Change agent
A person who initiates and assumes the responsibility for managing a change in an organization
technological changes
competitive pressures, including mergers and acquisitions customer pressure, particularly shifting markets to learn new organisation behaviour and skills government legislation/initiatives.
Internal Forces
Strategy modifications New equipment New processes Workforce composition Job restructuring Compensation and benefits Labor surpluses and shortages Employee attitude
Types of Change
Structural
Changing an organizations structural components or its structural design
Technological
Adopting new equipment, tools, or operating methods that displace old skills and require new ones
Automation: replacing certain tasks done by people with machines Computerization
People
Changing attitudes, expectations, perceptions, and behaviors of the workforce
Typical OD Techniques
Survey feedback
A method of assessing employees attitudes toward and perceptions of a change they are encountering by asking specific questions
Process consultation
The use of consultants from outside an organization to help change agents within the organization assess process events such as workflow, informal intra-unit relationships, and formal communications channels
Intergroup development
An activity that attempts to make several work groups become more cohesive
Definition of innovation
Technological innovations are defined as new products and processes and major technological modifications to products and processes. An innovation is considered performed if it is introduced to the market (product innovation) or implemented in the production process (process innovation). Innovation includes many research, technological, organizational, financial and commercial activities.
WHAT IS INNOVATION?
Invention Technology Innovation Creating new or improved products, processes and services Knowledge and learning Uncertainty
WHAT TO DO
1. Start with analysis and study of opportunities. 2. Go among people, ask questions, listen 3. Effective innovations are surprisingly simple. They must be focused on specific needs and on specific final products. 4. Effective innovation start on a small scale. 5. A successful innovation always tries to win a leading position, otherwise you create opportunities for your competitors.
WHAT TO AVOID
1. Dont try to be too clever. All that is too sophisticated will almost certainly go wrong. 2. Dont try to do too many things at once. Focus on the core of the problem. 3. Dont try to make innovations for the future but for today. An innovation can have a longterm impact but there must be an immediate need for it.
INTERNAL
1. 2. 3. 4. unexpected event contradiction change of work process change in the structure of industry or market
EXTERNAL
5. Demographic changes 6. Changes in the world view 7. New knowledge
1. Unexpected event
Unexpected success
1. 2. 3. 4. What will the use of the offered opportunity mean to us? Where will its introduction take us? What do we need to do for its implementation? How can we achieve that?
2. Contradiction
Non-compliance with economic reality Contradiction between reality and anticipations about it Contradiction between the anticipated and real behavior of customers and their values
3. Change of process
realize the necessity of change, identify the weak point of the chain be convinced that if something does not work the way it should, then it is necessary to attempt a change the solution must be convenient for those who will implement it. It must place moderate and feasible requirements
5. Demography
easiest to describe and to predict influence what will be bought, who and in which amounts will purchase
6. Change of attitudes
change in the approach to health: health-care, food, spending the leisure time upper-middle class: a chance to offer nonstandard services at non-standard prices increasing migration, feminism, regionalism etc Timing is essential - to be the first
7. New knowledge
Based on convergence or synergy of various kinds of knowledge, their success requires, high rate of risk
Thorough analysis of all factors. identify the missing elements of the chain and possibilities of their supplementing or substitution; Focus on winning the strategic position at the market. the second chance usually does not come; Entrepreneurial management style. Quality is not what is technically perfect but what adds the product its value for the end user
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
Forms of Innovation
Radical innovation
A new product, service or technology that completely replaces an existing one
Incremental innovation
A new product, service or technology that modifies an existing one
Forms of Innovation
Technical innovation
A change in the appearance or performance of products or services, or of the physical processes through which a product passes
Managerial innovation
A change in the management process in an organization
Forms of Innovation
Product Innovation
A change in physical characteristics or performance of an existing product or service or the creation of new ones
Process Innovation
A change in the way a product or service is manufactured, created or distributed
Stimulating Innovation
Creativity
The ability to combine ideas in a unique way or to make unusual connections
Innovation
The process of taking a creative idea and turning it into a useful product, service, or method of operation
Perception Incubation Inspiration Innovation
Idea Champion
Dynamic self-confident leaders who actively and enthusiastically inspire support for new ideas, build support, overcome resistance, and ensure that innovations are implemented.
Innovation Variables
Components of innovation
The virtuous checklist
Shared vision, leadership Appropriate structure Key individuals Effective team work Development of the human capital Extensive communication High involvement in innovation External focus Creative climate
Examples: Bill Gates / Microsoft Siemens: Edward Krubasik (outside) transformed the company from an electrical engineering firm to a major IT and software firm
Appropriate structure
No best practice / perfect model
Minzberg structural archetypes Simple structure: centralized organic type (e.g. Small start-ups in high tech) Machine bureaucracy: centralized mechanistic organization, controlled centrally by systems (e.g. McDonalds) Divisionalized form: decentralized form designed to adapt to local environmental challenges / core and periphery (e.g. HSBC)
Appropriate structure
Professional Bureaucracy: Decentralized mechanistic form with power located with individuals but coordinated via standards (e.g. Ericsson) Ahocracy: Project type of organization designed to deal with instability and complexity (e.g. Man on the Moon project by NASA) Emergent model: Associated with shared common values (e.g. Academia, NPOs)
Key individuals
Entrepreneur : change agent important at start of the innovation journey
Champion: important when transforming ideas into practice and keeping heads in the same direction
Mentor: powerful outside promotor needed to find support and resources for the innovation outside its immediate group Critic: necessary evil needed to identify problems and bottlenecks at an early stage Gatekeeper: mediator of information to relevant people
Extensive communication
Communication is key to combine the different knowledge sets needed for innovation Multidirectional (up, down and laterally) Makes use of multiple channels Job rotation Cross-functional teams Review sessions Team briefings Multiple media
External focus
Navel gazing is the end-all of innovation even in technology based industries The challenge of understanding (often latent) user needs
Also other players: suppliers, competitors, regulators, univerisities.... Both threat and opportunity! Aspects of quality management and of coumunication
Innovation is a risky process....but also a mandatory one. Success depends of a variety of:
Internal factors
Good management Core competencies Clear innovation strategy Right technology
External factors
Links with market and suppliers Learning from competitors Institutional support: financing, human capital, etc