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Chapter

Ch11 - Innovation and Change


Department
Business
Course Code
BU398
Professor
Joel Marcus

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Chapter 11
Innovation and Change
Innovate or Perish: The Strategic Role of Change
Incremental vs. Radical Change
Incremental Change represents a series of continual progressions that maintain the organization’s general
equilibrium and often affect only one organizational part.
Radical Change breaks the frame of reference for the organization, often transforming the entire organization.
Strategic Types of Change
Product and Service Changes pertain to the product or service outputs of an organization: small adaptations of
existing products or entirely new product lines. Designed to increase market share, or develop new markets,
customers or clients.
Strategy and Structure Changes pertain to the administrative domain (supervision and management) in an
organization. Changes can include: organizational structure, strategic management, policies, reward systems,
labour relations, coordination devices, management information and control systems, and budgeting systems.
Culture Changes refer to changes in the values, attitudes, expectations, beliefs, abilities, and behaviour of
employees. Changes in mindset.
Technology Changes are changes in an organization’s production process, including its knowledge and skill
base that enable distinctive competencies.
Elements for Successful Change
Organizational Change is considered the adoption of a new idea or behaviour by an organization. Organizational
Innovation is the adoption of an idea or behaviour that is new to the organization’s industry, market, or general
environment.
Organization members first become aware of a possible innovation, evaluate its appropriateness, and then evaluate and
choose the idea.
The Ten Faces of Innovation
Learning Faces
Anthropologist looks at human interactions
Experimenter prototypes new ideas
Cross-Pollinator explores other industries and cultures
Organizing Faces
Hurdler develops ways to deal with roadblocks
Collaborator brings together an eclectic group
Director sparks creative talents
Building Faces
Experience Architect creates experiences that go beyond product/service’s functionality
Set Designer creates the right space
Caregiver delivers special service
Storyteller builds internal morale and external awareness
Managers must ensure that each element in the change process occurs in the organization:
1. Ideas must have new ideas to stay competitive (internal creativity).
2. Needs ideas are not considered until there is a perceived need for change; occurs when there is a gap between
actual and desired performance.
3. Adoption decision-makers chooser to proceed with a proposed idea.
4. Implementation occurs when organization members actually use a new idea, technique, or behaviour.
5. Resources human activity is required to bring about change.
Technology Change
It is important to maintain a balance between the innovation and efficiency that technology offers.
The Ambidextrous Approach
The initiation (organic structure) and utilization (mechanistic structure) of change and new ideas are two distinct
processes.
Ambidextrous Approach incorporates structures and management processes that are appropriate to both the
creation and the implementation of innovation.
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