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Why Innovation Matters

Why Innovation Matters

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Why Innovation Matters

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  1. Why Innovation Matters TechnologyCycles InnovationStreams 1

  2. 1900-1910 airplane, plastic, air conditioner 1911-1920 mammogram, zipper, sonar 1921-1930 talking movies, penicillin, jet engine 1931-1940 radar, helicopter, computer 1941-1950 atomic bomb, bikini, transistor 1951-1960 DNA, oral contraceptive, Tylenol Why Innovation Matters 1961-1970 • video recorder, handheld calculator, computer mouse 1971-1980 • compact disc, gene splicing, laser printer 1981-1990 • MS-DOS, space shuttle, CD-ROM 1991-2000 • taxol, Pentium processor, Java 2001-Today • mapping of human genome, first cloning of human embryo 1 Adapted from Exhibit 7.1

  3. Technology Cycle A cycle that begins with the “birth” of a new technology and ends when that technology reaches its limits and is replaced by a newer, better technology. Technology Cycles 1.1

  4. Discontinuity C New Technology Performance B A Effort S-Curves and Technological Innovation 1.1 Adapted from Exhibit 7.2

  5. Innovation Streams Patterns of innovation over time that can create sustainable competitive advantage. Technological Discontinuity A scientific advance or unique combination of existing technologies that creates a significant breakthrough in performance or function. Innovation Streams 1.2

  6. Technological Substitution Technological Discontinuity (2) Variation Selection Era of Incremental Change (2) Era of Ferment (2) Dominant Design (2) Technological Discontinuity (1) Variation Selection Era of Incremental Change (1) Era of Ferment (1) Dominant Design (1) Innovation Streams: Technology Cycles over Time 1.2 Adapted from Exhibit 7.4

  7. TechnologicalSubstitution DesignCompetition Innovation Streams Technological Discontinuities Discontinuous Change Dominant Design 1.2

  8. ManagingSources of innovation Managing DuringDiscontinuous Change Managing DuringIncrementalChange Managing Innovation 2

  9. Creative work environments Workplace cultures in which workers perceive that new ideas are encouraged Flow The psychological state of effortlessness in which you become absorbed in your work and time seems to pass quickly Managing Sources of Innovation 2.1

  10. Components of Creative Work Environments OrganizationalEncouragement SupervisoryEncouragement ChallengingWork CreativeWorkEnvironments Lack of Organiz.Impediments Work GroupEncouragement Freedom Flow 2.1 Adapted from Exhibit 7.5

  11. Innovation Environment • Structural Variables • Adopt an organic structure • Make available plentiful resources • Engage in frequent interunit communication • Minimize extreme time pressures on creative activities • Provide explicit support for creativity

  12. Innovation Environment • Cultural Variables • Accept ambiguity • Tolerate the impractical • Have low external controls • Tolerate risk taking • Tolerate conflict • Focus on ends rather than means • Develop an open-system focus • Provide positive feedback

  13. Innovation environment • Human Resource Variables • Actively promote training and development to keep employees’ skills current. • Offer high job security to encourage risk taking. • Encourage individual to be “champions” of change.

  14. Give Credit, Don’t Take It • Stealing others’ ideas wrong, AND • Nothing kills a creative work environment faster So…whether or not you’re the boss, give credit where it’s due. DOING THE RIGHT THING Doing the Right Thing 2.1

  15. Managing Innovation During Discontinuous Change Experiential approach to innovation • innovation is occurring within an uncertain environment • the key to innovation is to use: • intuition • flexible options • hands-on experience 2.2

  16. Design Iterations Testing Parts ofExperientialApproach Milestones Multifunctional Teams Powerful Leaders Experiential Approach to Innovation 2.2

  17. Managing Innovation During Incremental Change • Compression approach to innovation • assumes that innovation is a predictable process that can be planned in steps • Generational change • based on incremental improvements to a dominant technological design and achieving backward compatibility with older technology 2.3

  18. Planning Supplier Involvement Parts ofCompressionApproach Shortening Time ofIndividual Steps Overlapping Steps Multifunctional Teams Compression Approach to Innovation 2.3

  19. Experimental Approach Compression Approach Environment Goals Approach Steps Uncertain discontinuouschange: technological substitution and design competition Certain incremental changeestablished technology(i.e., dominant design) Speed Lower costs Incremental improvements in performance of dominantdesign Speed PerformanceImprovements New dominant design Compress time/steps neededto bring about small improvements Build something new,different, and better Design iterations Testing Milestones Multifunctional teams Powerful leaders Planning Supplier involvement Shorten time of steps Overlapping steps Multifunctional teams 2.3 Adapted from Exhibit 7.6 Managing Innovation

  20. Blinded Inaction Faulty Action Crisis Dissolution Five Stages of Organizational Decline 3

  21. Change Forces Change Resistance Forces Managing Change 4

  22. Forces for Change • External forces • Marketplace • Governmental laws and regulations • Technology • Labor market • Economic changes • Internal Forces • Changes in organizational strategy • Workforce changes • New equipment • Employee attitudes

  23. Managing Change Managing resistanceto change What not to do whenleading change Different changetools andtechniques 4

  24. Managing Resistance to Change Unfreezing ChangeIntervention Refreezing • Share reasons • Empathize • Communicate • Benefits • Champion • Input • Timing • Security • Training • Pace • Top management support • Reinforce 4.1

  25. Managing Resistance to Change • Why People Resist Change? • The ambiguity and uncertainty that change introduces • The comfort of old habits • A concern over personal loss of status, money, authority, friendships, and personal convenience • The perception that change is incompatible with the goals and interest of the organization

  26. Education and Communication Participation Negotiation Managerial Support Coercion Managing Resistance to Change 4.1

  27. Unfreezing • Not establishing a great enough sense of urgency. 2. Not creating a powerful enough guiding coalition. Change 3. Lacking a vision. 4. Undercommunicating the vision by a factor of 10. 5. Not removing obstacles to the new vision. 6. Not systematically planning for and creating short-term wins. Refreezing 7. Declaring victory too soon. 8. Not anchoring changes in the corporation’s culture. Errors Made when Leading Change 4.2 Adapted from Exhibit 7.8

  28. Results-Driven Change General Electric Workout Transition Management Teams Organizational Development Change Tools and Techniques 4.3

  29. Create measurable short-term goals to improve performance 2. Use action steps only if likely to improve performance • Stress the importance of immediate improvements 4. Consultants and staffers should help managers achievequick improvements in performance • Test action steps to see if they yield improvements • It takes few resources to get results-driven change started Results-Driven Change 4.3 Adapted from Exhibit 7.9

  30. General Electric Workout Day • Boss discusses agenda and targets specific business problems, then leaves • Outside facilitator works with teams, who debate solutions • “Town Meeting” • teams make suggestions • boss must decide on the spot—agree, say no, or ask for more information 4.3

  31. Transition Management Team • A team of employees whose full-time job is to manage and coordinate change • Anticipate and manage employee reactions to change • Work with the CEO to… • decide on change projects • select and evaluate people in charge • make sure change projects are complementary 4.3

  32. Transition Management Team Primary Responsibilities of TMT • Establish a context for change and provide guidance. • Stimulate conversation. • Provide appropriate resources. • Coordinate and align projects. • Ensure congruence of messages, activities, policies, and behaviors. • Provide opportunities for joint creation. • Anticipate, identify, and address people problems. • Prepare the critical mass. 4.3 Adapted from Exhibit 7.10

  33. Organizational Development • A philosophy and collection of planned change interventions • Designed to ensure organizations long-term health and performance • Change Agent • the person formally charged with guiding a change effort • can be an internal or external person 4.3

  34. Organizational Development General Steps for Organizational Development Interventions • Entry • Startup • Assessment and Feedback • Action Planning • Intervention • Evaluation • Adoption • Separation 4.3 Adapted from Exhibit 7.11

  35. LARGE SYSTEM INTERVENTIONS Sociotechnical systems Survey feedback SMALL GROUP INTERVENTIONS Team building Unit goal setting PERSON-FOCUSED INTERVENTIONS Counseling/Coaching Training Kinds of OD Interventions 4.3 Adapted from Exhibit 7.12

  36. Changing the Work Setting 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 55% Changing the People 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 57% Changing Individual Behavior & Organizational Performance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 76% What Really Works Change the Work Setting or Change the People?