MODULE 23
INNOVATION AND ORGANIZATIONAL
CHANGE
“Change can be your best friend”
• What are the roles of innovation and change in
organizations?
• How do managers lead the processes of organizational
change?
INNOVATION AND ORGANIZATIONAL CHANGE
Roles of Innovation and Organizational Change
MODULE GUIDE 23.1
 Creativity and innovation are sources of
competitive advantage.
 Innovative organizations share many
common characteristics.
 Organizations pursue both transformational
and incremental changes.
 Change in organizations can move from top
down, bottom up, or both.
INNOVATION AND ORGANIZATIONAL CHANGE
Roles of Innovation and Organizational Change
 Creativity
 the generation of a novel idea or unique approach that solves
a problem or crafts an opportunity.
 Innovation
 the process of taking a new idea and putting it into practice.
 Process Innovations
 result in better ways of doing things.
 Product Innovations
 result in new or improved goods or services.
 Commercializing Innovations
 turns ideas into economic value
INNOVATION AND ORGANIZATIONAL CHANGE
Roles of Innovation and Organizational Change
INNOVATION AND ORGANIZATIONAL CHANGE
Roles of Innovation and Organizational Change
 Critical Innovation Roles in Organizations
 Idea generators—provide new insights and
discoveries.
 Information gatekeepers—stay abreast of outside
developments.
 Product champions—advocate for new products or
processes.
 Project managers—keep innovation projects on track.
 Innovation leaders—keep innovation values, goals
visible.
INNOVATION AND ORGANIZATIONAL CHANGE
Roles of Innovation and Organizational Change
 Types of Change
 Transformational Change
 makes radical changes in organizational directions
 Incremental Change
 continuing adjustments to existing ways and practices.
 Top-down Change
 is initiated by senior management
 Bottom-up change
 is initiated by empowered persons working at all
organizational levels.
INNOVATION AND ORGANIZATIONAL CHANGE
Roles of Innovation and Organizational Change
MANAGEMENT TIPS
 How to Lead Transformational Change
 Establish a sense of urgency for change.
 Form a powerful coalition to lead the change.
 Create and communicate a change vision.
 Empower others to move change forward.
 Celebrate short-term wins and recognize those who
help.
 Build on success; align people and systems with new
ways.
 Stay with it; keep the message consistent; champion
the vision.
INNOVATION AND ORGANIZATIONAL CHANGE
Leading the Processes of Organizational Change
MODULE GUIDE 23.2
 Adaptive organizations need change leaders, not
status quo managers.
 Unfreezing, changing, and refreezing are three
phases of
 planned change.
 Managers use force-coercion, rational persuasion,
and shared power change strategies.
 Change leaders identify and deal positively with
resistance to change.
 Organization development is a way of building
sustainable capacities for change.
INNOVATION AND ORGANIZATIONAL CHANGE
Leading the Processes of Organizational Change
 Change Leader
 tries to change the behavior of another person or social system.
 Planned Change
 aligns the organization with anticipated future challenges.
 Unfreezing
 is the phase during which a situation is prepared for change.
INNOVATION AND ORGANIZATIONAL CHANGE
Leading the Processes of Organizational Change
Lewin’s
Three
Phases
of
Change
INNOVATION AND ORGANIZATIONAL CHANGE
Leading the Processes of Organizational Change
 Checkpoints for Successful Change
 Benefit—make sure people involved see a clear
advantage in the change.
 Compatibility—keep the change as close as possible
to existing values and experiences.
 Simplicity—make the change as easy as possible to
understand and use.
 Triability—allow people to try the change step-bystep, making adjustments as they go.
 Change leader's task:
 create a felt need for change
INNOVATION AND ORGANIZATIONAL CHANGE
Leading the Processes of Organizational Change
Change Strategies
INNOVATION AND ORGANIZATIONAL CHANGE
Leading the Processes of Organizational Change
Resistance to Change
Why people may resist change
• Fear of the unknown not understanding what is happening or what comes
next
• Disrupted habits feeling upset to see the end of the old ways of doing things
• Loss of confidence feeling incapable of performing well under the new ways of
doing things
• Loss of control feeling that things are being done “to” you rather than “by” or
“with” you
• Poor timing feeling overwhelmed by the situation or that things are moving too
fast
• Work overload not having the physical or psychic energy to commit to the
change
• Loss of face feeling inadequate or humiliated because it appears that the old
ways weren’t good ways
• Lack of purpose not seeing a reason for the change and/or not understanding
its benefits
INNOVATION AND ORGANIZATIONAL CHANGE
Leading the Processes of Organizational Change
Organizational Development
 a comprehensive and participatory approach to
change that involves organization members in a
data-based process of diagnosis, intervention,
and evaluation.
INNOVATION AND ORGANIZATIONAL CHANGE
Leading the Processes of Organizational Change