MGMT349 - CH7

Organizational Innovation: Refers to the implementation of new ideas and practices that can positively affect all aspects of an organization.
Technology Cycle: The cyclical process of technological development and decline, known as the KTM MSC System.

Progress within Innovation: It typically follows an S-Curve model:
- Slow Phase: Initial slow progress as a new technology or innovation is developed and understood.
- Rapid Phase: A significant burst of innovation occurs as the technology gains acceptance and is adopted broadly.
- Slow Phase Again: Eventually, progress tends to slow down as the technology matures.
Slope of the Curve: The steepness of the curve indicates the rate of innovation:
- Steep Slope: Indicates rapid innovation and adoption.
- Flat Slope: Indicates slower growth or maturity of the innovation.

Definition: Represent patterns of innovation that evolve over time, creating competitive advantages for organizations.
Phases of Innovation:
- Technological Discontinuity: A significant disruption in technology leading to new designs and opportunities.
- Discontinuous Change: Represents radical innovations that disrupt existing technologies.
- Dominant Design: The design or architecture that becomes recognized as the standard following a period of competition.
- Incremental Change: Gradual improvements made to existing designs and technologies.

Creative Work Environment: Building an ecosystem where creativity can flourish is crucial for innovation.
Approaches to Managing Innovation:
- Experiential Approach: Focuses on learning through experience. Best suited for managing discontinuous change:
  - Key methods include:
  - Design Iteration: Continuously refining design based on feedback.
  - Testing: Systematically testing innovations to validate ideas.
  - Milestones: Establishing milestones to track progress.
  - Multifunctional Teams: Involving employees from different departments to foster diverse perspectives.
  - Powerful Leaders: Leadership that promotes creative and innovative thinking.
- Compression Approach: Suitable for incremental innovation:
  - Assumes that incremental innovations can be planned through a systematic process involving:
  - Planning: Careful strategy development.
  - Supplier Involvement: Engaging suppliers early in the innovation process.
  - Shortening Steps: Reducing the time taken to accomplish each step in the innovation process.
  - Overlapping Steps: Ensuring tasks are completed concurrently rather than sequentially.
  - Multifunctional Teams: These teams are also critical in speeding up the innovation process.

Definition: Occurs when an organization fails to anticipate, recognize, or adapt to pressures that threaten its existence.
Stages of Decline:
- Blinded Stage: Organizations are unaware of external changes influencing their status.
- Inaction Stage: An unwillingness to act despite awareness of issues.
- Faulty Action Stage: Taking ineffective measures that do not resolve the issues.
- Crisis Stage: Severe ramifications that threaten survival.
- Dissolution Stage: The eventual collapse or closure of the organization.

Types of Forces:
- Change Forces: Drivers that compel organizations to adapt.
- Resistance Forces: Factors or attitudes that resist change efforts.
- Understanding Resistance to Change: Recognizing why and how individuals or groups resist change is vital for successful implementation of new strategies.

Three Key Steps in Managing Change:
- Unfreezing: Making individuals aware of the need for change to prepare them for new behaviors.
- Change Intervention: Implementing the actual changes needed in behaviors and practices.
- Refreezing: Ensuring that the changes stick and become part of the corporate culture.

Methods for Overcoming Resistance:
- Education: Informing employees about the benefits of change.
- Communication: Clear and consistent messages about the change process.
- Participation: Involving employees in the change process promotes buy-in.
- Negotiation: Discussing terms and addressing concerns directly.
- Top-Management Support: Visible support from leaders shows commitment to change.
- Coercion: Used as a last resort to enforce change when necessary.

Unfreezing Phase:
- Failure to establish a sense of urgency.
- Not forming a strong enough coalition of support.
Change Phase:
- Lack of a clear vision for the change.
- Undercommunicating the vision, often by a factor of ten.
- Failing to remove obstacles that hinder change implementation.
- Not strategically planning for and creating short-term wins.
Refreezing Phase:
- Declaring victory too soon before changes have been solidified.
- Not anchoring changes into the culture of the organization, resulting in regression.

Focus on Results: Changes should be driven by measurable outcomes and effectiveness.
- Results-Driven Change: Prioritize change initiatives that show immediate results.
- General Electric Workout: A structured three-day meeting approach for teams to address business problems through collaborative solutions.
- Organizational Development: A collection of approaches aimed at enhancing health and performance through planned change interventions.