Innovation Management Quiz

Organisational Change and Innovation

• This topic covers organizational change and innovation, specifically focusing on principles of management.
• The presentation's date is November 20, 2024.

Organisational Change: Al-Assisted Bank Account Set-Up

• ANT GROUP, with 15,000 employees and 700,000,000 transactions, benefited from an Al-assisted account setup.
• This process took only 2 minutes per application and one application check.
• UBS, a competitor, had 20,000 staff and 3,000,000 transactions and the process took 466 times longer.

Organisational Change Galore

• Various companies and industries are experiencing organizational change.
  • Abu Dhabi National Oil Company (ADNOC) is planning for energy transition.
  • Coca-Cola and Pepsi face bubbling health concerns from investors.
  • Insurers embrace climate change investments.
  • Managing Climate Change was one of the main topics in asset management.
  • Nestle's CEO highlighted the priority of feeding aging populations.
  • UK airport ministers revealed plans to redesign airspace.

Organisational Change: Looking out for the Invisible

• Organizational change involves moving an organization away from its current state towards a desired future state.

Content Structured Along Learning Objectives

• The content covers topics like organizational change, Lewin's change model, and the systems approach to change, as well as organizational development, innovation, and overcoming fear of change.

10-1 Discuss what managers should know about organizational change.

• The subject matter explores fundamental change and addresses reactive and proactive change types.
• It examines the forces driving change, both external and internal within the organization.

Fundamental Change: What Will You Be Called On To Deal With?

• The market is becoming more segmented, shifting toward niche products.
• More competitors are necessitating faster speed-to-market for targeted products.
• Traditional businesses might struggle to adapt to radical changes.
• Offshore suppliers are reshaping the global workflow.
• Expertise (knowledge) is becoming a more important competitive edge rather then just information.

Two Types of Change: Reactive and Proactive

• Reactive change: responding to unexpected problems/opportunities.
• Proactive change: managing expected problems/opportunities.

Internal and External Forces for Change

• Discusses various internal and external factors driving change, including: demographic factors, technological advances, stakeholder concerns, social/political pressures, and leadership.

Iceberg Model: Check what lies beneath the surface.

• This model shows that organizational change involves various factors influencing performance, structures, and beliefs below the surface.

10-2 Discuss three forms of change, Lewin's change model, and the systems approach to change.

• Adaptive Change: familiar to the organization
• Innovative Change: new for the company
• Radically Innovative Change: new to the industry
• Lewin's model: unfreezing, changing, refreezing
• Systems approach to change: diagnosing, intervention, evaluating

Three forms of change

• Least Threatening: Adaptive Change (“We've Seen Stuff Like This Before”)
• Somewhat Threatening: Innovative Change (“This Is Something New for This Company”)
• Very Threatening: Radically Innovative Change (“This Is a Brand-New Thing in Our Industry”)

Lewin's change model: Unfreezing, changing and refreezing

• This model illustrates the steps involved in organizational change.

A systems approach to change

• The process involves identifying the causes of change and developing solutions.
• Managers need to understand the inputs and outputs of the change.

Discussion on system approach to change: Think of a change in your job/work environment

• This is a discussion prompt to consider reasons for change, target elements of change, and the goals of a change.

10-3 Describe the purpose of organizational development (OD).

• Purpose of OD: improving individual, team, and organizational performance.
• OD can revitalize organizations and adapt to mergers.
• The OD process: Diagnosing the problem, implementing interventions, and evaluating results.

How OD Works

• The OD process involves diagnosis, intervention, and evaluation phases.
• Feedback is crucial for refining the diagnosis.

The Effectiveness of OD

• Multiple interventions, management support, effective goal setting, and understanding organizational culture are essential for OD success.

Connecting the dots: From the need for change to innovation

• Organizational change often arises from the need to improve operations and respond to new events.
• Managers must balance these two forces to adapt effectively.

10-4 Describe the approaches toward innovation and components of an innovation system.

• Approaches to innovation: Focusing on incremental or radical adjustments.
• Innovation System: Understanding the various elements that can generate and sustain innovation within an organization

Approaches to innovation

• Incremental Approach: Building upon existing products and processes.
• Radical Approach: Implementing entirely new ideas and services.

S-Curve: At some point something new is needed

• Innovation curve showing the stages of a product from launch to maturity.
• Introduction, growth, maturity, decline—a crucial point in the curve.

An innovation system: The supporting forces for innovation

• Shows the elements of a successful innovation system, comprising strategy through appropriate resources, innovation strategies, and leadership.

10-5 Discuss ways managers can help employees overcome fear of change.

• Discusses reasons why employees resist change, and how effective leaders can promote employee adjustment.

The causes of resistance to change

• Resistance to change is influenced by various elements; employee characteristics, change agent characteristics, and the change agent–employee relationship.
• Key factors include employee traits, leadership styles, and the dynamics of the changes themselves.

Ten reasons employees resist change

• Employees resist change due to factors like predispositions to change, lack of information, perceived loss of status or job security, fear of failure and unknown, and non-reinforcing reward systems.

10-6 Review the different ways to increase the career readiness competency of openness to change.

• Enhances career readiness and openness to change via knowledge, core competencies, and attitudes.
• Skills development, core competencies, and attitudes.

Summary

• 10-1 to 10-6 cover various facets of organizational change, innovation, and employee support during transition.