Managing Strategic Innovation and Change

Professor M. Tushman
Columbia University Graduate School of Business

This course will focus on the management of technology-based innovation. We examine how industries are transformed by new technologies, how managerial action can shape product class evolution, and how managerial competencies can affect the innovation performance of their firms. As the management of innovation requires the creative synthesis of several functional areas, this course integrates literature from: strategy and policy, organization behavior, operations, marketing and R&D. We also consider a host of organizational issues including business and technology strategy, structures, cultures, processes, human resource competencies and executive team characteristics that are associated with successful strategic innovation. Because innovation always also involves organization change, we also focus on the pragmatics of managing change.

Grading:

Grades will be based on a group innovation audit (see enclosure) [50%], individual class participation [25 percent], and a final exam [25 percent]. Class participation requires thoughtful discussion of the materials assigned for each class.

Texts and Materials:


CLASS

January 22 Introduction and Overview

January 27 Strategic Innovation and Change: A Context

January 29 On Problem Definition and Root Cause Analysis: Managing Statics and Dynamics

February 3

February 5 Commitment, Politics and NIH

February 10 Cases: EMI and the CT Scanner (A) and (B)

February 12 Technology and Business Strategy

February 17 Case: Cray Research

February 19 Strategic Innovation and Organization Evolution

February 24 Executive Leadership and Key Roles (5:30-8:30)

February 26 Executive Leadership and Managing Innovation

March 3 Organization Culture, Innovation and Critical Roles

March 5 Middle Managers and Innovation

March 10 Managing R&D Settings

March 12 NO CLASS

March 24 Marketing in the Innovation Process

March 26 Operations in the Innovation Process

March 31 PROJECT WORKSHOP

April 2 Managing Linkages

April 7 Internal Venturing

April 9 Managing Innovation and Change

April 14-16 STUDENT PRESENTATIONS

April 21 Managing Strategic Innovation and Change


FIELD PROJECT

A crucial part of our course is an innovation audit. Student teams will conduct an audit of a firm's or business unit's innovation performance. The teams must identify a client and, with this client define an innovation problem (e.g., long product cycle times, losing key members of his/her staff, customer dissatisfaction with new products/services). Having defined a problem of interest to your client, the student team then must gather data on the roots of this problem. These data must be gathered both within the firm and across functional areas as well as from clients and/or customers. Given your diagnosis, the student team must then present a set of interventions (both what to do and how to proceed) to the client.

1. Clarify who the client is. What is his/her position in the organization?

2. What is the problem you are working on? Why is it a problem? How important is the problem? How long has it been a problem for your client and his/her system?

3. What are the fundamental roots of these problems? Please clarify the task requirements, and pay particular attention to organizational, cultural, human resource, strategic, and executive leadership issues in your diagnosis.

4. Given your diagnosis, what do you recommend to your client? What should he/she do, how should he/she proceed? In case your client has dealt with the problem successfully, what could he/she have done differently to obtain better results or to avoid unintended negative effects of the intervention?

5. Each project must have a methods section describing how you generated your data, who you interviewed, as well as any other sources used.

6. Each group project should have a one-page summary where your key observations, suggestions, and themes are succinctly discussed.

Processes and Deadlines

There will be several intermediate checkpoints to help you monitor the advancement of your project. You should submit your group's initial client preferences by February 3. The reason for this early deadline is to make sure that groups do not overlap. On February 17 please submit a one-page note describing who your client is, where they are in their organizations, and his/her innovation problem. On March 10, please submit a brief (2-3 page) diagnosis of your client's problem. This note should also include data problems and issues (both project and group) your group has yet to resolve. I will hold a project workshop with interested students on March 31. This workshop will be targeted to issues raised in your March 10 note. Projects are due on April 21. Projects must be no longer than 15 pages, excluding exhibits. Less is more!

Dates to Remember