ed a presentation 022806

8/13/2019 Ed a Presentation 022806

1/35

HR Leadership: Engaged Aligned andAccountable Defining the Future ofOrganization Development

Jeana Wirtenberg, Ph.D

Jeana Wirtenberg & Associates, LLC, and

The Institute for Sustainable Enterprise, Fairleigh Dickinson University*

* The survey was supported by the Institute for Sustainable Enterprise, Fairleigh

Dickinson University

** The web survey design and administration was generously supported by Quantisoft, LLC.

Acknowledgments for significant contributions go to the Research Team, Global Committee on

the Future of OD: Malcolm Conway, IBM Consulting Solutions, Elliott Greene, Quantisoft; LilianAbrams, Ph.D; Joan Slepian, Ph.D; and Jeff Wides, Ph.D


2/35

2

Agenda

Purpose and Objectives of the Presentation

Overview of Phase I Research

Phase II ResearchBusiness Leader Survey

Methods and Sample

Results in For-Profit Sector

Implications for Human Resources, OrganizationDevelopment, and Training and Development

Next Steps for Human Resources


3/35

3

Purpose and Objectives

Identify the most important factors driving business success from apeople and organizational perspective, as reported by seniorbusiness leaders

Gather information from business leaders to help define the future ofOrganization Development

Understand the most likely sources of expertise and resources thatsenior business leaders will use to address those challenges (and tosee where HR/OD professionals fit in)

Determine potential OD clients awareness and perceptions about OD

Identify the likelihood of future investments in OD resources


4/35

4

Phase I OD SWOT SurveyOver 900 Responses

Survey sent to over 6000 members of OD Network, O.D. Institute, International

Organization Development Association, NTL Institute and NJ OD Network toassess present weaknesses and strengths of the field.

Findings published in article by J. Wirtenberg, L. Abrams, & C. Ott, Assessing

the Field of Organization Development, Journal of Applied Behavioral Science,

December, 2004.

Top Three Strengths Systemic Orientation/Change Management

Techniques and ProcessesTeamwork/Leadership Development

Values OD Brings to Practice

Top Four Areas For Improvement

Lack of Definition and Distinction of the Field of OD

Lack of Quality Control of Practitioners

Insufficient Business Acumen of Practitioners/Insufficient

Emphasis on Customer Needs

Insufficiently Clear ROI/Value of the Work


5/35

5

Business Leader Survey

Methods:

Survey conducted during the summer of 2005

Internet based survey sent to worldwide sample of Fortune 1000business leaders:

CEOs, VPs, Directors of Fortune 1000 companies across all industriesfrom a purchased list, mostly from U.S. with some Canada


6/35

6

Respondent Gender

64%

36%

Males Females

Demographics of For Profit Respondents

Respondent Level of Management

59%

9%32%

Middle Management Executive Management Other

235 Total respondents:

120 For Profit and 115 Nonprofit

Respondents are predom inant ly male, m iddle-aged, execut iv es.

Respondent Age

5% 13%

32%41%

9%

20 - 29 30 - 39 40 - 49 50 - 59 60+


7/35

7

Demographics - For Profit Respondents

Annual Sales and Number of Employees

Companies ranged from small /medium size to very large, with a

relat ively wid e and even dis tr ibut io n.

For Profit

Annual Sales

25+B

10-24.99B

5-9.9B

1-4.99B

500-999M

100-499M

50-99M

25-49M

Under 25M

30

20

10

0

For Profit

Number of Employees

50,000+

25,000-49,999

10,000-24,999

5,000-9,999

2,500-4,999

1,000-2,499

500-999

Under 500

30

20

10

0


8/35

8


Industry Focus

There was a goo d representat ion of comp anies across a wide

spectrum of indu str ies.

For Profit

Industry Focus

OtherFocus

Utilities

Telecomm

unications

Retail

ProfessionalService

Pharmaceutical/Bio/M

Manufacturing

Hi-Tech

Healthcare/Hospitals

Governm

ent

FoodServices

FinancialServices

Education

Energy

Distribution

ConsumerPoducts

Automobile

Aerospace

20

10

0


9/35

9

Business Leader Survey


Company Life Cycle

Organizat ional l i fe cyc les were spread acros s al l catego r ies from

tho se expandin g, to those in their pr ime, ear ly bureaucracy,

decl in in g, and revital izing.

For Profit

Company Life Cy cle

Revitali zation

Declining

Early Bureaucracy

Prime

Expansion

New Venture

40

30

20

10

0


10/35

10


Functional Area

There was a large dis tr ibut io n of fun ct ion al areas, with the mostcommon (mode) category: General Management .

For Profit

Functional Area

Other

Training/Educat

Sales

Research&Devlopm

en

Marketing

Ma

nufacgturing/Opera

Legal

Inform

ationTechnolo

HR/Personnel

Finance/Planning

G

eneralManagem

ent

50

40

30

20

10

0


11/35

11

Six Key Integrated Themes (KITs) from Phase I form ed the

foun dat ion fo r the Core Quest ion s in Phase II

Globalization, Multi-Cultural, and Whole System Perspective Industry Consolidation, M/A, and Strategic Alignment

Business and Product Life-Cycle

Global Economy, Market and Shareholder Demands

Building Great Workplace, Productivity, and Performance Culture Organizational Alignment

Speed, Innovation, and Flexibility

Capturing Elusive Customers

Leveraging Technology and Worldwide Integration

Leveraging and aligning technology with business strategies

Speed, flexibility and Innovation

Learning and Knowledge Management


12/35

12

Six Key Integrated Themes (KITs) from Phase I formed the foundat ion for

the Core Quest ion s in Phase II

Corporate Social Responsibility is IncreasingGreater Accountability for Business ethics and Governance

Corporate role in Human Rights and Widening Economic Gaps

Accountability for the Use of Natural Resources

Building Leadership and Organizational Capabilities for the FutureChanging Work and Workforce Leadership Talent Identification, Development, and Retention

Leadership Courage, Decision Making and Problem Solving

Regulatory Environment and New Organizational Forms

Business and Government Partnerships are creating bothChallenges and OpportunitiesIn U.S., increasing Government Regulations pose Competitive Challenges

New Organizational Models emerging across Traditional Sectors (Public-Private)


13/35

13

Business Leader For Profit Survey

Section 1 Questions

1. Aligning and executing strategies in a way that meets financial goals and are

consistent with core values

2. Effectively addressing organizational culture during organizational

realignments, industry consolidations and mergers and acquisitions (M&As)

3. Effectively applying organizational change principles to business and product

life cycles

4. Aligning strategies, people, systems and processes organization-wide to

enhance productivity and profitability

5. Developing and maintaining the commitment of the workforce to the goals of

the organization for better overall performance results

6. Clarifying purpose and mission to inspire and engage the workforce

7. Attracting and retaining top talent

8. Leveraging and aligning existing information technology with business andpeople strategies

9. Facilitating adoption and use of new information technologies for competitive

advantage


14/35

14


Section 1 Questions (contd)

10. Using information technology to support learning and innovation

11. Enhancing reputation among communities where we work, with consumers

and with employees and investors

12. Enhancing employees commitment by focusing on corporate citizenship in

the community and contributions

13. Ensuring accountability for business ethics among employees at all levels14. Building leadership capacity for now and the future

15. Solving organizational problems systemically as opposed to solving them

on a piecemeal basis

16. Establishing collaborative relationships and partnerships among public,

private and nonprofit sectors

17. Increasing speed to market and profit for critical products and services

through shared commitments and organizational values


15/35

15

Sample Questions for Importance and Effectiveness

Question ImportanceVery Very DontUnimportant Important Know1 2 3 4 5

EffectivenessVery Very DontIneffective Effective Know1 2 3 4 5

1. Aligning and executing strategies in a way that

meets financial goals and are consistent with corevalues.Comments:

2. Effectively addressing organizational culture

during organizational realignments, industry

consolidations and mergers and acquisitions

(M&As).Comments:

Sect ion 1: Business Succ ess Factors: A series of s tatements about k ey areas of

busin ess succ ess fol lows . For each s tatement there are two quest ion s for yo u to

answer:

1. What is the imp ortanc e of this k ey area to yo ur org anization (i.e., that level of yo ur

com pany w ith wh ich y ou are mo st clos ely associated, e.g., ent ire enterpr ise, busin ess

uni t , etc.)?

2. How effect ive is you r organizat ion 's perform ance in th is key area?

In answ ering each quest ion, th ink about how it im pacts your " bot tom -l ine results" .Performance Gap = Importance - Effectiveness


16/35


17/35

17

For Profit Importance & Effectiveness

2.90

3.55

4.20

3.80 4.35 4.90

Importance

Effectiveness

1

5

13

7

4

142

6

11

LL

8

15

17

910

12

3

HL HH

LH

16

Note: Items were pre-selected as important based on Phase I

research and Key Integrated Themes.

Urgent/

Opportunity

High

Priority/

Opportunity

Weakness

Strength

Business Success Factors:

Key Findings

Gap of 1.35 Gap of 1.45


18/35

18


Key Results

Urgent

Items:

2. Effectively addressing organizational culture during organizational

realignments, industry consolidations and mergers and acquisitions

(M&As)

Importance = 4.52

Effectiveness = 3.17

Gap = 1.35

14. Building leadership capacity for now and the future

Importance = 4.63

Effectiveness = 3.18

Gap = 1.45


19/35

19

Urgent

Verbatim themes and illustrative quotes

Effect ively addressin g organizat ional culture dur in g organizat ional

realignm ents, indus try cons ol idat ions and mergers and acquis i t ions

(M&As) (item #2)

These events are windows of opportunity, but the role and processes of culture

disruption and change are not taken seriously Challenge of execution of M&As and realignments too little, too late

OD should be playing a key role in this, but it does not

I consider these events to be windows of opportunity to revisit and renew acommitment to organizational culture

Usually the weakest link in the people/process/technology triangle of keys tosuccess

Organization talks about the importance of aligning cultures duringreorganizat ions/restructur ing how ever they do no t design OD intervent ions

that assist in the al ignm ent. They expect people impacted by the change to

adapt.


20/35


21/35

21


Key Results

High Prior i ty

Items:

1. Aligning and executing strategies in a way that meets financial goals and are

consistent with core values

Importance = 4.80; Effectiveness = 3.77; Gap = 1.03

4. Aligning strategies, people, systems and processes organization-wide toenhance productivity and profitability


5. Developing and maintaining the commitment of the workforce to the goals of

the organization for better overall performance results


6. Clarifying purpose and mission to inspire and engage the workforce


7. Attracting and retaining top talent



22/35


23/35

23

High Priority


Alig nin g strategies, people, sys tems and pro cesses organizat ion-wide

to enhance produ ct iv i ty and p rof i tabi l i ty (i tem #4)

Leadership sees this alignment as important; however, it is not always given highpriority.

Complexity of processes, business needs, size, and business models makes thisincreasingly difficult to accomplish

Productivity is a direct function of process and the effective alignment of vision,strategy and people.

Personally this is very important to me, but at my company support varies as tohow much time to spend on alignment.

No longer clear path. Profitability depends more on new, undefined businessmodels with no track record in an environment wh ere customers are

competitors and old rules have turned upside down.

As we have grown, this has become more difficult to accomplish


24/35

24

High Priority


Developing and mainta in ing the commitm ent of the workforce to the

goals of the organizat ion for better overal l performance resu lts

pro fitabil i ty (item #5)

Developing and maintaining commitment to the goals of the organization is vitally

important

Systems and processes must be in place to support engagement and commitment

A great strategy that is poorly executed fails. To execute companies have to

have al ignment and the engagement of its workfo rce. Engagement is a

mult ipl ier good and bad to the execution component.

The company cant only expect employees to commit to high performing results

until it demonstrates the commitment to employees growth both

professionally and personally.


25/35

25

High Priority


Clar i fy ing purp ose and m ission to inspire and engage the workforce

(item #6)

Inspiring and engaging the entire organization around its mission is critical

Mission and purpose statements are often ambiguous and unclearthey only make

sense to the upper levels of the organization and mean little to the lower levels

It is a critical Leadership responsibility

Depends on the level of the organization most effective at upper levels

The mission statement was written by a senior team with no input from the hoipol loi and then gro omed by an agency. We see it on ou r external websi te, but

thats about the extent of it.


26/35


27/35

27

Urgent areas:

Positioning industry consolidation, M&A, and strategic alignment forsuccess from a cultural perspective?

For Profit

Position f or Success f rom Cultural Perspectiv e

Consulting Firm

Line Magm't

HR

External OD

Internal OD

40

30

20

10

0

Bus iness leaders turn to l ine management f i rs t , consu l t ing f i rms second , HR

third, and OD fourth wh en pos i t ioning indus try consol idat ion, M&A, and

strategic al ignm ent for suc cess from a cul tura l perspect ive.

To whom do you/would you most likely turn for support in each of

the following areas?


28/35

28

Urgent areas: Building leadership capacity for now and the future

To whom do you/would you most likely turn for support in each

of the following areas?

For Profit

Identify /Attracting/Dev elop/Retain Leadership Talent

Consulting Firm

Line Magm't

HR

External OD

Internal OD

60

50

40

30

20

10

0

Bus iness leaders turn to HR fi rs t , and l ine management second for

identi fy in g, attract ing , develop ing and retainin g leadersh ip talent.

Bus iness leaders turn to l ine management to foster leadership

courage, decis ion making and prob lem solv ing

For Profit

Foster Leadership Courage/Decision Making/Problem Solv ing

Consulting Firm

Line Magm't

HR

External OD

Internal OD

80

60

40

20

0


29/35

29

High Priority Areas: Building a Performance Culture

Leaders turn to Lin e Management f irs t , HR second , and OD third, for :

Enhancing w orkplace, produ ct iv i ty and per formance cul ture

Foster ing employ ee engagement and commitment

For Profit

Enhance Workplace, Productiv ity and Perf ormance Culture

Consulti ng Firm

Line Magm't

HR

External OD

Internal OD

60

50

40

30

20

10

0

For Profit

Foster Employee Engagement/Commitment

Consulting Firm

Line Magm't

HR

External OD

Internal OD

70

60

50

40

30

20

10

0

To whom do you/would you most likely turn for support in each of the

following areas?


30/35

30

Do you have a distinct OD Department? If yes, to whom does it report?

Only 36% of al l for pro f i t respo nd ents have a dis t inct OD department Of thos e who d id, 76% repo rted into HR, 16% into o ther staf f and 9%

into l ine management.

For Profit

Have Distinct Organizational Development Department

yesno

70

60

50

40

30

20

10

0

For Profit

To Whom Does OD Department Report

Line Dept.Other StaffHR

80

60

40

20

0


31/35

31

How likely is it that your organization will invest/continue to invest in OD

resources (people and money), either in-house or outsourced,

over the next three years?

63% of respond ents indicated they were ei ther very l ike ly (40%) or s omewhat

l ikely (23%) to invest in OD over the next three years.

Do you expect that your investments in OD resources over the next

three years will be less, about the same or more than during 2004?

39% of respon dents indicated their investments in OD wou ld be mo re, 54% about

the same and 7% less th an in 2004.

For Profit

Likely to Invest in OD over Next 3 Y ears

Very Likely

Somewhat Likely

Neither L or UL

Somewhat UnL

Very Unlikely

50

40

30

20

10

0

For Profit

OD Investment in Next 3 Years Compared to 2004

MoreAbou t the SameLess

60

50

40

30

20

10

0


32/35


33/35

33

Next Steps

Leverage findings with Human Resources taking the leadinorganizations to gather important strategic actionableinformation andinsight from their senior and mid-level managers, identifying

organizational effectiveness opportunities that will contribute to meeting

or exceeding profit and growth targets.

Focus is on identifying key business challengesin a StrategicOrganizational Assessment Review Survey (SOARS) and benchmark

analysisto include focus on:

Attracting and Retaining high-performing people

Strengthening Human Capital performance

Increasing Organizational Effectiveness


34/35

34

Next Steps

Based on research and feedback to date, key issues for companies to review

include:

Attracting and Retaining high-performing people

Strengthening the employer of choice reputation

Targeted, high-impact development

Developing productive, performance-based work environments

Strengthening Human Capital Performance

Building leadership capacity for now and the future

Executing more effectively

Facilitating innovation and smart risk-taking

Leveraging and integrating new technologies to support the business

Increasing flexibility in managing capacity utilization to meet changing market

conditions

Increasing Organizational Effectiveness

Strengthening the culture of collaboration and change

Supporting organizational globalization and multiculturalism

Adapting to new and ever-changing forms of regulation

Meeting increasing expectations for socially responsible and sustainable business

practices

Addressing organizational culture during organizational realignments


35/35

35

Your thoughts?

Questions and Comments?

Thank you!!!

ed a presentation 022806

Documents