The Middle East has been the subject to the financial roller coaster like any other region, which has changed the way business have been conducted and managed. The Arabian Gulf in particular has been...

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Module Code: MOD033
Module Title: Leading Innovation and Change

Level of Study: Master s
Academic Year: 2012/2013
Semester: 1
Student Number: 110113889
Word Count: Approx. 6300 Words
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Declaration
“I declare that I am the sole author of this assignment and the work is a
result of my own investigations, except where otherwise stated. All
references have been duly cited”
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Abstract
Change is the only constant thing, in this era of cut throat competition organizations needs to
implement change regularly. With movements in the global economy, the economy of
Middle East has also been the subject to the financial roller coaster. This has immensely
impacted the business culture in the region. The major concern of the UAE government was
the increasing number of expatriates in the region.
According to Dubai World Trade Centre, (2009) due to low education level and
unavailability of high skilled labours many of the opportunities were given to the expatriates.
The Arabian Gulf in particular has been under a lot of pressure to change how business is
managed and run due to the number of western expatriates running the business there while
considering the cultural differences. This is leading to cultural conflict in the business
environment, culture plays crucial role in the success of business, and impact of cultural
difference is very high on organizational growth.
There are various factors of culture that impacts the growth of business in international
market; it includes business communication, group dynamics, structure of the business,
employee relationship, stakeholder relationship, business negotiation, communication etc
(House, 2004).
The conflict of management theories has risen as a result of regional alignment between
Europe & the Middle East. This report will describe various Innovation & Change theories
that can be implemented in Middle East region to encourage a healthy cosmopolitan work
culture; it will also analyze the weaknesses and strengths in terms of implementation and
feasibility within the Middle East. This report will also evaluate the impact of leadership and
culture on Innovation & Change within organizations.
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Further, at the end this report will also include analysis on two changes from personal
experience that are related to the theories discussed in the report and its reflection on the
personal performance as a leader of change & innovation which in turn will result in a
personal action plan to support my further development.
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Table of Contents

Abstract ...................................................................................................................................... 3
Introduction ................................................................................................................................ 7
Literature review ........................................................................................................................ 8
Innovation .............................................................................................................................. 8
Change ................................................................................................................................... 9
Factors impacting Innovation and change ............................................................................. 9
Relationship between creativity, innovation and culture ..................................................... 11
Models of change ................................................................................................................. 11
“ADKAR” model of change management ........................................................................... 12
Beckhard and Harris ............................................................................................................ 13
Kotter's 8-Step Change Model ............................................................................................. 13
Establishing the sense of urgency .................................................................................... 14
Forming a powerful coalition........................................................................................... 14
Creating the Vision for Change ....................................................................................... 14
Communicate the vision .................................................................................................. 15
Remove obstacles............................................................................................................. 15
Creating Short-Term Wins ............................................................................................... 15
Build on the change ......................................................................................................... 15
Anchor the Changes in Corporate Culture ....................................................................... 16
Weakness of Kotter‟s model ................................................................................................ 16
Lewin's force field analysis .................................................................................................. 16
Stakeholder analysis tools .................................................................................................... 16
Strategies for overcoming resistance ................................................................................... 18
Change Implementation ........................................................................................................... 18
Successful change ................................................................................................................ 18
Resource Rationalization Change ........................................................................................ 18
Reasons for change .............................................................................................................. 19
Duplicate resource profiles & expertise ........................................................................... 19
Communications challenges ............................................................................................ 19
Problem in initiating change ................................................................................................ 19
Change required ................................................................................................................... 20
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Resistance to change ............................................................................................................ 20
Change implementation process .......................................................................................... 20
Less successful change ........................................................................................................ 21
Organizational Structuring Change ...................................................................................... 21
Needs for change.............................................................................................................. 21
Process of change ............................................................................................................. 22
Result of change ............................................................................................................... 23
Reason for failure ............................................................................................................. 24
Relationship with Middle East Culture ................................................................................ 24
Survey on the culture and change .................................................................................... 25
Analysis............................................................................................................................ 26
Reasons for failure ........................................................................................................... 26
Conclusion ............................................................................................................................... 27
Reflection ................................................................................................................................. 28
Leadership & Style .............................................................................................................. 28
Bibliography ............................................................................................................................ 30
Appendix 1 ............................................................................................................................... 32
Appendix 2 ............................................................................................................................... 32
Appendix 3 ............................................................................................................................... 33
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Introduction
Every business needs innovation and diversification due to changing customer expectations,
technological advancement and increased competition. With globalization world has become
flat, now most of the organizations are operating in the global market, similar is the case with
organizations‟ in Middle Eastern region as well. However, it has been noticed that in majority
of the companies in Middle East region is dominated and instructed by the region‟s cultural
ethics and customs. However, there is strict need for implementing a cosmopolitan culture in
the market. For the aforesaid purpose, numbers of consultancy companies were invited by
the countries decision makers with the objective to align the definition of creativity &
innovation to the region‟s culture to be able to introduce the required Change to the cultural
thinking and behavioural that is limiting the progress of the countries.
The innovation culture refers to the increased flexibility and the continuous learning process
in the business operations which ultimately help the companies to cater to the changing
market demands and to satisfy the customers to gain the customer loyalty. The innovation
culture helps the company to improve their products and services and to offer innovative
products and services in the market to lead the competition.
This report aims at analyzing the interrelationship between change and innovation in the
market; how this can help in improving an organization or over industry as well. This report
will include an in-depth analysis on change management, innovation and their
implementation in organizational context. further this report will also discuss, compare &
evaluate two Change theories and how they would perform under the regional requirements
pressure, what would work well, what part wouldn‟t and how to address the shortfall of these
theories. Recognizing the need for the change was the first stage that the decision makers
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have made, they have seen the opportunities that would help them build the country and how
the way things were being done could jeopardize all the efforts being made (Hayes, 2002);
Change is a tool to instigate creativity and innovation, so in order to make and change things
to a better society; an engineered approach to change is needed to enable innovation and
creativity in society to bring the desired change. Further, I truly believe that the change
models and concepts need to be customized for specific environment and that there is no
“One size fits all” model, yet!
Literature review

Before implementing change and innovation in an organization or culture it is suggested to
analyze the past research paper to gather an in-depth view. Literature review is the critical
analysis of the topic by supporting with substantive findings of different authors.
Innovation

The word innovation has been derived from the Latin word “innovatus” which means which
means to renew or change. According to Frey and Patel who defined innovation to be as the
process that creates value in new ways. Innovation does not always means making profit for
an organization; it also means to add value to an existing product or service (Dubberly
Design Office, 2006).
According to (MA West & JL Farr, 1990) innovation is “the intentional introduction and
application within a job, work team, or organization of ideas, processes, products, or
procedures, which are new to that job, work team, or organization”
According to Allan Afuah innovation is the use of key technology and market knowledge that
offers in the creation of a new product or service that customers want. New and improved
technology and market knowledge is used to create a product that has new attributes and
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never before existed in the market. There are various innovation models that help in
analyzing the change and continuity in international businesses.
The strategic Innovation Process Model is helpful in scanning the environment and other
sources of innovation for opportunities and after proper analysis of the various opportunities
and threats that are present, the firm devises its innovation strategies and it helps it in
achieving its goals. The image below shows the model (Dubberly Design Office, 2006).
Innovation can be of various types such as product innovation, process innovation, market or
organizational innovation. It can also be in open or closed system.
Change

According to Nadler and Tushman, change can involve one or many components of an
organization or it may be realignment of the entire system which affects the main sub systems
of the business such as strategy, work, people, processes and structure (T.R.Ramanathan,
2008). Change usually involves three aspects that are people, processes and culture. While
change was needed, the country needs to innovate new approaches for the Change to happen.
Culture plays a significant role in impacting the behaviour within organisation. A
constructive culture help in building strong relation, it helps in the growth of both employees
and the organisation, it helps in building long term relation (-Hunt & Simms, 2005). But in
few organisations, aggressive culture takes place which is less humanistic and more target
oriented. Change is an incremental process that requires time, cost, patience, leadership,
responsibility and determination for its success. Change can be of various types and in
various segments, it can be either evolutionary or revolutionary (Balogun & Hope Hailey,
2004).
Factors impacting Innovation and change

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There are number of factors that impact the development of innovation in organization, it
includes organizational culture, organizational structure, leadership style, employee
motivation. The impact of internal functions is very high on innovation, each factor such as
managerial activity, decision making process, organizational form, policy, value system,
strategy, authority and culture impacts the innovation within the system. According to
Oldham & Cummings, (1996) control place very significant role in encourage or restricting
innovation in the organization, it includes control of information, control of decision making.
An organization that practice high control culture will have low innovation in the...