Implementing change at national industrial products case analysis

Resources
Read/review the following resources for this activity:

Textbook: Chapter 11
Textbook: Integrative Case 8 Costco Join The Club (back of book)
(.pdf): MGT404 Presentation Chapter 11 (supplementary resource in attached)
Introduction

Case studies are used to foster discussion of concepts from the chapters and to illustrate practices that sometimes go beyond the concepts within a chapter. Use your experiences and opinions to develop firm thoughts regarding the case.

Activity Instructions

Integrative Case 8 – Write an analysis of Case 8. This should include your thoughts and/or experiences that support your view of the case.

1. Describe the culture at Costco.

2. How does Costco motivate it employees?

3. What environmental issues does Costco face?

4. How is Costco a socially responsible company?

Writing Requirements (APA format)

5-6 pages (approx. 300 words per page), not including title page or references page
1-inch margins
Double spaced
12-point Times New Roman font
Title page with topic and name of student

Innova&on and Change

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Organiza(on Theory and Design Twel%h Edi+on Richard L. Da%

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The Strategic Role of Change •  Organiza+ons must run fast to keep up with changes taking place all around them

•  Today’s organiza+ons must keep themselves open to con+nuous innova+on to survive

•  Three types of change: – Episodic change – Con+nuous change – Disrup+ve change

•  Change has become the norm today ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Stages of Disrup+ve Innova+on

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Strategic Types of Innova+on and Change

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Elements for Successful Change

•  Organiza5onal change is the adop+on of a new idea or behavior by an organiza+on

•  Organiza5onal innova5on is the adop+on of an idea or behavior that is new to the organiza+on’s industry, market, or general environment

•  Change process within organiza+ons comes from innova+on and new ideas regardless of +ming

•  Successful change includes ideas and crea+vity, need, decision to adopt, implementa+on, and resources

5 ©2017+ Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Successful Change Elements

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Technology Change

•  Technology is a key driver of organiza+onal change

•  Change is easily embraced by organiza+ons with empowered employees

•  Innova+ve organiza+ons are flexible and free- flowing without rigid work rules

•  Mechanis+c structures s+fle innova+on and focus on rules and regula+ons

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Ambidextrous Organiza+on

Incorporates structures and management processes that are appropriate for innova+on

8 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Techniques for Encouraging Technology Change

•  Switching Structures – create an organic structure

•  Crea5ve Departments – department for innova+on

•  Venture Teams – a small company within the organiza+on

•  Corporate Entrepreneurship – promote entrepreneurial spirit

•  Bo@om-up Approach – useful ideas come from people and daily work

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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New Products and Services •  The failure rate for new food products is 70-80% •  Producing products that fail is part of business •  Reasons for success:

– Innova+ng companies understand customers – Innova+ng companies successfully use technology

– Top management supports innova+on

•  Horizontal Coordina5on Model: – Specializa+on – Boundary Spanning – Horizontal Coordina+on ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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New Product Success Rates

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Horizontal Coordina+on for Innova+on

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Open Innova+on and Crowdsourcing

•  Open Innova5on- extending the search for and commercializa+on of new products beyond the boundaries of the organiza+on and the industry

•  Crowdsourcing- solici+ng ideas, services, and informa+on from online volunteers rather than from tradi+onal employees

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Achieving Compe++ve Advantage: The Need for Speed

•  The rapid development of new products and services can be a major strategic weapon

•  New product development is associated with lower development costs and greater success

•  Firms can address shi%ing customer demands

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Strategy and Structure Change •  Organiza+ons need to change strategies, structures, processes, and procedures more o%en to adapt

•  Many organiza+ons are preparing for more change by:

– Cu_ng out layers – Decentralizing decision making – Shi% toward horizontal structures – Empowered teams and workers – Virtual network strategies –  Incorpora+ng eBusiness

15 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Organiza+on Design for Implemen+ng Management Change

•  A mechanis+c organiza+on structure is appropriate for frequent management changes

•  The authority for strategy and structure change lies with top management

•  Employee input may be sought, but top managers have the responsibility to direct the change

16 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Dual-Core Approach to Organiza+on Change

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Forces for Culture Change

Ø Reengineering and Horizontal Organiza+on

Ø Diversity

Ø The Learning Organiza+on

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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OD Culture Change Interven+ons

Large Group Interven+on

Team Building

Interdepartmental Ac+vi+es

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The Change Curve

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Leadership for Change

Transforma5onal leaders - Create a compelling vision - Create an environment for risk-taking and innova+on

Leadership for Change: 80% of successful innova+ve companies have top leaders who reinforce the value and importance of innova+on. Transforma+onal leadership is well-suited for leading change.

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Techniques for Change Implementa+on

•  Establish a sense of urgency for change •  Establish a coali+on to guide the change

•  Create a vision and strategy for change

•  Find an idea that fits the need •  Create change teams

•  Foster idea champions

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Techniques for Overcoming Resistance

•  Top management support •  Par+cipa+on and involvement •  Alignment with needs and goals of users •  Communica+on and training •  An environment with psychological safety

23 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Design Essen+als

vChange, not stability, is the challenge for managers v There are four types of change v Organic structures foster innova+on

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Design Essen+als

v A top-down approach is best for change and strategy

v Top managers must foster culture change v The implementa+on of change can be difficult vPlanning for change can help deal with resistance

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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