TYPES OF CHANGE (Linda Ackerman)

Developmental Change
Improvement of what is

Transitional Change

Old State

Transitional State

New State

Implementation of a known new state. Management of the interim transition state, over a controlled period of time

Transformational Change

Emergence of a new state out of the Chaos remains of the Growth chaotic death of the Reemergence old state. Time period not easily Birth Death controlled 1
Plateau

DEVELOPMENTAL STAGE
Improvement of a skill, method or condition that for some reason does not measure up to current expectation do better than or do more of what already exists Might be considered fine-tuning helping an organization stretch and, thereby, change Plotting a direct course from A to B, where both beginning and end points are well understood and not very far apart
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Old State

Transitional State

New State

TRANSITIONAL CHANGE
Introduced to have an organization evolve slowly Current ways of doing things are replaced by something new Involves many transition steps, during which the organization is neither what it once was nor what it aims to become. Management task is more complex, and may include launching several new processes at once, analyzing risk and uncertainty, and looking after the needs of change recipients. Gradually the firm eases into a new picture of itself
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TRANSFORMATIONAL CHANGE
Catalyzed by a change in belief and awareness about what is possible and necessary for the organization The new state is usually unknown until it begins to take shape Most of the variables are not to be controlled, rushed, or short-circuited Typified by a radical reconceptualization of the organizations mission, culture, critical success factors, form, leadership, and the like Plateau Chaos

Growth
Birth

Reemergence

Death

Developmental Change

Skill building training

Transitional Change

Setting up temporary positions, structures

Transformational Change

Developing new beliefs, systems, gaining organization-wide commitment

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A way of assessing the kind of change an organization needs is to ponder the following questions. Given that the organization is under pressure to change its current way of doing things: How far do we want to go? Is that too far? Not far enough? Are we contemplating the path of least resistance, or a direction that is truly needed? What kind of results do we want short term? Longer term? Do we want permanent change? Or would that risk inflexibility, making future change more difficult? How much change can the organization absorb? At once? Cumulatively? Can the changes contemplated be presented positively? If not why not? What happens if we dont change at all?
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TYPES OF ORGANIZATIONAL CHANGE

Organizations may innovate in one or more areas Products A change in one part may affect other parts of the organization
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Structure

Technology

Strategy

Culture / People

TECHNOLOGY CHANGE

Related to the organizations production process how the organization does its work

Designed to make the production of a product or service more efficient

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HOW CAN MANAGERS ENCOURAGE TECHNOLOGY CHANGE?

BOTTOMUP APPROACH
Ideas are initiated at lower organization levels and channeled upward for approval Lower-level technical experts act as idea champions they invent and champion technological changes

Employees at lower levels understand the technology and have the expertise needed to propose changes
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BOTTOM-UP APPROACH
Managers can facilitate the bottom-up approach by designing creative departments A loose, flexible, decentralized structure provides employees with the freedom and opportunity to initiate continuous improvements Anything managers can do to involve the grass roots of the organization will increase technology change

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TOP-DOWN APPROACH (USUALLY DOES NOT WORK)

Top managers are not close to the production process and lack expertise in technological developments Mandating technology change from the top produces fewer rather than more technology innovations
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Change in the organizations product or service output

Have major implications for an organization, because they often are an outcome of a new strategy and may define a new market

NEW-PRODUCT CHANGE
Product life cycles are getting shorter, so that companies need to continuously come up with innovative ideas for new products and services that meet needs in the marketplace

Primary way in which many organizations adapt to changes in markets, technologies, and competition
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 Product development is a risky, high stakes game for organizations. Companies that successfully develop new products usually have the following characteristics:

People in marketing have a good understanding of customer needs

Technical specialists are aware of recent technological developments and make effective use of new technology Members from key departments cooperate in the development of the new product
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HORIZONTAL LINKAGE MODEL FOR NEW-PRODUCT INNOVATION

Organization
Manufacturing Department New Technology Research Department Marketing Department

Customers, Market Conditions

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Todays increasingly sophisticated consumer is demanding an ever increasing role in product development and marketing. Empowerment in todays competitive environment goes beyond employees to include suppliers and customers in the product development process. Entire industries are actively soliciting consumer feedback for new products and are including consumer participation from the beginning of the design process. Marketing departments have been surveying customers for years to determine what they want and need. A new approach is to actually observe customers using products or services in their normal, everyday routines in order to gather information about unarticulated customer desires.
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 Innovation is becoming a major strategic weapon in the global marketplace

TIME-BASED COMPETITION

Delivering products and services faster than competitors, giving companies a significant strategic advantage

Simultaneous linkage among departments. The teamwork required for the horizontal linkage model is a major component of using rapid innovation to beat the competition with speed

INNOVATION

PARALLEL APPROACH
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