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C208 Assessment Study Guide Western Governors University
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1C208 – Change Management and Innovation (Exam Notes)
Implementing change – 29%
Module 4: Dealing with Resistance to Change (#12-20)
Module 3: Executing change (#6-11)
Module 2: The Change management models (#1-5)
Planning Rapid Change – 6%
Module 2: Change Management models (#21-24) – Module 2
Change Leadership – 11%
Module 3: Executing Change (#26-32)
Innovation Entrepreneurial Processes – 20%
Module 6: Entrepreneurial Innovation (#33-46)
Innovation = 16%
Module 5: Models for innovations (#47-57)
Management, culture, organization, and Change – 19%
Module 1: The question of change and innovation (#58-70) – Module 1
Module 2 – Change Management Models (#1-5)
Change Factors - Leaders should be aware of the mental and emotional process individuals go through when accepting,
rejecting, or adapting to change. Successful implementation of organizational change can be greater when individuals
respond positively and effectively to the changes being proposed. Change elicits a myriad of emotions such as
excitement, anger, sadness, frustration, fear, or anxiety.
Schemas - One helpful concept is that of a schema. Humans think through schemas. They are familiar cognitive beliefs
that guide how we do tasks or make decisions; how our brain perceives and responds to situations. Schemas are
organized patterns of thought similar to an outline. They are cognitive frameworks we use to make sense of things.
Change Agents - Someone needs to spearhead and champion the change process. Oftentimes this is the CEO or
executive management team. Someone initiating the change is known as a change agent. Sometimes organizations will
engage an outside consulting firm to oversee and manage a change initiative because of the belief that they have an
objective viewpoint and expertise in the process. One caveat to hiring outside groups to manage change is they don't
have an in-depth understanding of an organization's culture, history, policies, and the dynamics that define the nature of
the entity.
Leading type of change:
Leaders may have to manage different types of change within their organization. There are five common types of
change:
1) Anticipatory: is planned change. It is when an organization has the luxury of time and advance warning to
manage the change in an informed and systematic way. Leaders role: futuristic, innovative, and strategic in how
they look at the world around them in an effort to seize opportunities.
2) Reactive: is forced upon an organization because a threat or problem has already occurred. These are
unexpected situations or circumstances. Leaders role: pressured to solve the problem. This could be from poor
planning or a lack of attention given to the signs around them.
, 2
3) Crisis: we are not only reacting, we are in great trouble. If we don’t change quickly we might disappear as an
organization. Whether the crisis is an imminent physical attack or a major natural disaster, leaders need to be
ready to respond to avert a greater threat to their people or environment. A crisis can represent a leadership
opportunity. Leaders role: a possible test of leadership skills and a leader's temperament.
4) Evolutionary: happens in increments. It is slow and takes place gradually and over time. It is accomplished by
encouraging people to participate and contribute towards designing the goals and plan for the change. Leaders
role: coaching and supporting cause change to occur in a calculated and controlled manner.
5) Revolutionary: represents a profound transformation of the organization. The change is quick, strong, dramatic,
and happens very quickly, very suddenly. The change often happens whether or not those having to accomplish
it want it or think it is a good idea. Leaders role: top-down and directive. Leaders need to be decisive as time is
of the essence.
Lewin’s Model of Change: a descriptive change model based on three steps:
1) Unfreezing: People made aware of the problems/performance gap and the need for change. Driven by a change
agent.
2) Changing: Experiment with new workplace behavior to deal with needed change. Specific training plans for
managers and employees.
3) Freezing/Refreezing: the last step is freezing/refreezing, Employ new skills and attitudes and are rewarded by
the organization. Changes are institutionalized by the corporate culture.
Leadership must help people understand that there is a problem to solve or an opportunity to seize and that they will
gain from the change.
Kotter’s eight-steps:
1) Establish a sense of urgency: Often employees do not take the need for change seriously unless they believe it
to be urgent. This state is crucial and people must understand there is a problem that needs to be solved.
2) Form a guiding coalition: The manager should assemble a group of people who support the need for change.
3) Create a vision: A manager needs to present a picture of what the organization will look like after the change.
The goal of the vision is to get employee buy-in, so employee participation in articulating the vision is useful
4) Communicate the vision: Management must communicate the vision of change to all relevant employees to
further develop buy-in.
5) Empower others to act on the vision: A manager should encourage employees to discuss the vision for change
and how to implement it. Employees should know that acting in accordance with the vision will be rewarded.
6) Coach change leaders: The manager should monitor performance in conjunction with the change effort and to
provide support where needed.
7) Plan for and create short-term wins: By breaking up the desired change into smaller steps, the manager can
create a feeling of progress as well as opportunities to reward employees for success.
8) Consolidate gains: The manager should make sure people know change is happening—for example, old ways of
doing things should be officially retired.
The 7-S Framework: is a model that can help determine how well-positioned a company is to accept change in its
current state or future. It can also establish the best means for effecting a change; to evaluate a company while it is
undergoing the change; and to see what area needs adjustment if the change process was ineffective.
Each of the seven components is equally important and interconnected one to each other (structure, strategy, systems,
skills, style, staff, and shared values/superordinate goals).
, 3
Hard elements – Management can directly control and influence these elements.
1. Structure
2. Strategy
3. Systems
Soft elements – Influenced by the organizational culture and less by management.
4. Skills
5. Style
6. Staff
7. Shared values
Advantages: It offers organizations a diagnostic tool for assessing readiness for change and can also help pinpoint those
areas that need better alignment with any proposed change. The model also considers the human factor in change.
Disadvantages: Some critics see the 7-S model as overly complex. Figuring out the interdependence of the elements can
be difficult. The framework does not offer a sequence of actions; organizations have to construct an additional plan for
any change efforts.
ADKAR Model for Change: Prosci, a research company specializing in change management, looked at how a person
needed to change to move from a current state to what it called a "desired future state". There are five-step processes
for managing change for individuals:
1. Awareness: why the change is needed
2. Desire: willingness to support and participate in change effort
3. Knowledge: how to make the change
4. Ability: capability and competence to implement new skills and behaviors
5. Reinforcement: sustaining the change through continued focus
Cisco Change Model: technology giant CISCO has used the three-step Cisco Change Roadmap (CCR) process:
1) Prepare
2) Implement
3) Manage.
General Electric’s Change Acceleration Process (CAP): the team developed what they called the Change Effectiveness
Equation Q x A = E, where (E) the effectiveness of any initiative; (Q) is the product of the quality of the technical strategy;
and (A) the acceptance of that strategy.
The Key to CAP success are:
1. Drive leadership awareness and strategic support for the initiative
2. Provide 360 view: positive/negative, top/bottom, internal/external
3. Develop solid, consistent plans for communication
4. Document sustainable implementation plans
5. Devote time and resources to changing systems and structures
6. Align CAP with management strategies to reinforce change
7. Instill effective tracking and accountability mechanism
8. Link change agent role of CAP coaches to performance review
, 4
American Express: American Express developed its own change management model with major change phases or five
stages.
1) Scope the change
2) Create a vision
3) Drive commitment
4) Accelerate the transition
5) Sustain momentum.
Employing Models of Change: one way of looking at change models is to first understand their purpose. The models
previously presented fall into two broad categories:
Descriptive Models: are useful for trying to understand what is going on in an organization. It is also an assessment tool
they can use to identify what needs to be changed. Among the descriptive models are: Lewin's Model of Change,
McKinsey's 7-S Framework, and (to some extent) the Organizational Cultural Assessment Model and Cultural Web
Model.
Prescriptive Models: are more useful when a step-by-step process is called for. They can be employed when a leader
already understands the organization and is ready to move forward with implementing the initiative. Among the
prescriptive models are: Kotter's Eight Steps for Change, ADKAR, and models from Cisco (Change Roadmap), General
Electric (CCR Change Acceleration Process), and American Express.
Diffusion of Innovation Theory: developed by Everett Rogers and seeks to analyze why and how innovations gain
popularity. When a certain percentage of society adopts the innovation, it reaches its “critical mass”.
1) Knowledge: People become aware that the technology exists.
2) Persuasion: Individuals are interested in innovation. Social channels are important at this stage.
3) Decision: Individuals consider the evidence, weigh the options, and decide.
4) Implementation: The decision on adoption is not yet final. Adopters employ the innovation and look for more
information as to how to make use of it effectively and in what capacity.
5) Confirmation: Adopters decide whether to continue using the innovation.
Profile of the adopters:
Innovators: (2.5% of the population) This group creates and pioneer’s innovation. They are enthusiastic, creative, and
often romanticize the process of innovation.
Early Adopters: (13.5% of the population) are the first group to adopt innovation. These are enthusiastic about
innovations and are continually on the lookout for the next best thing. No cost-sensitive.
Early Majority: (34% of the population) These people accept moderate innovation, are cost-sensitive and they need to
be convinced by evidence to show that the benefits present an improvement over the current standards.
Late Majority: (34% of the population) This group is slightly less comfortable with innovation. They need to be convinced
that the innovation is the new standard and shown that the majority of people already use it.
Laggards: (16% of the population) This group is risk-averse and resists change until they are convinced that it is safe.
Christensen’s Disruptive Innovation Model: is a model that looks at the impact on organizations and industries of
disruptive technological innovation. Examples of disruptive innovation include the impact of digital music on record
companies, of online education on traditional schools, of the Internet on newspapers, and of ebooks on publishing.
Low-end disruption refers to the disruptor's entry point in a low-end market.
1) It is an innovation that is good enough
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