Emerging Trends In Organizational Development

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EMERGING TRENDS
in ORGANIZATIONAL
DEVELOPMENT
By
Jonathan Mozenter
7/29/99
A Massachusetts Bay OD Learning
Group Event
AGENDA
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Introductions
What is an Emerging Trend?
Background
Macro Forces
Emerging Trends In OD
Q+A
How Will the Emerging Trends Affect Your
Work Life?
2
CHECKING IN
Introductions
• Please State in 15 Seconds
– Name
– Organization
– What You Hope to Take Away from Tonight’s
Presentation
3
WHAT DO I MEAN BY AN
EMERGING TREND?
• 5 Minutes to Think About What You Think
are the Emerging Trends and Why
• 10 minutes to Break into Groups of 3
People Discuss Your Thoughts
4
BACKGROUND
HYPOTHESIS
• Systemic Approach
– OD Trends are Driven by Organization
Challenges which are Driven by Macro Forces
• Expected Results
– Constant Change
– Learning and Flexibility
– OD trends: Learning Organizations,
Knowledge Management, Change Management,
and Org. Design
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METHODOLOGY
• Library and Internet Research
• Qualitative and Quantitative Research
• 4 Groups of People Interviewed
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External OD Consultants
Internal OD Consultants
Line Managers
Other Business Minds
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MACRO FORCES
DISCUSSION OF THE
MACRO FORCES
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Changes in Technology
Constant Change
Partnerships and Alliances
Changes in the Structure of Work
Increasing Diversity in the Work Force
Shifting Age Demographics
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CHANGES IN TECHNOLOGY
Largest Effecting Macro Force
• Possible Cause Other Macro Forces
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• Ramifications
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Speed of Change
New Strategies
New Distribution Channels
New Relationships
Increased Competition
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CONSTANT CHANGE
• 2nd Biggest Impact
• A Derivative of Other Macro Forces
• Ramifications
– Dealing w/ Uncertainty
– Need More Flexible Process
– Employee Burn Out
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PARTNERSHIPS & ALLIANCES
• 3rd Biggest Impact
• “Companies Can’t Do It By Themselves
Anymore”
• Key is to Actively Manage the Relationships
• Challenges in Making P&A Work
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Dealing with Ambiguity
Culture Differences
Boundary Issues
Finding “Right” Partner
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CHANGES IN WORK
STRUCTURE
• By Product of Other Macro Forces
• Types of Changes
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Information Technology Driven (ERP)
More Global
Virtual Organizations
Focus on Core/Outsourcing
Project Work and Cross Functional Teams
Customer Focus
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DIVERSITY
• Effects will Grow by 15% over Next 3 Years
(Highest of all Forces)
• Possibly be Driven by Increased
Globalization
• Today Many People Still View Diversity as an
Affirmative Action Issue Not a Strategic
One
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CHANGES IN
DEMOGRAPHICS
• Caused by
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Declining Birth Rates
Baby Boomers Aging
Value Conflicts Between Generations
Rise of Ethnic Minorities into Leadership
• Examples
– Finance Industry
– Healthcare Industry
– Grocery Industry
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OTHER MACRO FORCES
• Mergers and Acquisitions
– Defensive Move to Take Advantage of
Economies of Scale
– Will Continue to Happen
– Often Fail: Culture Problems and/or Poor
Integration Program
• Globalization
– Enabled by Technology
– Free Trade Laws
– Growing Interdependencies
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ORGANIZATIONAL
CHALLENGES RESULTING
FROM MACRO FORCES
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Dealing with Inc. Competition and Customization
Need to be Flexible and Cope with Uncertainty
Create an Environment of Constant Learning
Adapting to New Technology and Globalization
Developing New Management Competencies
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EMERGING TRENDS IN
ORGANIZATIONAL
DEVELOPMENT
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OD INTERVENTIONS MOST
FREQUENTLY USED TODAY
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Mission and Vision Statement Analysis
Strategic Planning
Reward and Recognition
Change Management
Leadership
Team Building
Facilitation
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TREND#1:
EXPANDING THE USE OF OD
• More Accepted Because it is Needed to
Enhance Productivity & Profitability
• Companies Need to Change to Survive
• Employee Performance is a Key
Competitive Advantage
• More Research: 55% of HBR Articles are
OD Related Over Last Year
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TREND#1:
EXPANDING THE USE OF OD
• IDC Forecasts Change Management
Consulting Fastest Growing at 18.6%
• Research Indicates High Use of OD
Interventions Lead to High Returns
• More Exposure to OD
• Quantitative Data
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TREND#1:
EXPANDING THE USE OF OD
• OD in Education
• OD in Management Consulting
• OD in Human Resources
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TREND #2: COMBINGING
“HARD” BUSINESS
COMPETENCIES AND OD
• Managers Need OD Skills to Successfully
Do Their Jobs
• OD Practitioners Need:
– Measure Results Using Bottom Line Metrics
– Align Interventions with Strategy
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TREND #2: COMBINGING
“HARD” BUSINESS
COMPETENCIES AND OD
• Line Managers Need:
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Lead with Mission,Vision, and Values
Create and Maintain the Appropriate Culture
Manage Change
Create and Maintain Continuos Learning
Build Employee Self-Esteem
Empower Employees
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TREND #2: COMBINGING
“HARD” BUSINESS
COMPETENCIES AND OD
• MBA Programs Teach OD Competencies in
Core Classes
• OD in Project Management
• OD in Management Consulting
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TREND #2: COMBINGING
“HARD” BUSINESS
COMPETENCIES AND OD
• OD is Perceived as Too Soft and has a Bad
Reputation
– Historically has Not Always Been Aligned with
Business Goals and Metrics
• OD Practitioner Needs to Enhance
Business Knowledge
– Understand Strategic Needs of Client Better
– Sell Services Better by Speaking Client’s Language
– Measure OD Interventions in Bottom Line Metrics26
TREND #2: COMBINGING
“HARD” BUSINESS
COMPETENCIES AND OD
• Research on Ideal OD Grad Programs
• Need Knowledge of the Following Business
Areas
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Finance
Business Management
Operations
Program Evaluation
Information Systems
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TREND #2: COMBINGING
“HARD” BUSINESS
COMPETENCIES AND OD
• Measurement Needed to Advance the Field
of OD
• Measurement Improves Quality of
Interventions
• Research Indicates: Org. Who Strategically
Use People Metrics have Higher Rates of
Return
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• Using Balance Scorecard and ROI
TREND#3: CREATING
WHOLE SYSTEM CHANGE ORGANIZATIONAL DESIGN
AND CULTURE CHANGE
• Move from Isolated Interventions to Whole
System Interventions
• Aligning Strategy with Org. Design, Culture,
and Compensation
• More Effective, Longer Lasting, and More
Expensive
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TREND#3: CREATING WHOLE
SYSTEM CHANGE ORGANIZATIONAL DESIGN
AND CULTURE CHANGE
• Maximizing Flexibility
– Focus on Core Competencies (Shamrock Org)
– Work In Teams
– Constantly Develop Core Staff
• Retention
– Proper Reputation
– Screen for Emotional Intelligence
– Actively Manage Culture
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TREND#3: CREATING WHOLE
SYSTEM CHANGE ORGANIZATIONAL DESIGN
AND CULTURE CHANGE
• Globalization
– Be Big and Act Small at Same Time (ABB)
– Business Units have 2 Managers and Freedom
– Develop Global Mangers
• Empowerment
– Producers, Integrators, and Shapers
– AES, Flat, Units Run by a Team of Generalists
– 50% Performance and 50% Modeling Values
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TREND#3: CREATING WHOLE
SYSTEM CHANGE ORGANIZATIONAL DESIGN
AND CULTURE CHANGE
• Implementation
– Restructure Entire Vertical Organization
– Coordinating Mechanisms
– Explicitly Map Out Decision Making Process
• Mergers Acquisitions
– New Culture and Org Design before M&A
– Transformation Process and Communication
Programs
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TREND#4: USING OD TO
FACILITATE PARTNERSHIPS
AND ALLIANCES
• Success Factors: Relationships, Culture,
Communication, and Design
• Nicholson McBride
• Alliance Advantage
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TREND#4: USING OD TO
FACILITATE PARTNERSHIPS
AND ALLIANCES
• Helping Companies Prepare
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Appreciative Inquiry
Culture Assessment
Organizational Assessment
Vision Development
Deal with Ambiguity
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TREND#4: USING OD TO
FACILITATE PARTNERSHIPS
AND ALLIANCES
• Help Mange Relationship by Facilitating
Process
• Initial Design
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Environment of Trust and Openness
Type of Alliance
Scope of Project
Success Factors
How will it be Measured
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TREND#4: USING OD TO
FACILITATE PARTNERSHIPS
AND ALLIANCES
• Define Communication Patters at All Levels
– Alliance Governance and Alliance Interfaces
– Conflict Management & Quick Decision Making
• Coach Executives
– Constantly Reevaluate
– Renegotiate
• Learning
– Match Learning Objectives w\ Learning System36
TREND#5: ENHANCING
CONTINUAL LEARNING
• Necessary to Stay Competitive
• Creates Awareness of Evolving Customer
Needs and Market Dynamics
• Fastest Growing Interventions
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Knowledge Management
Learning Organizations
System Thinking
Improving Employees Ability to Learn
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TREND#5: ENHANCING
CONTINUAL LEARNING
• Knowledge Management
– Many Different Types
– Use OD in Implementation
• Learning Organizations
– Fifth Discipline Vs. “Learning Mission”
• Executive/Leadership Development
– 360 Feedback, Coaching, Mentors, Job
Rotations
– Corporate University with Real Time Learning 38
TREND#5: ENHANCING
CONTINUAL LEARNING
• Community of Practices
– Match Purpose with Type
– Knowledge Communities
– Social Networking Analysis
• Improving Employees Ability to Learn
– Defensive Routines
– Emotional Intelligence
• Personal and Social Competence
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TREND#5: ENHANCING
CONTINUAL LEARNING
• Diversity
– Culture that Appreciates Difference
– Dialogue and Conflict Management Skills
• Group Reflection
– Promote Individual and Group Reflection both
During and After Projects
• Scenario Planning
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Q &A
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APPLYING EMERGING OD
TRENDS
TO YOUR ORGANIZATION
• Break Into Small Groups of 3
• Answer Following Questions
– How Do You Seeing The Trends Play Out in
Your Organization and/or Your Clients?
– What is Inhibiting Them?
– How Can You Deal with this Resistance
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FEEDBACK ON
PRESENTATION
43
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