ILM Level 5
Leading Innovation and Change
Overview of the Leading Innovation
and Change unit
 Day 1: Overview of “why” organisations need innovation
and change and how to lead change
 Day 2: Looking into the “what” needs to change and what
tools can be used to determine feasibility and viability
 Day 3: Considering “how” to make the planned changes
happen, how they can be monitored and progressed. Also
the role of communication in overcoming barriers and
other difficulties
2
Your expectations...
3
Key ground rules
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4
Confidentiality
Respect
Listening
Constructive
Contribute
Learning objectives
 Understand the need for innovation and
change management within an Organisation
 Be able to propose innovative solutions to
improve organisational performance
 Be able to lead and manage change within an
organisation
5
Leading Innovation and Change
Assignment
6
Culture change
 How is the world changing?
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The Scale of Change
 http://www.youtube.com/watch?v=YmwwrGV
_aiE
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What is the difference between
innovation and change?
 An Innovation Network member, Peter Marinelli at Kraft, has
asked us a question we thought would make an interesting
thought stimulator:
 "What do you see as the key difference between innovation and
the activities required to successfully complete any large-scale
change-management activity/project that causes leapfrogs in
competitive advantages or causes people to work in a
completely new way? This question came up in a discussion
with a very seasoned process implementation person, who is
somewhat sceptical of putting the banner of "Innovation" on
various and sundry activities."
9
In your groups
 So, think about "innovation" and "change
management" and tell us what difference, if
any, you see between the two.
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Innovation and Change
 Change is anything different from current
conditions whereas innovation is something
entirely new than anyone has seen before.
Read more:
http://wiki.answers.com/Q/What_is_the_driffere
nce_between_change_and_innovation#ixzz1ltA
1BsTo
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Innovation
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Innovation
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Innovation and business performance
Financial and social benefits
Radical and incremental innovation
Innovation as a form of competitive edge
Creativity and innovation – what conditions
and processes are required to encourage
them?
What is change?
"There is nothing more difficult to take
in hand, more perilous to conduct, or
more uncertain in its success, than to
take the lead in the introduction of a
new order of things.“
Niccolo Machiavelli
“You cannot dip your
toes into the same river
twice”.
Heraclitus (Greek
philosopher)
“It is not the strongest species who
survive, not the most intelligent, but
those who are the most adaptive to
change”.
Charles Darwin
Change is something that happens to
us or can be something we initiate.
Either way, we cannot always predict
the effect that change will have on us
and given change is either
unavoidable or better than a rest, our
best option is to sit back and
experience the ride!
Change is when something
becomes different, requiring
people, process or
technology to adapt to a new
way of doing things
Change may be as good as a rest,
but the effort required to make the
change means you will certainly
have earned it
Change is acting, operating
and thinking differently as a
result of a variation in our
current environment /
circumstances.
Change is inevitable!
Change is a move away from a place,
routine or relationships that you
accept as “normal” to a place, routine
or relationship that you will come to
accept as “normal”
What is Change?
1. It will be different for everyone
2. It has a Process
 A Change of state or a change in the way you do something
 Vision, plans, dates, systems, technology, training
 Physical stuff
3. It has an Emotional Transition
 Mind-set, behavioural change
 A change in the way you think about something
 Soft stuff – harder to do
4. Is dependant on your preferences, previous and current
experience
5. Is influenced by the ‘size’ of the change
The Change Journey
Future
State
Acceptance
Early
Interest
Current Shock &
Denial
State
Anger
Bargaining
Testing
Adapting
(Kubler-Ross, D. Conner, Changefirst)
Change
 Change in the organisation
17
How is change planned and
identified in in the organisation?
 PESTLE
 SWOT
18
Activity: Change drivers
With your neighbour discuss the major social, political, economic,
technological and demographic changes facing the University
in the next 18 months
Fees package and
student support
Restructuring
Recruiting and
retaining first-rate
academics
Developing income
streams
Expansiondevelopment plans
Collaboration
HR Strategy
Internationalisation
Interdisciplinarity
Group discussion
 What assumptions about change typically drive
the change process in the University?
 What do you see as the main characteristics of
the change process (e.g. consultation,
communication, implementation, etc)?
 How effective are these characteristics in
bringing about the desired change? What
makes them so?
Culture web
 In your group, complete a culture web for
Loughborough University…
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Activity: Culture and change
WHAT?
MUST KEEP
HOW?
Which aspects of our culture support
the strategy?
How should they be reinforced?
MUST STOP
MUST ADD
Which aspects of our culture will
block the strategy?
How can you cope with these?
What new aspects of our culture are
needed?
Where will they come from?
Source: Johnson and Scholes, Exploring
Corporate Strategy
Levels of Change
Change can occur at different levels in the organisation.
 At strategic level, fundamental change will be needed if
the organisation is out-of-line with the requirements of the
business environment or the shareholders demands. This
situation is known as ‘Strategic Drift’.
 The working environment is subject to the political,
economic, social and technological trends of the day.
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Types of Change
WANT TO
EASY
NEED TO
MADE TO
HARD or
PAINFUL
Types of Change
Adaptation
Evolution
Reconstruction
Revolution
The type of change can be classified using a simple two-by-two matrix
involving the extent of change and the speed that change is required
Which works best in HE; and why?
Take a look at your Resource pack Pg. 14
25
What type of change?
Triggers of change
 STRUCTURAL, COST, PROCESS, & CULTURAL
 Breakthrough change – business process reengineering
 Continuous improvement and incremental
change (Kaizen)
26
Starts with a need for a shift
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What does change & innovation need to start

Having a burning platform (D.Conner)
 Do you understand that the status-quo will not last or is not sustainable?
 Can you clearly define what the change is to others and the impact?
 Do they really understand why this has to be done!
 Do they really believe you?

Establishing a sense of Urgency (J.Kotter)
 People need to understand they need to act know!
 The impact on Operational Performance
 Clarity on non-performance
 Excitement & motivation on the Opportunities
 Expectations are clear
Key Steps to Successful Change - Kotter
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Establishing urgency
Creating change agency
Developing vision and strategy
Communicating the need and
benefits
Empowering others to act
Realising some quick hits
Consolidating gains (catalyst for
more change)
Institutionalising cultural change
From Kotter, Pascale
29
Typical Ingredients of Successful
Change Efforts
Most successful major changes include the following in either the
planning or management of the implementation of changes.
Top management establish a temporary management structure to
handle the change
A process of planning for change is used
Effective leadership at all levels, including appropriate involvement of
staff and team building
Flexible and constructive approach to control, including a focus on
solutions (not blame) and a willingness to recognise success
An effective communications plan is sustained over the whole
change process, including two way multi media cascading to all
levels of the programme
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Henley Management College: ‘Business Transformation’
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Review of Day 1
 What we are going to cover tomorrow
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Day two
 Identifying the need for change and
innovation and thinking about how we do it
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Introduction
33
Moving Towards Transformation
STAGE 1
•
•
•
•
•
•
•
•
•
Vision
Mission
Corporate Values
Business Strategies
Goals & Objectives
Policy
Business Processes
Structure
Training &
Development
• Formal Rewards
• Governance
HARD
STAGE 2
•
•
•
•
•
•
•
Beliefs
Values
Individual Self-Esteem
Leadership Styles
Attitudes
Working Relationships
Communications
Patterns
• Informal Rewards
SOFT
STAGE 3
TRANSFORMATION
TRANSFORMATION
 In order for people to change, it is critical to manage and then prove that the ‘hard’ elements are
in place
 Without this, these formal elements will continue to act as blockers for the organisation
(Based on the work of Rose Kennedy – The Orders of Change)
Tools for Innovation & Change
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Brainstorming
Process Improvement
Benchmarking
Facilitation
Self Perception/observation
Social epidemics
Cross-functional working & Collaboration
What tools could help?
36
Where do you start?
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Brainstorming
 SCAMPER
 De Bono – 6 Hats
 Workshops
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SCAMPER
A checklist of idea-spurring questions
(Adapted from Michael Michalko)
SCAMPER
 S
Substitute?
 C Combine?
 A Adapt?
M Modify? Magnify?
 P
Put to other uses?
 E Eliminate or minify?
 R Rearrange? Reverse?
(Thinkertoys – Michael Michalko)
Activity……..
 Use SCAMPER
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6 Hats
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White – facts we know
Red – emotion
Yellow – optimism
Green – creativity
Black – constructive criticism
Blue - planning
Tools for Innovation & Change
PROCESSES
 Process Frameworks
 Process Maps
 Process Improvement
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Definition
 Process - a systematic series of tasks required to
achieve an end goal.
 Procedure – this is the work instructions in showing
the steps involved in performing a particular task
 The difference between the two is that a process describes a
series of related tasks required to achieve a particular end goal,
whereas a procedure only describes the steps taken to
accomplish a single task.
 Another useful distinction is that a process describes what has
to be done, whereas a procedure describes how it is done.
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What is diagnosis?
 Think of visiting your doctor, dentist, computer or car mechanic.
What is a diagnosis?
 What does s/he do to diagnose your condition?
 What are the uses/purposes of a diagnosis? What does it
allow you to do?
 What, therefore, are the criteria for a sound diagnosis?
 How is a diagnosis derived?
 Who is skilled to carry out diagnosis? What do they need?
 IF YOU COULD FIX ONE PROCESS IN THE UNIVERSITY
WHICH ONE WOULD IT BE??
Key Elements of your function
An example
Maintenance Department
Overall Plan,
Resources &
Budget
•
•
•
•
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Planned
Maintenance
Re-Active
Maintenance
Stock Control
Define the key activities that add value to your customers
What sub processes sit below them?
What links the steps together?
Who else has activities in these processes?
Customer
Management
Process Management
Verify Fault Resolution
London
Underground
Repairing
Contractor
Fault
Reporting
Centre
Repairing Contractor
London Underground
Representative
Fault Resolved
no
Resolve
Fault
Is LU Rep
available for
sign off?
Is it a
permanent
fix?
no
Verify Fault
Resolution
Show resolved
fault to LU
Rep
yes
Disputed
Resolution
Notify FRC of
Disputed
Resolution
no
Agree with
non-sign
off?
yes
Notify FRC
no LU Rep
to sign
off Perm Fix
Close Fault
Determine if
fault is fixed
no
yes
Escalation
Process
Raise Work
Order
Notify FRC of
Failed
Resolution
yes
yes
Close: Fault Resolved
without Sign Off
Fault Rectified
Notify FRC
no LU Rep
to sign
off Temp Fix
Close: Temp Fix
without Sign Off
Open New
Fault Report
Is fault
fixed?
Is it a
permanent
fix?
no
Close: Signed
off Fault
Confirm sign
off to FRC
Close: Temp Fix
With sign off
Confirm
signed off
temp fix to
FRC
Open New
Fault Report
Sign off Fault
as Permanent
Fix
Sign off Fault
as Temporary
Fix
SIPOC
 SIPOC is a structured method for defining the core
process information and getting consensus before
rushing off and drawing detailed process maps
 SIPOC
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Supplier
Inputs
Process
Outcomes
Customer
Process Name
Suppliers
Objective
Outputs
Process
START
Inputs
49
STOP
Customer
Outputs
SIPOC Example
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Process
Symbol Key
Swim Lane Processes
‘Trigger’ symbol
‘Connector’ symbol
‘Task’ symbol
‘Decision’
symbol
‘Pre -defined’
symbol
‘Outcome’
symbol
‘System Name’
symbol
>
Participant 3
Participant 2
Participant 1
(directorate/team/ (directorate/team/ (directorate/team/
role)
role)
role)
<NAME OF PROCESS
MEASURES :
M 1 Enter details of the measurement here
M 2 Enter details of the measurement here
Process Name
File Name
Last Update
:
& Path :
Documented by
:
Process Owner
:
:
Fishbone – cause analysis
52
Improvement Tools
 Process Improvement Schools of Thinking
 Lean – Removal of waste
 Six Sigma - Consistency
 Theory of Constraints - Bottlenecks
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Lean
 A history of Lean
 Lean in a University
 The five principles of Lean
 Improving a process
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A history of Lean
50s, 60s, 70s
Scarce resources & competition
Edward Demming
+
‘LEAN’
80s, 90s
=
Taiichi Ohno
What is Lean?
Identify
Customers &
Specify Value
Pursue
Perfection
Respond
to
Customer
Pull
Maximise
The
Value
Create Flow by Eliminating Waste
Identify & Map
the
Value Stream
Seven service wastes
 What are the University’s wastes?
Kaizen
 Kaizen is about making small changes on a
regular basis: always improving productivity,
safety and effectiveness while reducing waste
 Rapid improvement projects or part of the
way you work?
 Very focused on one problem or issue
 Highly active and participative
 Results focused
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Data collection and analysis
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Data Vs. Views
Dialogues – centre piece of data-collection strategy
Input from senior managers on University issues and concerns
Confidential, one-on-one discussions
Structured process for interviewing, recording, analysing, and
reporting interviews with senior leaders
 Results must feature powerful findings captured in the University’s
own words
 Data collection
 Frequency, Time, Costs, value, inventory, cycle time, etc.
 IT Systems, budgets, calendars
What are you improving?
Time
There are only
3 elements that
can be directly
measured
Cost
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Quality
 Implementing Change!
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Change Capability
Critical Factors for Successful Change
Clear
Vision
Clear
Vision
Clear
Vision
Clear
Vision
+
Pressure
for Change
+
Pressure
for Change
+
+
Pressure
for Change
+
Pressure
for Change
+
Capacity
to Change
+
Capacity
to Change
+
Capacity
to Change
+
+
Capacity
to Change
+
Actionable
First Steps
+
Actionable
First Steps
+
Actionable
First Steps
+
Actionable
First Steps
+
=
=
=
Successful
Change
Fast Start
that
Fizzles Out
Bottom of
In-Tray
=
Anxiety
and
Frustration
=
Haphazard
Efforts or
False Starts
Ritchie
63
Common Barriers to Change
 Targets, accountabilities, roles
& responsibilities unclear
 No end-to-end programme / project
management process for all
 Cross-company teamwork
insufficient e.g. not working as a
integrated project team
 Strategic planning and Business
planning alignment
 Variable readiness to adopt new
change
People
Processes
 Challenge of communicating to
people without email
Assets/
Systems
System not fully used
IT projects not “implementing”
Lack of technology understanding/experience
The business is not taking joint ownership
 Cost control not easily visible or
integrated with financial planning
 Managing the change (transition)
not built overtly into the plan
 Planning fragmented and forever
changing
 Management processes not followed
Inevitable conflict?
 “Not just that individuals conflict
 Or different stakeholders – inside/outside
 But that the university’s agendas themselves are bound to be in
tension
 Local/global
 Enterprise/service
 Standards/inclusivity
 Transparency/keeping cards close to the chest
 Academic excellence/income generation
 Competition/collaboration
 These are never-ending differences of orientation”
Source: Ronald Barnett. Universities in the 21st Century.
University of Warwick, 6 July 2006
Organisations institutionalise resistance to
change
 Bureaucratic culture
 Multiple layers of hierarchy, a tradition of top-down change,
short-term thinking, lack of vision, and an emphasis on the status
quo
 Embedded conflict
 Conflict between schools, departments, functions
 Conflict between peers
 Conflict among subordinates
 Personal time constraints
 No time to start something new
Organisations are coalitions of interest groups in tension. Stability
is hammered out over a period. Change upsets this balance
Source: Robert Quinn (1996). Deep Change
Different forms of resistance
Does not make economic/rational sense
Rational
Does not appear
to be in their
professional
best interest
Political
Emotional
It is too risky for
them personally
How people resist change
Individual responses to threats and unknown dangers
 Rigidity
 Doing more of the same but harder
 Greater inadequacy
 Aggression
 Aggressive rigidity
 and…
How do you resistance?
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What are you resisting?
What does the resistance feel like in your body?
What does the resistance have to tell you?
What would happen if you let the resistance go?
Are you willing to let the resistance go?
 At the end of the process, the listener should ask what the
speaker noticed in the wake of their experience
Resistance to Change
Information
FUTURE
STATE
Paradigms
CONTROL
CURRENT
STATE
CONFIDENCE
CAPACITY
RESISTANCE
COMFORT
Trust
COMPETENCE
Preferences
Change & Co
(Change & Co, and elements taken from ChangeFirst PCI)
The 5 C’s
When people stay in a situation for any period of time they usually develop
established ways of thinking, feeling and behaving. Change disrupts these habits.

CONTROL: Change disrupts the strong conscious or unconscious feelings of
control that people develop when things are familiar

CONFIDENCE: Change can also generate a lack of confidence as people are
unsure about how they will cope with the new way of working

COMFORT: Change upsets the sense of comfort that comes from established
ways of working and existing relationships

COMPETENCE: Change creates anxiety by forcing people to learn unfamiliar
skills. It is common for people to question their competence when learning
something new

CAPACITY: People can feel they have reached their ‘ceiling for change’ and
that they just don’t have the capacity to take on even more change
Change capacity
Need to
implement new
policy
New
Management
Structure
Tender for
Fleet renewal
“I can’t
cope... my
brain is full!”
Higher Mortgage
payments
Moving house in
3 weeks
Daughter
goes to Uni.
next month
Redundancy's!
I need to look
after my parents
Cost savings
required
Must get to the
gym!
Dealing with resistance
Step 1 : Identify the form resistance is taking
 Trust what you see more than what you hear
 Listen to yourself - use your own feelings as a barometer
 Listen for repetition/telltale phrases
Step 2 : Acknowledge and name the resistance
 Tell the person your perception of the resistance
 Do it in a "win/win" manner; neutral, non-aggressive
 "What I think I hear you saying is .. "
 Tell the person how the resistance is making you feel
Step 3 : Be quiet, listen, let the person respond
 Get the person talking
 Encourage full expression of the concerns
 Gradually uncover underlying resistance/issue - be aware of other form
of resistance surfacing
Source: Peter block, Flawless Consulting
Source: Peter Block, Flawless Consulting
Dealing with resistance –
what not to do
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Fight the resistance
Take it personally
Go into more data collection and get hooked into the details
Avoid the individual or collude with the individual
Work more with your 'allies’
Give lots of reasons
Lose your confidence
Expect to have all the answers
Avoid giving ‘bad news’
Use aggressive language – ‘you dummy’ rule
Delay/wait one more day
Expect approval, encouragement, support and/or affection
Source: Peter Block, Flawless Consulting
Change Projects
 Create a change plan
 Have a milestone plan that is agreed and robust
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Ensure your sponsor is active
Create a dedicated project team (!!!!)
Understand your stakeholders and impacted people
Engage people early with the project
Keep them engaged
Create change champions
Work out what will help embed the change
 Processes, metrics, bonuses, new behaviours
 Communicate
 Open, honestly and timely
 Know when you have got there!
 Celebrate and reinforce the learning
75
Delivering Change
Change needs permission from the top
and advocates at the bottom
Support
Function
Organisation/Business Unit/Function
Change can often stall or fail when it is
delivered from the side
(Change & Co)
The Change
SOLUTION
Support
Function
SOLUTION
Organisation/Business Unit/Function
Standing back from the problem!
 We often miss the obvious because we are so close to the
problem!
 Try to see the whole picture
 Are you using an old Paradigm!
Source: Peter Block, Flawless Consulting
It all comes down to Choice!
The New Beginning
The Neutral Zone
Coming out of transition
and making a new
beginning.
Going through an in between time
when the old is going but the new
isn’t fully operational
Ending,
Losing,
Letting go
Letting go of old ways
and old identities
Time
So transition starts with an ending and finishes with a beginning.
((William Bridges)
Review so far…..
79
Day three
80
Sheep, donkeys, foxes and owls
Politically aware
Clever
Wise
Psychological
game playing
Action with
integrity
Inept
Innocent
Politically unaware
Stakeholder analysis
1. Identify your key stakeholders
Your boss
Governors
Government
Senior Managers
Alliance partners
Trade unions
Colleagues
Suppliers
The press
Your team
FE colleges
Interest groups
Students
Publishers
The public
Parents
Future recruits
The community
Remember that although stakeholders may be both organisations and
people, ultimately you must communicate with people
Stakeholder analysis
2. Prioritise your stakeholders
•
•
•
•
High power, interested people: these are the
people you must fully engage and make the
greatest efforts to satisfy.
High power, less interested people: put
enough work in with these people to keep
them satisfied, but not so much that they
become bored with your message.
Low power, interested people: keep these
people adequately informed, and talk to them
to ensure that no major issues are arising.
These people can often be very helpful with
the detail of your project.
Low power, less interested people: again,
monitor these people, but do not bore them
with excessive communication.
Stakeholder analysis
3. Understand your stakeholders
 What financial or emotional interest do they have in the outcome of your change?
Is it positive or negative?
 What motivates them most of all?
 What information do they want from you?
 How do they want to receive information from you? What is the best way of
communicating your message to them?
 What is their current opinion of your work? Is it based on good information?
 Who influences their opinions generally, and who influences their opinion of you?
Do some of these influencers therefore become important stakeholders in their own right?
 If they are not likely to be positive, what will win them around to support your project?
 If you don't think you will be able to win them around, how will you manage their
opposition?
 Who else might be influenced by their opinions? Do these people become stakeholders in
their own right?
Activity: Stakeholder analysis



Create a stakeholder map connected to a change you want to bring
about
What ‘political stance’ do you expect from the stakeholders with high
power/high interest? Why do you say this?
What strategies might you employ to ensure your key stakeholders
stay on-side?
Managing stakeholders - summary
The role of communication
 The use of language
87
Communication
Good communication is an
essential element of the
change process.
Great care should be taken
with the content and form
of any communication,
always taking account of
the needs of the audience.
88
Effective Communication
Routine
TYPE OF MEDIA
Face-to-face
Interactive
E-mail, FAQs
General bulletins
89
CHANGES
Complex
Overly rich communication
causes confusion
Rich communication
for complex changes
EFFECTIVE
COMMUNICATION
Routine communication
for routine change
Too little information
and sensitivity leads to
mistrust and lack of
commitment
Suggestions for effective
communication
 Use several different methods of communication
 Attempt to balance the content: avoid confusion by
emphasising a limited number of key aspects; equally,
avoid giving too little information which can lead to
mistrust
 Encourage two-way communication; encourage people to
give feedback, ask questions and discuss concerns
 Involve those who participated in the change process;
they can cascade information to their teams and others
 Keep links within the communication process short; this
helps to reduce the likelihood of confusion or distortion
90
Organising your plans
 Gantt charts
 Network planning
 Microsoft project
91
Leadership and Change
92
Transactional/Transformational
Leadership
93
What kind of change manager are
you?
94
What is the effective management
of change?
 What does it look like?
 Have you seen it?
95
Skills and competencies
 Can you identify the skills and competencies
required to manage change effectively?
 What do you need to do? Develop?
Enhance?
96
Resilience – what is it?
Resilience is being able to
adapt well in the face of
adversity, trauma, tragedy,
threats, or even significant
sources of stress - It means
"bouncing back" from difficult
experiences
Resilience - Top Tips
Notice how
you are
feeling
Concentrate
on what you
can control
not on what
you can't
Be gentle on
yourself
Be
proactive
Do more of
what makes
you feel good you are
important
Take a deep
breath
Smile and
laugh
Lift yourself
up sit tall walk tall
deep
Notice the
good things
Choose what you allow to wind you
up
How to build
resilience
Avoid seeing
crises as
insurmountable
problems
Take decisive
actions
Make connections with
friends and family
Keep things
in perspective
Take care
of yourself
Personal learning and
action Planning
 Individually, review the learning goal(s) you set for
yourself at the start of the unit. What have you learned as
a result of this session?
 Now identify 2-3 S*M*A*R*T actions that you plan to take
as a result of this unit
 In groups share both your personal learning and your
actions with colleagues
Assignment
102