Organizational Culture for Change by eco60708

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									Organizational Culture for
                  Change
          John M. Mason
          And
          Kathryn Jablokow

          Penn State
          University
Competition by Innovation
   Modern Oligopoly

      Continuous innovation to
          maintain market share

      Established levels of R & D
Sustaining Technological
Innovation
   Improved Product Performance

   Continuous and Ongoing

   Budgeting, Planning, and Surveys
Disruptive Technological
Innovation

   Changes the way people do things
         In their lives
         How they organize things
         How they conduct business
         How they relate to others
Technology and Intellectual
Capital
   Technology—”the processes by
    which an organization transforms
    labor, capital, materials, and
    information into products and
    services of greater value…”
            Christensen
                The Innovator‟s Dilemma
Technology and Intellectual
Capital
   Intellectual Capital—”is the
    knowledge, applied experience,
    enterprise processes and
    technology, customer relationships,
    and professional skills which are
    valuable assets to an organization.”
     The Journal of Intellectual Capital
The Culture of Innovation
   Intellectual Capital is the major asset of
    the modern firm.
   If competition is based upon innovation,
    then an organization must continually
    increase its base of knowledge or
    information.
   Organization must invest in developing
    new information to add to its knowledge
    base.
Innovative Types
   Sustaining Technological
    Innovation—information generated
    is within the bounds of an existing
    product base.
       Surveys
       Competitor Offerings
       Industry Trends
Innovative Types
   Disruptive Technological
    Innovation—information generated
    outside the bounds of existing
    product base.
       Changes in assumptions
       Practical technologies
       Marketing questions
       Complementary products
Networks
   Information thrives in an
    environment in which more people
    have access to it.
       Dialogue increases
       Productivity rises
       People can use their strengths
       People feel better about
            themselves
Role of Senior Management
   Culture of Innovation starts at the top!
       Sets goals and objectives
       Identifies who gets hired and who
             gets promoted
       In a world of greater delegation—
             leaders need to support
       If the top does not initiate, subcultures
             grow up and coordination failures
             occur
Time Pacing
 Based upon the passage of time and
  not external events.
 “Time pacing relies on
  choreographed transitions to switch
  smoothly from engineering to
  manufacturing, from product to
  product, from one market to the
  next, from one business to the
  next…” Brown and Eisenhardt, 1998
Rhythm of Time Pacing
 Time period—short enough to make
  the firm competitive but long
  enough to be realistic.
 Influenced by seasonality, consumer
  cycles, trade show dates, and
  competitive pressures.
 Example: the integrated circuit.
Organization for Disruptive
Technological Change
 Where do these fit into the
  organization?
 Major difference—the market served
     Small versus large
     Generally not major customers
     Don‟t know what final use will be
Portfolio of Innovations
 Sustaining innovations—generally
  done internally.
 Disruptive innovations
         Organizational separation
         Subsidiaries
         Joint ventures, etc.
         Financial Investment
Disruptive innovation and
Time Pacing
 Some need for regular introduction
 Can‟t just let projects go on and on
 Real Option approach


       Commercialization must be
    realized within a reasonable time
Human Resource
Management
   Problem-Solving Types
    Adaptors versus Innovators
   Strategic Leadership
    Stages of organizational evolution and
    renewal
   Executive Development
    The „right people‟ for the „appropriate
    time‟
Conclusions
1.   Competition requires innovation that is
     continuous and relentless.
2.   Organizations must be intentional and
     universal in their efforts to innovate.
3.   The culture for innovation begins at the
     very top.
4.   The culture is inclusive: management,
     structure, finance, human resource
     management, marketing, and other
     areas of an organization must be a part.

								
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