Case Analysis 2

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C10_Daft_OTD3Ce_Unit8.pptx

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PowerPoint Presentation for

Organization Theory & Design

Richard L. Daft

Ann Armstrong

Created for the Third Canadian Edition

Chapter 10, Slide 1

Part 5 Managing Dynamic Processes

Chapter 10 Innovation and Change

Chapter 10, Slide 2

Chapter Snapshot

Innovate or Perish: The strategic role of change

Elements for successful change

Technology change

New products and Services

Strategy and structure change

Cultural change

Strategies for implementing change

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Chapter 10, Slide 3

The Strategic Role of Change

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Chapter 10, Slide 4

The Strategic Role of Change – Cont’d

Incremental versus Radical Change

Incremental – Continual progression

Radical – Transformation

Strategic Types of Change

Product and service changes

Strategy and structure changes

Culture changes

Technology changes

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Chapter 10, Slide 5

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The Strategic Role of Change – Cont’d

Chapter 10, Slide 6

Elements for Successful Change

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Chapter 10, Slide 7

Technology Change

Ambidextrous Approach

To be both organic and mechanistic, managers implement an ambidextrous approach.

Structures and management processes that push innovation

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Chapter 10, Slide 8

Technology Change – Cont’d

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Chapter 10, Slide 9

Technology Change – Cont’d

Techniques

Switching Structures

- Create an organic structure

Separate Creative Departments

- Department for innovation

Venture Teams

- A small company within the organization

Corporate Entrepreneurship

Promote entrepreneurial spirit

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Chapter 10, Slide 10

New Products and Services

Reasons for New Product Success

Innovating companies understand customers.

Innovating companies successfully use technology.

Top management supports innovation.

Horizontal Coordination Model

Specialization

Boundary spanning

Horizontal coordination

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Chapter 10, Slide 11

New Products and Services – Cont’d

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Chapter 10, Slide 12

New Products and Services – Cont’d

How Business Unwittingly Stifles New Ideas

Roger Martin, dean, Rotman School of Management, at U of T discusses the conflict between the goals of validity and reliability and offers his perspective on finding the optimum balance

www.youtube.com/watch?v=uH1Lcgo31cc&feature=related

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Chapter 10, Slide 13

Strategy and Structure Change

The Dual-Core Approach

Organizational Design for Implementing Administrative Change

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Chapter 10, Slide 14

Culture Change

Forces for Cultural Change

Re-engineering and horizontal organizing

Diversity

Learning organization

Example:

WestJet sees itself as part of the hospitality industry, not the airline industry.

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Chapter 10, Slide 16

Strategies for Implementing Change

Leadership for Change

Barriers to Change

Excessive focus on costs

Failure to perceive benefits

Lack of coordination and cooperation

Uncertainty avoidance

Fear of loss

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Chapter 10, Slide 17

Strategies for Implementing Change – Cont’d

Overcoming Barriers

Leadership for Change: 80 percent of successful innovative companies have top leaders who reinforce the value and importance of innovation.

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Chapter 10, Slide 18

Strategies for Implementing Change – Cont’d

Kotter’s Seven Steps to Implementing Change

Establish a sense of urgency for change.

Establish a coalition to guide the change.

Create a vision and strategy for change.

Find an idea that fits the need.

Develop plans to overcome resistance to change.

Create change team.

Foster idea champions.

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Chapter 10, Slide 20

Chapter Summary

Change, not stability, is the challenge for managers.

Careful diagnosis is required for effective change.

There are four types of change.

Organic structures foster innovation.

A top-down approach is best for change and strategy.

Top managers must foster culture change.

The implementation of change can be difficult.

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Chapter 10, Slide 21

Strategy and Structure Change – Cont’d

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Chapter 10, Slide 15