Innovation and management of change are very important aspects of strategic management. It is vital to take a look at different perspectives of change management
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Question 1: Explain van de ven poole models and terminology and describe two of change management theories from the curriculum?
Van de Ven and Poole made important contributions in change management. The Life cycle theory and the Dialectical theory are of great significance in organizations. Considering the Life cycle theory it is worth indicating that the underlying principle of this theory is that “change is imminent: that is, the developing entity has within it an underlying form, logic, program, or code that regulates the process of change and moves the entity from a given point of departure toward a subsequent end that is prefigured in the present state. On the other hand the dialectical theory is based on Hegelian assumption that the organization exists in a world full of many colliding events, forces or values that contradict each other which are in competition for control. These contradictions could be within the organization leading to different goals and objectives in the organization. According to the teleological theory, it is the purpose on goal drives change or movement of organizations or entities. The evolutionary theory asserts that change is a biological process with constant variations.
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- Why these theories are important what benefit it gets to change
The importance and benefits of this 4 model framework is referred to a huge range of organizational development and change theories. These 4 model theories contain a developmental procedure that can be figure out through an interplay of these primitives as this 4 model frameworks serve the purpose of theoretical primitives. Also, this framework is beneficial for serving critique and reformulation like a heuristic. It also provides an explanation for unexplored information of organizational change and development.
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Kotter’s change model can be summarized in 8 steps starting from creating urgency.
Form coalitions
Create change vision
Communicate vision
Empower members
Create short-term wins
Consolidate improvements
Anchoring changes
- Why not use Kotter’s model?
Reasons for not using Kotter’s Model is because it has restricted 8 steps procedure that can lead to change and makes an effort for transforming successfully. However, the first step of Kotter’s model that is to establish a sense of urgency requires to have an aggressive posture towards the team and management which may create a demotivating factor for the other employees.
- Kotter’s eight steps are also missing need that as well and then compare these two theories in one slide.
Eight Steps towards Transforming Organization
- Importance of Urgency
- Strong Guiding Coalition
- Vision
- Explaining Vision
- Let others to act on Vision by Empowering them
- Creating plans and developing strategies for short term wins
- Consolidating Improvements and introducing more changes
- Making or bringing new approaches based on corporate success and new behaviors
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Comparison of 4 Ideal Type Developmental Framework versus Kotter’s Transforming Organization Theory
Ideal Type Framework
- Rewards being given on the basis of efforts, good performance and achievements.
- Management needs to take corrective actions by implementing rules and standards of developmental process.
- Passive behavior of management as an intervene if quality of work is not maintained
- Renounces responsibilities and avoiding making decisions.
Kotter’s Transforming Organization Theory
- Providing trust, gaining respect and informing about the vision and mission of the management
- Expecting high, signs to focus efforts and inform essential points in an easy way
- Developing and promoting intelligence, rationality and solutions towards problems
- Personal contribution towards advising and coaching every employee on individual basis
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Lewin Unfreeze, Change of Power and Refreezing theory
The first stage of Lewin theory i.e. Unfreeze refer to importance of change that is very essential for the development of organization. Also, prepare the company to accept the change. It is more towards cutting down the old way of working and bringing a new status quo towards operating the company and building it up.
The key towards following this stage is providing the message that why change has required to modify the previous status quo of working. That is more explanation towards why change is essential and importance of understanding it i.e. by everyone present in the company. This change can bring improvement and success for the management of the company.
The second stage “Change of Power”; this stage is the one requiring where the employees of the company are able to resolve their uncertainty and search for new ways of development and innovation.
The third stage of “Refreeze”: this stage is when people have started accepting the new way of working and adopted the change and changes have taken place in an effective manner. That is creating new sense of stability towards working environment of the employees and they feel more confident and comfortable in understanding the latest a new development of change.
Organizational development is a deliberate step taken in an organization to change on its mode of operation to increase its effectiveness and realize its goals. Change and development happen at different levels including individual, group, community or organizational level. This can be deduced from the BBC case study 15.2: The implementation of an economic strategy by the BBC. The organization had to undergo radical reforms after experiencing a wide range of problems which included: a new political climate, technological change and increased competition.
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They implemented the eight rules of transforming organization by applying the Kotter’s theory. According to the eight step strategy mentioned in the paper of Leading Change “why Transformation Efforts fail”, tells the importance of using each eight steps in the right way by following its stage sequence.
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Question 4: Explain rationale perspective on change management and apply it on a case?
In the BBC case: as there was fear among the employees of the company, the management was striving hard to know the reason behind this fear present among the employees of the BBC organization. However, this was creating a negative impact of the organization and management of the company wants to sustain the company on the level of world’s best leading company.
BBC as a public organization was riddled with bureaucratic and other internal organizational problems that needed change. This organization could only be transformed through a radical surgery in its structure and operations. In this case, a political, economic and technological strategy would have made it more competitive.
This perspective does not use theory or myths in but rather focuses on the real issues as they present themselves. It tries to bring an understanding to both the staff and the management that change is imminent in an organization, and they have to be in a position to handle such changes. Using our case study of the BBC, as new strategies were employed by John Birt and the economic aspect organization improved, the changes did not go down well with the employees. As the management later changed and Dyke took over, his first challenge to handle was that of employees. . His strategy worked very well since it encouraged team work and the staff were happy as they were also involved in the decision making processes. The government, management and employees needed to come to a rational agreement on why change was necessary in this broadcaster. This decision should have been based on the real issues such as efficiency and balance of power between the stakeholders.
The BBC case tells more about the successful era of Birt time, as his strategy towards new development and technical achievement in technology was more focused and goal oriented. Also, it has resulted in a positive change and development for the company. It has led the company on the top level and made the future and license secure for six years even after his retirement that took place in 2000. However, the change strategy towards staff was fully neglecting the social system and the employees were more focused towards achieving their targets.
The Birt attitude towards his company was found as a rationale behavior because he believes more in a goal oriented theory and less on social perspective. Birt strategy of making the company to work more in an efficient manner and for this he has introduced “Producer Choice”. Also his rational behavior brings success for BBC. His strategy of work was to make the company more successful through maintaining the quality and bringing cost effective benefit for it. This rationale behavior towards the work led the 10000 employees to set back and leave the job as they thought that their jobs are expecting too high and too much of a work load.
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The cultural perspectives are viewed from five points of view which include: assumptions, values, behavioral norms, behavioral patterns, and the artefacts. Assumptions, values and behavioral norms are a reflection of what the members of the company think about their organization, while the behavioral patterns and the artefacts shape the artefacts within the organization. Using case study of improving surgery operations in the surgery wards at Rigs Hospitalet hospital in Denmark, we deduce the assumptions by the public where they believe that there is bureaucracy, long lines, disrespect amongst the employees, and that doctors are scarce in the hospital. The management of the hospital should reduce the paper work and bureaucracy to avoid wastage of the surgeon’s time.
Firms can resort to the use of networks to carry out innovation. However, there are large risks like resistance to change, lack of cohesion and high cost of training people. There is also communication barriers within networks and lack of sustainability.
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The political perspective of change management refers to that kind of a perspective that involves the policies that guide and influence the activities that take place in an organization. According to the political perspective of change and innovation, the focus is more on a particular area or region. Change and innovation are tools that assist in giving an organization a competitive advantage.
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The case of BBC can be used to illustrate how change can be managed in an organization. In this case, there was a problem with employees resisting change. An effective strategy would involve both the normative and educative approaches. Culture in the organization also needs to be changed in order to make new policies. Policies in the organization needs to be changed in order to give the organization a new acceptable look.
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Question 7: Discuss different archetypes of innovation: steady-state and discontinuous innovation. Furthermore, it also often stated that the organization needs to be capable of dealing with both archetypes, simultaneously, how can organization deal with both archetypes of innovation within the same organization set-up structure?
- You have just mentioned two archetypes steady state a discontinuous need more explanation and also a comparison
- And you haven’t answered second demand? Please question again
The innovation procedure has its effective ways of managing a team on a consistent basis focusing more towards the themes of good practice and constitution.
When it comes to steady state innovation is referred to what we are doing and what we will be doing, but with an improvement. Discontinuous Innovation is a cross-sectoral educating network that has associated with UK Trade and Industry department. Its basic purpose is to know the new emerging markets and technologies that Hi-tech world is offering by identifying, understanding and exploiting.
Importance of Both Archetypes
For an organization, both archetypes of innovation are required but on a simultaneous basis as “Steady state Innovation”, helps the organization to work effectively in terms of managing the project. Also, it is involving the cross-functional key players of extended enterprise present inside and across the business world. Whereas, “Discontinuous Innovation”, helps in getting knowledge about the competitors and leading threats towards an organization in order to provide a specific solution through innovating and exploring new ideas. Steady state innovation can be quite energizing and uncertain as compared to discontinuous innovation. It is easier to deal with the two types of innovation through reframing and co-evolution.
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Networks for Innovation
- Largest Risks: the risks that are of vital importance to an organization and could upset the organization.
- Resistance to change: when new technology is being introduced, some of the elements withstand that technology.
- Lack of cohesion: lack of cohesion exists where there is no team work. No team work cannot get to achieve any goal.
- High cost of training: expensive training carried out to train field force.
- Poor communication: communication gap leads to poor communication and then to disaster.
- Sustainability : ability to bear or withstand resistance
- Idea networks: idea networks said to have taken place when many ideas put together in order to reach goal.
- Corporate venture networks: when different business get together in order to achieve ends.
- Supplier networks: when supplier get together in order to supply material to producers.
- Open invitation networks: the networks which can exist in future to achieve goals.
- Largest Risks: the risks that are of vital importance to an organization and could upset the organization.
- Resistance to change: when new technology is being introduced, some of the elements withstand that technology.
- Lack of cohesion: lack of cohesion exists where there is no team work. No team work cannot get to achieve any goal.
- High cost of training: expensive training carried out to train field force.
- Poor communication: communication gap leads to poor communication and then to disaster.
- Sustainability: ability to bear or withstand resistance
- Idea networks: idea networks said to have taken place when many ideas put together in order to reach goal.
- Corporate venture networks: when different business get together in order to achieve ends.
- Supplier networks: when supplier get together in order to supply material to producers.
- Open invitation networks: the networks which can exist in future to achieve goals.
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There are several challenges that face the process of innovation. Some of these challenges include:
Failure to establish a sense of urgency is one of the challenges facing the innovation process. The organization can deal with this through an examination of the current state of the market.
Failure to create a powerful coalition for guidance is yet another challenge facing the innovation process. The managers can deal with this by assembling a powerful group of people that will encourage a process of change. There is also need to encourage people to work as a team.
Another challenge that faces the innovation process is failure by the managers to remove obstacles for the big vision. The managers can solve this by creating a clear vision that gives direction for change. The managers can also create a systematic plan to assist in ensuring a smooth flow during the process of change.
Motivation: The Company is lacking the motivational level that is towards its organizational goals. Moreover, the company is facing low towards the support from the top level management which is very discouraging for the employees that need a motivational boost from their heads sitting on the top level. More or less, there is least communication level that is considered as effective communication towards their staff. If performance is not measured properly on right scale the innovation towards company success is impossible to reach, for overcome this problem or issue towards lacking the motivational boost, company needs to consider a plan that is effective and worth to check the performance level towards company goal and their employee’s performance.
- Lack of support from top management: when top notch or high ups are least interested to cooperate with sub ordinates
- Inadequate customer insight: it is said to have when a sales man does not have enough knowledge about its customer
- Ineffective performance measurement: when the budgeted or predicted result of any individual does not meet the actual results.
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What characterizes an innovative organization? Please identify a maximum of five factors or characteristics. Please identify the two most important characteristics and please motivate your choice of these two characteristics.
Unique and Relevance Strategy:
For a successful company, it need to follow a unique and relevance strategy that is essential strategy. For example: companies like Apple, Facebook and Google have always use this characteristic of innovation organization and have reached the level of profitable and successful organization in front of their customers and employees. This strategy gives a clear idea to the management of the company especially managers and leaders and help them towards leading their organization on a successful journey.
Ability to Achieve Strategic Goals:
This factor guide the companies that innovation doesn’t mean is an end in fact it is a mean towards achieving strategic goals. Like; Camera is an innovative way of capturing moment and make photographers to become professional similarly new innovation always appreciating for the economy of the world as it open doors towards new professions and goals.
Leading in the Specific Fields:
Innovation always create leaders in the market. Those who believe in innovation strategy and use innovation in their particular field always become example for other companies as a market leader.
Effective Implementation:
It is very important that along with encouraging the ideas of innovation, a company must implement effective innovating ideas in the company to gain progress and success in their field of market.
A sense of Autonomy:
Key element of Autonomy is building and promoting trust in between individual and team autonomy. You can create fertile ground for your company, if you let your individuals and team to work on their goals by themselves and find their own path in achieving their targets.
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A key problem within innovation management is how to handle radical innovation where “new to the world” products, services or solutions are created, developed and commercialized. Please identify the key challenges for the existing firm when dealing with radical innovations.
Risk averse culture that is motivated by organizational culture can be a challenge. The managers can deal with this issue through education and communication. They can achieve this through educating the employees as a strategy for dealing with the challenges of radical innovation. Participation and involvement is yet another strategy for dealing with challenges of radical innovation. It is necessary to involve the people in the organization to counter the negative effects of resistance to change. Involving the employees in designing and implementation strategies is very necessary.
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Identify the most important sources of innovation and discuss how companies and organizations can search for innovative ideas and opportunities. Innovation can come from different sources including new knowledge about a product or service. Customers can help by providing new knowledge or through research. Unexpected events can also cause innovation. This can include emergence of new competitors or death. Changes in market structure can trigger innovation. Demographic changes can also lead to innovation. For instance, when the number of old people increases, this can pave way for innovation. When process needs are identified, innovations can emerge. To generate ideas, customers are of great help. It is also important to analyze the past and come up with new innovative ideas. Predicting the future can also provide innovative ideas.
