MANAGING CHANGE AND

DISRUPTIVE INNOVATIONS
The Case for Change
• Organizational Change – any alteration of people,
structure, or technology in an organization.
• Change Agent – someone who acts as a catalyst and
assumes the responsibility for managing the change
process.
External and Internal Forces of Change
• External • Internal Change
• Changing consumer needs • New organizational strategy
and wants • Change in composition of
• New governmental laws workers
• Changing technology • New equipment
• Economic changes • Changing employee attitudes
The Three –Step Change Process
Reactive Versus Proactive
• Reactive: reacting to a situation that has occurred
• Proactive: acting in advance of a situation
Four Types of Change
• Strategy: modifying the approach to ensuring the
organization’s success
• Structure: structural components and structural design
• Technology: work processes, methods, and equipment
• People: attitudes, expectations, perceptions and
behaviour – individual and group
Why do people resist change?
• Uncertainty
• Habit
• Fear of loss
• Belief that change is inconsistent with goals of
organization
Techniques for Reducing Resistance to Change?

• Education and communication

• Participation
• Facilitation and support
• Negotiation
• Manipulation and co-potation
• Coercion
Techniques for Reducing Resistance to Change?

• Education and communication

• Participation
• Facilitation and support
• Negotiation
• Manipulation and co-potation
• Coercion
 Techniques for Reducing Resistance to Change?
Technique When Used Advantage Disadvantage
Education and When resistance is due to Clear up May not work when mutual
communication misinformation misunderstandings trust and credibility are
lacking
Participation When resisters have the Increase involvement Time-consuming; has
expertise to make a and acceptance potential for a poor solution
contribution
Facilitation and When resisters are fearful Can facilitate needed Expensive; no guarantee of
support and anxiety ridden adjustments success
Negotiation When resistance comes Can “buy” Potentially high cost; opens
from a powerful group commitment doors for others to apply
pressure too
Manipulation When a powerful group’s Inexpensive, easy way Causing change agent to lose
and co-optation endorsement is needed to gain support credibility
Coercion When a powerful group’s Inexpensive, easy way May be illegal; may undermine
endorsement is needed to gain support change agent’s credibility
Leading Change
• Managers can make change happen successfully by:
- Making organization change capable
- Understanding their own role in process
- Giving employee a role in the change
Employee Stress
• Stress: the adverse reaction people have to excessive
pressure placed on them from extraordinary demands,
constraints, or opportunities.
• Stressors: factors that cause stress
Personal Factors
• Type A personality: people who have a chronic sense of
urgency and an excessive competitive drive
• Type B personality: people who are relaxed and easy-
going and accept change easily
Symptoms of Stress
• Physical: change in metabolism, increased heart and
breathing rates, raised blood pressure, headaches, and
potential of heart attacks.
• Psychological: job-related dissatisfaction, tension,
anxiety, irritability, boredom, and procrastination.
• Behavioral: changes in productivity, absenteeism, job
turnover, changes in eating habits, increased smoking or
consumption of alcohol, rapid speech, fidgeting, and sleep
disorders.
Disruptive Innovation
• Disruptive Innovation: innovations in products, services,
or processes that radically change an industry’s rules of
the game.
• Sustaining Innovation: small and incremental changes in
established products rather than dramatic breakthroughs
 Examples of Past Disruptive Innovators
Established Disruptor Established Disruptor
Business Business
Compact Disc Apple iTunes Traveler’s Check ATMs and Visa
Carbon Paper Xerox Copy Machine Encyclopaedias Wikipedia
Canvas Tennis Shoes Nike Athletic Shoes Newspapers Craig’s List
Classified Ads
Portable Radio Sony Walkman AM/FM Radio Sirius XM
Stations
Typewriters Apple iPod Tax Preparation Intuit’s Turbo Tax
Services
Weekly News CNN Paperback Books Kindle
Magazines
TV Networks Cable and Netflix Lawyers Legal Zoom
Stockbrokers eTrade Taxis Uber
Why Disruptive Innovation is
Important?
• Disruptive innovations are a threat to many established
businesses, and responding with sustaining innovations
isn’t enough.