Change Management and Innovation Chapter 2

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comfort zone and baseline behavior
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routines which become a box for us that allows us to be productive and to move forward efficiently without testing everything we do, but also a box that constrains us and inhibits our thinking about trying new things
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externally motivated change
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forced upon us by external forces. the dangers are many: being too late in the market, taking a compliant instead of an excelling mind-set, missing a market, and half-hearted or haphazard implementation
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disconfirming data
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says that what we just did doesn’t work any more. Tries to pull us away from our baseline behavior and signal to us that we should try something new.
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General change process
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current comfort zone-encounter new data-disconfirming data-hurt or pain-deny, distort, discount, ignore, baseline behavior
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positive results
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new baseline is established and one continues on it until new disconfirming data come in.
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experimentation phase
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needs to be strong and consistent reinforcement in order to settle on the new way of doing things
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outside agents
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very helpful in managing change because they can see things that have become invisible habits to those in the change arena.
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level three
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any change that modifies the basic values and assumptions of an individual or organization. value level change, is the most enduring
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first role of outside help in managing change:assembling and presenting the disconfirming data itself
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done better than an individual or employees working within a firm
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second role of outside help in managing change: identifying alternative courses of action
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Because we have been operating in our comfort zone, we don’t see clearly what other ways of doing things there might be. Getting a consultant or a new executive from another industry can be very helpful in developing a new view of what’s possible.
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A third place where external viewpoints are helpful: interpreting the data from the new experiment
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If we are defensive, we may interpret the new data negatively and even subconsciously manage the experiment so that it fails.
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Steps for managing change
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1. clarifying disconfirming data 2. building a change team 3. designing and leading change experiments 4. relentlessly reinforcing results with the vision
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clarifying disconfirming data
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creating new visions of what’s possible and then galvanizing people in that direction.
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building a change team
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You cannot lead change by yourself.
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designing an leading change experiments
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Well-designed experiments require clear goals and objectives, substantial training for how to achieve those goals, coaching and support when fledgling attempts don’t go well, and lots of positive reinforcement when the behavior moves in the desired direction.
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relentlessly reinforcing results with the vision
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positive reinforcements have a powerful effect on behavior. Sometimes the innate, natural results of a situation will be sufficient to “reward” people for their efforts.
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Michael Beer’s model of change
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the amount of change in a system is equivalent to the amount of dissatisfaction with the status quo times the clarity of the model of where we want to go times the strength of the change process when that product exceeds the cost of making the change. Cv = Dsq x Mf x Pc > Cc. unless people are unhappy with the way things are, they aren’t likely to change, and even if they’re unhappy, unless they can see a way to change things and how they want to change things, they aren’t likely to engage in the process.
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Many forms of denial
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1. anger 2.bargaining 3. despair 4. seeing possibilities 5. hope 6. experimentation 7. integration
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John Kotter’s Model of Change
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A change model that begins with establishing urgency and that emphasizes communication and coalition-building. 1. Create a sense of urgency. 2. Create a guiding coalition. 3. Create a clear vision and strategy. 4. Over communicate. 5. Reorganize to remove barriers to change. 6. Celebrate short-term wins. 7. Consolidate little wins into initiatives. 8. Incorporate changes into the culture.
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Four P’s of change
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purpose, picture, plan, part.if people don’t see a purpose for the change, if they don’t see where they’re trying to go, if they don’t see a plan for how to get there, and if they don’t see a part that they can play in the plan, they’re not likely to participate in the change effort
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MIT Change management skill sets
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1. Persuasive Communication 2. Participation 3. Use of Expectations 4. Role Modeling 5. Using Extrinsic Rewards 6. Making Structural and Organizational changes 7. Coercing
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change factors
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Change elicits a myriad of emotions such as excitement, anger, sadness, frustration, fear, or anxiety.
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schemas
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an organized pattern of thought or behavior. Change threatens schemas. New ones need to be created to adapt to change but the old schemas may influence any new information.
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change agent
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one who initiates a change effort
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anticipatory change
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planned change. when an organization has the luxury of time and advance warning to manage the change in an informed and systematic way. Leaders role: futuristic, innovative, and strategic
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reactive change
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type of event triggered by external forces. Leaders are typically pressured to do something to solve the problem immediately. Leader’s role: pressured to solve the problem. could be from poor planning or lack of attention given to the signs around them.
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crisis change
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type of change triggered by a crisis. leader’s role: a possible test of leadership skills and a leader’s temperament
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evolutionary change
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happens in increments. It is slow and takes place gradually and over time. It is accomplished by encouraging people to participate and contribute towards designing the goals and plan for the change. leader’s role: coaching and supporting cause change to occur in a calculated and controlled manner
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revolutionary change
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the change often happens whether or not those having to accomplish it want it or think it is a good idea. leader’s role: top down directive. leaders need to be decisive as time is of the essence.
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Lewin’s model of change
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a descriptive change model based on three steps: unfreezing, changing, and freezing
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unfreezing
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People in the organization made aware of problems/performance gap and need for change. driven by a change agent
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changing
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People experiment with new workplace behavior to deal with needed change. specific training plans for managers and employees
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freezing
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People employ new skills and attitudes and are rewarded by the organization. changes are institutionalized in the corporate culture
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Kotter’s eight steps for change
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a change model that begins with establishing urgency and that emphasizes communication and coalition building
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McKinsey’s 7 S Framework
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Structure, strategy, systems, skills, style, staff, and shared values
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hard elements
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composed of strategy, structure, and systems. Management can directly control and influence these elements. company’s approach to its clients (strategy), restructure her department by establishing sales team leaders (structure) and then shift to zero-based-budgeting (system).
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soft elements
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include skills, staff, and style, and are more influenced by the organizational culture and less by management. long-serving employees who resist change (staff), it may reward managers who take few risks (style), and its employees may be particularly adept at integrating technology (skills).
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Strengths of McKinsey’s framework
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It offers organizations a diagnostic tool for assessing readiness for change and can also help pinpoint those areas that need better alignment with any proposed change. The model also takes into account the human factor in change.
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Weaknesses of McKinsey’s framework
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as overly complex. Figuring out the interdependence of the elements can be difficult. The framework does not offer a sequence of actions; organizations have to construct an additional plan for any change efforts.
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ADKAR model for change
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five-step process for managing change for individuals. awareness, desire, knowledge, ability, and reinforcement.
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Cisco change model
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prepare; Implement; Manage.
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General Electric’s Change Acceleration Process
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the Change Effectiveness Equation which is Q x A = E (the effectiveness (E) of any change initiative is equal to the product of the quality (Q) of the technical strategy and the acceptance (A) of that strategy.
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keys to GE CAP
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Drive leadership awareness and strategic support for the initiative Provide 360º view: positive/negative, top/bottom, internal/external Develop solid, consistent plans for communication Document sustainable implementation plans Devote time and resources to changing systems and structures Align CAP with management strategies to reinforce change Instill effective tracking and accountability mechanisms Link Change Agent role of CAP coaches to performance review
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American Express change model
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1) Scope the change; 2) Create a vision; 3) Drive commitment; 4) Accelerate the transition; and 5) Sustain momentum.
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descriptive models
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a category of change models used to understand what is going on in an organization. Types of changes that are possible are a total system redesign or restructuring of the organization. (Lewin’s Model and McKinsey’s 7-s)
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prescriptive models
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A category of change models used for developing a step-by-step process for change.. (Kotter’s 8 steps, ADKAR, Cisco, GE, and American Express)
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Diffusion of Innovation Theory
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model that seeks to analyze why and how innovations become popular in a community.
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Everett Rogers’ Stages of the adoption process: knowledge
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People become aware that the technology exists. In the beginning awareness is spread primarily through media channels.
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Stages of adoption process: Persuasion
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Individuals are interested in the innovation. They examine information (either independently or presented by a persuader). Social channels are more important at this stage (who is already using it?)
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Stages of adoption process: Decision
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Individuals consider the evidence, weigh the options, and make a decision.
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Stages of adoption process: Implementation
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The decision on adoption is not yet final. Adopters employ the innovation and look for more information as to how to make use of it effectively and in what capacity.
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Stages of adoption process: Confirmation
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Adopters decide whether to continue using the innovation.
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Rogers theory
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as successive groups of consumers adopted an innovation, its market share would eventually reach the saturation level.
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Profiles of adopters: innovators
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creates and pioneers innovation.
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Profiles of adopters: early adopters
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first group to adopt innovation. they typically have the means to experiment with new products without worrying about financial consequence.
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Profile of adopters: early majority
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these people accept moderate innovation, are cost-sensitive and they need to be convinced by evidence to show that the benefits present an improvement over the current standards.
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Profile of adopters: late majority
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This group is slightly less comfortable with innovation. They need to be convinced that the innovation is the new standard and shown that the majority of people already use it. This group commonly adopts out of fear of being left behind.
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Profile of adopters: laggards
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This group is risk-averse and resists change until they are convinced that it is safe. They share similar hesitations felt by the majority, but they are harder to convince, even with evidence.
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Christensen’s Disruptive Innovation Model
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a model that looks at the impact on organizations and industries of disruptive technological innovation
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Four characteristics of disruptive innovations
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1. They create new markets by creating a new kind of product or service; 2. The new product or service from the new technology costs less than existing products or services from the old technology; 3. While initially the new products under-perform for mainstream customers, they eventually catch up and meet their needs; 4. The technology is difficult to protect using patents.
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New market disruption
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occurs when a product is introduced to fill a need that current technologies, products, or methodologies cannot address.
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contingency planning
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planning for the response of situations that may occur such as emergencies or setbacks
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trigger event
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an occurrence that itself results in the risk event happening

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