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Topic 6 : Creativity , change and innovation management

Denifition Change is an inevitable aspect of life. It is essence of any entity that has life ow whose existence finds validity in the presence of life. (Sharma, 2008) Sharma, R. (2008) Change Management. Tata McGraw-Hill: New Delhi.

Change management is a loosely defined term that refers to a broad array of activities and initiatives that occur in the workplace. As such, in order to be effective, a change management program must integrate those program elements that address any of the variety of elements : communication, traning and testing, program planning, market analysis and implementation of new policies and procedures. Adjusting to the changes in the workplace is the focus of a change management program. A good change management strategy includes : Communication Discussion Involvement Joseph F. Gustin, J.F (2007) Safety Management: A Guide for Facility Managers. 2nd ed. USA : The Fairmont Press

Innovation: Innovation can be defined as the creation of either a new process (process innovation) or a new production or service (product/service innovation) that has an impact on the way the organization operates (Clegg S. et al, 2011). Innovation and change are important for organizations. Speaking organizationally, innovation leads to change that allows a company to position itself differently from its competitors. It does things differently or it offers different things. Either way, it

establishes itself strategically in the market. The competitive advantaged of organizations are built on this core concept (Clegg S. et al, 2011). Clegg, S. (2011) Managing & Organization. Sage: London.

Why does innovation matter? By built up creative working environment, the traditional industries can be developed to be stronger. Many globally innovative companies are often located in the same group. National economy will develop base on historically economical development. Big companies use innovation as a culture to build up their business. Innovation is one of important factors to maintain and expand benefits to companies (JamesD, 2006).

Central approaches and main theories of change: Fundamentally change refers to a transition that occurs from one state to another (Clegg S. et al, 2011). Change, as a response to turbulence, can be classified thus (see Clegg et al, 2008; 376): Planned change: rational, planned, logical, top-down Processual change: strategic repositioning; cultural change; slow and contested (i.e. lots of conflict / resistance along the way Innovation and change at the edge of chaos: dont even try to organize; just throw the pieces in the air and see where they land and let them piece themselves back together. Managing change and innovation: Managing innovation implies focus on the politics of change. Change always means changing the status quo, and some people might be very comfortable with the current status or very uncomfortable with the prospect of instability. Hence change is an inherently political activity.

2 emerging forces shape social innovation: 1. technology: enabler of social networking where people share ideas and solutions. 2. a growing of the human dimension.

6-step process of a social innovation: (Clegg et al, 2011 pp. 378).

1. Prompts, inspiration and diagnoses. 2. Proposals and ideas generations. 3. Prototyping and pilots. 4. Sustaining 5. Scaling and Diffusion 6. Systematic change -

Innovation through stakeholders Market-technology linking: integration of firms unique competencies with customer needs, market structure and technologies

+ using complexity as an innovative resource + letting go of formal control

Seen in cutting edge organizations: e.g. Google, Microsoft Source of innovative capacity in community rather than within the company Innovating through employees: involvement, empowerment Innovating through collaborators: strategic alliances, partnerships

Model 1.Life of cycle Technology Cycle - S-curve pattern of Innovation Every technological product life follows and affected by technology cycle. Technological cycle which is known as the formation of a new technology began a cycle and end when the technology reaches its limit and replace it with a new technology considerably better, (P. Anderson & MLTushman, 1991)

Source: R.N.Foster, Innovation: The Attackers Advantage ( New York: Summitt, 1986)

Advantage of Technology Cycle New technology can make improvement and bring chances to organizations development. At the beginning of technology cycle, entrepreneurial profits are those made by innovating organizations in the period between the introduction of a new product onto the market, and the moment that it becomes available on the market on a large scale (Abraham and Knight 2001).

Change in technology affects the products available to consumers and businesses, the quality of products and their functionality. Innovation can speed up processes, transform working practices and increase efficiency of production (Campbell, 2002) Disadvantage of Technology Cycle When technological discontinuity occurs, old technology would no longer be used or even disappear from the market and most users will use new technological products. This issue is called technological lockout, it happens when a dominant design like a better technology prevents a company from competitively selling its products or makes it difficult to do so (M.Chilling, 2002).

Lewin's Change Management Model (Kurt Lewin ,1951) Understanding the Three Stages of Change (Mindtools, 2012) His model is known as Unfreeze Change Refreeze, refers to the three-stage process of change he describes.

Unfreeze a. Determine what needs to change. -Survey the organization to understand the current state. -Understand why change has to take place.

b. Ensure there is strong support from upper management. -Use Stakeholder Analysis and Stakeholder Management to identify and win the support of key people within the organization. -Frame the issue as one of organization-wide importance.

c. Create the need for change. -Create a compelling message as to why change has to occur. -Use your vision and strategy as supporting evidence. -Communicate the vision in terms of the change required. -Emphasize the "why".

d. Manage and understand the doubts and concerns. -Remain open to employee concerns and address in terms of the need to change.

Change a. Communicate often. -Do so throughout the planning and implementation of the changes. -Describe the benefits. -Explain exactly the how the changes will effect everyone. -Prepare everyone for what is coming.

b. Dispel rumors. -Answer questions openly and honestly. -Deal with problems immediately. -Relate the need for change back to operational necessities.

c. Empower action. -Provide lots of opportunity for employee involvement. -Have line managers provide day-to-day direction.

d. Involve people in the process. -Generate short-term wins to reinforce the change. -Negotiate with external stakeholders as necessary (such as employee organizations).

Refreeze a. Anchor the changes into the culture. -Identity what supports the change. -Identify barriers to sustaining change.

b. Develop ways to sustain the change. -Ensure leadership support. -Create a reward system. -Establish feedback systems.

-Adapt the organizational structure as necessary.

c. Provide support and training. -Keep everyone informed and supported.

d. Celebrate success!

Kubler-Ross Five Stage Model , 1969 (Change management coach, 2011).

Kubler-Ross described five stages of grief in her 1969 book "On Death And Dying" that are just as relevant to the normal range of feelings people have when they are dealing with change on an individual level or in the workplace. You see, all change involves loss at some level. So the "Five stages" model has been very usefully used to understand people's reactions to change for many decades.

The five stages of grief Kubler-Ross wrote about are: 1. 2. 3. 4. 5. Denial Anger Bargaining Depression Acceptance

Shock or Denial "I can't believe it", "This can't be happening", "Not to me!", "Not again!" Denial is usually a temporary defense that gives us time to absorb news of change before moving on to other stages. It is the initial stage of numbness and shock. We don't want to believe that the change is happening. If we can pretend that the change is not happening, if we keep it at a distance, then maybe it will all go away. A bit like an ostrich sticking its head in the sand. Anger "Why me? It's not fair!" "NO!I can't accept this!" When we realise that the change is real and will affect us our denial usually turns to anger. Now we get angry and look to blame someone or something else for making this happen to us. What's interesting is that our anger can be directed in many different directions. I've seen people angry with the boss, themselves, or even God. In these tough economic times it's often the economy that is blamed. It's the government, or top management's fault for not planning properly. You might find you are more irritable towards colleagues or family. You'll notice others finding fault with the smallest things.

Bargaining "Just let me live to see my children graduate."; "I'll do anything, can't you stretch it out? A few more years." This is a natural reaction of those who are dying. It's an attempt to postpone what is inevitable. We often see the same sort of behaviour happening when people are facing change. We start bargaining in order to put off the change or find a way out of the situation. Most of these bargains are secret deals with God, others, or life, where we say "If I promise to do this, then you make the change not happen to me". In a work situation someone might work harder and put in lots of overtime to prove themselves invaluable, in order to avoid retrenchment. Depression "I'm so sad, why bother with anything?"; "What's the point of trying?" When we realise that bargaining is not going to work the reality of the change sets in. At this point we become aware of the losses asssociated with the change, and what we have to leave behind. This has the potential to move people towards a sad state, feeling down and depressed with low energy. The depression stage is often noticeable in other ways in the workplace. People dealing with change at work may reach a point of feeling demotivated and uncertain about their future. I recently experienced a group of bank employees asking why they should continue to give of their best at work when they were unsure that their jobs were safe; and the bank was obviously not committed to them. My experience is that there is an increase in absenteeism at this time as people use sick leave and take 'mental health' days.

Acceptance "It's going to be OK."; "I can't fight it, I may as well prepare for it." As people realise that fighting the change is not going to make it go away they move into a stage of acceptance. It is not a happy space, but rather a resigned attitude towards the change, and a sense that they must get on with it. For the first time people might start considering their options. I think it's a bit like a train heading into a tunnel. "I don't know what's in there, I have to keep going on this track, I'm scared but have no option, I hope there's light at the end..." This can be a creative space as it forces people to explore and look for new possibilities. People tell me that they learn lots about themselves, and it's always good to acknowledge the bravery that acceptance takes. Change Management Coach, 2011, Kubler-Ross Five Stage Model, Change Management Coach Homepage, Available at:

1. The ADKAR model of change management Hiatt, J. (2006) How to Implement Successful Change in Our Persinal Lives and Professional Careers. USA

While many change management projects focus on the steps necessary for organisational change, ADKAR emphasises that successful organisational change occurs only when each person is able to transition successfully. The ADKAR model consists of five sequential steps or actions: Awareness of the need for change. Understanding why change is necessary is the first key aspect of successful change. This step explains the reasoning and thought that underlies a required change. Planned communication is essential. When this step is successfully completed the individual (employee) will fully understand why change is necessary. Desire to participate in and support the change. In this step the individual is able to reach a point where they make a personal decision to support the change and participate in the change. Naturally a desire to support and be part of the change can only happen after full awareness of the need for change is established. Building desire is partly achieved by addressing incentives for the individual and creating a desire to be a part of the change. Knowledge on how to change. The third building block of the model, providing knowledge about the change, can be achieved through normal training and education methods. Other methods of transferring knowledge, such as coaching, forums and mentoring, are equally useful, so don't limit this process to formal training. Two types of knowledge need to be addressed: knowledge on how to change (what to do during the transition) and knowledge on how to perform once the change is implemented. Ability to implement required skills and behaviors. In the ADKAR model Ability is the difference between theory and practice. Once knowledge on how to change is in place (theory) the practice, or actual performance of the individual, needs to be supported. This can take some time and can be achieved through practice, coaching and feedback.

Reinforcement to sustain the change. This final stage of the model is an essential component in which efforts to sustain the change are emphasised. Ensuring that changes stay in place and that individuals do not revert to old ways can be achieved through positive feedback, rewards, recognition, measuring performance and taking corrective actions. (Hiatt, 2006)

5. 4D model for changing and innovation

The first D is Discovery: The list of possitive or affirmative topics for Discovery is endless: high quality, integrity, empowerment, innovation, customer responsiveness, technological innovation, team spirit, best in class and so on.

From Discovery to Dream Second, participants Dream, or envision what might be. It occours when the best of what is has been identified; the mind naturally begins to searchs futher and to envision new possibilities. Valuating the best of what is leads to envisioning what

might be. Envisioning involves passionate thinking, creating a possitive image of a desired and preferred future. The Dream step uses the interview stories from Discovery step to elicit the key themes that underlie the times when the organization was most alive and at its best.

Articulated Dream(s) to Design Third, participants coconstruct the future by the Design of an organizational architecture in which the exceptional becomes everyday and ordinary. This design is more than a vision. Its a provacative and inspiring statement of intention that is grounded in the realities of what has worked in the past combined with what new ideas are envisioned for the furture. It enhances the organization by leveraging its own past successes and successes that have been experienced elsewhere with a strategic intent. Strategic intent signals what the organizations wants more of and recognizes that the future is built around what can be and what is! Design to destiny Fourth, the design delivers the organization to its Destiny through innovation and action. AI establishes a momentum of its own. Once guided by a shared image of what might be, members of the organization find innovative ways to help move the organization closer to the ideal. Again, because the ideals are grounded in realities, the organization is empowerred to make thing happen. (Cooperrider, 2008) Cooperrider, D. (2008) Appreciative Inquiry Handbook. Crown Custom: Ohio.

6. A Positive Revolution in Change Cooperrider, D. (2005) Appreciative Inquiry A Positive Revolution in Change. BerrettKohler: California. A Positive Revolution in Change: Appreciative Inquiry

Appreciative Inquiry is a new model of change management, uniquely suited to the values, beliefs, and biniess challenges facing managers and leaders today. It is a process for large-scale change management that can enable you to engage and inspire your highly diverse and dispersed workforce; to involve customers and other stakeholders in the future of your business; to discover and extend your business strengths and strategic advantages; and to balance outstanding financial returns with heightened societal contribitions. (Cooperrider, 2005) In AI the task of intervention gives way to the speed of imagination and innovation; instead of negation, criticism, and spiraling diagnosis, there is discovery, dream, and design. AI seeks, fundamentally, to build a constructive union between a whole people and the massive entirety of what people talk about as past and present capacities: achievements, assets, unexplored potentials, innovations, strengths, elevated thoughts, opportunities, benchmarks, high point moments, strategic competencies, stories, insights into the deeper corporate entity -- and visions of valued and possible futures. Taking all of these together as a gestalt, AI seeks to work from accounts of this positive change coreand it assumes that every process and insight has many untapped and rich and inspiring accounts of the positive. Link the ideas of this core directly to any change agenda and changes never thought possible are suddenly and democratically mobilized.

7. Gated Process ( Cooper, 2001)

Shavinina, L.V . 2003. The International Handbook on Innovation. 1st ed. UK: Elsevier science (online) p.147

When used appropriately, gated processes can provide an effective framework for managing change and innovation. However, gate review boards must represent true decision making bodies. For innovation, they must encourage accelerated, validated learning that reduces uncertainty with minimum investment. Decisions completed at each gate should inherently support the change process needed for the organization to encourage the success of an innovation. Idea identification - Ideas are evaluated for further resourcing. Criteria will often demonstrate the ability to be accommodated in the current business model, although spinoffs may be supported. Balance must be developed that will promote promising ideas while preventing being overwhelmed by evaluation of too many ideas. Concept validation - The concept is developed enough to determine the investment needed to validate key elements of viability such as value proposition, competitive advantage, and likely returns. Demonstration development plan - A plan is developed to provide a proof of concept demonstration to customers. For startups, this could be a product that might be used with non-paying customers. This plan will seek to minimize investment needed to validate key hypotheses with targeted customers. A demonstration vehicle that can accommodate quick and low cost requirements changes will accelerate the learning process. Customer value validation - The value to the customer is established through their interactions with the demonstration product. Metrics that show causality will provide the learning that will continue to reduce uncertainty.

Growth plan - commitment to commercialize - For businesses with an established business model, the plan for full commercialization is developed. This may be the entry business gate to the more predictable (knowable risks) development process. For newer businesses, investment is made to develop a product that can scale as business grows. Each successive gate in the innovation funnel reduces uncertainty that would prevent additional investment. The decisions made provide evidence of meeting established factors needed for success. Factors that facilitate change are increased while factors that work to resist change are reduced. Needed communication and education are built into the process.

8. Matrix Structure

Daft, R.L.2009. Organization Theory and Design. 10th ed. USA : South Wertern Cengage Learning

Structure in a Matrix Organization ( Dafl, 2009)

Strengths and weaknesses of matrix structure ( Daft, 2009)