Chapter 7; Change Management

5 stages of Organizational Decline
Blinded
Inaction
Faulty Action
Crisis
Dissolution
managing Change
resistance to change is casued by self-interest, misunderstanding and distrust, and a general intolerance for change.
8 Reasons for resistance of change
1. Fear of the unknown
2. Fear for loss of security
3. Fear for loss of power
4. Lack of good information
5. Lack of resources
6. No reason to change
7. Bad timing
8. Habit
Managing Resistance to Change
Unfreezing:
Share reasons, empathize, Communicate. getting the people to believe change is needed.

Change Intervention:
Benefits, Champion, Input, Timing, Security, Training, Pace. Workers and managers change their behavior and work practices.

Refreezing:
Top Management Support, Reinforcement. Supporting and reinforcing the new changes so they “stick”.

Errors Made when Leading Change
Unfreezing:
1. 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 th new visions
6. Not systematically planning for and creating short-term wins.

Refreezing:
7. Declaring Vicotry too soon
8. Not anchoring changes in the corporations culture

Technology Cycles
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.
looks like an S curve
Expanding Sources of Innovation
Look outside the organization. Customers are a great source of innovation
Continuous Change: 3M
Operates with a 30/5 Goal – 30% of its sales each year must come from products less than 5 years old. Innovation is inconsistent with rewards
Innovation Streams
Patterns of Innovation over time that can create sustainable competitive advantage.
Technological Discontinuity
A scientific Advancement or unique combination of existing technologies that creates a significant breakthrough in performance or function
Innovation Streams Cont
An innovation stream begins with a technoligical discontinuity, in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function. Technological discontinuities are followed by a discontinuous change which is characterized by technological substitution and design competition

Discontinuous change is followed by the emergence of Dominant Design.

Good example is radio to cassette player, to cd, to ipod

Components of Creative Work Environments
Creative work environment requires three kinds of encouragement: organizational, supervisory, and work group encouragement
Organizational Encouragement
Occurs when management encourages risk taking, and new ideas, supports and fairly evaluates new ideas, rewarss and recognizes creativity and encourages the sharing of new ideas throughout diffferent parts of the company.
Supervisory Encouragement
Occurs when supervisors provide clear goals, encourage open interaction with subordinates, and actively support development teams’ work and ideas.
Wotrk Group Encouragement
Occurs when work group members have diverse experience, education, and backgrounds; when there is a mutual openness to ideas; when there is positive, constructive challenge to ideas. and when there is shared commitment to ideas.
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