CHAPTER 4Leading Change and
Innovation
4-1Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In
Organizations
Learning Objectives
After studying this chapter, you should be able to:
Understand the different reasons for resisting change.
Understand the psychological processes involved in making major changes.
Understand how to develop an appealing vision for the organization.
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 4-2
Learning Objectives (Cont.)
Understand how to implement a major change in an organization.
Understand the characteristics of a learning organization.
Understand how leaders can increase learning and innovation in organizations.
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 4-3
LEARNING OBJECTIVE 1
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 4-4
Understand the different reasons for resisting change
Reasons for Resisting Change
No clear justification for change Feasibility of proposed change Unsuccessful earlier change efforts Lacking self-confidence Tangible cost/benefit Individual loss Inconsistency with individual values Lack of trust
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 4-5
LEARNING OBJECTIVE 2
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Understand the psychological processes involved in making
major changes
Lewin’s Change Model
Unfreeze
Change
Refreeze
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Change Reaction Stages
Denial
Anger
Mourning Adaption
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Influence of Prior Change Experience
General Self-Confidence
“Inoculation” hypothesis
Less resilience hypothesis
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LEARNING OBJECTIVE 3
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 4-10
Understand how to develop an appealing vision for the
organization
Developing a Vision
Qualities of an effective vision Simple and idealistic Appeals to values Emphasizes future objective Challenging Realistic Addresses what is important Focused but not confining
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Elements of a Vision
Mission Statement Value Statement Slogans Strategic Objectives Project Objectives
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Guidelines for Vision Development
Key stakeholders Shared values and ideals Strategic objectives with wide appeal Relevant elements in the old ideology Link vision to core competencies Continually assess and refine the vision
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LEARNING OBJECTIVE 4
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 4-14
Understand how to implement a major change in an
organization
Implementing Change
Determine what to change
Systems Dynamics
Responsibility
Pace and Sequencing
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Guidelines for Implementing Change
Create urgency Communicate vision Identify supporters and opponents Build coalition Use change agents Make symbolic changes
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Guidelines for Implementing Change (Cont.)
Prepare people for change Deal with stress Provide early successes Monitor progress Communicate progress Demonstrate optimism
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LEARNING OBJECTIVE 5
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 4-18
Understand the characteristics of a learning
organization
Collective Learning and Innovation
Internal creation
External acquisition
Knowledge Diffusion
Learning Organizations
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 4-19
LEARNING OBJECTIVE 6
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership In Organizations 4-20
Understand how leaders can increase learning and
innovation in organizations