Change, Culture for change

Change

Change makes things different. Change is a universal phenomena and a way of life for all. Change is inevitable. it is one reality with which individuals, groups, organizations, societies and nations must constantly cope, in order to survive. Change is one of the most critical aspects of effective management.

Importance of change

Though change disturbs the existing equilibrium, it is essential for sustenance and growth as under:
1. Change brings with it risks and uncertainties, which if not managed properly, may lead to huge costs to the org. or even its collapse.
2. Change sometimes bring challenges without which life and business activities may become monotonous and repetitive.
3. Change may bring new business opportunities viz. technological advancement may help in taping new markets or new market segments.
4. Change sometimes brings new threats which act as stimuli for improvements.
5. Change process may be used by orgs. To move from current state of business operations to next higher state of business operations.
6. Change process may enable the org. to abandon some negative cultural values, some outdated and obsolete practices and methods, etc.
7. Change process can be used to raise motivation viz. by creating desire to support and participate in the change.
8. Change process may lead to more satisfaction through improvement in worker’s skills and more worker participation.

Types of Change

Organizational change may differ in terms of magnitude/quantum, rate/ speed and the management philosophy. It can be categorized along the following lines:

1. Planned (intentional or goal oriented) and unplanned change (accidental):
Planned changes are introduced internally by the management in a systematic manner, for eg. Planned automation.
Unplanned changes are sudden in nature as a result of some sudden development, For eg. In accident in a factory may force the management to go ahead with sudden closure of production.

2. Fast and slow change (in terms of rate of change):
Depending upon the ratye of environmental changes, organizational change may be slow or fast. The rate of org. change may also be influenced by necessity, circumstances and management philosophy.

3. First Order (incremental ) and Second Order (fundamental or radical) change in terms of magnitude / quantum:
The magnitude of org. change is influenced by top mgt. policies and risk taking capabilities. Degree of environmental changes also influence the magnitude of org. change.

Building culture for change:

It is a time consuming exercise and involvers lot of efforts. Mgt’s first responsibility is to detect trends in the macro-env. So as to be able to identify changes and initiate program . It is also imp. To estimate what impact a change will likely have on employee behavior patterns, work processes , technological requirements and motivation. Mgt. must asses what employee reactions will be and craft a change program that will provide support as workers go thru the process of accepting change. The program must then be implemented , throughout the org, monitored for effectiveness and adjusted where necessary.

Mgt. of the org, must manage the change in a way that employees can cope with it.

Check that people get affected by the change agree with , or at least understand , the need for change, and have a chance to decide how the change will be managed, and to be involved in the planning and implementation of the change.

Participation, involvement and open , early, full communication are the important factors for success.

In general terms a change program should:
- Describe the change process to all people involved and explain the reasons , why the changes are occurring. The info. Should be complete , unbiased, reliable, transparent and timely.
- Be designed to effectively implement the change while being aligned with organizational objectives, macro-environmental trends and employee perceptions and feelings.
- Provide support to employees as they deal with the change and, wherever possible , involve the employees directly in the change process itself.
- Be consistently monitored and reviewed for effectiveness. A successful change mgt. program is typically also a flexible project.








Managing Transformation
Business transformation

A transformation means an extreme physiological or character change.
Business transformation is the key executive mgt. initiative that attempts to align the technology initiatives of a company more closely with its business strategies and vision support and help innovate new business strategies.
The degree to which a comp. can implement new initiatives to support changes in business strategy is known as business agility.

A business transformation is a process by which an org. achieves and maintains operational and competitive advantage by:
- Changes in technology
- Changes in operational concepts
- Changes in organizational structure
- Any combination of these three




Innovation Strategies

Inovation strategies of an org depend on the following :
- Govt support and policies for the technology and innovation.
- Risk taking abilities of the org.
- Risk taking attitude of the top mgt.
- Organizational goals and policies
- Degree of technological changes
- Degree of competition
- Availability of funds
- Age of the org.

An org. may follow 2 types of innovation strategies:
1. Innovation leader: this firm seeks to be the first to introduce innovations and aims at tapping first mover advantages.
2. Innovationn Follower: A conscious and active strategy by which a firm chooses not to be first on innovations and aims at learning from the experiences of innovation leader by low cost imitation.




Differentiate between Invention and Innovation

Invention:
1. It is the creation of a new product , service or process
2. May or may not be commercialized
3. Invention can be both autonomous and induced
4. It may be for economic or non economic motive
5. Activities usually restricted to R&D centres
6. May bring few changes in org.
7. Sometimes these may not be patented
8. Precedes Innovation
9. Invention=Innovation- commercial exploitation

Innovation:
1. It is the intro. Of a new product , service or process into the market place
2. Results into commercialization
3. Innovation is usually induced
4. It has usually economic motive
5. Activities and application spread across the org.
6. Brings organizational change
7. Mostly these are patented to gain firm specific advantages
8. Succeeds invention
9. Innovation=Invention+ Commercial exploitation





Strategic Management of Technology(SMOT)

SMOT means that the product , service or process technologies of an org. are managed from a long range perspective , as these technologies have wide-ranging effects on all levels and functions in the org.

Importance of SMOT:
1. Improvement in quality, thus, leading to high quality products.
2. Minimum life cycle costs of product development
3. Substantially reduced production costs
4. Shorter lead times from R&D design to commercial production
5. High levels of flexibility in responding to the changing market conditions
6. Taking advantage of economics of scale and economies of scope
7. Reduction in no. of machines tools required to manufacture parts
8. Reduction in floor space requirements
9. Reduction in labor requirements
10. Increase in machine utilization
11. Reduction in WIP and finished goods inventories
12. Reduction in overall cycle time
13. Simplification of production scheduling
14. Increase in mfg. capacity
15. Higher eff. N productivity
16. Shared use of design across divisions
17. Flexibility ion design and mfg operations
18. Increased ability to enter new mkts
19. Enhanced capability to fight foreign competition
20. Stability in sales
21. Increased earnings thru exports




Short note on Technology Transfer:

TT is the process by which tech. is disseminated. It involves communication of relevant knowledge by the transferor to the recipient. It is in the form of tech, transfer transaction which may or may not be able to legally binding contract.

Types of tech. transfers:
Scientific knowledge transfer, direct technology transfer, Spin-off tech, transfer

Internal tech transfer
External tech. transfer



Short Note on Product Innovation:
The classic definitions of innovation include:

- the process of making improvements by introducing something new
- the act of introducing something new: something newly introduced (The American Heritage Dictionary).
- the introduction of something new. (Merriam-Webster Online)
- a new idea, method or device. (Merriam-Webster Online)

Product innovation - Comes from the Greek word Productionia Innovationia; Productie - "Produce" + Innovatie - "Make"

The process of product innovation involves the introduction of a good or service that is new or substantially improved. This include, but are not limited to, improvements in functional characteristics, technical abilities, or ease of use.

While innovation typically adds value, innovation may also have a negative or destructive effect as new developments clear away or change old organisational forms and practices. Organisations that do not innovate effectively may be destroyed by those that do. Hence innovation typically involves risk. A key challenge in innovation is maintaining a balance between process and product innovations where process innovations tend to involve a business model which may develop shareholder satisfaction through improved efficiencies while product innovations develop customer support however at the risk of costly R&D that can erode shareholder returns.