Organizational Behavior and
Organizational Change
Innovation, Agility, & Change Management
Roger N. Nagel
Senior Fellow & Wagner Professor
Lehigh University
1
CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Topics This Presentation
‰ Organizational Change and Innovation Suggest
Agility
¾ Forces for Change
¾ Managing Change
¾ Resistance to Change
» Personal
» Organizational
¾ Overcoming Resistance to Change
‰ Kotter’s Eight-Step Plan for Implementing
Change
‰ 21st Century Innovation
‰ Organizational Development & Agility
¾ Techniques for Success In OD & Agility
¾ Core Competencies Produce Value
eleventh edition
organizational behavior
stephenp. robbins
2
“Organizational
“Organizationalbehavior”
behavior”
Eleventh
EleventhEdition
Edition
By
BySteve
SteveRobbins
Robbins
ISBN
ISBN0-13-191435-9
0-13-191435-9
Reference
ReferenceBook
Book
2
CSE & Enterprise Systems Center
Lehigh University
Roger N. Nagel © 2006
Topics This Presentation
¾ Transitioning from
» Type S: 20th Century Static Organization
» To Type A: 21st Century Agile Organization
‰ Contemporary Change Issues For Today’s
Managers
¾ Stimulating Innovation
» Development Process
» Organization
» Culture
» Management style
¾ Brainstorming
» Avoid These Brainstorming Mistakes
¾ Expect the Unexpected
¾ Be Agile & Be Innovative
» Adaptable To Deal With Change
¾ Creating a Learning Organization
CSE & Enterprise Systems Center
Lehigh University
eleventh edition
organizational behavior
stephenp. robbins
2
“Organizational
“Organizationalbehavior”
behavior”
Eleventh
EleventhEdition
Edition
By
BySteve
SteveRobbins
Robbins
ISBN
ISBN0-13-191435-9
0-13-191435-9
Reference
ReferenceBook
Book
3
Roger N. Nagel © 2006
Organizational Change and Innovation
Suggest Agility
‰ When the target moves a
herd of elephants is not
able to change
‰ A flock of birds is agile and
able to follow a moving
target
¾ Able to adapt and change
directions rapidly
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Roger N. Nagel © 2006
Forces for Change
Force
Examples
Nature of the workforce
More cultural diversity
Aging population
Many new entrants with inadequate skills
Technology
Ubiquitous information, sensors and networks
Information Integration without borders
Access, Transaction and Digitization
Economic shocks
Globally linked economies
Rise and fall of dot-com stocks
2000–02 stock market collapse
Record low interest rates
Competition
Global competitors
Mergers and consolidations
Growth of e-commerce
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E X H I B I T 18–1
E X H I B I T 18–1
Page 549
Page 549
Roger N. Nagel © 2006
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Forces for Change
Force
Examples
Consumers
Instant gratification
online shopping for price and facts
configurable modular products
experience economy
Purchasing Agents
Global sourcing and sourcing hubs
Customized goods and services
Shared profits, lower prices
seeking collaboration for low cost
Social trends
Global connection
Internet chat rooms
Retirement of Baby Boomers
Rise in discount and “big box” retailers
World politics
Iraq–U.S. war
Opening of markets in China
War on terrorism following 9/11/01
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Roger N. Nagel © 2006
Managing Change
Managing Change
Enhancing organizational Agility
Change Agents
Persons who act as
catalysts and assume the
responsibility for managing
change activities.
Goals
Goalsfor
forChange:
Change:
Improving
Improvingthe
theability
ability
of
ofthe
theorganization
organizationto
to
adapt
adaptto
tochanges
changesand
and
be
bemore
moreAgile.
Agile.
Changing
Changingthe
theagility
agilityof
of
individuals
individualsand
and
groups
groupsin
inthe
the
organization.
organization.
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The Politics of Change
‰ Impetus for change is likely to come from outside
change agents.
‰ Internal change agents are most threatened by their
loss of status in the organization.
‰ Long-time power holders tend to implement only
incremental change.
‰ The outcomes of power struggles in the organization
will determine the speed and quality of change.
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Sources of Individual Resistance to Change
E X H I B I T 18–2
E X H I B I T 18–2
Page 553
Page 553
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Sources of Organizational Resistance to Change
E X H I B I T 18–2
E X H I B I T 18–2
Page 553
Page 553
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Roger N. Nagel © 2006
10
Sources of Organizational Resistance to Change
‰Management of organizational units
¾ Fear loss of power and control in change
‰Lack of clear vision for what to do to implement
the change
¾ Don’t see or understand the rational for the change
‰Lack of belief in commitment by senior
managers
¾ Change de jure
¾ Popular management changes fade over time and
can be ignored b middle managers
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Sources of Organizational Resistance to Change
‰Lack of incentives and metrics in management
goals and objectives
¾ Tell me how I am measured and I will tell you how I
will behave
‰Fear of technology by senior and middle
managers
¾ Either feel inadequate in using it
¾ Or don’t believe it will work to support the business
goals and management needs
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Overcoming Resistance to Change
Tactics
Tacticsfor
fordealing
dealingwith
withresistance
resistance
to
tochange:
change:
••Education
Educationand
andcommunication
communication
••Participation
Participationin
inthe
theplanning
planning
••Facilitation
Facilitationand
andsupport
support
•• Negotiation
Negotiation
•• Manipulation
Manipulationand
andcooptation
cooptation
•• Coercion
Coercion
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Page 553
Page 553
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Roger N. Nagel © 2006
Change the Status Quo
E X H I B I T 18–4
E X H I B I T 18–4
Page 555
Page 555
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Identify The Restraining Forces To Overcome
Sources of Organizational Resistance to Change
Sources of Organizational Resistance to Change
‰Lack of incentives and metrics in management
goals and objectives
‰Management of organizational units
¾ Fear loss of power and control in change
¾ Tell me how I am measured and I will tell you how I
will behave
‰Lack of clear vision for what to do to implement
the change
‰Fear of technology by senior and middle
managers
¾ Don’t see or understand the rational for the change
‰Lack of belief in commitment by senior
managers
¾ Either feel inadequate in using it
¾ Or don’t believe it will work to support the business
goals and management needs
¾ Change de jure
¾ Popular management changes fade over time and
can be ignored b middle managers
17
16
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Roger N. Nagel © 2006
Roger N. Nagel © 2006
Kotter’s Eight-Step Plan for Implementing Change
1. Establish a sense of urgency by creating a
compelling reason (Vision & understanding) for why
change is needed.
2. Form a coalition with enough power to lead the
change.
3. Create a new vision to direct the change and
strategies for achieving the vision.
4. Communicate the vision throughout the
organization.
E X H I B I T 18–5
E X H I B I T 18–5
Page 557
Page 557
Source: Based on J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996).
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16
Kotter’s Eight-Step Plan for Implementing Change
5. Empower others to act on the vision by removing
barriers to change and encouraging risk taking and
creative problem solving.
6. Plan for, create, and reward short-term “wins” that
move the organization toward the new vision.
7. Consolidate improvements, reassess changes, and
make necessary adjustments in the new programs.
8. Reinforce the changes by demonstrating the
relationship between new behaviors and
organizational success.
E X H I B I T 18–5
E X H I B I T 18–517
Page 557
Page 557
Source: Based on J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996).
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Systems Center
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Roger N. Nagel © 2006
Individual Exercise
1.
Identify an organizational change you would like to make
a) What are the forces causing you to need this change?
b) What benefits will making this change provide?
c) What are the restraining forces (politics, individual and
or organizational resistance) you may have to
overcome?
d) What tactics will you use to overcome the resistance?
e) Identify which ( could be all) of the Kotter’s Eight-Step
Plan for Implementing Change you will most need in
achieving your goal and say why and how you will use
them.
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Group Exercise
‰ When you have finished the individual exercise briefly share
your answers with your group.
‰ The group should quickly identify one or two answers that
they work on as a group
¾ For the selected individual answer use the groups expertise to
enhance the answer and prepare to report to our class.
¾ If you select two or more individual answers they should be able to be
integrated into one group answer.
» For example the desired change might be one of the following:
™ A more globally desired partner
™ More agile and able to change with changing markets
™ Decentralized into several organizational units with more autonomy
™ More entrepreneurial
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Group Reports
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The Need For Change Will Not Go Away
Strategy
‰Dealing with change
must become an asset
of our organization
¾ Your Agility is linked to
your strategy and will
determine your
competitive advantage
¾ Competition is now
based on innovation
Knowledge
Economy 21 Century: Innovation
90‘s: Rapid Response
80’s: Product Quality
Resource
Economy
70’s: Production Cost
60’s: Production Scales
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21st Century Innovation
‰Innovation is the basis for
¾ Product change
» New and more complex products
» From goods and services to solutions and experiences
¾ Process change
» New technology processes and materials
» Integrated information tools
» Outsourcing to third parties
¾ Market changes
» Global
» Customized
» Shorter time spans
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Changing Rules Of The Innovation Game
Open Innovation Principles
¾ Many smart people ouside
¾ Internal R&D cannot cover
all needs
¾ External R&D also creates
value.
¾ Profit is in combining
internal and external in a
good business model
¾ Sharing IP is becoming the
rule
Closed Innovation Principles
¾ We have the smartest
people
¾ We discover, develop
and market ourselves
¾ To be first to market
means winning
¾ Create most and best
ideas means winning
¾ Control IP to control
entrance of competitors
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Discussion on open vs closed innovation
‰ Pros
‰ Cons
¾
¾
¾
¾
¾
¾
¾
¾
¾
¾
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Roger N. Nagel © 2006
21st Century Innovation
Managing change is about managing innovation and
being very
good is
and
very fast
‰Managing
change
about
managing
Organizations
to very
be more
agileand
to bevery
ablefast
to
innovation
and need
being
good
innovate andneed
use to
thebe
innovations
¾ Organizations
more agilesuccessfully
to be able to
innovate
then use
the innovations
The mostand
important
assets
are no longer physical
successfully
» Such as plant equipment and machinery
¾ Most important assets are no longer physical
The
most important assets now are people
» Plant equipment and machinery
» Ideas, relationships,
to convert ideas into
¾ Most important
assets nowability
are people
practice
» Ideas, relationships, ability to convert ideas into practice
organizational
behavior
is now
» Understanding
Understanding organizational
behavior
is now critical
management skill
critical management skill
a
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Roger N. Nagel © 2006
Strategies of Innovation
‰Creative Strategy
¾ Create total new products, business and
technology processes, became the market
leadership
‰Following Strategy
¾ Follow the trends, develop similar products,
technology and business processes
‰Modifying Strategy
¾ Most of them are Joint-venture production, modify
the products and processes for localization
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The Most Important Innovation Assets Are People
People
Produce
Value
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Organizational Development & Agility
Organizational Development (OD)
OD
ODValues:
Values:
1.1. Respect
Respectfor
forpeople
people
2.2. Trust
Trustand
andsupport
support
3.3. Power
Powerequalization
equalization
4.4. Confrontation
Confrontation
5.5. Participation
Participation
Agility
Agility
AgilityPrinciple:
Principle:
Leverage
Leveragethe
thePeople
PeopleResource's
Resource's
1.1.
2.2.
Skills
Skills
Knowledge
Knowledge
3.3.
4.4.
Expertise
Expertise
Relationships
Relationships
Page 558
Page 558
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Roger N. Nagel © 2006
Techniques for Success In OD & Agility
Sensitivity Training
Training groups (T-groups) that
seek to change behavior through
unstructured group interaction.
Provides increased awareness of
others and self.
Increases empathy with others,
improves listening skills, greater
openness, and increased tolerance
for others.
Page 558
Page 558
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29
Techniques for Success In OD & Agility
Process Consultation (PC)
A consultant gives a client insights
into what is going on around the
client, within the client, and between
the client and other people. identifies
processes that need improvement.
Help you to see your
organization as others do
Page 559
Page 559
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Take blinders off
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Roger N. Nagel © 2006
Techniques for Success In OD & Agility
‰Is there a Chinese
saying for this?
¾ Thinking outside the
box
¾ Leaving your comfort
zone
¾ Paradigm breaking
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We See & Value The Same Thing Differently
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Techniques for Success In OD & Agility
The
TheGolden
GoldenRule
Rule
Do
Dounto
untoothers
others
as
asyou
youwould
wouldhave
havethem
them
do
dounto
untoyou
you
Mass Production
Thinking!
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Techniques for Success In OD & Agility
The
ThePlatinum
PlatinumRule
Rule
Treat
Treateach
eachperson
personin
in
the
theway
waythat
thatthey
they
value
value
Appropriate
Appropriateto
totheir
their
values
valuesand
and
circumstances
circumstances
Change
Changefrom
from
"this
"thisisiswhat
whatI Iwant,
want,so
soI'll
I'llgive
give
everyone
everyonethe
thesame
samething"
thing"
TO
"let
"letme
mefirst
firstunderstand
understandwhat
what
they
theywant
wantand
andthen
thenI'll
I'llgive
giveitit
totothem."
them."
34
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Techniques for Success In OD & Agility
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Techniques for Success In OD & Agility
Team Building
High interaction among team members to
increase trust and openness.
Team
TeamBuilding
BuildingActivities:
Activities:
• • Goal
Goaland
andpriority
prioritysetting.
setting.
• • Developing
Developinginterpersonal
interpersonalrelations.
relations.
• • Role
Roleanalysis
analysisto
toeach
eachmember’s
member’srole
roleand
and
responsibilities.
responsibilities.
• • Team
Teamprocess
processanalysis.
analysis.
Page 560
Page 560
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Techniques for Success In OD & Agility
The
ThePlatinum
PlatinumRule:
Rule:
• • Applies
Appliesto
tomembers
members
of
ofaateam
team
• • Also
Alsoapplies
appliesto
to
stakeholders
stakeholders
• • Each
Eachstakeholder
stakeholder
can
canand
andoften
oftendoes
does
value
valuethings
things
differently
differently
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Techniques for Success In OD & Agility
Intergroup stakeholder Development
Efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other.
Intergroup
IntergroupProblem
ProblemSolving:
Solving:
• • Groups
Groupsindependently
independentlydevelop
developlists
listsof
ofperceptions.
perceptions.
• • Share
Shareand
anddiscuss
discusslists.
lists.
• • Look
Lookfor
forcauses
causesof
ofmisperceptions.
misperceptions.
• • Work
Workto
todevelop
developintegrative
integrativesolutions.
solutions.
Page 561
Page 561
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Techniques for Success In OD & Agility
Appreciative Inquiry
Seeks to identify the unique qualities and special
strengths of an organization, core competencies
which can then be built on to improve performance.
Appreciative
AppreciativeInquiry
Inquiry(AI):
(AI):
• • Discovery:
Discovery:identifying
identifyingthe
thecore
corecompetencies
competenciesof
ofthe
the
organization
organization
• • Design:
Design:finding
findingaacommon
commonvision
visionwhich
whichbuilds
buildson
onthe
thecore
core
competencies
competencies
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Core Competencies Produce Value
Values
&
Ethics
21st Century
Culture and Reputation
Managerial Values
&
Experiences With
How Run Company
Skills & Knowledge
Capabilities
Embodied in the People
Technical Resources
Equipment & Accessible
Information
Traditionally
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Roger N. Nagel © 2006
Techniques for Success In OD & Agility
20th
20thCentury
CenturyStatic
StaticOrganization
Organization
• • Organizational
Organizationalculture
cultureis:is:
• • Hierarchical,
Hierarchical,
• • Risk
Riskadverse,
adverse,and
and
• • Punishes
Punishesfailure
failure
• • Leaders
Leaderstell
tellpeople
peoplewhat
whattotodo
do
and
andhow
howtotodo
doitit
• • Decision
Decisionmaking
makingisisslow
slowand
and
cumbersome
cumbersome
• • Change
Changeisisaachallenge
challenge
• • Innovation
Innovationdiscouraged
discouraged
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21st
21stCentury
CenturyAgile
AgileOrganization
Organization
• • Organizational
Organizationalculture
cultureisis
• • Distributed
Distributedauthority
authority
• • Entrepreneurial
Entrepreneurial
• • Learn
Learnfrom
fromfailure
failure
• • Leaders
Leadersdefine
defineaacompelling
compelling
vision
visionwith
withgoals,
goals,metrics,
metrics,and
and
constraints
constraints
• • People
Peopleare
areempowered,
empowered,asked
asked
totothink
thinkand
andmake
makedecisions
decisions
• • Ability
Abilitytotochange
changeisisaastrategy
strategy
• • Innovation
Innovationisisencouraged
encouraged
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Roger N. Nagel © 2006
To Change From Type S to Type A
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To Change From Type S to Type A
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To Change From Type S to Type A
‰ What percentage of the time
do you feel the people in
business organizations
spend thinking and
innovating?
‰ Are leaders giving them the
tools they need to innovate
effectively?
44
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To Change From Type S to Type A
Leaders
Leaders
• • Encourage
Encouragepeople
peopletotothink
think
• • Sets
Setsgoals,
goals,objectives
objectivesand
and
constraints
constraints
• • Share
Shareinformation
informationneeded
neededtoto
accomplish
accomplishtasks
tasks
45
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Group Exercise
‰Discuss in your group the things we have just
covered and which are summarized below
Techniques for Success In OD & Agility
¾ Sensitivity Training
¾ Process Consultation (PC)
¾ Thinking outside the box
¾ The Platinum Rule
¾ Trust enables
¾ Team Building Activities
¾ Inter-group stakeholder
Development
¾ Core Competencies Produce
Value
The Change From Type S to Type A
organization
¾ Remove levels from hierarchy
¾ Give people tools and opportunity
¾ Ask people to think
¾ Sets goals, objectives and
constraints
¾ Share information needed to
accomplish tasks
¾ Encourage appropriate risk taking
46
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Group exercise continued
‰Identify the three things you most value as a
group and explain why you feel they are
valuable
‰For each provide an example from one
organization that would benefit from applying
what you have identified.
‰Prepare to report to the class
47
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Contemporary Change Issues For
Today’s Managers
‰What can managers do to help their
organizations become more innovative?
‰How do managers create organizations that
continually learn and adapt?
‰Is managing change culture-bound?
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Contemporary Change Issues for Today’s
Managers: Stimulating Innovation
Idea Champions
Individuals who take an innovation and actively and
enthusiastically promote the idea, build support,
overcome resistance, and ensure that the idea is
implemented.
49
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Contemporary Change Issues for Today’s
Managers: Stimulating Innovation
Innovation
A new idea applied
to initiating or
improving a
product, process,
or service.
Sources
Sourcesof
ofInnovation:
Innovation:
• • Structural
Structuralvariables
variables
• • Organic
Organicstructures
structures
• • Long
-tenured management
Long-tenured
management
• • Slack
Slackresources
resources
• • Interunit
Interunitcommunication
communication
• • Organization
’s culture
Organization’s
culture
• • Human
Humanresources
resources
Page 564
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Roger N. Nagel © 2006
1. IDEO Development Process Phases
1.
2.
3.
4.
5.
Understand the market
Observe real people in real situations
Visualize new concepts as they will be
Evaluate and refine the prototypes quickly
Implement for commercialization
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2. IDEO Organization
‰Diverse hot product teams
‰Relatively flat hierarchy
‰Workplace designed by employees
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3. IDEO Culture
‰Status comes from ideas
‰Failure is accepted and valued
‰Informal
‰Builds on ideas in brainstorming
‰Crazy and messy but disciplined
‰Self motivated
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4. IDEO Management
‰Few titles
‰Low key
‰Hire people who don’t listen
‰Facilitate success
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Watch the IDEO Video
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Be A Detective During The Video
‰ List examples that you find of IDEO’s
1.
2.
3.
4.
5.
6.
Development Process
Organization
Culture
Management style
Characterize David Kelly
List Innovation clues
‰ Be prepared to discuss and share with your
group
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Write your observations down
‰
Development Process
¾
¾
¾
¾
¾
¾
¾
¾
‰
______________
______________
______________
______________
______________
______________
______________
Culture
¾
¾
¾
¾
¾
¾
¾
¾
______________
______________
______________
______________
______________
______________
______________
______________
Organization
¾
¾
¾
¾
¾
¾
¾
‰
‰
______________
______________
______________
______________
______________
______________
______________
Characterize Kelly
¾
¾
¾
¾
¾
¾
¾
¾
______________
______________
______________
______________
______________
______________
______________
______________
Management style
¾
¾
¾
¾
¾
¾
¾
‰
‰
______________
______________
______________
______________
______________
______________
______________
______________
Innovation clues
¾
¾
¾
¾
¾
¾
¾
______________
______________
______________
______________
______________
______________
______________
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Roger N. Nagel © 2006
IDEO Video Now
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Roger N. Nagel © 2006
Teams form view and report
‰
Development Process
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Culture
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Organization
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Characterize Kelly
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Management style
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Innovation clues
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
The Final Design
‰ Child seat from roller
coaster design
‰ Modular baskets
‰ Bag hooks for check out
clerks
‰ Scanner
‰ Cup holders
‰ Sideways motion
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Innovation Clue From IDEO
‰Stay Close to the Action
¾Sensory immersion
» Body language tells a lot
» Live interaction provides inspiration
and ideas
™Take pictures and videos
» Asking questions of people involved
while they are involved
™There are no dumb questions
» Experiencing the phenomena
» Look for trends
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Innovation Clue From IDEO
‰Facilitator
¾ Brainstorming
¾ Integrating disparate teams together
‰Multi disciplinary people on the team
¾ To redesign a super market shopping cart
»
»
»
»
»
»
»
Engineers
Industrial designers
Psychology
Architecture
Business administration
Linguistics
biology
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Innovation Clue From IDEO
‰“The best way to get a good idea is to get a lot
of ideas”---Linus Pauling
¾ Deliver more value
¾ Create more energy
¾ Foster more innovation
‰Brainstorming should be organized, frequent
and made part of the culture
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Innovation Clue From IDEO
‰ Seven secrets for better brain storming
1.
2.
3.
4.
5.
6.
7.
Sharpen the focus ÎProblem statement
Playful rules
Number your ideas
Build and jump
The space remembers
Stretch your mental muscles
Get physical
Provide examples you saw on the video clip
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Sharpen the focus
‰ Clear problem statement needed
¾ Describe the problem not a solution idea
» Don’t be to narrow in the description
» Don’t focus on product modification
» Describe the opportunity or problem you are addressing?
‰ Be tangible without limiting possible solutions
¾ Helping bike commuters drink with out spilling or burning their
tongues
‰ Focus on need of customer not the company
¾ Know what you enable and ask how can we do it better
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Innovation Clue From IDEO
‰Playful rules
¾ Facilitator is key
» Capture ideas for the group
™ Put them where they can be seen
» Don’t critique or debate ideas suggested
™ Turn critiques off gently
» Bell for off topic comments
¾ Go for quantity of ideas
» Encourage wild ideas
¾ Be visual
» Use paper on walls, tables, etc
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CSE & Enterprise Systems Center
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Avoid These Brainstorming Mistakes
1.
The boss speaks first
¾
Constraints introduced
ƒ
2.
Everyone gets a turn
¾
3.
Every thing must be patentable and made in our factory
Kills spontaneity and the natural process of feeding off
ideas as you get inspired
Experts only please
¾
Bring in the people who have experience not expertise in
theory, factory worker, consumer, need insight not just
traditional expertise and theory
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Avoid These Brainstorming Mistakes
4.
Do it off-site
¾
¾
5.
No silly stuff
¾
¾
¾
6.
We want it to happen at work often, not just in special setting
Off sites fine, but we need the innovation in the workplace as well
Dumb and stupid filters always catch brilliant ideas
Having fun makes brainstorming work better
Let your mind wander off narrow path to real innovation
Write down everything
¾
¾
¾
If every one takes notes they turn off the stimulation of
brainstorming
Taking notes shifts focus to the wrong side of your brain
Sketch and doodle, but don’t take notes
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Innovation Clue From IDEO
‰Innovation Begins With an Eye
¾ Not market research,
¾ Not focus groups
¾ Go to the source
» Not experts in the company
» But the real people who use the product or some ting
similar
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Innovate on a product in your group
‰ Group should be assigned one of the following
needs to fulfill
1.
2.
3.
4.
Make product appealing to very wealthy
Make product available to handicapped people
Make product safer for the end user
Improve product functionality
‰ Your job is to brainstorm suggestions to meet
the need assigned on your product.
¾ Prepare to report back to the group
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Roger N. Nagel © 2006
Groups report on their innovations
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Expect the Unexpected
‰ Success is often the result of
random encounters, accidents,
or experiments gone wrong
¾ Learn from everything
¾ Especially failure
‰ When you expect to learn
from strange places it is more
likely to happen
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Be Agile & Be Innovative
‰Kleenex was for cleaning cream
¾ The use for colds was not
anticipated
¾ The agile (quick) repositioning by
Kimberly-Clark was a key to the
success
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Roger N. Nagel © 2006
Be Agile & Be Innovative
‰At Dupont Kevlar was for tires
¾ Other applications made the success and were a
surprise
»
»
»
»
»
Aircraft industry
Police usage
Canoes, kayaks, powerboats
Ropes, cables, hoses
Parachutes
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Roger N. Nagel © 2006
Be Agile & Be Innovative
‰Surprising use of products
¾ Milk box
¾ Duct Tape
¾ Golf cart
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Be Agile & Be Innovative
‰Surprising use of products
¾ Milk box
¾ Duct Tape
¾ Golf cart
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Be Agile & Be Innovative
‰Surprising use of products
¾ Milk box
¾ Duct Tape
¾ Golf cart
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Be Agile & Be Innovative
‰Innovation Suggests Agility
¾ Early innovators bring new ideas
and product concepts to market
¾ The products are typically simple
and come in only one flavor
¾ When Competition enters the
market new flavors are added
» Agility in speed and offering
variety become important
Early Innovation
CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Agility: Adaptable To Deal With Change
‰Adaptability is key
¾ Customers no longer
want Vanilla
‰Dependant on
¾ Understanding the
customers needs
‰Customized solutions
Innovation Agility
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81
Innovation and Agility
Early Innovation
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Innovation Agility
Roger N. Nagel © 2006
82
Customized solutions
Understanding what
the customer values
Flexibility
Economy
of Scope
Complex choices
Economy of scale - All the same
Skills of People - Too expensive
Good Part in green Problem in red
CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
83
Creating a Learning Organization
Learning Organization
An organization that has
developed the continuous
capacity to adapt and
change.
Characteristics:
Characteristics:
1.1. Holds
Holdsaashared
sharedvision
vision
2.2. Discards
Discardsold
oldways
waysof
of
thinking.
thinking.
3.3. Views
Viewsorganization
organizationas
as
system
systemof
ofrelationships.
relationships.
4.4. Communicates
Communicatesopenly.
openly.
5.5. Works
Workstogether
togetherto
to
achieve
achieveshared
sharedvision.
vision.
E X H I B I T 18–6
E X H I B I T 18–6
Page 586
Page 586
Source: Based on
P. M. Senge, Center
The Fifth Discipline (New York: Doubleday, 1990).
CSE & Enterprise
Systems
Lehigh University
84
Roger N. Nagel © 2006
Creating a Learning Organization
Fundamental
FundamentalProblems
Problemsin
inTraditional
Traditional
Organizations:
Organizations:
•• Fragmentation
Fragmentationbased
basedon
onspecialization.
specialization.
•• Overemphasis
Overemphasison
oncompetition.
competition.
•• Reactiveness
Reactivenessthat
thatmisdirects
misdirectsattention
attentionto
to
old
oldsolutions
solutionsrather
ratherthan
thancreation.
creation.
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CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
Managing a Learning Organization
Establish
Establish
aastrategy
strategy
Managing
Managing
Learning
Learning
Redesign
Redesignthe
the
organization
’s
organization’s
structure
structure
Reshape
Reshapethe
the
organization
’s culture
organization’s
culture
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Roger N. Nagel © 2006
86
Mastering Change: It’s Culture-Bound
Questions
Questionsfor
forculture-bound
culture-boundorganizations:
organizations:
1.1. Do
Dopeople
peoplebelieve
believechange
changeisiseven
evenpossible?
possible?
2.2. How
Howlong
longwill
willitittake
taketo
tobring
bringabout
aboutchange
changeininthe
the
organization?
organization?
3.3. IsIsresistance
resistanceto
tochange
changegreater
greaterininthis
thisorganization
organizationdue
due
to
tothe
theculture
cultureof
ofthe
thesociety
societyininwhich
whichititoperates?
operates?
4.4. How
Howwill
willthe
thesocietal
societalculture
cultureaffect
affectefforts
effortsto
toimplement
implement
change?
change?
5.5. How
Howwill
willidea
ideachampions
championsininthis
thisorganization
organizationgo
goabout
about
gathering
gatheringsupport
supportfor
forinnovation
innovationefforts?
efforts?
Page 568
Page 568
CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
87
‰Every morning in Africa, a gazelle wakes up; it knows it must
run faster than the fastest lion or it will be killed.
‰Every morning in Africa, a lion wakes up; it knows it must
outrun the slowest gazelle or it will starve to death.
‰It doesn’t matter whether you are a lion or a
gazelle;…………..
‰When the sun come up,
¾ you had better be running!
88
CSE & Enterprise Systems Center
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Roger N. Nagel © 2006
XIE XIE
Roger N. Nagel
Wagner Professor and Senior Fellow
CSE Department &
The Enterprise Systems Center at Lehigh University
200 West Packer Avenue
Bethlehem, Pennsylvania, 18015
(610) 758-4086, (610) 868-0402 [fax]
Rnagel@lehigh.edu
89
CSE & Enterprise Systems Center
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Roger N. Nagel © 2006