Management 301 Final Exam Chapter 9 Culture Innovation Change Managers must big 3 things 1 Develop culture 2 Encourage innovation 3 Manage change Culture system of shared beliefs values guiding behavior internal the way we do things around here set of signals of what is considered appropriate vs inappropriate external thinking and acting things that you do what you re interested in style Cultural fit high impact on people leaving their job what is you what is your image Sub Cultures academic type and level functional ex marketing similar to clicks in High School Video Justin Timberlake and Bud Light Platinum cultural fit Yes Business week March 2013 Lady Gaga and Polaroid cultural fit No Video Disney Traditions with Mickey orientation to you set expectations shaping behavior Observed and Core Culture above under waterline Edgar Schnein s Levels of Culture 1 Visible dress office symbols slogans above water line 2 Invisible expressed values ex HP way mid water line 3 Assumptions deep beliefs ex we are a family below water line Core Culture values or beliefs about right ways to behave Stories easily remembered and passed on instills deeper cultural understanding video Wegman s Best Place to Work Rites Rituals creates connections people and organizations builds morale and engagement shared hands on experience video Dreamworks fun workers encourages to audition for voices etc Shrek Day bringing people in to talk serves in place of other benefits Symbols common understanding of culture easy to recognize you and others Heroes shared knowledge of hero stories establish or represent core values heroes come from every level of the organization ex CEO Walmart Walt Disney Innovation 3 1 Know Well and all Illustrations Innovation taking a new idea and putting it into practice video Nick D Aloisio Innovation 17 years old 2013 sold app to Yahoo 30 million mobile apps to figure out how to tailor large info into mobile Summly Three Forms of Organizational Innovation process take an existing thing and making it better 6 sigma lean principles reduction of waste reduction in cost increased turn around cycle time how fast you create something increase in output better customer satisfaction product brand new products Kindle IPad paper books E readers business model change everything Blockbuster and Dish instead of driving to store other ways to rent Instagram Kevin Systrom CEO 2010 scared Facebook Facebook bought it excellent example of a business model innovation for Instagram and Facebook video CEO Kevin Systrom sold to Facebook Commercialization selling innovation Post It Notes cultural phenomenon 1963 3M corporation technology 1974 scientist in choir at church needed to keep spots need to sell it called peel and stick failed then relaunched and became a multi million product video Terra Cycle CEO Tom Szaky sustainability and commercialization create new business model to deal with trash and recycling Structure Supporting Innovation strategy includes innovation structure supports innovation culture values innovation staffing for creativity innovation management supports innovation Skunkworks setting up outside area just to innovate pilot program WW2 create things fast Change to make the form nature content future course etc of something different from what it is or from what it would be if left alone Two Types of Change 1 Transformational 2 Incremental innovation process day to day change example Twinkies official shelf life is 25 days went bankrupt and bankers union went on strike sold brand needed transformational approach video Lou Gerstner IBM 1911 Watson Family IBM main line of business today is services provider strategy cost culture IBM was Big Blue giant computers main frame 80 s struggle in 90 s Lou Gerstner broke it up walks onto a Burning Platform business going down changes IBM Change Leadership and Approaches to Change Change Drivers confident of ability willing to take risks seize opportunities expect surprise make things happen Status Quo Holders threatened by change bothered by uncertainty prefer predictability support status quo wait for things to happen Change Process Kurt Lewin model 1 Unfreeze create a need for change 2 Change implement and manage the process of change 3 Refreezing stabilize the change and scan for the future Pages 222 223 Read Force Coercion Rational Persuasion Share Power Page 225 Why People May Resist Change force coercion using position power to create change by decree and formal authority legitimacy rewards punishments managerial behavior direct forcing and unilateral action political maneuvering and indirect action rational persuasion creating change through rational persuasion and empirical argument expertise managerial behavior information efforts using credible knowledge demonstrated facts and logical argument shared power developing support for change through personal values and commitments reference managerial behavior participative efforts to share power and involve others in planning and implementing change Why People May Resist Change fear of the unknown not understanding what is happening or what comes next disrupted habits feeling upset to see the end of the old ways of doing things loss of confidence feeling incapable of performing well under the new ways of doing things loss of control feeling that things are being done to you rather than by or with you poor timing feeling overwhelmed by the situation or feeling that things are moving too fast work overload not having the physical or psychic energy to commit to the change loss of face feeling inadequate or humiliated because it appears that the old ways weren t good ways lack of purpose not seeing a reason for the change and or not understanding its benefits Chapter 9 Clicker Questions 1 If we visit Disney how would we learn about core culture a listen to stories and see symbols b watch rites and rituals c read about the companies stated values d talk to theme park employees e read about Disney in the business press 2 3M by accident comes up with the Post It Note but sold it What type of innovation do we call this a business model b product c process d sustainability e it is not an innovation 3 Change is a great thing for a company but which below is NOT a leadership change driver a seizes opportunities b is confident of ability c keeps things predictable d willing to take risks e makes things happen 4 You ve just started your new job at Apple Someone looks at you and says this is the way we
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