Managing Change and Innovation (Essay Sample)

Essay: Managing Change and Innovation
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Managing Change and Innovation
Today's business environment requires companies to pass through changes almost continuously if they are to endure competition. Influences such as globalization of markets and rapidly developing technology power companies to respond to survive. Such alterations may be comparatively minor as in the case of installing a new software program. However, quite important as in the case of refocusing on general marketing strategy, fighting off an unfriendly takeover, or transforming a company in the face of persistent foreign competition Kotter, J. (2011).
Organizational change occurs when a firm makes a move from its current state to some anticipated future state. Managing organizational change is the course of planning and implementing change in organizations in such a way as to lessen employee resistance and cost to the organization while simultaneously maximizing the effectiveness of the change effort.
Business development planning first requires establishing the company’s development aims and then expressing a business change strategy. Which comprises all or some of the following methods of development; sales development, new product, new market, business organization, shape, structure and processes (e.g., outsourcing, e-business, etc.). Supply-Chain development, People management and communications development, strategic partnerships and distribution routes development and acquisitions and disposals.
Business development is partly scientific, and somewhat subjective, based on the feelings and wishes of the company owners or CEO Whelehan, S. (1995). There are so many ways to improve a business that achieve progress and improvement and infrequently is one of these a single best result. Business development is what some individuals call a 'black art,' i.e., difficult to analyze, and difficult to apply a replicable process.
Reasons for change
Globalization and the continuous innovation of technology result in a constantly evolving business environment. Phenomena such as social media and mobile adaptability have transformed business, and the effect of this is an ever growing need for change, and therefore change management Levin, Ginger (2012). The advance in technology also has a secondary result of increasing the availability and therefore accountability of knowledge.
With the business environment facing so much change, organizations must then learn to become comfortable with change as well. Therefore, the capability to manage and adapt to organizational change is an important skill required in the workplace today. As substantial and fast organizations are, change is complicated in the structure, culture, and routines of organizations ( András, Christopher; Marquis and Tilcsik 2013). This often echoes a determined and difficult-to-remove "imprint" of past times.
Due to the growth of technology, current organizational change is primarily motivated by exterior revolutions rather than internal moves. When these developments occur, the organization that quickly adapt, create for themselves a competitive advantage for themselves. However, for the companies refusing change they get left behind. This can result in extreme profit and/or market share losses Skelsey, Dan (2013).
Techniques for effectively change management
Managing innovations well requires moving the business from its current state to an anticipated future state at minimal costs. Change management models and theories from The Action Research Model/Theory (Schein, 1980). Lewin’s Three-Step Model (Lewin,1951), Shield’s five-step model (Schield, 1999) and others tend to give the a general outline key steps. When determining which of the modern techniques or innovations to employ, there are four major factors to be considered;
1 Understanding the current state of the organization Levels, goals, and strategies. This involves identifying problems the company faces and assigning a level of importance to each one. You should also assess the kinds of changes needed to solve the issues.
2 Competently envisioning and laying out the preferred future nature of the business. This encompasses visualizing the ideal situation for the company after change taking place, conveying this vision clearly to everyone participating in the change struggle, and designing a means of transition to the new state. An important part of the development should be maintaining some stability; some things such as the company's overall mission or essential personnel should remain constant in the midst of turmoil to help reduce people's anxiety.
3 The company to train their employees on the appropriate changes.
4 The management to implement the change in a systematic manner. This includes managing the move effectively. It might be useful to draw up a plan, allocate resources, and assign a key person to take charge of the transformation process. The company's leaders should try to create enthusiasm for the change by sharing their goals and vision and acting as role models.
5 Change is ever normal dynamic. Proactive administration of change to optimize future adaptability is invariably a more innovative way of dealing with the drives of industrial transformation than letting them occur willy-nilly.
Organizational change initiatives often arise out of difficulties faced by a business. In some cases, however, companies change beneath the motivation of liberal leaders who first discover and then exploit new potentials inactive in the organization or its circumstances Dean, Christina (2009).. Some observers, more soberly, label this a "performance gap" that capable management is inspired to close. In generally organizational development implementation takes the following three phases;
Phase 1 - Preparation, assessment and strategy development (Preparing for change)
Phase 2 - Detailed planning and change management implementation (Managing change)
Phase 3 - Data gathering, corrective action, and recognition (Reinforcing change)
Fruitful change management is more likely to occur if the following are built-in Schneider, Dan (2006).
1 Benefits management and recognition to define measurable stakeholder aims, create a business case for their achievement. It should screen norms, risks, costs, dependencies, dis-benefits, return on investment, and cultural matters affecting the progress of the associated work
2 Effective communication that enlightens various stakeholders of the reasons for the change, the benefits of successful implementation as well as the details of the change when? Where? Who is involved? How much will it cost?
3 Invent an adequate education, training, and/or skills upgrading scheme for the organization.
4 Counter-resistance from the employees of companies and align them to the overall strategic route of the firm.
5 Provide individual counseling (if required) to alleviate any change-related fears.
6 Monitoring of the implementation and adjustments as compulsory.
Responsibility for managing transformation is with management and executives of the organization - they must manage the change in a way that staffs can cope with it Wallington, Patricia M. (2000). The worker's obligation is just to do their best, as opposed to every other individual and rests on a broad variety of factors such as health, stability, personality, maturity, motivation and experience.
Implementing Innovation in an Organizations
Innovation fuels organizational growth, drives forthcoming success, and is the instrument that allows companies to sustain their viability in a worldwide economy. Both managers and researchers refer to innovation as a ‘matter life-and-death for a business’, in which the continued need for fighting for endurance and the threat of competition encourage firms to be creative. Business and management research clearly show that organizations with innovative capacity can react to environmental change quicker and can achieve better than non-innovative organizations. Innovation cannot be external to the organization. For companies to succeed by innovation, it is not enough to come up with great ideas that can change your market. The business as a whole must be ready to absorb and implement change.
Looking at case studies not only good ideas and charismatic leaders are see but also creative companies remain built on typical change mindset. Teams are working jointly on new solutions not tested before. Managers encompass the entire staff where you see a cooperative interest and care for the project. Lesson learning on successful ventures is pooled across departments and regions, side by side with understandings on the developments that failed. At last, creative ideas are surely essential but most of them tend to fail. A suitable selection criteria and ongoing managerial support are vital to assure performance.
Working with large corporates that recognize the importance of innovation like Microsoft Corporation, we learn that change, which is carried by professional titles, visions or slogans cannot attain real innovation. To help organizations revolutionize, Trends Spotting (like new ideas in the computer world and consumer needs for the case of Microsoft). Has collected insights from primary research conducted in leading as well as start-up companies Cummings, Edgar, Thomas & Huse (1989). Reviewed academic research together with the practical business investigation and analyzed multiple case studies to come up with essential parameters of best practices that are vigorous for the implementation of innovation. What’s desirable to fuel the change engine? Working with companies on innovation implementation, we learn that efforts are needed to set a modernization culture all over the organization before investing ...