn out the lights Emotional Modes – pictures,

slogans, music, colour Humour – appropriate / un Display emotions – smiles,

speech tone, expressive

Change Agent Task

In a group, prepare an emotional argument to persuade Canadians to change our flag to …

Your group maybe asked to present their emotional appeal

http://www.youtube.com/watch?v=pnpVH7kIb_8

UnfreezingUnfreezing MovementMovement RefreezingRefreezing

Lewin’s Three-Step Change Model

Unfreezing: getting ready for changeGOAL - minimizing resistance

Moving: Making the changeGOAL - changing people (individuals and groups); tasks; structure; technology

Refreezing: Stabilizing the changeGOAL - reinforcing outcomes, evaluating results, making constructive modifications

StatusQuo

DesiredState

DrivingForces

RestrainingForces

Time

Unfreezing the Status Quo

Unfreezing Arouse dissatisfaction with the current state

tell them about deficiencies in organization Activate and strengthen top management

support need to break down power centres

Use participation in decision making get people involved

Build in rewards tie rewards to change/use recognition, status

symbols, praise to get people to go along

Moving Establish goals

e.g. make business profitable by end of next year Institute smaller, acceptable changes that

reinforce and support change e.g. procedures and rules, job descriptions,

reporting relationships Develop management structures for change

e.g. plans, strategies, mechanisms that ensure change occurs

Maintain open, two-way communication

Refreezing Build success experiences

Set targets for change, and have everyone work toward targets

Reward desired behaviour GOOD - reward behaviour that reinforces changes BAD - reward old system (e.g., people relying on old

systems while computerization is going on) Develop structures to institutionalize the change

Organizational retreats, appropriate computer technology, performance appraisals that examine change efforts

Make change work

Management Smarts 9.1

1. Sense of Urgency2. Powerful Coalition3. Vision – create and communicate4. Empower others5. Celebrate Short-term wins6. Build on success – alignment7. Keep on message – don’t declare

victory too soon

Next Class Have a great holiday season Say HELLO in the halls!