Innovation & Change

What must change for an organisation to change?

Capabilities, resources, processes, products, business models, or culture.

What shapes and reflects how people think and act in organisations?

Organisational culture.

Name two broad sources of drivers for organisational change.

External forces and internal forces.

Give four examples of external drivers of change.

Global economy/competition, local conditions, laws/regulations, technology, and social forces.

What happens inside a complex system when one part changes?

It often creates the need for change in other parts.

List the five traditional targets for organisational change.

Tasks, people, culture, technology, structure.

What does “organising for innovation and change” involve?

Arranging people and resources to achieve goals under new pressures.

Why are traditional structures being replaced?

IT advances and global competition demand faster, more flexible designs.

What do customers increasingly expect from organisations?

On-demand, personalised service.

Why can’t inflexible organisations survive?

They lack the speed, flexibility and efficiency needed in fast-changing markets.

What is a virtual organisation?

A shifting network of technology-linked alliances with minimal infrastructure.

How do virtual organisations treat traditional boundaries?

They blur boundaries among competitors, partners, customers and the firm.

Why do virtual organisations emphasise information flow?

Rapid sharing of information, resources and ideas lets the whole outperform the parts.

How do teams typically work inside virtual organisations?

As small, independent, geographically dispersed teams communicating electronically.

How do virtual organisations view internal hierarchy?

They use flat structures and empowered “super teams” to reduce internal barriers.

Why do virtual organisations need versatile “process teams”?

To handle many functions with fewer, highly skilled people.

What role does IT play in virtual organisations?

It is vital to overall strategy, not just an enabler.

What is a core-ring organisation?

A small permanent core surrounded by a ring of contractors, gig and part-time workers.

What advantage does the core-ring model provide?

Rapid scaling and fast adaptation to new business models.

What difficulty comes with extensive use of the “ring”?

Maintaining culture, learning and loyalty.

Describe the shamrock organisation’s three leaves

Core executives; self-employed specialists/contractors; peripheral flexible workers.

What defines compensation for core executives in the shamrock model?

Pay closely tied to organisational success.

How are specialists/contractors typically engaged and paid in the shamrock model?

Project-based engagement with performance-based pay.

What is a share-economy (platform) organisation?

A platform that connects buyers and sellers; employees run the platform, not the service.

What is a holacracy?

A flat, non-hierarchical structure where empowered teams make decisions.

How are roles handled in a holacracy?

People move between teams based on skills and organisational needs.

Define innovation.

Creating and implementing new or reimagined ideas that increase economic or social value.

Name five organisational levers that support innovation.

Strategy, culture, structure, staffing, and leadership.

What characterises an innovative culture?

Active encouragement of creative, even unorthodox thinking and support for risk-taking.

How can staffing support innovation?

Use outsourcing, gig workers and partnerships to access new ideas.

What do innovation leaders do?

Encourage ideas, tolerate criticism and diverse opinions, and back experimentation.

Define process innovation.

Creating better ways of doing things.

Define product innovation.

Developing new or improved goods and services.

Define business model innovation.

Creating new ways of generating revenue.

What is green/sustainable innovation?

Reducing environmental impact of the organisation or its products.

What is social innovation?

Applying innovation to societal problems; often led by social entrepreneurs creating social ventures.

What is commercialising innovation?

Turning ideas/inventions into profitable products, services or processes.

Define disruptive innovation.

Using new technologies to displace existing products, practices or competitors.

Who is a change agent?

A person or group responsible for altering systems or behaviours.

What distinguishes planned from unplanned change?

Planned is intentional to close performance gaps; unplanned occurs spontaneously and can be disruptive.

What is transformational change?

Major repositioning of vision, strategy, culture, structure and/or people.

Name the three phases of planned change.

Unfreezing, Changing, Refreezing.

What happens during unfreezing?

People develop and feel a real need for change.

What happens during the changing phase?

New behaviours, systems or processes are implemented.

What is the goal of refreezing?

Stabilise and reinforce the change with rewards and resource support.

Describe the force-coercion change strategy.

Use authority, rewards or punishment (direct forcing or political manoeuvring) to compel change.

Describe the rational-persuasion change strategy.

Use facts, expertise and logic to win support.

Describe the shared-power change strategy.

Engage people collaboratively to build commitment and consensus.

How should resistance to change be viewed?

As feedback that can improve the change and process.

List common causes of resistance.

Fear of the unknown, disrupted habits, loss of control/confidence/face, poor timing, overload, lack of purpose.

Name four tactics to reduce resistance.

Education/communication, participation/involvement, facilitation/support, negotiation/agreement.

What is the role of analytics in change?

Provide data on attitudes, resistance and progress to tailor strategies.

How does data-driven change help?

It balances business objectives with employee needs in uncertain, evolving contexts.

What is organisational culture’s role in change?

It sets values and expectations; strong positive cultures aid performance and innovation.

How are strong positive cultures built and sustained?

Through leadership tone and socialisation that align behaviours and attitudes.

What do mindfulness and workplace spirituality contribute during change?

They add meaning, trust, respect and ethical focus, helping people engage and adapt.