Management of Change in Digital Era

Managing Change and InnovationCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.2Digital Radiology Era The Changing Work PlaceToday’s Organization need to continuously adapt to new situations if they are to survive and prosperOne of the most dramatic elements is the shift to a technology-driven workplace such as Digital Hospitals (HIS/RIS/PACS/EMR/EHR)Ideas, information, and relationships are becoming critically importantManager’s Challenge: Cowley manufacturing plantCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.3Organizational ChangeToday’s successful organizations simultaneously embrace two types of planned change●Incremental change= efforts to gradually improve basic operational and work processes in different parts of the company●Transformational change= redesigning and renewing the entire organizationCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.4Organizational ChangeThe adoption of a new idea of behavior by an organizationNew trends require profound changes in the organization–E-business (Teleradiology & Telemedicine)–Supply chain integration–Knowledge managementCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.5Types of Organizational ChangeCulture/PeopleStrategyStructureTechnologyProductsSOURCE: Based on Harold J. Leavitt, “Applied Organizational Change in Industry: Structural, Technical, and Human Approaches,” In New Perspectives in Organization Research, ed.W.W. Cooper, H.J. Leavitt, and Shelly II (New York: Wiley, 1964), 55-74.Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.6Organizational ChangeTechnology: General rule = change is bottom upNew product:·Horizontal linkage model emphasizes shared development of innovations among several departments·Time-based competition is based on the ability to deliver products and services faster than competitorsStructure: Successful change = through a top-down approachCulture/people:·Training is the most frequently used tool for changing the organization’s mind-setCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.7Culture-People ChangesChanges in structure, technologies, and products or services do not happen on their ownChanges in any of these areas require changes in peopleCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.8Managing Change and InnovationHow organizations respond to the environment through internal change and development●Basic forces for Organizational Change●How managers facilitate two change requirements●Four major types of change●How organizations can be designed to facilitate eachCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.9Need for ChangePerformance gap= disparity between existing and desired performance levels.●Current procedures are not up to standard●New idea or technology could improve current performanceBased on external or internal forcesCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.10Forces for ChangeEnvironmental Forces–Customers (Pateints)–Competitors –Technology–Economic–International arenaInternal Forces –activities and decisionsCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.11Model of Change Sequence of EventsEnvironmentalForcesInternalForcesNeed for changeInitiate changeImplement changeMonitor External competition, and other factorsConsider plans, goals, company problems, and needsEvaluate problems and opportunities, define needed changes in technology products, structure, and cultureFacilitate search, creativity, idea champions, venture teams, and idea incubatorsUse force field analysis, tactics for overcoming resistanceCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.12Initiating ChangeStage where the ideas that solve perceived needs are developedSearch = process of learning about current developments inside or outside the organization that can be used to meet the perceived need for changeCreativity =generation of novel ideas that might meet perceived needs or offer opportunities for the organizationCritical phase of change managementExperiential Exercise: Is Your Company Creative?Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.13Force-Field AnalysisThe process of determining which forces drive and which resist a proposed changeRestraining Forces (Barriers)•Lack of resources•Resistance from middle managers•Inadequate employee skillsDriving Forces•Thought of as problems or opportunities that provide motivation for changeCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.14Resistance to ChangeSelf-Interest:fear of personal loss is perhaps the biggest obstacle to organizational changeLack of Understanding and Trust: do not understand the intended purpose of a change or distrust the intentionsUncertainty:lack of information about future eventsDifferent Assessments and Goals:people who will be affected by innovation may assess the situation differently.Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.15Tactics for Overcoming Resistance to ChangeCommunicationeducationParticipationChange is technical; users need accurate information & analysisUsers need to feel involved; design requires information from others; have power to resistApproachWhen to UseCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.16Tactics for Overcoming Resistance to ChangeNegotiationTop management supportGroup has power over implementation; will lose out in the changeCrisis exists; initiators clearly have power; other techniques have failedInvolves multiple departments or reallocation of resources; users doubt legitimacy of changeApproachWhen to useCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.17Thank You