CHAPTER 4

Leading Change and Innovation

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 Learning Objectives
After studying this chapter, you should be
able to:

 Understand the different reasons for resisting

change.
 Understand the psychological processes
involved in making major changes.
 Understand how to develop an appealing
vision for the organization.

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 Learning Objectives (Cont.)
 Understand how to implement a major change
in an organization.
 Understand the characteristics of a learning
organization.
 Understand how leaders can increase learning
and innovation in organizations.

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LEARNING OBJECTIVE 1
Understand the different reasons
for resisting change

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@what are theReasons for Resisting Change
 No clear justification for change
 Feasibility of proposed change
 Unsuccessful earlier change efforts
 Lacking self-confidence
 Tangible cost/benefit
 Individual loss
 Inconsistency with individual values
 Lack of trust Which one of the following is not a reason for Resisting
change? (mnera)
Unsuccessful earlier change efforts
REFREEZE
Tangible cost/benefit
Individual loss
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LEARNING OBJECTIVE 2
Understand the psychological
processes involved in making
major changes

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 What are the Lewin’s Change Model

 Unfreeze

 Change

 Refreeze

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 What are theChange Reaction Stages

 Denial

 Anger

 Mourning

 Adaption

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 What are the Influence of Prior Change
Experience

 General Self-Confidence

 “Inoculation” hypothesis

 Less resilience hypothesis

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LEARNING OBJECTIVE 3
Understand how to develop an
appealing vision for the
organization

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 Developing a Vision
How to devlopQualities of an effective vision?
 Simple and idealistic
 Appeals to values
 Emphasizes future objective
 Challenging
 Realistic
 Addresses what is important
 Focused but not confining

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What are theElements of a Vision

 Mission Statement
 Value Statement
 Slogans
 Strategic Objectives
 Project Objectives

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 What are the Guidelines for Vision
Development?
 Key stakeholders
 Shared values and ideals
 Strategic objectives with wide appeal
 Relevant elements in the old ideology
 Link vision to core competencies
 Continually assess and refine the vision

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LEARNING OBJECTIVE 4
Understand how to implement a
major change in an organization

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 How to Implementing Change

 Determine what to change

 Systems Dynamics

 Responsibility

 Pace and Sequencing

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What are the Guidelines for Implementing
Change

 Create urgency
 Communicate vision
 Identify supporters and opponents
 Build coalition
 Use change agents
 Make symbolic changes

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 Guidelines for Implementing Change
(Cont.)

 Prepare people for change

 Deal with stress
 Provide early successes
 Monitor progress
 Communicate progress
 Demonstrate optimism

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LEARNING OBJECTIVE 5
Understand the characteristics of
a learning organization

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 What are the Collective Learning and
Innovation

 Internal creation

 External acquisition

 Knowledge Diffusion

 Learning Organizations

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LEARNING OBJECTIVE 6
Understand how leaders can
increase learning and innovation
in organizations

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 What are theGuidelines for Increasing
Learning and Innovation
 Appreciation
 Learning at various levels
 Mental models any organization need ?
1- input
 Leverage learning 2- transformation
 Knowledge sharing 3- output

 Innovation goals
 Reward entrepreneurial behavior

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