Management Of Innovation And Change: Novotel

Management Of Innovation And counterchange Novotel1. IntroductionNovotel is adept of the worlds major(ip) hotel chains, occupying a leading place in Europe and with locations globally. Started in 1967 by Paul Dubrule and Gerard Pelisson, they expanded their empire by building overbold hotels and buy otherwise hotel chains.Novotel merger with Jacques Borel hotel and its restaurant groups in 1983 saw the group renamed Accor. Currently, Accor employs everyplace 145,000 pot and operates in 132 countries. Within hospitality industry Accor operates much than 2100 hotels with oer 2 million rooms and more than 53,000 employees in this sector (Novotel p3)This describe analyses Novotels castrate c be programme in the early 1990s which was adumbrate in three major parts-Firstly, model study has the synopsis of the executes that conductors took in terms of scheme and organisation.Secondly, the consideration of the sequence and timing of horizontalts, and how this resultant rol eed in rapid transformation in an organisation employing more than 30,000 people. trine, the emphasize in dialogue nature of the transform processes, giving an inside stories from those who give taken part in the process. This gives a nice picture of what went right and what went impairment and the action to manage carrying into action of depart.I oblige outlined the compend in the following parts, ciritical evaluation of models of presentation and flip-flop forethought, the evaluations of get word triggers of deepen and the credibly sources of guard to change, and then I have outlined a challenges which managers incline during change management, and lastly, I have developed conclusions and recommendations to move Novotel forward, these recommendations found on my analysis.2 Innovation and Change (Hotel business) _ evaluation of alterative models of debut and change management Although a good deal has been written rough managing change in large private and publi c companies, very little has been written just just astir(predicate) managing change in an ever-changing hospitality and hotel industry in particular. The skill to effectively manage and embrace change is so of majuscule well- cosmos to todays hotelier. And, to successfully intact and over comply change, Hotels get hold of to have specific attitudes and great deal of skills to go about change and planning for that inevitable change.In the case study, Novotel has adopt a competitive strategy that includes reducing costs of operations (Novotel p.25). That is to say, their business strategy is cost leadership and persuading this business strategy requires being circularize to ideas and that it responds speedily and flexibly to the ideas that re-present opportunities for potential revenue growth (Blumentritt, 2004). Firms poop compete on price or distinctiation (Porter, 1980 1985), Novotel just nowt end be non-price attri barelyes include its brand, reputation and servic e.On the other hand, there are several(prenominal)(predicate) fonts of innovations, the first persona is Incremental innovation, this modestly improves a pie-eyeds processes or operate or it keister be use in fine-tuning its business model, i.e. the commission it gives value for its customers. Radical innovation signifi brush asidetly improves existing products and service or completely replaces them with newfangled unrivalleds. Radical innovation communicates little frequently than additive innovation partly because most organisations do not have the technical and charitable resources required for radical innovation, and because radical innovation happens so quickly organisations are not prepared for the risks and uncertainty which comes with this type of innovation.It should be note that, Innovation is not a competitive strategy in itself, but it is used to enhance any competitive strategy once the strategy has been designed. If the strategy involves increasing th e rate at which new products or services are introduced, then innovation gouge electrical shock the firm in more than one or diverse sorts.2.1. The change process and methodologies all over the last 20 years the speed and scale of organisational change have accelerated and there has been a significant increase in the upshot of approach shoted to change management. There are several forms of change in an organisation, any(prenominal) blackmails and others deliberate.The Strategic Change Initiative (organisational change process) digit. 1 A object lesson of the change process, Boddy 2005The first type if change is, systematic change is slower, less ruthless, more focused and more carefully constructed and md. There are different approaches to systematic change such(prenominal) as quality benefit, hold up reprogramming, benchmarking, and strategic planning. The nature of these approaches can be overly formalised and so deaden initiative in the organisation (Huy,Q. and Mi ntzberg, H.2003). Another type is, Organic change, this type of change is done internally in the organisation or other words it seems to ascend from the ranks without being formally managed. The problem with the organic approach is groups within organisation whitethorn begin to work at cross-purposes and this leave alone result in scramble over resources, yet its outcome can be striking. Planned change is an iterative, recurring, process which involves analysis, action and evaluation, and further action and evaluation. It is an approach which binds that once change has taken place, it must be independent to maintain the momentum. This means that, all change agents or stakeholder i.e organisation, managers and recipients jointly call the organisations problem and jointly plan and design the specific changes (Burnes, B. 2003). Another type is emergent change which is a continuous process of experiment and variant aimed at matching organisations capabilities to the call for and dictates of an energetic and uncertain environment. This type of change is achieved through a number of small to medium scale additive changes. Another type is, melodramatic change is frequently initiated in multiplication of crisis or of great opportunity when creator is concentrated and there is great stakes to be controlled. Mintzberg (2003) argues that unlike the phoenix of mythology, which could rise from its sustain ashes but once every 500 years, companies cannot continue to rely solely upon the unreal promise of dramatic re-emergence. 3. NOVOTEL Change Management ProgrammeFrom Kurt Lewins work (appendix 1) in the 1940s to the present day, organisational change, as a systematic process, has become the upshot and part of organisational life. Change in organisations does not have to be dramatic or far reaching, Stickland (1998) notes, some(prenominal)times change is incremental and hardly notice a new piece of equipment or software is introduced or a person leaves and s omebody new joins the organisation. Sometimes change is large and dramatic a complete re-organisation, a merger or a take-over, and no one and nothing in the organisation is unaffected (Stickland 1998298). The recent scotch crisis has provided a sense of urgency that helped boldnesss everywhere to successfully implement changes that would have been difficult if otherwise. Various cultural and structural factors have a reckon effect on the very success of the organisation. These are highlighted when an organisation attempts to define itself, to change their image in an attempt to maintain or enhance their capabilities (Gratton, 1999).In Novotels case, they were forced because of plummeting annual profits and in response they adopted a competitive strategy that includes reducing their operational costs and too reduce service prices in the hope of increasing their hotels occupancy (Novotel p.23). beingness more innovative in this trend also requires being open to ideas from prev iously untapped sources inside and outside of the company, and designing a firm that responds quickly and flexibly to the ideas that represent opportunities for potential revenue growth (Blumentritt, 2004).3.1 break triggers of changeReason which can trigger change can be listed as internal Triggers (i.e. New cater, Conflict, Sales /profit drops, De-motivation, Skills gap, Loss of key module) and External Triggers (i.e. Economy, Supply, Government policies, Competitors, Funders, Customers, Shareholders, Media, Public and technology )These triggers for change can be are analyzed using various managerial tools which are acquirable in order to gain an essential understanding of the environment, both remote and internalA PESTEL analysis this tool has five dimensions which are political, economic, social, technological, environmental, legal. It is used to pick up factors in the local or micro, and national or macro contexts that managers need to take account of. Another tool is, STA KEHOLDER analysis this is a cultural or values audit that provides an understanding of some of the people factors over and beyond a resource audit. A Third tools, SWOT analysis this is a simple approach which measures strengths, weakness, opportunities, and threats. It provides a mental synthesis in which to lay out the need and the readiness of the organization for change.As previously mentioned, a change in competitive strategy is likely if the firm guinea pigs termination of customers, lack of pricing power or shoplifting profit margins like in the case of Novotel (Novotel p.12).Beckhard and Dyer (1983) point out that another(prenominal) important change trigger is simply strategic choice on the part of existing management team. Some ways this may occur through strategic planning, interaction with customers, competitors, etc., and gut instinct that a new market or product is worth pursuing. This type of trigger is much more generative and proactive than reacting to the enviro nment or operative to maintain alignment.Regardless of which of these many triggers initiate the change process, there are severalkey activities that can facilitate a successful change writ of execution (see appendix 4). Furthermore, I have put together a way to successful implement change from managers perspective in section 3.3.3.2 Sources of resistance to changeInitially after the change has been effected, there is resistance to change, these resistances can be grouped in different categories such as, Individual (i.e. business of failure, ignorance, status loss, inertia, role loss) or Team (social loafing, pairing, lack of openness), can be organisational, (board members/top management, culture, structure, huge costs, limited resources, contracts or beliefs) or External factors such as (investors, suppliers, regulators, media, politics or collaborators.)As Kotter and Schlesinger (1979) emphasized, despite the risk of wicked behaviours have been ac cogniseledged by many experi enced managers, very a few(prenominal) of them tend to take time to systematically analyze situations in terms of determining potential individuals who may resist change with different reasons.Firstly, one of the most obvious reasons for people to resist change initiatives has been the feeling that new circumstances bequeath damage staff self interest. Also, , Employees can face increased levels of anxiety or fear from changes or proposed changes in the work environment. The term self interest entails a political meaning which refers to power relations with in the organization. In other words, new ideas about the way employees work usually impacts relations between different individual groups. Salaman (2000) argues that organisational employees actively strive to avoid and divert control they seek to maximise their own interests which they may or may not see as coincident with the organisations, and they attempt to resist the domination of others while advancing or fend for thei r own area of control and autonomy (Salaman, 2000, p.123). This means that, staff can resist change to maintain their social status in the organization Resistance can become overt i.e. in industrial action, including working to rule and strikes (Coram, R, and Burnes, B. 2001).Secondly, the aim of change efforts has been to create a new conventionality of working which employees are expected to adopt themselves. From this point of view it is argued that employees do not resist to the idea of change but to its potential outcomes (Dent Galloway-Goldberg, 1999). As shown in the Novotel case study, the re-structuring made the reorganizing of personnel and management structure, roles were re-definite so is the honor systems and payment (Novotel p14).Third, almost all prescriptions for a successful change implementation emphasize the necessity to confuse individuals understand meaning of change. Daft (2000), states that employees may tend to resist change when they are not informed abo ut needs, purposes and outcomes of it. This is also vivid in the Novotel change programmes, a testimony from a receptionist in France, described that they didnt understand what the project was all about (Novotel p.21) In addition to inadequate knowledge about change, if employees are suspicious about real intentions of change initiators, there is a high possibility of resistance.Fourth, change plans aim to move an organization from their existing position to ideal one and as Stapley (1996) states this transition period is kind of a journey that contains a lot of uncertainties. Curtis and White (2002) define uncertainty as lack of information about future events (Curtis White, 2002, p.17). When people lose their personal control, it becomes difficult to make rational decisions which would produce desirable outcomes. As a result, individual who experiences loss of control is likely to resist change because of apprehension brought by uncertainties about change (Novotel p. 18) . Kott er and Schlesinger (1979) argue that difference in information that groups work lots leads to differences in analyses, which in turn can lead to resistance (p.108).Fig 2. Framework for Managing Change3.3. Managers Role Overcoming ChallengesIn order to overcome change, managers face challenges when implementing strategies. The key element in implementing change or change management process is communication. Having effecting communication approach towards employees.Furthermore, employees attitude, perception of managers actions, employees motivation and continuous improvement of the working environment can be other elements a manager responsible for change should take.Below is the list of common challenges posed for managers tasked with implementing change management and they can mitigate any resistance-Employees Communications During the change process, take time to interact with employees as not all employees are outspoken or bound to hold their views to themselves and this could r esult in opposition resistance to change. When this happens it could result in delays and will hinder understanding of staffs unrealized needs and expectations. This is on Lewins unfreezing stage (Levasser, 2001).Employees Co-operations and Collaborations Managers in hotel industry ought to understand that different individuals do not the same views or opinions about change, most people tend to be worried about change. In other words, Managers needs to promote cooperation with staff before and during change process.Employees Motivation This is critical oddly during the change implementation stage, Manager ought to make sure that employees are halt motivated and be ready to listen to staffs opinions, and also take time to explain what is happening, this will help staffs morale.Employees Attitude according to Levasseur (2001), this is also a focus during implementation stage (Lewins stage), a Manager should try his/her outgo to understand employees attitude. In addition, Conners (1998) lists stability, immobilisation and denial are factors in human cycle of negative response in hospitality, Manager as a leading person should be bare these 3 factors in mind.4. ratiocinationIn summary, resistance to change blocks the end results change was meant to produce, that means innovation is undermined, and whatever change is generated will be a reaction a reaction to the circumstances and part of the process by which those circumstances persist. On the other hand, responding or choosing to pursue change, promotes innovation and will do so naturally and consistently as a function of what is observe to be possible. Change based on this second view is likely to be an improvement on what already exists.It is also important to know how full the change to be enacted is important to the organization and its staff. With high demand of staff in hospitality industry, it is good for leading managers in change management process to pay attention to the attitudes, motivation, co operation and be receptive to views raised by staff as this will motivate employees and also it will create a conducive environment for and encourage staff. When staff are encouraged, they will be willing to accept change and sustain hotels competitiveness.To successfully invite and overcome change, Novotels Presidents need to have specific attitudes and skills for envisioning anticipating and once they know the impending change, and planning for that inevitable change. And having known the impending change they need to know how to effectively communicate that change to co-workers, clients and external collaborators and future prospects to confirmation in charge of the competition. While change may not come easily, hotel operators can be sure that it will indeed come.5. RecommendationsPlan for Change Because there are multiple countries which change is happening, Huy and Mintzberg (2003) highlights that, the realization that effective organisational change often emerges inadverten tly or develops in a more orderly fashion. For the organisational change to succeed, all types of change should be considered (Huy, Q. and Mintzberg, H.200379). This means, there at Novotel needs to organise and formulate change management strategy that can look into inducing change from one country to another sort of than focusing on their hotels but they should consider different customs in different countries. Eliminating this concern can reduce stresses caused by what is regarded as an outcast interaction.Change Resistance Management Change resistance is effectively cut down by decreasing resisting forces rather than increasing driving force. This driving force is the fear of punishment and forcing people to accept change can result in increased resistance. Success will only come by removing the resisting force. For further recommendation on strategies to decrease resistance. (see appendix 5)Keep supply Updated though out the change process, make sure to update staff and mak e it clear to them on what they should expect, also make sure the spree information is on as early as possible even if it is bad news. These updates and information reduces anxiety which is caused by uncertainty. According to Mullins (2005) he makes an violence that knowledge removes fear from an individual and gives them confidence to join the course of change. give-up the ghost after change this refers to the Lewins refreezing stage in Levasseur (2001) book. Manager as a leading person should continue to communicate with staff, about the change which is being implemented,. Through communication, Manager can discover to what extent change has had an impact to staff and take necessary steps to support them.