Organizational
Change & Innovation
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The Strategic Role of Change
• Today’s 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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whole or in part.
Forces Driving the Need for Major
Organizational Change
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whole or in part.
Strategic Types of Change
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whole or in part.
Elements of Successful Change
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whole or in part.
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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whole or in part.
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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whole or in part.
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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whole or in part.
New Product Success Rates
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whole or in part.
Horizontal Coordination for
Innovation
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whole or in part.
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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whole or in part.
Dual-Core Approach to
Organization Change
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whole or in part.
Forces for Culture Change
Reengineering and Horizontal
Organization
Diversity
The Learning Organization
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whole or in part.
OD Culture Change Interventions
 Large Group Intervention
 Team Building
 Interdepartmental
Activities
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whole or in part.
Stages of Commitment
to Change
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whole or in part.
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.
© 2010 South-Wern/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
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.
© 2010 South-Wern/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
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
© 2010 South-Wern/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.