Change and Innovation by Prof. Esponilla
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Transcript of Change and Innovation by Prof. Esponilla
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CHANGE ANDCHANGE AND
INNOVATIONINNOVATION
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Learning Outcomes:Learning Outcomes:
Describe what change variables are within amanagers control;
Identify external and internal forces of change;Explain how managers can serve as change agents;Contrast the calm waters and whitewater
rapids metaphors for change;Explain why people are likely to resist change.
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Learning Outcomes:Learning Outcomes:
Describe techniques for reducing resistance to change;
Identify what is meant by the term organizationaldevelopment and specify four popular techniques;
Explain how organizations can stimulate innovation.
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BackgroundBackground
WhyWhychange?change? Change management theoryChange management theory Change at UWLChange at UWL
A change management frameworkA change management framework ConclusionConclusion -- reflectionsreflections
OVERVIEWOVERVIEW
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Fact of lifeFact of life
Environmental factorsEnvironmental factors
Government, university, socialGovernment, university, social
The Boss wants itThe Boss wants it Things could be betterThings could be better
WHY CHANGE?WHY CHANGE?
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Define the currentstate (OSA, SWOT)Definethe currentstate (OSA, SWOT)
Definethefuture state (Scenarios)Definethefuturestate (Scenarios)Determine keysponsorsandDetermine keysponsorsand
implementersimplementers
Adjustenvironment,feedback,rewardsAdjustenvironment,feedback,rewards
ReviewprogressagainstmetricsReviewprogressagainstmetrics
CHANGE MANAGEMENT THEORYCHANGE MANAGEMENT THEORY
WHATS MISSING?
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What is change?What is change?
OrganizationalchangeAnyalterationsinthepeople,structure,ortechnologyofanorganization
Characteristicsofchange1. Isconstantyetvariesindegreeand
direction
2. Producesuncertaintyyetisnotcompletelyunpredictable3.Createsboththreatsand
opportunities
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The manager as change agentThe manager as change agent
ChangeagentsPeoplewhoactascatalystsandassumethe
responsibilityforchangingprocessarecalled
changeagents.
TypesofchangeagentsManagers:internalentrepreneurs
Non-managers:changespecialists Outsideconsultants:changeimplmentations experts
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Communication!Communication!
IATUL June 04
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Limitedstaffparticipation,hierarchyLimitedstaffparticipation,hierarchyruledruled
NotmovingwiththetimesNotmovingwiththetimes Newservicesneeded,limitedresourcesNewservicesneeded,limitedresources ClientsClients--littleinvolvement,nolittleinvolvement,no
measuresmeasures
VirtuallynostaffdevelopmentVirtuallynostaffdevelopment Libraryaproblem,notasolutionLibraryaproblem,notasolution Culture?Culture?Whotalkedaboutculture?Whotalkedaboutculture? Orleadership?OrVision?Or..Orleadership?OrVision?Or..
CHANGE ATCHANGE AT FAILURESFAILURES-- WHY?WHY?
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SomesuccessfulimprovementSomesuccessfulimprovementprojectsprojects
e.g.staffdevelopment,performancee.g.staffdevelopment,performanceappraisalappraisal
Whatwelearned:Whatwelearned: AllowtimeAllowtime AcceptdifferentperceptionsAcceptdifferentperceptions TrainingandfacilitatingvitalTrainingandfacilitatingvital
CHANGE AT UWLCHANGE AT UWL -- Pre QAPre QA
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Business Excellence Framework
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learningand
adapting
monitoring
andevaluatingimplementing
anddoing
thinkingand
planning
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learningand
adapting
monitoring
andevaluatingimplementing
anddoing
thinkingand
planning
Define the current state
Define the future state
Determine key sponsors
And implementers
Adjust environment feedback
and rewards
Review progress against
metrics
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Its easy to make mistakes when attempting toIts easy to make mistakes when attempting toimplement change . . .implement change . . .
*Failedtoprovidevisiblesupportandreinforcethechangewithother managers
*Didnottakethetimetounderstandhowcurrentbusinessprocesseswouldbeaffectedbychange
*Delayeddecision-making,whichleadstolowmoraleandslowprojectprogress
*Werenotdirectlynoractivelyinvolvedwithchangeproject*Failedtoanticipatetheimpactonemployees*Underestimatedthetimeandresourcesneeded*Abdicatedownershipoftheprojecttoanothermanager*Failedtocommunicateboththebusinessreasonsforthe
changeandtheexpectedoutcometoemployeesandothermanagers
*Changedtheprojectdirectionmid-stream*Didnotsetclearboundariesandobjectivesfortheproject
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Managing resistance toManaging resistance tochangechange
Whydopeopleresistchange?
Theambiguityanduncertaintythatchangeintroduces.
ThecomfortofoldhabitsAconcernoverpersonallossofstatus,money,
authority,friendships,andpersonalconvenience.
Theperceptionthatchangeisincompatiblewiththegoalsandinterestoftheorganization.
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Issues in managing changeIssues in managing change
Makingchangehappensuccessfully:
Embracechangebecomeachange-capableorganization.
Createasimple,compellingmessageexplainingwhychangeisnecessary.
Communicateconstantlyandhonestly. Fosterasmuchemployeeparticipationas
possiblegetallemployeescommitted.
Encourageemployeestobeflexible. Removethosewhoresistandcannotbechanged.
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Change ManagementChange Management -- ElementsElements
ChangeManagementismadeupofthreeequalelements:
-Change PlanWhatandwhyyouwanttochange
-DeploymentPlanHowyouwillgettheunittochange
- ImplementationPlanHowtheunitwillexecuteWhattheunitwilldo
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Characteristics of changeCharacteristics of change--capablecapableorganizationorganization
Linkthepresentandthefuture.
Makelearningawayoflife.
Activelysupportandencourageday-to-dayimprovementsandchanges.
Ensurediverseteams.
Encouragemavericks.
Shelterbreakthroughs.
Integratetechnology.
Buildanddeepentrust.
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Why Innovation?Why Innovation?
Togetpeoplethinkingnotonly
aboutdoingtheirjobs,buthowtomaketheirjobbetter,
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iNniNnoovvaattiioonn
What is it?concerned with the new or the novel.
Distinction between innovation and invention?
Is innovation technology based? Many of the more
significant innovations of the 20th century areorganizational rather than technology based.
*** Simply meansputtingideasinto valuableaction.*** Introduction of methods, things orideasbrought about by change
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Some useful definitionsSome useful definitions
FritzMachlupwrotein1962,Oughtweperhapstoavoid theterminnovationsinceitissopromiscuouslyusedforavarietyofmeanings.
BuildingonSchumpetersusefuldefinitionbetweeninventionandinnovation Inventionimpliesbringingsomethingnewintobeing;innovationimpliesbringingsomethingnewintouse.
Innovationhasbeendefinedasthesuccessfulintroductionintoanappliedsituationofmeansorendsthatarenewtothatsituation.
(Mohr,1969,quotedinCummingsandOConnell,1978,p.34)
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Aninnovationmaythereforebeathing!
Whetherartefact, productorprocess
orindeed service, systemorinfrastructure
Theinnovationprocess shouldalsoberemembered.
Needtodifferentiatebetweentypesofinnovationandstagesofadoptiontofacilitate developing usefultheoriesoforganizationaldevelopment.
Distinguishbetween:Productand processinnovationsTechnicalandorganizationalinnovationsRadicalandincrementalinnovations
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Categories of ChangeCategories of Change
(Exhibit 13(Exhibit 13--1)1)
STRUCTURE
Authority
relationships
Coordinating
mechanisms
Jobredesign
Spans of
control
PEOPLE
Attitudes
Expectations
Perceptions
Behaviour
TECHNOLOGY
Workprocesses
Work methods
Equipment
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External Forces of ChangeExternal Forces of Change
Marketplace Government lawsandregulations
Technology
Economic
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Internal Forces of ChangeInternal Forces of Change
Corporatestrategy
Theworkforce
Technologyandequipment Employeeattitudes
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Change AgentsChange Agents
OutsideConsultants
StaffSpecialistsManagers
C
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The Calm Waters MetaphorThe Calm Waters Metaphor
Unfreezing Changing Refreezing
Lewins Three-Step Process
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Lack ofStability
The White-Water Rapids
Metaphor
Lack ofPredictability
VirtualChaos
ConstantChange
C
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Resistance to ChangeResistance to Change
Fear of losing
something
of value
Individual
Resistance
Belief that change
Is not good for
organization
Fearof
unknown
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ReducingResistance to ChangeReducingResistance to Change
Educationand communication
Participation
Facilitationandsupport Negotiation
Manipulationand co-optation
Coercion
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Management of Innovation
Some Important Issues
Within an organisationFundamental tensionbetweenstability andcreativity
Conflict between top andlower tiers?
Betweenstrategy making andlocal autonomy?
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Mainsourcesandstrategies
forinnovation
Innovationisworkrather thangenius,andvery much a
matterofdiscipline (PeterF Drucker, 1985)
Concept of uncertainty matrix offers characteristicswhich reduce
therisks ofinnovation (AlanWPearson, ).
Knowledge creationandinnovation: Fourstandpoints
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Managingand Facilitating Innovation:Managingand Facilitating Innovation:
NewBusiness Ideasand IPRNewBusiness Ideasand IPR
Strategic InnovationStrategic Innovation
What allsuccessfulentrepreneurs haveisnot a certainkind of
personalitybut a commitment to thesystematic practice ofinnovation.
Allsizes ofbusinessesengagein highlysuccessfulentrepreneurship.
Henceit isanactivity!! At the heart of that activityisinnovation.Sources of innovation:
*Withina company: Unexpected occurences
Incongruities
Process needs
Industry and market changes
*Outsidea company: Demographic changesChanges in perception
New knowledge
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ManagingManaging Innovation:Innovation:an uncertainty reduction processan uncertainty reduction process
Innovationmeanschange.Suchchangescanbeincrementalorradical,evolutionaryorrevolutionary,enablingordisruptive.Theycanhave
differenteffectsuponproducersandusers.
intuitive..tumultousprocessIndividualdiscoveriestendtobehighlyindividualisticandserendipitous,advanceschaoticandinteractive,andspecificoutcomesunpredictableandchancyuntiltheverylastmoment(Quinn, 1986).
Technologicalinnovationisthereforeamessyprocess!
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InnovativeBright Ideas:InnovativeBright Ideas:
Makinginformaldecisions.
Defining utilityneeds.
Realizingreturn oninvestment.
Allocationstrategies.
Hadsomething to do with MBO.
According to Thurston,Bright Ideassets upaprocess to get thoseideasin
front of theright people. Its theinternalversion of technology transfer, he
said.
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Innovation starts when people convert problems to ideas.New ideas are born through questions, problems and obstacles.The process of innovation is indebted to the trouble that comesabout when we are surrounded by that which is not solved, notsmooth and not simple. Therefore, in order for the innovationprocess to flourish, it needs a climate that encourages inquiryand welcomes problems.
Innovation needs a system. All organizations have innovationsystems. Some are formal, designed by the leadership, andsome are informal, taking place outside established channels.Informal channels are untidy and inefficient, yet innovation isalways associated with them.
Passion is the fuel, and pain is the hidden ingredient. Ideasdo not propel themselves; passion makes them go. Passion, inaddition to talent and skill, is a valuable company asset. Passionis what transforms other resources into profits, but it nevershows up on a balance sheet. Unfortunately, there seems to besome universal law that says when pursuing a passion orfollowing a dream, pain is part of the process. Innovation leadersneed to take the pain with the passion and learn to manage botheffectively.
PRINCIPLES OF INNOVATION:
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Co-locating drives effective exchange. Co-locationrefers to physical proximity between people. It is a key forbuilding the trust that is essential to the innovationprocess. It also increases the possibility for greaterexchange of information, cross-fertilization of ideas, and
stimulation of creative thinking in one another and critiqueofideas during theirformative stage.
Differences should be leveraged. The differences thatnormally divide people such as language, culture,race, gender and thinking and problem solving styles can be a boon to innovation. When differences are usedconstructively and people move beyond fear, suspicion,mistrust and prejudice, differences can be leveraged toenhance and sustain the innovation process.
PRINCIPLES OF INNOVATION:
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Industrial Innovative Concepts:Industrial Innovative Concepts:
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Stimulating and nurturingStimulating and nurturinginnovationinnovation
Structuralvariables:
Adoptanorganicstructure
MakeavailableplentifulresourcesEngageinfrequentinter-unit
communicationMinimizeextremetimepressureson
creativeactivitiesProvideexplicitsupportforcreativity
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Stimulating and nurturingStimulating and nurturinginnovationinnovation
Culturalvariables:
Acceptambiguity Toleratetheimpractical Havelowexternalcontrols Toleraterisktaking Tolerateconflict
Focusonendsratherthanmeans Developanopen-systemfocus Providepositivefeedback
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Stimulating and nurturingStimulating and nurturinginnovationinnovation
Humanresourcevariables:
Activelypromotetraininganddevelopment
tokeepemployeesskillscurrent.
Offerhighjobsecuritytoencouragerisk
taking.Encourageindividualtobechampionsofchange.
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ACTIONACTION
DREAMSDREAMS
PASSIONATE DESIREPASSIONATE DESIRE
STRATEGYSTRATEGY
&&INNOVATIONINNOVATION
REALITYREALITY
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Types of InnovationTypes of Innovation
ProductsandservicesInnovationapplied toproducts orservices ormarket relatedactivities
OperationalInnovation that improves theeffectivenessandefficiency of coreprocessesand
functions
Business modelInnovation that fundamentallytransforms thewayabusinessworks ordrives
revenue.
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What do innovators do?What do innovators do?
Connectunconnectable Dream,Dream,Dream Seebeyondwhatisvisible Expecttheunexpected Enjoycontradictions,shunconsistency Remember:Experimentsneverfail,
minddoes
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Createanexternalfocus
-definesuccessinmarketterms
Beaclearthinker-simplifystrategyintospecificactions,makedecisionsandcommunicatepriorities
Haveimaginationandcourage-takerisksonpeopleandideas
Energizeteamsthroughinclusiveness
-connectwithpeople,buildbothloyaltyandcommittment
Developexpertiseinafunctionordomain-usedepthasasourceofconfidencetodrivechange
Focus onPeople
Traits
ofanInnovatio
n
Leader
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How to be an InnovativeHow to be an InnovativeOrganizationOrganization
CreateaStrategicVision EstablishInnovationasaPriority Create OrganizationalStructures
thatPromoteCollaboration
EstablishProcessestoConvertIdeastoInnovations
AllocateResources TrainWorkforceonCreativityTools Measure &CommunicateResults RecognizeCreative Behavior RewardInnovativeResults
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Stress
in theWorkplace
Constraints
Opportunities
Demands
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StressorsStressors
Personal
Personality
FamilyFinances
Organizational
TaskdemandsRoledemands
Interpersonal
Structure
Leadership
STRESS
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Ways to Reduce StressWays to Reduce Stress
Propermatch ofemployees to job
Clearexpectations
Employeeassistanceprograms Wellnessprograms
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What IsCreativity?
Combiningnewideasin
uniqueways ormaking
unusual connections
What Is
Innovation?
Process of taking creative
ideaand makinginto a
usefulproduct,service,
ormethod of operation
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InnovationProcessInnovationProcess
Perception
Innovation
Incubation
Inspiration
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INOVATION MUST FIRSTBEGIN BY CHANGING
YOURPERSONAL
CULTURE,BEHAVIORS
AND ATTITUDES..