MGMT Final Exam Review Chapter 9 Culture Innovation Change 1 Managers Must a Develop culture b Encourage innovation c Manage change 2 Zappos CEO Tony Hsieh a Observational things b Relaxed Casual Culture c How we write and talk about ourselves values d Core Values Ideas of how business is run i ii What makes company special and unique iii Embrace and drive change iv Passionate and determination 3 Culture a Cultural Fit has a high impact on people leaving their jobs b Culture is Personal i System of shared beliefs values guiding behavior INTERNAL 1 The way we do things ii Set of signals of what is considered appropriate vs inappropriate EXTERNAL 1 Structure Symbols Thinking and Acting c Culture is Organizational i Core How we write and talk about ourselves d Culture is Corporate i Shapes Attitudes ii Reinforce Beliefs iii Direct Behavior iv Set Expectations v Symbols to associate culture 1 Ex Disney cast members nonemployees vi Ex KPMG Merger and Acquisition 1 Lack of attention to culture destroys value e Culture is Global i Societal Culture or Sub Cultures 1 Academic a Type level 2 Functional a Marketing 3 Ex Nike Fitness culture 4 Examples a Geographic b Ethnic c Fitness d Style e Urban rural f Political g Religious h Club f Culture Above and Below the Waterline i Ice Berg Example 1 Visible a Dress office symbols slogans 2 Invisible a Express values ii Observable Culture 1 Core Culture values or beliefs about right ways to behave 2 Stories Heroes Symbols Rights and rituals iii Heroes 1 Cultural Benefits a Shared knowledge of hero stories b Established or represent core value 2 Intentional Culture a Sam Walton Walmart b Ken Frazier Merck Co PSU Bot 3 We tell stories of leaders a Meg Whitman CEO HP b Indra Nooyi CEO Pepsi c Ursula Burns CEP Xerox iv Rights and Rituals 1 Cultural Benefits a Creates connections People and orgs b Builds morale and engagement c Shared hands on experiences 2 Ex random act of kindness 3 Ex Pixar and Culture a Office creativity b Activities in atrium v Symbols 1 Cultural Benefits 2 Ex Tony the Tiger 3 Ex Nittany Lion 1 Cultural Benefits vi Stories a Common understanding of culture b Easy to recognize you and others a Easily remembered and passed on b Instills deeper cultural understanding 2 Ex stories of success and failure stories to drive us 3 Ex Harland Sanders KFC Founder at age 62 symbol 4 Ex Dave Thomas Wendy s Founder 4 Innovation a Where performance and culture intersect i Taking a new idea and putting it into practice ii Process of translating an idea or invention into a good service that creates value of for which customers will pay want side b Ex 3D Printing some benefits and side effects c Ex Shark Tank Innovation i Many different products 1 New incremental innovation ii Must be a business case and a story product d Process Product Business Model i Process Innovation 1 Passion are you in it emotionally do you care about 1 Lean Principles Reduction of Waste Six sigma 2 Reduction in cost 3 Increased turn around a TAKT TIME cycle time Increase in output 4 5 Better customer satisfaction 6 Ex Vending Machines and debit cards a Changing payment system increases purchases b Incremental ideas ii Product Innovation 1 New product category extention 2 Ex Nick D Aloisio age 17 a Sold app to Yahoo 2013 for 30M 3 Investors a Marisa Mayer CEO Yahoo b Mark Pinus Zynga c Li Ka Shing and Ashton Kutcher 4 Examples a Drones DJI Phantom Vision Plus i Frank Wang negative benefits b IBM Master s Gold i Condi Rice and Darla Moore First women to play iii Business Model Innovation 1 Something that s existing and then change it in some way 2 Your approach to making money 3 Ex Dish buys Blockbuster 4 Example a Instagram i Changed picture business model ii Made digital convenient iii Kevin Systrom 1 Thought it could be universal 2 Focused on problems and how to solve them filters a Speed b Distribution e Sustainability Innovation i Going to Zero Waste Process Innovation ii How to use resources well today and the future iii Example TerraCycle CEO Tom Szaky 1 Commercialization a Use waste as a raw material b Recycling the non recyclable Juice boxes into a bag i c Recycle Reprocessed f Selling Innovation i Taking innovation to market ii Lonnie Johnson Super Soaker iii How you sell how you commercialize g Commercialization i Post it Notes 1 Minnesota Mining and Manufacturing 2 Higher end unique product 3 Tried to make super sticky substance but failed 4 Failed in market at first but succeeded after a strong h Organization Protocols Supporting Innovation a Commercialization game plan commercialization plan ii Tom Szaky 1 Spent 0 on marketing 2 Experts on managing waste 3 Use Social Media 4 Negative Cost Marketing i Strategy Includes innovation ii Structure Supports innovation iii Culture Values Innovation iv Staffing For creativity innovation interesting 1 Recruiting v Management Supports Innovation 5 Change a It s personal and organizational 1 Can work on other things in your job you find b c Impact of Change on people Death and Dying Model i Elizabeth Grief ii Fear of unknown iii Disrupted habits iv Loss of confidence v Work overload vi Poor timing vii Lack purpose viii Loss of face ix Loss of control d 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 e Example i Money Ball 1 Oakland Athletics 2 Changed process 3 Billy Beane Oakland GM hires economist 4 Brought data into game 5 All the leadership of getting them to change fear of unknown f 2 Types of Change i Transformational 1 When opportunities or threats exist 2 A Burning Platform a People or corporations that need to change b Ex IBM Lou Gerstner 92 02 i Changed their strategy 1 One IBM One Team Strategy 2 Go Get Customers cost 3 Changed Culture casual Culture ii Incremental 1 Process improvement 2 Day to day g Change Process Kurt Lewin Model i Unfreeze Create a need for change ii Change Implement and manage the process of change iii Refreeze Stabilize the change and scan for the future h Change Leadership and Approaches to Change Change Drivers Status Quo Holders Confident of Ability Willing to Take Risks Seize Opportunities Expect Surprise Make Things Happen Threatened by Change Bothered by Uncertainty Prefer Predictability Support Status Quo Wait for Things to Happen i Who Moved My Cheese i A change allegory by Spencer Johnson ii Hem and Haw iii Haw realized the unexpected could happen iv Thought change was wrong v Realized change was
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