EMERGING TRENDS in ORGANIZATIONAL DEVELOPMENT

ByJonathan Mozenter7/29/99

A Massachusetts Bay OD Learning Group Event

AGENDAIntroductionsWhat is an Emerging Trend?BackgroundMacro ForcesEmerging Trends In ODQ+AHow Will the Emerging Trends Affect Your Work Life?

CHECKING IN

IntroductionsPlease State in 15 SecondsNameOrganizationWhat You Hope to Take Away from Tonights Presentation

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

BACKGROUND

HYPOTHESISSystemic ApproachOD Trends are Driven by Organization Challenges which are Driven by Macro ForcesExpected ResultsConstant ChangeLearning and Flexibility OD trends: Learning Organizations, Knowledge Management, Change Management, and Org. Design

METHODOLOGYLibrary and Internet ResearchQualitative and Quantitative Research

4 Groups of People InterviewedExternal OD ConsultantsInternal OD ConsultantsLine ManagersOther Business Minds

MACRO FORCES

DISCUSSION OF THE MACRO FORCESChanges in TechnologyConstant ChangePartnerships and AlliancesChanges in the Structure of WorkIncreasing Diversity in the Work ForceShifting Age Demographics

CHANGES IN TECHNOLOGYLargest Effecting Macro ForcePossible Cause Other Macro Forces

RamificationsSpeed of ChangeNew StrategiesNew Distribution ChannelsNew RelationshipsIncreased Competition

CONSTANT CHANGE2nd Biggest ImpactA Derivative of Other Macro Forces

RamificationsDealing w/ UncertaintyNeed More Flexible ProcessEmployee Burn Out

PARTNERSHIPS & ALLIANCES3rd Biggest ImpactCompanies Cant Do It By Themselves AnymoreKey is to Actively Manage the RelationshipsChallenges in Making P&A WorkDealing with AmbiguityCulture DifferencesBoundary IssuesFinding Right Partner

CHANGES IN WORK STRUCTURE By Product of Other Macro ForcesTypes of ChangesInformation Technology Driven (ERP)More GlobalVirtual OrganizationsFocus on Core/OutsourcingProject Work and Cross Functional TeamsCustomer Focus

DIVERSITYEffects will Grow by 15% over Next 3 Years (Highest of all Forces)Possibly be Driven by Increased GlobalizationToday Many People Still View Diversity as an Affirmative Action Issue Not a Strategic One

CHANGES IN DEMOGRAPHICSCaused by Declining Birth RatesBaby Boomers AgingValue Conflicts Between GenerationsRise of Ethnic Minorities into LeadershipExamplesFinance IndustryHealthcare Industry Grocery Industry

OTHER MACRO FORCESMergers and AcquisitionsDefensive Move to Take Advantage of Economies of ScaleWill Continue to HappenOften Fail: Culture Problems and/or Poor Integration ProgramGlobalizationEnabled by TechnologyFree Trade LawsGrowing Interdependencies

ORGANIZATIONAL CHALLENGES RESULTING FROM MACRO FORCESDealing with Inc. Competition and CustomizationNeed to be Flexible and Cope with UncertaintyCreate an Environment of Constant LearningAdapting to New Technology and GlobalizationDeveloping New Management Competencies

EMERGING TRENDS IN ORGANIZATIONAL DEVELOPMENT

OD INTERVENTIONS MOST FREQUENTLY USED TODAYMission and Vision Statement AnalysisStrategic PlanningReward and RecognitionChange ManagementLeadershipTeam Building Facilitation

TREND#1: EXPANDING THE USE OF ODMore Accepted Because it is Needed to Enhance Productivity & ProfitabilityCompanies Need to Change to SurviveEmployee Performance is a Key Competitive AdvantageMore Research: 55% of HBR Articles are OD Related Over Last Year

TREND#1: EXPANDING THE USE OF ODIDC Forecasts Change Management Consulting Fastest Growing at 18.6%Research Indicates High Use of OD Interventions Lead to High ReturnsMore Exposure to ODQuantitative Data

TREND#1: EXPANDING THE USE OF ODOD in Education

OD in Management Consulting

OD in Human Resources

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 MetricsAlign Interventions with Strategy

TREND #2: COMBINGING HARD BUSINESS COMPETENCIES AND ODLine Managers Need:Lead with Mission, Vision, and ValuesCreate and Maintain the Appropriate CultureManage ChangeCreate and Maintain Continuos LearningBuild Employee Self-EsteemEmpower Employees

TREND #2: COMBINGING HARD BUSINESS COMPETENCIES AND ODMBA Programs Teach OD Competencies in Core Classes

OD in Project Management

OD in Management Consulting

TREND #2: COMBINGING HARD BUSINESS COMPETENCIES AND ODOD is Perceived as Too Soft and has a Bad ReputationHistorically has Not Always Been Aligned with Business Goals and MetricsOD Practitioner Needs to Enhance Business Knowledge Understand Strategic Needs of Client BetterSell Services Better by Speaking Clients LanguageMeasure OD Interventions in Bottom Line Metrics

TREND #2: COMBINGING HARD BUSINESS COMPETENCIES AND ODResearch on Ideal OD Grad ProgramsNeed Knowledge of the Following Business AreasFinanceBusiness ManagementOperationsProgram EvaluationInformation Systems

TREND #2: COMBINGING HARD BUSINESS COMPETENCIES AND ODMeasurement Needed to Advance the Field of ODMeasurement Improves Quality of InterventionsResearch Indicates: Org. Who Strategically Use People Metrics have Higher Rates of ReturnUsing Balance Scorecard and ROI

TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGE

Move from Isolated Interventions to Whole System InterventionsAligning Strategy with Org. Design, Culture, and CompensationMore Effective, Longer Lasting, and More Expensive

TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGEMaximizing FlexibilityFocus on Core Competencies (Shamrock Org) Work In TeamsConstantly Develop Core StaffRetentionProper ReputationScreen for Emotional IntelligenceActively Manage Culture

TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGEGlobalizationBe Big and Act Small at Same Time (ABB)Business Units have 2 Managers and FreedomDevelop Global MangersEmpowermentProducers, Integrators, and ShapersAES, Flat, Units Run by a Team of Generalists50% Performance and 50% Modeling Values

TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGEImplementationRestructure Entire Vertical OrganizationCoordinating MechanismsExplicitly Map Out Decision Making ProcessMergers AcquisitionsNew Culture and Org Design before M&ATransformation Process and Communication Programs

TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCESSuccess Factors: Relationships, Culture, Communication, and Design

Nicholson McBride

Alliance Advantage

TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCESHelping Companies PrepareAppreciative InquiryCulture AssessmentOrganizational AssessmentVision DevelopmentDeal with Ambiguity

TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCESHelp Mange Relationship by Facilitating ProcessInitial DesignEnvironment of Trust and OpennessType of AllianceScope of ProjectSuccess FactorsHow will it be Measured

TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCESDefine Communication Patters at All LevelsAlliance Governance and Alliance InterfacesConflict Management & Quick Decision MakingCoach ExecutivesConstantly ReevaluateRenegotiateLearningMatch Learning Objectives w\ Learning System

TREND#5: ENHANCING CONTINUAL LEARNINGNecessary to Stay CompetitiveCreates Awareness of Evolving Customer Needs and Market DynamicsFastest Growing InterventionsKnowledge ManagementLearning OrganizationsSystem ThinkingImproving Employees Ability to Learn

TREND#5: ENHANCING CONTINUAL LEARNINGKnowledge ManagementMany Different TypesUse OD in ImplementationLearning OrganizationsFifth Discipline Vs. Learning MissionExecutive/Leadership Development360 Feedback, Coaching, Mentors, Job RotationsCorporate University with Real Time Learning

TREND#5: ENHANCING CONTINUAL LEARNINGCommunity of PracticesMatch Purpose with TypeKnowledge CommunitiesSocial Networking AnalysisImproving Employees Ability to LearnDefensive RoutinesEmotional IntelligencePersonal and Social Competence

TREND#5: ENHANCING CONTINUAL LEARNINGDiversityCulture that Appreciates DifferenceDialogue and Conflict Management SkillsGroup ReflectionPromote Individual and Group Reflection both During and After ProjectsScenario Planning

Q & A

APPLYING EMERGING OD TRENDSTO YOUR ORGANIZATIONBreak Into Small Groups of 3Answer Following QuestionsHow 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

FEEDBACK ON PRESENTATION