ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Organization Development in the Public Sector Richard H. Carson Washington State University Author Note Richard H. Carson, is an Individual Interdisciplinary Doctorate Program (IIDP) student at Washington State University. This research was conducted with the assistance of Dr. Lee Bolman, Dr. David G. Carnevale, Dr. Thomas G. Cummings, Dr. Jerry D. Goodstein, Caryn A. Tilton, and Dr. Christopher G. Worley. Thanks to everyone for the assistance. Correspondence concerning this article should be addressed to Richard Carson, 12920 NE 227th Avenue, Brush Prairie, WA 98606. Email: richcarson@q.com . This paper is written as required by the American Psychological Association style guide. July 26, 2013 1 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Abstract This is a 600 level course paper completed at Washington State University Vancouver in Summer 2013. Washington State University defines a 600 level course as an “independent study, special projects, and/or internships.” I am a doctorate student in the Individual Interdisciplinary Doctorate Program (IIDP). My doctorate degree research proposal is Does the effectiveness of public agencies, in communicating and managing relationships with internal and external stakeholders, increase the likelihood of successfully managing organizational change? This paper defines the field of public sector organizational development historically, explores how it is being implemented, and assesses whether it is succeeding in achieving its goals. One of the major findings of this paper is that while there is some consensus about what organizational development is in general, it is viewed very differently by academics and practitioners. So the research is not about explaining a universal theory of organizational development. Rather it is about finding the commonalities of individual perspectives in this new and growing field. Keywords: organizational development, municipal government, communication, stakeholders 2 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Introduction to Organizational Development in the Public Sector Definition There are as many definitions of organizational development as there are authors who wrote books about the subject. As a term, the phrase goes back to the early 1900s. However, the term took on a more sociological meaning. For the purposes of this paper the definition is the one used by Cummings and Worley (2005): Organization development is a system-wide application and transfer of behavioral science knowledge to the planned development, improvement, and reinforcement of the strategies, structures and processes that lead to organization effectiveness. It is important to keep in mind that other definitions also emphasize technology, research, problem-solving, planned interventions, data collection, diagnosis, selfrenewing capacity and collaboration. David Carnevale (2005) explains that organizational development as a philosophy that says: OD…manifests a normative, re-educative education philosophy because it encourages individuals and groups to reexamine core values, beliefs, and operating assumptions about themselves, other people, and the way their organizations function. Introduction and Purpose The purpose and goal of the study is to create an understanding of organizational development that local governments can utilize in the pursuit better managing organizational change. It will provide a qualitative review by which local governments can achieve change and a quantitative process to measure and monitor such change. This research project is an extension of my WSU doctorate research question. The Individual Interdisciplinary Doctorate Program (IIDP) “Proposed Plan of Study” asks the 3 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Research Question, “Does the effectiveness of public agencies, in communicating and managing relationships with internal and external stakeholders, increase the likelihood of successfully managing organizational change?” This is the research question approved by the IIDP Advisory Committee and the WSU Graduate School. My personal interest in this topic is both professional and academic. I have spent 30 years working at the city, county and state government level in Alaska, California, Oregon, Utah and Washington. Most of this time was spent as a top level government manager. For the last five years I have worked as a consultant, working with local government on creating organizational change that leads to greater efficiencies and communication. My academic interest is an extension of my professional interest. Revising the Research Question The first task was to change the research question to one that was more concise and that lent itself to an improved research project. It is important to note that I have made some changes to my initial research question. The second task was to do so in manner that conforms to the norms of academic research terminology and practice. The proposed new research statement is now “Do municipal corporations that effectively communicate with their stakeholders better manage organizational change?” It is shorter and more specific, and will make for a better research result. I have reduced the scope from “public agencies” to “municipal corporations.” In political science terms this means that federal, state, regional, county and city governments are now limited to city and county governments. I think this will limit the research because municipal corporations operate differently and at a different scale that state and federal agencies. 4 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR The phrase “communicating and managing relationships” is changed to “communicate.” “Managing relationships” is no longer an explicit consideration. This is not a concern since it could end up as a recommendation or consideration of the research. The topic statement phrase “effectively communicate” is changed to “communicate” and “successfully manage organizational change” to “better manage organizational change.” It is easier to demonstrate an action without using nebulous adjectives like “effective” or “successful.” The terms “internal and external stakeholders” have been aggregated to just “stakeholders.” There is a discussion to have about who is or is not an appropriate stakeholder in such research. Whether this is a real reduction in research effort is questionable. The research will still have to address both the internal and external groups. It could certainly limit the inquiry to one or the other. The question is one more or less significant in terms of understanding outcomes? Research Methodology There are three academic research methods used in the examination of organizational development in the public sector. First, there is the literature review. Second, is an inventory of best organizational management practices conducted by several consulting firms. The latter reports are all a matter of public record. This consisted of numerous city and county organizational audits. Third, structured interviews were conducted with open-ended questions (see Appendix A) of five of the leading organizational development experts in the United States. History of Organizational Development – Three Perspectives Early History of Organizational Development 5 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR The need to address organizational change is as old as human society itself. Organized society dates back some 2.6 million years ago to the Paleolithic Era. Dealing with unanticipated events is ongoing because human life is full of imperfections and unforeseeable events. Managing organizational change was historically a reactive necessity rather than a proactive strategy. One of the interesting findings I made was that organizational change was usually preceded by the publication of some book or treatise. Four are provided here to underscore the long history of public sector organizational development in the pre-industrial age. Understand that this is not an exhaustive or comprehensive list of the forerunners to organizational development. It is a short summary of some of the major people who, wittingly or unwittingly, helped create the field of organizational development. One of the earliest publications was The Art of War by Sun Tzu who lived from 544–496 BC (Cleary, 1988). This was primarily an instructional guide for warfare. In it he spent a lot of time discussing strategic planning. However, much of his advice was equally applicable to organizational management. Many of today’s business publications dutifully quote him because his ideas are still relevant. For example, he said: Plan for what is difficult while it is easy, do what is great while it is small. The most difficult things in the world must be done while they are still easy, the greatest in the world must be done while they are small. The Prince written in 1513 AD by Niccolo Machiavelli, provided guidance on how to publicly govern. It had extensive advice on how to manage change. One example of Machiavelli’s organizational development advice on bureaucratic complacency and the status quo is: 6 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR For such a prince cannot rely upon what he observes in quiet times, when citizens had need of the state, because everyone agrees with him… Therefore a wise prince ought to adopt such a course that his citizens will always have need of the state and him, and then he will always find them faithful. (Marriott, 1992). Charles Darwin (1809 - 1882) commented that “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change (Darwin, 1859).” Of course he was speaking biologically, but it still resonates politically. Fredrick Taylor wrote an essay for Scientific Management in 1911. Taylor established four principles: data gathering, worker selection and development, integration of science and the trained worker, and redivision of the work of business). What is so important about Taylor’s work is that he focused on organizational work. Today’s concepts of reengineering and process engineering are attributed to him (Burke, 2002). All of this advice could be found in any modern organizational development text. The point here is that organization development as a concept is not recent, but the actual practice is a a 20th century innovation. Private Sector Perspective Being proactive and managing organizational development, commonly referred to as OD, is a recent innovation of the post-industrial revolution. With the advent of scientific management in the early 1900s, a more systematic approach for managing business organizations evolved. The private sector initiative came from several directions. In 1982, Thomas Peters and Robert Waterman published their ground breaking book In Search of Excellence. Their basic message was that “Innovative companies are especially adroit at continually responding to change of any sort in their environment. They said that the “The nature and uses of communication in the excellent companies are remarkably different from those their non- 7 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR excellent peers.” They went on to say that “The intensity of communications is unmistakable in the excellent companies” (Peters & Waterman, 1982). I will explain how this applies later in the report. Also in 1982, W. Edwards Deming published Quality, Productivity and Competitive Position. This too would become became a national business trend setter. Deming had long been ignored by American industry and early on took his message to Japanese industry. It was only when the Japanese started taking American market share in durable goods that American industry took notice of him. Deming’s focus was quality control and statistical analysis. (Walton, 1986). He is considered the father of Total Quality Management. He also created the Fourteen Points and Seven Deadly sins (Cummings & Worley, 2005). He said that “The prevailing style of management must undergo transformation. A system cannot understand itself. The transformation requires a view from outside” (Walton, 1986). In organizational development terms this is called an intervention. Public Sector Perspective The public sector response to In Search of Excellence was slow. It was eleven years later that Osborne and Gaebler published Reinventing Government (1993). Even then the public sector was not too enthused about embracing its tenets. The title’s subheading was “How the entrepreneurial spirit is transforming the public sector.” The authors spent a lot of time talking about privatization and using business practices. The former meant a loss of government jobs and the latter meant a fundamental change in how government does business. The application of organizational development in the public sector took longer historically because of perception and reality that private sector and public sector institutions 8 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR were functionally and normatively different. Public sector organizations are more concerned with fairness than with competitiveness. There are important distinctions between political democracy and corporate capitalism (Cummings and Worley, 2005). These are values and structure, multiplicity of decision makers, stakeholder diversity and intergovernmental relationships. Values and structure. In the private sector, profit and competition are the primary drivers. In the public sector it is governing for the greater good and responsiveness to the public. The latter includes representation, respect for individual rights and social equity. Public entities are more transparent and must provide open access to the public and especially the media. Private companies are competitive, but public entities must be fair to all citizens and be consistent in that fairness. So they are not allowed to be flexible and must abide by a strict set of policies, rules and procedures. The only commonalities between the two are a desire for efficiency and customer service. Multiplicity of decision makers. For any given public policy there are multiple decision makers. For example, water quality is regulated by several federal government agencies, state agencies, the local government and a water district. So the citizen has access at various levels to seek redress or receive answers. The private sector is much more singular in its decision making and does not have to answer to the public at so many levels. Stakeholder diversity. Public entities deal with numerous stakeholders. There are the various levels of governments in terms of agencies and elected officials: special interest groups representing citizens, environmentalists and businesses; internal groups like unions and safety committees; and various non-profit partners that they contract with. All of these groups have 9 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR complete access to documents and records. The private sector has a lot less stakeholder interaction. Intergovernmental relationships. As noted, governments share responsibility with many other groups on any given issue. Coordination is imperative for the efficient implementation of any program. This also included shared and intermingled funding sources that often come with numerous reporting requirements and spending limitations. The current trends to improve government communication and organizational performance can be traced historically back twenty years to Reinventing Government (1993). This book was followed by Improvement Driven Government (Carr, 1995). Both books were basically operationalized by the National Performance Review process during the Clinton-Gore administration (Carr & Condon, 1995). It is important to keep in mind that these antecedents proposed to transform the public sector through a private sector model (Osborne & Gaebler, 1993). It has only been in recent years that the efficacy of this transformation has been questioned. That is why I have placed special emphasis on organizational change strictly in a public sector setting and in explaining the historical context of its evolution and its separate evolution in the field of organizational development (Carnevale, 2005). I need to point out that improvement driven government is not a new concept. In fact, it was President Woodrow Wilson who was a forerunner to Fredrick Taylor’s ideas on scientific management. When he taught at Byn Mawr College he wrote an essay for Political Science Quarterly (1887). In it he said that in terms of bureaucracy, there should “be a science of administration which shall seek to straighten the paths of government, to make its business less 10 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR unbusinesslike…” He went on to say there was a need to “expand into efforts to improve, not only the personnel only, but also the organization and methods of government offices.” Professional Perspective Today’s organizational development practice was initially practiced by human resource specialists, applied social scientists and behavioral scientists (French, 1999). The field itself grew out of five backgrounds. These were the growth of the National Training Laboratories and the concomitant development of training groups (a.k.a., T-groups, sensitivity training groups), action research and survey feedback, the normative view that espoused a participative management framework, focusing on productivity and quality of work life, and strategic change and organizational transformation (Cummings & Worley, 2005) . I will explain much of this terminology later in the paper. What is unique about the field of organizational development is that it was the first attempt to actually study the organizational change process. The forerunners to organizational development were such endeavors as scientific management, the Hawthorne studies, survey feedback, socio-technical systems and industrial psychology (Burke,2002). The field also philosophically grew out of three schools of thought. These were the Classic School of Thought, Human Relations School of Thought and the Human Resources School of Thought (Rothwell, Sullivan & McLean, 1995). A generalization of these schools of thought are: Classic School of Thought: Work is inherently distasteful to employees Human Relations School: Employees want to feel useful and important Human Resources School: Employees want to contribute to meaningful goals 11 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Today the field is transforming into the second generation. This transformation is driven by the frenzied activity that occurred in the 1990s where there were increased mergers and acquisitions, technical innovations, leveraged buyouts, downsizing and changes in law. The second generation relies heavily on the theories and practices of the first generation, but had to adapt new tools to address the changing landscape. The new organizational development included interest in organizational culture, learning organizations, total quality management and visioning (French & Bell, 1999). Much of the ground work for organizational development was created by Kurt Lewin (1898–1947). He is recognized as being the founding father of organizational development. Lewin came up with the ideas of group dynamics and action research which are the basic foundation of the organizational development process. Lewin played a key role in the evolution of organization development as it is known today. Lewin experimented with a collaborative change process using a three-step process of planning, action and measuring. This was the beginnings of action research. Lewin participated in the beginnings of laboratory training (Child, 2005). Literature Review There are numerous papers and studies about the separate research topics of municipal corporations, communication with stakeholders and managing organizational change. The most important material addresses the point that among municipal corporations, the greater the level of communication with stakeholders, the greater the level management of organizational change. In the process of this literature review there are three objectives to keep in mind. First, there is the issue of vocabulary to sort out. The variables proposed are municipal corporations, communication, stakeholders and managing organizational change. The first step of the research 12 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR task is to find corollary terms in the literature that will lead to relevant research. The second step is evaluating the relevance of the material in explaining the phenomenon. Finally, the review will be to discover if there is any relevant statistical data. Communication George Bernard Shaw (1916) said that “The single biggest problem with communication is the illusion that it has taken place.” The point being that most local governments exists with the illusion that that they are communicating with their constituent stakeholders and believe that they understand what their stakeholders want from their government. But it is an illusion because they don’t document this hypothesis. There is a qualitative study published by The Journal of Change Management in which interviews were conducted with 25 employees from a range of organizations. The limitation here is that these were not specifically public sector employees, so the questions need more scrutiny. The result did produce a better understanding of how employees process information about organizational change. Three examples are that line employees prefer information from their direct supervisors, senior managers prefer more strategic information, and that employees who believed they received quality change information accept the change better (Allen, Bordia & Irmer, 2007). The University of Nebraska conducted a study on public input methods in order to gain trust and confidence. Their methodology consisted of telephone surveys and face-to-face discussions, and an on-line survey. One of their questions was does it make a difference which methods are used to solicit information. The findings were that the participants rated face-to-face higher in terms of procedural fairness and trust/confidence. However, the variance was so insignificant as to be negligible (Tomkins, 2010). 13 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR The same university group did a similar study with interesting results and said that “the study design is correlational rather than experimental and data were not originally gathered to test the identified hypothesis” (PylikZillig, 2012). Organizational Change In 1999, Linkage, Inc. conducted a study regarding organization and human resource development. A survey asked human resource and organizational development professionals which of five categories had the highest demand with organizations they worked with. The results were Organizational Development and Change (4.6), Leadership Development (4.5), Recruitment and Retention (4.27), Performance Management (4.24), and Coaching and Mentoring (4.03). Clearly there is a demand for organizational change (Carter, Girber & Goldsmith, 2001). There is an article in Public Administration Review (2006) that focused on the related public sector information (Fernandez and Rainey, 2006). In this article Fernandez and Rainey talk about the streams of research that contain various models and frameworks, and claim there are empirical studies supporting them (Fernandez and Rainey, 2006). However, the article did not provide findings. The authors say: The public-management literature contains evidence of the importance of determining the need for change and persuasively communicating it through a continuing process of exchange with as many stake-holders and participants as possible. Another study done by Kuhn and Corman (2010), specifically did research “using interviews, observations, and a unique discovery processing technique, a nine month case study of one division of a municipal government organization.” Their study found that “traditional examinations of organizational change overlook the complex interactive, structural, and 14 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR contextual forces that influence planning change” (p. 224). This study is by far the most thorough and well-documented reviewed. There is a lot of literature on the topic of organizational development and change. The research measures and methods are easy to identify. Cummings and Worley (2005) provide such information in their book Organizational Development & Change. The section on Collecting and Analyzing Diagnostic Information is especially useful. It is worth noting that I have corresponded with both of these professors and they are most helpful. Cummings and Worley (2005) summarize data collection methods such as questionnaires, interviews, observations and what they call unobtrusive measures. They also describe specific measurement categories such as strategy, technology, structure, measurement systems, human resource systems and culture. It should be noted that much of the literature review findings related to organizational development is to be found in the other sections of the report and did not require being repeated here. Performance Review Perhaps the best opportunity to statistically document and validate the research hypothesis will be through the use of performance review data. There has been a great deal of effort placed on measuring and monitoring in order to improve government performance at the city, county, state and federal level. For example, the U.S. National Performance Review program has morphed over time, but still keeps vast amounts of data. Similarly, the International City/County Manager Association – which I am a member – has its own Center for Performance Management that maintains a huge 15 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR data base on city and county performance programs. Terminology is important here because the study is looking for data on program performance and not personnel performance. Stakeholders The stakeholders are a key public participation variable that allows municipal governments to translate perception into organizational change. Work done by the Institute for Food Research took a look at public participation methods and evaluated them (Rowe & Frewer, 2000). The source is not tied directly to municipal government, but their research is applicable to any stakeholder/public participation process. There is a very interesting publication by the United Nations Development Programme titled Multi-Stakeholder Engagement Process. It details a number of non-U.S. cases studies of using a “structured processes that can be used to ensure participation on specific issues that are based on a set of principles.” (UNDP, 2006). Technology Another prevalent theme in the transparency discussion is the use of technology to better engage and communicate with the public. The technological argument focuses mainly on the use of the Internet to provide data transparency, open participation and improved collaboration (Foxworthy & Bingham, 2013). Alfred Tat-Kei Ho (2002) of Iowa State University says that the e-government initiative “emphasizes coordinated network building, external collaboration, and customer services.” In his study, he did both content analysis of city Web sites and surveyed web development officials. He was particularly interested in both internal and external communication processes. His survey focused on 55 cities nationwide that 16 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR ranged in size from 300,000 to 7,300,000. He focused on web management characteristics such as citizen feedback and improving customer service. It is important to note that technology and e-Government take in numerous opportunities such as government websites, social media and electronic surveys. For example, a social media exploratory study was conducted in 2012 in order to understand social media use by government specifically for managing crisis situations (Kavanaugh, Fox & Sheetz, 2012). This is exactly the type of information that can inform the study research. Transparency Most of the current literature talks about transparency in government. A recent PA Times essay by Catherine Howard (2013) typifies the current concepts: The performance management process is inherently a change management process and highlights how, by integrating change management, performance management is enhanced add supports not only achieving performance goals, but also goals related to transparency, openness, collaboration and accountability. In her essay, Howard lays out a five-stage process to achieve this goal. This includes testing and the need to “conduct statistical analysis to determine correlations – or the lack thereof as a means to validate.” She says that the organization needs to develop the strategy statement, translate and communicate the strategy, plan the operations in terms of human and monetary capital, monitor and learn about the change process, and then test and adapt the strategy. Another study done through the University of Illinois explores the relationship between transparent and participative government in the United States. Although the two 17 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR would ideally go hand-in-hand, the reality is quite different. In a study of five local governments, it was found that the police departments had the lowest levels of both and the parks department had the highest levels of both. This raises the question of whether this is because of the internal agency culture or the external public perception, or both (Welch, 2012). Organizational Development Best Management Practices This is a review of some of the best organizational management practices conducted by several consulting firms. The latter reports are all a matter of public record and consist of numerous city and county organizational audits. Interdepartmental/Interdivisional Coordination Recommendation 1: Eliminate organizational silos between departments.i Recommendation 2: Make staff pro-active participants in meetings.ii Recommendation 3: Create a “one-stop shop” application center.iii Management Support Recommendation 4: Direct the department director to discuss and consider adoption of the best management practices identified in the report.iv Customer Service Improvements Recommendation 5: Establish an ongoing customer service program.v Recommendation 6: Institute an unanticipated service program.vi Recommendation 7: Hold employees accountable to meet process times, and other standards, such as returning phone calls with 24 hours.vii Recommendation 8: Adopt a consistent policy for how fast line staff and supervisors respond to phone calls and emails.viii 18 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Recommendation 9: Beat the competition with a high-level of customer communication.ix Recommendation 10: Institute a program where employees “listen, hear, and appreciate what their customers are saying.”x Recommendation 11: All staff and particularly managers should be required to make a few random phone calls to customers to look for important issues.xi Recommendation 12: Institute effective performance measures in order to gauge customer satisfaction.xii Communication Improvements Recommendation 13: With the assistance of a technical writer, provide a booklet that clearly explains what the applicant can expect during the development review process, the planner’s role, and the decision-making body that must approve the application.xiii Recommendation 14: Avoid technical and bureaucratic jargon in all publications, public notices and other communications.xiv Recommendation 15: All handouts should be reviewed on an annual basis. Handouts should immediately be amended whenever new changes occur.xv Regulatory/Policy/Procedural Improvements Recommendation 16: Empower representatives attending meetings with the authority to solve development issues and make commitments for the Department.xvi Recommendation 17: Develop an organization-wide sense of urgency and timeliness of the processes; encourage, support, and promote staff that embraces this philosophy.xvii Recommendation 18: Develop a procedures manual, which provides checklists for each agency process.xviii 19 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Recommendation 19: Develop a systematic procedures manual training program.xix Recommendation 20: Expand the range of procedure manuals and checklists to encompass all of the major processes undertaken by the department.xx Recommendation 21: Update the procedures manuals and checklists on an ongoing “Continual Improvement” basis; keep it on the Department staff meeting agenda. xxi Human Resource Improvements Recommendation 22: Redeploy professional staff in order to provide meaningful and effective support to customers and stakeholders.xxii Recommendation 23: Identify, empower and reward results-oriented employees across departmental lines.xxiii Recommendation 24: Conduct a new equity study to ensure salaries are reasonable with the responsibilities they perform.xxiv Recommendation 25: Conduct a training needs assessment for the Department.xxv Recommendation 26: Establish professional development expectations for each employee, including cross-training and career development.xxvi Recommendation 27: Work the basics of environmental reviews in each employee’s professional development program.xxvii Recommendation 28: Conduct performance evaluations consistently and at regular intervals.xxviii Recommendation 29: Substantially increase the use of consultant/contract services to manage workload.xxix 20 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Performance Measures and Monitoring Recommendation 30: Develop a set of meaningful performance measures directly linked to cycle time performance indicators.xxx Project Management/Case Management Systems Recommendation 31: Institute effective performance measures that relate directly to customer satisfaction with regard to timeliness and clarity.xxxi Recommendation 32: Ensure an effective project management approach for project review.xxxii Recommendation 33: Develop and implement a system to ensure that mitigation measures are passed through from project approval to later stages of subsequent permits throughout the organization.xxxiii Recommendation 34: Designate a project manager immediately and prepare a timeline/milestone project-tracking document.xxxiv Technological Improvements/Systems Recommendation 35: Move to online application and payments Recommendation 36: Prioritize ongoing training of employees on the computer processing system.xxxv Recommendation 37: Increase client communication through the website.xxxvi Facility/Building Improvements Recommendation 38: Institute a modern one-stop shopping center.xxxvii Recommendation 39: Design an application center with both customer service and the process in mind.xxxviii 21 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Recommendation 40: The agency should do a space inventory to see how spaces could be better utilized.xxxix Document Management Systems Recommendation 41: Ensure that once a file is ready for close out, that all documents in the files are scanned to provide electronic copies (and access) for easy reference.xl Recommendation 42: Pursue funding to more aggressively scan files for the last 5-10 years so they are readily available to staff. Recommendation 43: Secure existing files into the file room/records center.xli Recommendation 44: Until files can be scanned and maintained in the file room/records center, relocate various files in one location so all files for a given year are together.xlii An Organizational Development and Change Blueprint This section reviews the basic practices of organizational development as they can be adapted to public sector use. The program example set forth in this paper is based on the literature search, a review by the professional interview panel and the author’s experience as an organizational development practitioner. It is a sequential “10-step” program that is comprehensive in scope. However, it may include more steps than would normally be utilized in an average intervention. It should be understood as an illustrative series of tools in the organizational development toolbox. Step 1. Problem Identification There needs to be an initial meeting with the organization’s elected and/or appointed officials to ascertain what they think the problems are and what their expectations are in terms of the intervention. It is important to keep in mind that their perceptions of what is working and not working maybe total erroneous and based on a political agenda and bias. Elected officials are 22 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR especially prone to getting elected on a set of propositions that may not be true or effective. Appointed officials suffer from a similar bias in that they believe any organizational problems are being caused by someone else internally or externally. Step 2. Program Kick-Off Initial Group Meeting. It is important to pull together all members of the organization early in the process. This is an opportunity to explain what will happen and when, and to allay any fears that the process is meant as either retribution or as a method to purge unproductive or unwanted employees. It provides for a common set of expectations. Setting Ground Rules. It is important that a set of ground rules be established and explained to the employees. These are rules that involve behavior and process expectations. Employee Involvement. Knowing what is expected and when things will happen will alleviate a lot of the pessimism. So will knowing that the employees will be intimately involved in the process and provide input during the process. Step. 3 Data Collection/Assessment/Analysis Existing Vision, Mission, Strategy. This needs to be documented with the understanding that there is both a written and unwritten sets of goals for the organization. Human Dynamic. There needs to be a thorough understanding of the roles and responsibilities of individuals, groups and the overall organizational culture. It is also important to focus on the interaction between groups that work on specific processes. Document Review. It is important to collect and cataloque all policies, procedures and other written documentation that guides the organization’s operation. Performance Measures. Progress cannot be measured unless a baseline is first created regarding existing processes. 23 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Step 4. Stakeholder Feedback Surveys. Surveys are especially effective at gaining an understanding of the organizational perceptions of internal and external groups of people. Such surveys can be done by mailing or electronically. The challenge is to conduct a scientifically valid survey that reflects a useful sample population (Singleton, 2010). Focus Groups. These are useful for getting input from large groups of external stakeholders. When it comes to municipal government the external stakeholders are usually citizen activists, property owners, environmentalists, and business interests like retailers and developers. Such groups are most effective when limited to 10-12 people. It is best to have both a separate moderator and a note taker (Singleton, 2010). Structured Interviews. There are always key individuals who are internal and external to the organization who are better interviewed alone and not in a group. This is especially true of the organization’s staff. They have the greatest insight into the organizations operations and management, but may not be forthcoming in a group setting (Singleton, 2010). Step 5. Preliminary Diagnosis The major objectives are to understand and validate the issues and needs, identify resistance and support, and clarify competence and commitment. So it is a matter of asking what is the problem, what are the causes of the problem, what is the current situation and how do people feel about it (Rothwell, 1995). Step 6. Planning Change/Designing Interventions It is important to development the need for change, establish a relationship between the change agent and the client organization, and determine how to work toward the change (Burke. 2002). 24 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR In terms of the actual intervention, it is important to determine how the various units and individuals will be involved. It is a matter of time and money. Some staff merely need to be informed and other actively engaged at some level (Rothwell, 1995). This is more art than science. Step 7. Implementing Change/Action Mapping of Processes, Procedures, Management Practices. Systems cannot be improved until they are understood. It is often the case that the staff doesn’t really understand or agree on the existing processes. Reengineering Process. Once the current practices are understood and agreed to, then the staff can proceed to reengineer the processes to make them more efficient, cost-effective, less time consuming and transparent. The major complaints from customers have to do with cost of a process, length of time it takes and not being able to understand what is wanted. Step 8. Restructuring Organization/Managing Change Mixed Implementation Teams. It is best to create teams to undertake specific areas of the organizational change implementation. It is also important to create teams from different units and with different levels of authority. Having implementation teams of like minded individuals can result in the same set of problems being continued. Strategic Planning. There is a enormous body of literature on this subject but here are some basics. A multi-year action plan and budget are needed to move forward. All of the changes needed to achieve organizational change cannot be created immediately. So a plan must be established identifying what can be done in 3 months, 6 months, 12 months or in future years. It is also important that one or more persons be assigned and held accountable for individual 25 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR actions. It is important to dedicate human and monetary resources commensurate to the successfully completing or undertaking the task. Step 9. Institutionalize Change Employee Training and Development. Employees must be trained in the new policies, processes and programs. Everyone needs to be on the same page and have a common understanding in terms of organizational expectations. Executive Leadership Coaching. Coaching the leadership is different from employee training. The leadership needs to know what the organizational changes are and how to motivate and lead the change. Bolman and Deal (1991) say that “success depends on developing the right blueprint for the relationship between their organization’s structure and strategy, as well as on finding ways to get that blueprint accepted.” Cross Functional Training. Where possible and feasible, employees should be trained to do more than one function. The fact is that employees go on vacation, get sick or take maternity leave. Even having one employee out sick and another on a break creates a problem when a customer has to wait 15 minutes to get an answer. Customer Service Training. Not everyone is born with the innate ability to relate to other people and be an active listener. Customer service training is essential to make sure that the customer feels the employee is listening to their concerns and wants to help them. Too often an employee’s answer is simply “No, you can’t do that.” There is no excuse for this. Like it or not, there is always a process, however onerous, that the customer can pursue to achieve their goal. This may include trying to convince the elected officials to legislate a change in process (Carson, 2004). 26 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Team Building. This is important because too often individuals in a group create problems by not participating in decision making about a process or implementing it consistently. They can also be a disruptive influence if they don’t participate as part of the team. Procedures Manual. It is important to document exactly how the new processes work for two reasons. First all staff must understand the need for consistency. One of the major complaints from citizens is the inconsistency of decision making from one staff person to the next. In fact, some customers shop staff based on the customer’s perception of how a staff person makes decisions. A manual is also important in order to train new staff on how processes work. Establishing Performance Measures and Expectations. Once the reengineering is complete, it is important to establish clear performance measures and expectations for all employees. The use of a procedures manual is very important. Leadership needs to take ownership of the organizational changes and make it clear to both mid-managers and front line employees that these changes are to be taken seriously and will be part of future performance reviews. Performance Appraisal. Performance reviews are not the favorite task for any manager to do. In many cases performance reviews either don’t occur or they are cursory at best. Consistent and comprehensive performance reviews will result in better employee performance and better organizational operations. Total Quality Management. Attention to quality in terms of services. Step 10. Maintenance Monitoring Performance. In Step 3 a measurement baseline was established. The saying is that “What measured gets done.” It is important to continually measure performance. How often any activity gets measured depends on the circumstances. It could be daily, monthly 27 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR or annually. Today there are numerous software packages that actually measure time spent on specific process tasks. This can be useful in determining if a particular step in the process is taking too long or if a particular employee is having problem completing the task in a timely manner and needs further training. Sustaining Change. Working the strategic plan is paramount. Unfortunately, most organizations create a strategic plan and then put it on a shelf. The most effective way to guarantee implementation is to appoint one person to manage the strategic plan. This person will monitor action deadlines and deliverables and provide written reports to Public Sector Organizational Development Process Phase I – Initiate the Organizational Audit Problem Identification Program Kick-Off o Initial Group Meeting o Setting Ground Rules o Employee Involvement Step. 3 Data Collection/Assessment/Analysis o Existing Vision, Mission, Strategy o Human Dynamic o Document Review o Performance Measures Step 4. Stakeholder Feedback o Surveys o Focus Groups o Structured Interviews Phase II - Implement Organizational Change Step 5. Preliminary Diagnosis Step 6. Planning Change/Designing Interventions Step 7. Implementing Change/Action o Mapping Processes, Procedures, Practices o Reengineering Process Step 8. Restructuring Organization/Managing Change o Mixed Implementation o Strategic Planning Step 9. Institutionalize Change o Employee Training and Development o Executive Leadership Coaching o Cross Functional Training o Customer Service Training o Team Building o Procedures Manual o Establish Performance Measures/ Expectations o Performance Appraisal o Total Quality Management Phase III – Maintain Organizational Development Step 10. Maintenance o Monitoring Performance o Sustaining Change o Continuous Improvement Step 1. Step 2. management on a monthly or quarterly basis. This person needs to attend all executive team meetings and report on progress, or the lack thereof, on specific items. This puts everyone on notice that they will be held accountable for their performance and that it is being documented. If what get measured gets done, then what gets reported also gets completed. Continuous Improvement. It is important to revisit and review processes and procedures on an establish schedule. The work environment is constantly changing because of 28 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR technology, elections, state and federal legislation and current events. Continuing to operate under the status quo is a recipe for disaster. The Structured Interviews The emphasis of the paper so far has been given to the literature review and history of organizational development. Now the paper will provide the reader with the opinions of the leading academic and practitioners in the field of organizational development (see Appendix B). Each interviewee was asked the same questions, but they were opened-ended in terms of survey research questions. The survey questions were conducted from July 12-22, 2013 This is the most interesting part of the report because there are no boundaries or restrictions on their answers. It was important to limit questions to specifics in order to achieve a level of both consistency and comparability. The dilemma was to summarize what they said to me or just let quote what they said. So I decided not to translate what they said. It displays what they really think. At the end of the paper, the author will summarize his thoughts about what they said. It is important to say upfront that the paper does not speak for them. The following are the email responses exactly as sent: Lee Bolman (July 22, 2013): 1. Do you think that organizational development and change has been successfully implemented in the public sector? If yes, why? If not, why not? There have been successes and failures, as in the private sector, but I don’t know how to quantify the balance. 2. In general, which best management practices (please choose 3-5) do you feel have the most significant impact on organizational change in the public sector? I don’t know how to get my head around this question. 3. Can you give me a couple of examples of local governments that have successfully implemented organizational development? Sorry, but this isn’t an area where I know enough to make a sensible answer. 29 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR 4. How important is communication with stakeholders in terms of the effective management of public sector organizational change? What factors are most critical to effective communication with stakeholders during the organizational change process? It’s vital, as in other sectors. It’s essential to hear from and communicate to the right stakeholders with the right message, and keep at it. 5. Are there any communication approaches you would caution against using that could lead to negative and inconsequential outcomes in the organizational change process? I don’t really know how to answer this question. If you don’t communicate enough, or if you communicate the wrong message to the wrong people, your chances of success decline. 6. Do you have any other thoughts about the importance of communication in the public sector organizational development process? Probably. 7. How does an organization sustain continuous improvement after going through the organizational development process? That will depend on a number of things, such as how quickly people see positive results, how much people feel better or worse off as a result of the changes, how confident people feel that they know how to be effective in the new world, etc. 8. How do you change attitudes about good customer service in an organization that lacks it? As with most of your questions, this is so broad that my mind boggles at trying to answer it. There are many possible ways to change attitudes on this, as on just about anything else you might want to change. You can put people in contact with customers, give them more information about customer experiences, train them in ways to serve customers better, change their perceptions of what they’re rewarded for, etc. 9. Are there any future trends in organizational development that you feel will be of particular importance and relevance to the public sector? I don’t know. David Carnevale (July 13, 2013): Before you get too far, you need I believe to note what change is for you. There is everything in OD from helping just a leader for example to full system change, total transformation. You might note that change agents can come from an internal Human Resources Administration unit to, what I am used to, the work of an external agent or external team of agents. My experience is that there are precious few inside units facilitating change and most often the degree of change the employer seeks almost always underestimates the degree of change necessary to achieve organizational ends. It is good to note that change efforts are in the end less about techniques to realize goals than the reality always is political and deals with power relations which being 30 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR disturbed bring forth the greatest change, and the most significant problems for the change agent. "It all starts at the top" which means for me that no real change is possible without the support of the top executive in charge. It is important that the change agent have the visible support of the "boss." You already raise a good point that needs to be dealt with -- sectorial differences matter -- dealing with a public agency as opposed to a private company are in several ways different. Jumping ahead I feel that communication is the essential variable affecting degree of change and that is especially true when one takes the position, as I do, that it is all about process and process and process why communication, openness, transparency and maintain a good public visible profile is the heart of the matter. The first change effort centers around analysis of what is, and based on that diagnosis choosing where to start and with what techniques to bring to bear. The initial diagnosis is to likely change as the agent goes forward but getting in, working one's way in provides a solid feet on the ground dimension, then going forward from there. Most important change agent skills -- facilitation, expertise brought to bear concerning group dynamics, and, again, political skills. In some way the agent is always "running uphill in the agency or unit" and is alone privately in her thinking save what she can share with other members of the external team of agents. Trust is always in play. No change is possible if the agent(s) don't or can't generate trustworthy relations inside and throughout the unit seeking OD facilitation. If they don't trust you, leave, or stay in the toxic low trust atmosphere. In the public sector, so unionized as it is, the agent needs the support of union leaders before really engaging things. This of course is a trust problem. So, no change is possible without union support and it truly impossible if change ideas are generated outside of the bargaining relationship between the parties. If a labor contract negotiations overlap with OD initiatives, then the agent needs to be at the table observing as a neutral. Getting welcomed is hard since the OD agent is seen as a creature of the boss and suspicion of her motives is always in play with the union. They will take the position that if these things are so important why is management not bringing to the table? Why is a "consultant" being used to affect change when the bargaining process can, and should, be the focus of change initiatives? In the City of Norman, I had OD program invited by the city manager. Three labor contracts were being bargained at the same time I tried to enter the group. I had to behave as a mediator in the labor talks if I wanted to be accepted as "an honest broker" in the OD program. Again, public labor representing police, firefighters, teachers, and general unit personnel is quite strong. Ignore it at your peril. The worst thing an OD agent can do is to concentrate at the top of the hierarchy, which has several implications, not necessarily good, about power in the organization. Start at the top and try to have change, the acceptance that change is necessary, cascade down from the top. It is a disaster in the making. I learned the hard way in the State Department of Health that, in the end, starting bottom up would have been better than my trying to make acceptance by the power elite my initial goal. OD really demands starting with employees down the line. Not to do that presents systemic trust problems. I learned my lesson in this case, not a happy journey being wrongheaded at the outset. Tom Cummings (July 22, 2013): 31 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR 1. Do you think that organizational development and change has been successfully implemented in the public sector? If yes, why? If not, why not? Yes, Bob Golembiewski has done reviews of public sector OD efforts and generally they are no more or less successful than private sector OD projects. There is a fairly long history of OD in the public sector and there is growing competence in this area both in internal and external OD consultants. Also, public services more and more face competition with the private industry delivering these services; this opens the public sector to market forces which should push it more and more to get more efficient and change itself. 2. In general, which best management practices (please choose 3-5) do you feel have the most significant impact on organizational change in the public sector? High-involvement work practices; team-based work practices; service quality interventions; process interventions. 3. Can you give me a couple of examples of local governments that have successfully implemented organizational development? Los Angeles County Museum of Natural History, which implemented strategic changes (strategy, structure, etc.) to make it more adaptable to changing conditions including rising fiscal demands and more diverse public needs. 4. How important is communication with stakeholders in terms of the effective management of public sector organizational change? What factors are most critical to effective communication with stakeholders during the organizational change process? Participation and active engagement of multiple stakeholders is particularly essential in the public sector; must go beyond communication to get stakeholders involved in all stages of the change process. Also, must account for shifting power of different stakeholders in the public sector as the governance process changes. 5. Are there any communication approaches you would caution against using that could lead to negative and inconsequential outcomes in the organizational change process? Top down, one way communication; dialogue not communication. 6. Do you have any other thoughts about the importance of communication in the public sector organizational development process? Communication needs to account for multiple, conflicting values of different stakeholders; cannot assume shared values. 7. How does an organization sustain continuous improvement after going through the organizational development process? By putting in place an ongoing learning process which periodically cycles through change-feedback-learn/adjust processes as normal part of organization functioning 8. How do you change attitudes about good customer service in an organization that lacks it? Strong leadership, explicit service goals, contingent reward practices, and training and development. 32 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR 9. Are there any future trends in organizational development that you feel will be of particular importance and relevance to the public sector? Almost all the current trends in OD (more strategic, more multiple stakeholders, more learning by doing, etc) are relevant to public sector. Caryn Tilton (July 22, 2013): Here are my answers. Please keep in mind that 90% of my public experience is with local government (city, county and district). Regarding OD, I think there are huge opportunities to be had. But unfortunately, most local governments do not have the systems in place to take advantage of these opportunities. They continue with what is familiar avoiding the discomfort that could inspire badly needed change. 1. Do you think that organizational development and change has been successfully implemented in the public sector? If yes, why? If not, why not? No. Very few government entities have the systems, programs and/or technology in place to take advantage of opportunities, efficiencies, and ongoing process improvements. They have many challenges including a diverse group of stakeholders, multiple layers of management, politics, and governance in part by unskilled leaders. 2. In general, which best management practices (please choose 3-5) do you feel have the most significant impact on organizational change in the public sector? The following “best management practices” could have a huge impact on organizational change in the public sector if they had the skills, knowledge and abilities to take advantage of them: o Process Reengineering o Performance Management o Strategic Planning 3. Can you give me a couple of examples of local governments that have successfully implemented organizational development? o Aztec, New Mexico – Strategic Planning (Mayor Sally Burbridge) o Madras, Oregon – Currently making strides in the area of Performance Management and Strategic Planning (City Administrator, Gus Burril) o Boring Fire District – Strategic Planning (Council President Les Otto) Sadly, due to lack of accountability, lack of leadership, failure to govern appropriately, and outdated and ineffective performance management programs most local governments are incapable of the efficiencies necessary to take advantage of OD. Some public entities like Aztec, NM have pockets of productivity but in my experience (30 years), I can’t name one single public organization that successfully undertook the task to develop all employees, the organization and the governing body to capitalize on existing opportunities. 33 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR 4. How important is communication with stakeholders in terms of the effective management of public sector organizational change? What factors are most critical to effective communication with stakeholders during the organizational change process? While OD needs the support (maybe the directive) of the governing body, they are not the ones who will implement the changes. I think you should communicate anticipated outcomes to stakeholders (citizens, elected officials, special interests) and do it in a way that removes any risk from decision making that may be connected to the change. However, I think it is a mistake to involve stakeholders with methods, tools and strategy at the organizational level. Administration and the workforce will be the drivers of meaningful, interdisciplinary change. Effective change will most likely require culture change, behavior change, and measurable competencies at the individual, team, department, and organizational level. 5. Are there any communication approaches you would caution against using that could lead to negative and inconsequential outcomes in the organizational change process? o Communication that is untrue o Communication that creates unrealistic expectations. When the expectations are not met, trust is lost and credibility dissolves. o Communication that is selective – passed on to a select few o Communication that is not transparent o Communication that is not complete or thorough 6. Do you have any other thoughts about the importance of communication in the public sector organizational development process? Communication is the life blood of change. Thorough communication at all levels of the organization is imperative, it is critical, and your success absolutely depends upon it. 7. How does an organization sustain continuous improvement after going through the organizational development process? Process Reengineering is the silver bullet to continuous improvement and generally involves these steps: o Identify your customers (those who depend upon you or your team for products, information, or services) and their expectations o Interview key customers to rate (1. How important on a scale of 1-7 is this product, information, or service to you or your team? 2. On a scale of 1-7 what is the effectiveness of our delivery? o Identify the steps in your current process. o Conduct process analysis exercises o Redesign your process o Determine process and end result measures and data sources o Measure and continuously improve 8. How do you change attitudes about good customer service in an organization that lacks it? It’s as easy as 1-2-3! 34 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR o Hire the best o Provide a work environment that supports individual success o De-hire those who don’t measure up Every public organization should have a Customer Service Policy and Program including customer service standards for all positions. Employees should first learn about customer service and what the expectations are for their contribution during their onboarding. Going forward, employees should be held accountable to meeting the customer service standards for their area and position. Like other expectations, failure to meet them is cause for progressive corrective action up to and including termination. 9. Are there any future trends in organizational development that you feel will be of particular importance and relevance to the public sector? No future trends that I am aware of…. Christopher Worley (July 22, 2013): I Should Open With A Disclaimer…I Do Not Have Much Experience In Government OD. You Might Want To Contact Ray Patchett…Former City Manager For The City Of Carlsbad, Ca. Who Practices Od And Writes The Section On Od In The Public Sector For The Od Textbook That Cummings And I Write. Ray Patchett <patchettr@aol.com> 1. Do you think that organizational development and change has been successfully implemented in the public sector? If yes, why? If not, why not? In General, No. First, For All The “Transparency” About Government Affairs And Processes, There Is A Fair Amount Of Information Hoarding – Information Is Power – And That Fundamentally Works Against Some Of The Core Values Of The Od Process. Second, Most Governments Are Under Cost Pressures And Cannot (Or Will Not) Justify The Costs Of An Od Internal Function 2. In general, which best management practices (please choose 3-5) do you feel have the most significant impact on organizational change in the public sector? Again, Not An Expert Here… My Best Guess – Depending On How You Define “Management Practices” Would Be 1) Strategic Planning, 2) Process Improvement Technologies, 3) Organization Design 3. Can you give me a couple of examples of local governments that have successfully implemented organizational development? City Of Carlsbad, Ca – See Reference To Ray Patchett Above 4. How important is communication with stakeholders in terms of the effective management of public sector organizational change? Sorry, rich, this seems like an odd question… of course it’s important. I don’t understand what you are trying to get at. What factors are most critical to effective communication with stakeholders during the organizational change process? o o Clarity Of Message Timing Of Message 35 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR o o The Medium (Face-To-Face, Email, Public, Private) Level Of Trust Between The Parties 5. Are there any communication approaches you would caution against using that could lead to negative and inconsequential outcomes in the organizational change process? Blast Email 6. Do you have any other thoughts about the importance of communication in the public sector organizational development process? 7. How does an organization sustain continuous improvement after going through the organizational development process? Rich, I’m struggling here. First, the question assumes that things will be sustained. In a world that is changing faster and faster, i find the notion of institutionalizing change (refreezing) an almost silly idea. Second, there are a ton of continuous improvement methodologies – six sigma, total quality management, lean, and so on that would work fine. I’m still not understanding what you are looking for. 8. How do you change attitudes about good customer service in an organization that lacks it? Whose attitudes? The workers? The public’s? There is a whole literature on attitude change in social psychology… my own approach would be based on a combination of social learning theory and socio-technical work design. 9. Are there any future trends in organizational development that you feel will be of particular importance and relevance to the public sector? I would go to ray’s section in the OD text… I think he does a good job describing the current state of the field in public sector organizations. Organizational Development Trends The need for organizational development evolves with societal change. The following trends and potential issues are ones identified through the literature review, structured interviews and discussions with colleagues. These observations were put forward by Cummings and Worley (2005). Global, Cultural Interdependencies The globalization of politics means that organizations must become more sensitive to ethnic and cultural difference when it comes to communication and interactions. Knowing about your counterpart is extremely important in order to make sure that understanding is not lost in translation. 36 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Ecological Awareness Society is becoming more aware of the human impact on the environment. Government institutions are specifically charged with taking a leadership role in addressing climate change, resource conservation, recycling. The organizational development practitioner needs to keep pace with such issues. Social Justice and Responsibility There is a growing desire on the part of employees to contribute more to society than just their daily labor. Some organizations encourage and financial support community action and participation by their employees. Age, Gender, Lifestyle and Ethnicity The workforce is aging and there will be more retirees. This requires a succession strategy component. There are also changing lifestyle expectations by the incoming younger generation and the outgoing older generation to consider. The population is experiencing a growing ethnic mix and minorities are becoming the new majority. Understanding cultural expectations and traditions of the minority groups is important. Technological Change The speed of technological change and improvements is accelerating. We have moved from type writers, to punch cards, to personal computers, to lap tops, smart phones and tablets. There is no way of knowing what will come next, but it will come. This also has a generational impact when it comes to employees and their acceptance of new technology in the organization. Employee Expectations There is a trend toward creating new and innovative employee reward systems beyond merit pay. Employees are beginning to expect more non-monetary personal fulfillment. 37 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR New Economy The new economy is characterized by layoffs, downsizing, mergers and acquisitions. This leads to people working part-time, unemployed or underemployed. This means that organizational development must now take into account these impacts on the organization. Improve Employee Health More and more employees expect on-site facilities to keep healthy. This is also a concern for employers who want to reduce the health care costs. Systems Integration There is an increasing trend toward integrating administrative, human and technological systems that the practitioner needs to keep pace with. Best Practice Solution Given the changing organizational trends, it is difficult for organizational development professionals to keep pace with the need for information and cutting edge solutions. One answer is to first conduct a situational analysis and then create teams of professionals who understand the separate and specific issues that need to be addressed. For example, if an organization has a large ethnic group involved, then someone with experience working with such a group would be extremely useful. So the future of organizational development is that it will become more interdisciplinary. Summary This paper began with the premise that the research thinking and the conclusions would be based on the literature review. However, the structured interviews were the very insightful. These are consulting and academic professionals on the cutting edge of the new world of public sector organizational development. So they became the academic heart of the paper. 38 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Organizational development in the public sector has its roots going back centuries. However, the modern day field of organizational development is only starting to impact the public sector organizations like municipal corporations. Part of the problem is that they are considered rule-bound. But many, if not most, of the procedures are simply historical antecedents and not organizationally logical in terms of performance. As a 30-year government manager and a current doctorate student in organizational development, I struggle with the reality that municipal governments are regulatory machines that grind on daily without ever questioning what they are doing. Reality is that the management of municipal governments changes on four-year elections cycles. The staff does not. So the challenge of public administration is the theoretical fire-wall between public policy by elected officials and public management by appointed officials does not exist at the municipal corporation level. The opportunity for long-term organizational change and development is often challenging at best. I have provided a 10-step plan for long term organizational development and change. The challenge is to find political leadership to implement it over time. That will be difficult depending on the situational analysis of any municipal corporation. It is often said that you get what you pay for. In local government, you get who you elect. So the question goes back to my doctorate thesis. The question is “Do municipal corporations that effectively communicate with their stakeholders better manage organizational change?” I believe the answer is “Yes.” 39 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Appendix A Structured Interviews Introduction Script Thank you for taking the time to answer a few questions about public sector organizational development. I have 10 questions and this will probably only take about 15 minutes. Please note that all answers are confidential and I will not be attributing answers to anyone I interview. Interview Questions 1. Do you think that organizational development and change has been successfully implemented in the public sector? If yes, why? If not, why not? 2. In general, which best management practices (please choose 3-5) do you feel have the most significant impact on organizational change in the public sector? 3. Can you give me a couple of examples of local governments that have successfully implemented organizational development? 4. How important is communication with stakeholders in terms of the effective management of public sector organizational change? What factors are most critical to effective communication with stakeholders during the organizational change process? 5. Are there any communication approaches you would caution against using that could lead to negative and inconsequential outcomes in the organizational change process? 6. Do you have any other thoughts about the importance of communication in the public sector organizational development process? 7. How does an organization sustain continuous improvement after going through the organizational development process? 8. How do you change attitudes about good customer service in an organization that lacks it? 9. Are there any future trends in organizational development that you feel will be of particular importance and relevance to the public sector? 40 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Appendix B Dr. Lee G. Bolman, University of Missouri - Kansas City, Bloch School of Management. Author of Reframing Organizations: Artistry, Choice and Leadership. Education: Yale University, Ph.D. in Organizational Behavior and Yale Law School. Dr. David G. Carnevale, Florida State University. Education: Ph.D. in public administration from Florida State University. Author of Organizational Development in the Public Sector. Professor Carnevale has served as the Samuel Roberts Noble Presidential Professor at the University of Oklahoma, where he is currently a Professor of Human Relations and Political Science. Dr. Thomas G. Cummings, University of Southern California. Co-author of Organization Development and Change. Thomas G. Cummings, is chair of the Department of Management and Organization and executive director of the Leadership Institute. Education: MBA from Cornell University and Ph.D. socio-technical systems University of California at Los Angeles. Caryn A. Tilton. Caryn is President of CT Consulting and has owned and operated CT Consulting since 1984 providing programs and supporting services in management consulting, organizational development, employee training, board development, strategic planning, performance management, executive coaching, and process re-engineering. Dr. Christopher G. Worley, Pepperdine University. Dr. Worley consults with organizations in the health care, high technology, and natural resource industries on strategy and organization design. He is the co-author of Organization Development and Change, the largest selling textbook in the field of organization development. 41 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR Attachment C Richard H. Carson 12920 NE 227th Avenue Brush Prairie, WA 98606 Phone: (360) 635-8161 Email: richcarson@Q.com Internet: www.richcarson.org June 25, 2013 To: My name is Richard Carson and I am a doctoral student at Washington State University. I am currently working on a research paper in preparation for my dissertation. The goal of the dissertation is to construct a framework that local governments can apply to better manage the process of organizational change. It will provide a qualitative road map by which to achieve the desired organizational changes and a quantitative process to measure and monitor the results of these changes. The research question I am pursuing is, “Does the effectiveness of public agencies, in communicating and managing relationships with internal and external stakeholders, increase the likelihood of successfully managing organizational change?” My personal interest in this topic is both professional and academic. I have spent 30 years working at the city, county and state government level in Alaska, California, Oregon, Utah and Washington. Most of this time was spent as a top level government manager. For the last five years I have worked as a consultant, helping local governments create organizational change that leads to greater efficiencies and communication. As part of my research, I would like to conduct several structured interviews with academic, nonprofit and for-profit professionals who are working in the field of public sector organizational development. In light of your experience and insight in this field, I would like to be able to interview you if you are available. The interview consists of 10 questions and I expect the time commitment will be 1520 minutes. The interviews can be done in one of two ways. I can arrange to call you at your convenience and ask you the questions. I can also send you the questions by email and you can return your responses to me by email. I would like to schedule my interview with you before July 12th. I will email you the questions in advance. You can also return the email questionnaire back by July 12th. Thank you in advance for your time and consideration and I look forward to hearing back from you. Sincerely, Richard H. Carson 42 ORGANIZATION DEVELOPMENT IN THE PUBLIC SECTOR References Allen, J., Jimmieson, N., Bordia, P., Irmer, B (2007). Uncertainty during Organizational Change: Managing Perceptions through Communications. Journal of Change Management. 7, 187-210. Bolman, L., Deal, T. (2001). Reframing Organizations. Artistry, Choice and Leadership. Josey-Bass, San Francisco, CA. 434. Burke, W. (2002). Organization Change: Theory and Practice. Thousand Oaks, CA: Sage Publications. 19-20, 21-26. Carnevale, D. (2005). Organizational Development in the Public Sector. Boulder, CO: Westview Press. 1-2, 21-26. Carr, D., Littman, I., Condon, J. (1995). Improvement Driven Government: Public Service for the 21st Century. Washington, D.C.: Coopers and Lybrand. 42 Carson, R., (December 2004). Changing the Culture of “NO”, Planning, 70,16-19. Carter, L., Girber, D., Goldsmith, M. (2001). 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