Organizational Cultures Innovation and Change Organizational culture Personality of org Organizational corporate culture is a system of shared beliefs and values guiding behavior Shapes behavior Strong cultures and socialization process through which new members learn the culture of an org Managers Must develop culture Internal encourage innovation refreshing product manage change Innovation is change 1 Culture is personal Tony Hsieh CEO Zappos Culture is a mindset 1 could absorb absorbational event casual clothes different culture 2 different value stuff you see hear write cultural fit high impact on people mainly on their job culture system of shared beliefs values guiding behavior Interal set of signals of what is consider appropriate vs inappropriate external Thinking Action Not based on ethics and complicate protocols guiding behavior Thinking Behavior Structure Symbol 2 Culture is organizational Observed campus dress sports technology career stuff speaker Core academic grades code of conduct integrity rules what we see how we write down ourselves Video Disney Culture symbol mickey with guidelines 3 Culture is Corporate shape attitudes reinforce beliefs direct behavior set expectations Microsoft stucks or forced ranking force driving ranking employees creates tough culture hierarchy and competition KPMG Study Mergers Acquisitions analysis of 700 deals over 2 years 83 failed to produce any benefit 50 destroyed shareholder value only 17 added value why Bankers lawyers consultant government s officials lack of understanding 1 cast member not employee 2 name tag 3 eyewear 4 undergarment 4 Culture is Global Societal culture examples or sub cultures Academic type level Functional ex marketing Geographic Club Ethics Political Religious Fitness Style urban Sam Walton Ken Frazler Walt Disney Meg Whitman Indra Nooyi Ursula Burns Alternative Organizational Cultures Team culture authority shared distributed teams and teamwork rule collaboration trust valued emphasis on mutual support Entrepreneurial culture authority goes with ideas flexibility and creativity rules change and growth valued emphasis on entrepreneurship Hierarchal Culture authority runs the system traditions roles clear rules hierarchy valued emphasis on predictability Rational culture authority serves the goals efficiency productivity rule planning process valued emphasis on slow change 1 observable cultures is what you see and hear when walking around an org 2 core culture is found in the underlying values of the organization core values beliefs and values shared by org members 3 value based management actively develops communicates and enacts share values symbolic leader uses language and symbols and actions to establish desired culture workplace spirituality involves practices that create meaning and community purpose trust and respect honesty and openness growth ethics and social resp worker friendly practices SCORES S structure tight or loose change oriented or driven by status C change quo O outcomes what is highly valued R risk risk for innovation E empowerment how widespread is S style external competitive style internal or Culture Above Below the waterline Above Observed culture visible dress style symbol Below Core culture invisible expressed value Edgor Schein s levels of culture 1 Heroes shared knowledge of hero stories establish or represent core value 2 Rites Rituals tales about events conveying stories core value rites and rituals celebration of heroes and events displaying core value Core culture heroes symbols people past and present who display core values language and other symbols conveying core values stories heroes symbols rites rituals core value values or beliefs right ways to behave creates connections people organization builds morale engagement shared hands on experience not benefit serve in place of other benefits symbols common understanding of culture easy to recognize you others stories easily remembered passed on instills deeper cultural understanding culture where performance and culture intersect top 500 fortune companies KFC flarland Sanders 3 4 Thurl Ravenscroft for voice Kellogg Tony symbol Wendy s Dave Thomas Pixar culture video create innovative community How do Organizations Support and achieve innovation Innovation taking a new idea and putting it into practice Process of translating an idea or invention into a good or service that creates value or for which customers will pay Ex 3D printing there are benefits and side effects 1 Organizations pursue process product and business model innovations Process innovation result in better ways of doing things lean principles reduction of waste six sigma process improvement Tak time Reduction in cost Increased turn around cycle time Increase in output better customer satisfaction ex bending machine credit debit cards incremental development ex Nick D aloisie developed app and sold to Yahoo new service that summarize the text entrepreneurship level and corporate lovel Product innovations result in new or improved goods or services Shark Tank food replicant different products new or incremental Ginni Romettty CEO of IBM Got enjoyed to golf club not about gender but relationship power Condi Rice and Dalia Moore ex Drones eye in the sky benefits and unintended consequences Business model innovation result in ways for firms to make money business model your approach to making money ex blockbuster and dish television dvd Online ex Instagram problem solving approach beauty speed distribution change business model of photo 2 Green innovation reduces the carbon footprint of an org or its products sustainability Toyota Subaru zero waste making money out of recycling Ex Terracycle Torn Szaky worm poop up cycle and recycle Zero waste Process innovation 3 Social innovation is business innovation driven by a social conscience Social entrepreneurship pursues innovative ways to solve pressing social problems storiestales about events conveying core valuerites and ritualscelebration of heroes and events displaying core valueheroespeople past and present who display core valuessymbolslanguage and other symbols conveying core valuesCore culture 4 Commercializing innovation is the process of turning new ideas into salable products Begins with invention act of discovery application act of use Taking innovation to market Ex super soaker how to get market big issue Ex Post it Notes 3M Minnesota Mining and Manufacturing failed at first Purpose of iPad was
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