Transcript Emerging Trends In Organizational Development

EMERGING TRENDS
in ORGANIZATIONAL
DEVELOPMENT
By
Jonathan Mozenter
7/29/99
A Massachusetts Bay OD Learning
Group Event
AGENDA
•
•
•
•
•
•
•
Introductions
What is an Emerging Trend?
Background
Macro Forces
Emerging Trends In OD
Q+A
How Will the Emerging Trends Affect Your
Work Life?
2
CHECKING IN
Introductions
• Please State in 15 Seconds
– Name
– Organization
– What You Hope to Take Away from Tonight’s
Presentation
3
WHAT DO I MEAN BY AN
EMERGING TREND?
• 5 Minutes to Think About What You Think
are the Emerging Trends and Why
• 10 minutes to Break into Groups of 3
People Discuss Your Thoughts
4
BACKGROUND
HYPOTHESIS
• Systemic Approach
– OD Trends are Driven by Organization
Challenges which are Driven by Macro Forces
• Expected Results
– Constant Change
– Learning and Flexibility
– OD trends: Learning Organizations,
Knowledge Management, Change Management,
and Org. Design
6
METHODOLOGY
• Library and Internet Research
• Qualitative and Quantitative Research
• 4 Groups of People Interviewed
–
–
–
–
External OD Consultants
Internal OD Consultants
Line Managers
Other Business Minds
7
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
9
CHANGES IN TECHNOLOGY
Largest Effecting Macro Force
• Possible Cause Other Macro Forces

• Ramifications
–
–
–
–
–
Speed of Change
New Strategies
New Distribution Channels
New Relationships
Increased Competition
10
CONSTANT CHANGE
• 2nd Biggest Impact
• A Derivative of Other Macro Forces
• Ramifications
– Dealing w/ Uncertainty
– Need More Flexible Process
– Employee Burn Out
11
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
12
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
13
DIVERSITY
• Effects will Grow by 15% over Next 3 Years
(Highest of all Forces)
• Possibly be Driven by Increased
Globalization
• Today Many People Still View Diversity as an
Affirmative Action Issue Not a Strategic
One
14
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
15
OTHER MACRO FORCES
• Mergers and Acquisitions
– Defensive Move to Take Advantage of
Economies of Scale
– Will Continue to Happen
– Often Fail: Culture Problems and/or Poor
Integration Program
• Globalization
– Enabled by Technology
– Free Trade Laws
– Growing Interdependencies
16
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
17
EMERGING TRENDS IN
ORGANIZATIONAL
DEVELOPMENT
18
OD INTERVENTIONS MOST
FREQUENTLY USED TODAY
•
•
•
•
•
•
•
Mission and Vision Statement Analysis
Strategic Planning
Reward and Recognition
Change Management
Leadership
Team Building
Facilitation
19
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
20
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
21
TREND#1:
EXPANDING THE USE OF OD
• OD in Education
• OD in Management Consulting
• OD in Human Resources
22
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
23
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
24
TREND #2: COMBINGING
“HARD” BUSINESS
COMPETENCIES AND OD
• MBA Programs Teach OD Competencies in
Core Classes
• OD in Project Management
• OD in Management Consulting
25
TREND #2: COMBINGING
“HARD” BUSINESS
COMPETENCIES AND OD
• OD is Perceived as Too Soft and has a Bad
Reputation
– Historically has Not Always Been Aligned with
Business Goals and Metrics
• OD Practitioner Needs to Enhance
Business Knowledge
– Understand Strategic Needs of Client Better
– Sell Services Better by Speaking Client’s Language
– Measure OD Interventions in Bottom Line Metrics26
TREND #2: COMBINGING
“HARD” BUSINESS
COMPETENCIES AND OD
• Research on Ideal OD Grad Programs
• Need Knowledge of the Following Business
Areas
–
–
–
–
–
Finance
Business Management
Operations
Program Evaluation
Information Systems
27
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
28
• Using Balance Scorecard and ROI
TREND#3: CREATING
WHOLE SYSTEM CHANGE ORGANIZATIONAL DESIGN
AND CULTURE CHANGE
• Move from Isolated Interventions to Whole
System Interventions
• Aligning Strategy with Org. Design, Culture,
and Compensation
• More Effective, Longer Lasting, and More
Expensive
29
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
30
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
31
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
32
TREND#4: USING OD TO
FACILITATE PARTNERSHIPS
AND ALLIANCES
• Success Factors: Relationships, Culture,
Communication, and Design
• Nicholson McBride
• Alliance Advantage
33
TREND#4: USING OD TO
FACILITATE PARTNERSHIPS
AND ALLIANCES
• Helping Companies Prepare
–
–
–
–
–
Appreciative Inquiry
Culture Assessment
Organizational Assessment
Vision Development
Deal with Ambiguity
34
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
35
TREND#4: USING OD TO
FACILITATE PARTNERSHIPS
AND ALLIANCES
• Define Communication Patters at All Levels
– Alliance Governance and Alliance Interfaces
– Conflict Management & Quick Decision Making
• Coach Executives
– Constantly Reevaluate
– Renegotiate
• Learning
– Match Learning Objectives w\ Learning System36
TREND#5: ENHANCING
CONTINUAL LEARNING
• Necessary to Stay Competitive
• Creates Awareness of Evolving Customer
Needs and Market Dynamics
• Fastest Growing Interventions
–
–
–
–
Knowledge Management
Learning Organizations
System Thinking
Improving Employees Ability to Learn
37
TREND#5: ENHANCING
CONTINUAL LEARNING
• Knowledge Management
– Many Different Types
– Use OD in Implementation
• Learning Organizations
– Fifth Discipline Vs. “Learning Mission”
• Executive/Leadership Development
– 360 Feedback, Coaching, Mentors, Job
Rotations
– Corporate University with Real Time Learning 38
TREND#5: ENHANCING
CONTINUAL LEARNING
• Community of Practices
– Match Purpose with Type
– Knowledge Communities
– Social Networking Analysis
• Improving Employees Ability to Learn
– Defensive Routines
– Emotional Intelligence
• Personal and Social Competence
39
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
40
Q &A
41
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
42
FEEDBACK ON
PRESENTATION
43