EMERGING TRENDS in ORGANIZATIONAL

DEVELOPMENT

EMERGING TRENDS in ORGANIZATIONAL

DEVELOPMENTBy

Jonathan Mozenter7/29/99

A Massachusetts Bay OD Learning Group Event

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AGENDAAGENDA

• Introductions• What is an Emerging Trend?• Background• Macro Forces• Emerging Trends In OD• Q+A• How Will the Emerging Trends Affect

Your Work Life?

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CHECKING INCHECKING IN

Introductions• Please State in 15 Seconds

– Name– Organization– What You Hope to Take Away from

Tonight’s Presentation

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WHAT DO I MEAN BY AN EMERGING TREND?

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

BACKGROUNDBACKGROUND

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HYPOTHESISHYPOTHESIS

• 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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METHODOLOGYMETHODOLOGY

• Library and Internet Research• Qualitative and Quantitative Research

• 4 Groups of People Interviewed– External OD Consultants– Internal OD Consultants– Line Managers– Other Business Minds

MACRO FORCESMACRO FORCES

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DISCUSSION OF THE MACRO FORCES

DISCUSSION OF THE MACRO FORCES

• 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 TECHNOLOGYCHANGES IN TECHNOLOGY

Largest Effecting Macro Force• Possible Cause Other Macro Forces

• Ramifications– Speed of Change– New Strategies– New Distribution Channels– New Relationships– Increased Competition

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CONSTANT CHANGECONSTANT 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

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

– Dealing with Ambiguity– Culture Differences– Boundary Issues– Finding “Right” Partner

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CHANGES IN WORK STRUCTURE

CHANGES IN WORK STRUCTURE

• By Product of Other Macro Forces• Types of Changes

– Information Technology Driven (ERP)– More Global– Virtual Organizations– Focus on Core/Outsourcing– Project Work and Cross Functional Teams– Customer Focus

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DIVERSITYDIVERSITY

• 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

CHANGES IN DEMOGRAPHICS

• Caused by – 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 FORCESOTHER 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

ORGANIZATIONAL CHALLENGES RESULTING

FROM MACRO FORCES

• 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

EMERGING TRENDS IN ORGANIZATIONAL

DEVELOPMENT

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OD INTERVENTIONS MOST FREQUENTLY USED TODAYOD INTERVENTIONS MOST FREQUENTLY USED TODAY• 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

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

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

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

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

TREND #2: COMBINGING “HARD” BUSINESS

COMPETENCIES AND OD• Line Managers Need:

– 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

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

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 Metrics

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TREND #2: COMBINGING “HARD” BUSINESS

COMPETENCIES AND OD

TREND #2: COMBINGING “HARD” BUSINESS

COMPETENCIES AND OD• Research on Ideal OD Grad

Programs• Need Knowledge of the Following

Business Areas– Finance– Business Management– Operations– Program Evaluation– Information Systems

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TREND #2: COMBINGING “HARD” BUSINESS

COMPETENCIES AND OD

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

• Using Balance Scorecard and ROI

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TREND#3: CREATING WHOLE SYSTEM CHANGE

- ORGANIZATIONAL DESIGN AND CULTURE

CHANGE

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

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

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

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

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

TREND#4: USING OD TO FACILITATE PARTNERSHIPS

AND ALLIANCES• Helping Companies Prepare

– Appreciative Inquiry– Culture Assessment– Organizational Assessment– Vision Development– Deal with Ambiguity

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TREND#4: USING OD TO FACILITATE PARTNERSHIPS

AND ALLIANCES

TREND#4: USING OD TO FACILITATE PARTNERSHIPS

AND ALLIANCES• Help Mange Relationship by

Facilitating Process• Initial Design

– 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

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 System

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TREND#5: ENHANCING CONTINUAL LEARNING

TREND#5: ENHANCING CONTINUAL LEARNING

• Necessary to Stay Competitive• Creates Awareness of Evolving

Customer Needs and Market Dynamics• Fastest Growing Interventions

– Knowledge Management– Learning Organizations– System Thinking– Improving Employees Ability to Learn

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TREND#5: ENHANCING CONTINUAL LEARNING

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

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TREND#5: ENHANCING CONTINUAL LEARNING

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

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

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 PRESENTATIONFEEDBACK ON

PRESENTATION