Title: Organization Development and Strategy
1Organization Development and Strategy
- Planned long-term, system-wide changes and
interventions that enable strategies to be
developed and implemented.
2Economic and Social Forces Driving the Need for
Major Change and Interventions in Organizations
- Technological
- Change
- Faster and better
- communication
- Faster and better
- transportation
- More information
- networks connecting
- people globally
- International
- Economic
- Integration
- Fewer tariffs (GATT)
- Currencies linked via
- floating exchange rates
- More global capital flows
- Maturation of
- Markets in
- Developed
- Countries
- Slower domestic
- growth
- More aggressive
- exporters
- More deregulation
- Fall of Communist
- and Socialist Regimes
- More countries linked to the
- capitalist system
- More privatization
The Globalization of Markets and Competition
- More Hazards
- More competition
- Increased speed
- More Opportunities
- Bigger markets
- Fewer barriers
More Large-Scale Change
in Organizations To avoid hazards and/or
capitalize on opportunities, firms must become
stronger competitors. Typical transformation
methods include -Reengineering -Mer
gers and acquisitions
-Restructuring -Strategic change
-Quality programs -Cultural change
3Change Targets
- Organizational goals and objectives
- Organizational structure
- Human resources
- Technological improvements
- Job design
- Budgets
4Change Impacts
- Cultural
- Work methods
- Motivation and performance
- Psychological/emotional issues
- Social relationships
5Resistance to Change???!!!
6Organizational Transition and Transformation
- Absorption rate
- Transition period
- Alignment
7Applied Behavioral Science and Organization
Development
- Psychology
- Social Psychology
- Sociology
- Anthropology
- Political Science
8OD - The Softer Side of Business
- Personal capability and development
- Group and team capability development
- Interpersonal and group relations
- Organization climate and capability
- Structural development and alignment
- Communication processes and effectiveness
- Collaboration
9OD Approaches
- Data collection, assessment, analysis, and
feedback - Training and education using multiple modalities
(experiential, case, classroom, et al.) - Task analysis
- Process analysis
- Gap analysis
- Role play/simulation
- Empowerment through participation
10OD and Organization Health
- Openness
- Problem-solving atmosphere
- Trust
- Participation
- Self-control
- Self-direction
- Ability to deal with change and resistance to
change
11Change and Transition
12Implications of Change
- We must
- Understand change
- Prepare for the constancy of change
- Learn how to manage transitions now and on an
ongoing basis
13Change and Transition
- Change
- A situational event
- External
- Often starts with a
- new beginning
- Transition
- A process over time
- Internal
- Must start with an
- ending
Unless transition management occurs, change will
not work.
William Bridges
14What are the reactions to change?
15Reactions to Change
Endings
New Beginnings
Denial
Energy
Anger
Enthusiasm
Shock
Hope
Fear
Anxiety
Frustration
Impatience
Depression
Acceptance
Chaos
Confusion
Skepticism
Relief
Creativity
Stress
Approach-Avoidance
Neutral Zone
16What do people need in times of change?
17What People Need
- During each phase of transition, people need
- Support
- Information
- Structure
- Why do they need these things?
18What are the phases of transition?
193 Phases of Transition
Whether you perceive the change as positive or
negative, you will always experience a
transition.
- Phase 1
- Endings
- Loss
- Grieving
- Letting go
- Phase 2
- Neutral Zone
- Temporary state
- between old and new
- Exploration
- Creativity and chaos
- Phase 3
- New Beginnings
- Energy and
- uncertainty
- New
- opportunities
- Renewal and
- realignment
20A View of Endings
- Endings
- Characteristics
- Loss of
- Identity
- Control
- Meaning
- Belonging
- Turf
- Relationships
- Structure
- Endings Reactions
- Denial
- Anger
- Shock
- Endings Goal
- Letting go of what youre losing
21A View of the Neutral Zone
- Neutral Zone Characteristics
- Resistance to change and
- the unknown
- Exploration of new opportunities
- Neutral Zone Reactions
- Fear
- Anger
- Frustration
- Confusion
- Approach-Avoidance
- Creativity
- Skepticism
- Acceptance
- Impatience
- Hope
- Neutral Zone Goals
- Managing fear
- Beginning to explore
- Trying out future possibilities
22A View of New Beginnings
- New Beginnings Characteristics
- Commitment
- Action
- New Beginnings Reactions
- Energy
- Anxiety
- Enthusiasm
- New Beginnings Goal
- Achieve the new beginning
23How important is productivity, employee
satisfaction and organization climate?
24What are the consultant and manager/leaderroles?
25Performance Measures Reflecting Long-Term
Profitability
Customer Satisfaction/Brand Loyalty
Product/Service Quality
Brand/Firm Associations
Current Performance
Long-Term Profits
Relative Cost
New Product Activity
Manager/Employee Capability and Performance
26Determinants of Strategic Options and Choices
Past and Current Strategies
Strategic Problems
Strategic Choices
Organizational Capabilities/Constraints
Financial Capabilities/Constraints
Strengths/Weaknesses
27Structuring Strategic Decisions
Organizational Strengths and Weaknesses
Competitor Strengths and Weaknesses
- Strategic Decision
- Strategic Investment
- Functional Area Strategies
- Sustainable Competitive Advantage
Market Needs, Attractiveness, And Key
Success Factors
28The Market Attractiveness-Business Position
Matrix
Market Attractiveness
Medium
High
Low
Medium
1
1
2
High
1.Invest/grow 2.Selective Investment 3.Harvest/
divest
Business Position Its Ability to Compete
1
3
2
2
3
3
Low
- Evaluating Market
- Attractiveness
- Size
- Growth
- Customer satisfaction levels
- Competition quantity, types,effectiveness,
commitment - Price levels
- Profitability
- Technology
- Government regulations
- Sensitivity to economic trends
- Evaluating the
- Ability to Compete
- Size
- Growth
- Share by segment
- Customer loyalty
- Margins
- Distribution
- Technology skills
- Patents
- Marketing
- Flexibility
- Organization
29The BCG Growth-Share Matrix
RD
Stars
Problem children
Market Growth Rate
High
Dogs
Cash cows
Low
High
Low
1.0
0.1
10
Competitive Position (Ratios of Share to Share of
Largest Competitor)
30OD Emphases
- Diagnosing the needs of a system
- Planning intervention
- Gaining managerial sponsorship
- Assessing sociopolitical and technical dimensions
31So what?
32Process for Creating Change
- Establish a sense of urgency
- Create a coalition
- Develop a vision and strategy
- Communicate the change vision
- Encourage broad-based action
- Generate short-term wins
- Keep track of gains and create more change
- Embed new approaches into the culture
33Establish a Sense of Urgency
- Examine the market and competitive realities
- Identify and discuss crises, potential crises and
major opportunities
34Create a Coalition
- Put together a group with enough power to lead
the change - Get the group to work together as a team
35Develop a Vision and Strategy
- Create a vision to help direct the change effort
- Develop strategies for achieving that vision
36Communicate the Vision
- Use every vehicle possible to constantly
communicate the new vision and strategies - Have coalition model the behavior expected of
others
37Encourage Broad-Based Action
- Get rid of obstacles
- Change systems or structures that undermine the
change vision - Promote risk taking and nontraditional ideas,
activities, and actions
38Generate Short-Term Wins
- Plan for visible improvements in performance, or
wins - Create those wins
- Visibly recognize and reward people who made the
wins possible
39Keep Track of Gains and Create More Change
- Use increased credibility to change all systems,
structures, and policies that dont fit together
and dont fit the transformation vision - Hire, promote, and develop people who can
implement the change vision - Reinvigorate the process with new projects,
themes, and change agents
40Embed New Approaches into the Culture
- Create better performance through customer- and
productivity-oriented behavior, more and better
leadership, and more effective management - Articulate the connections between new behaviors
and organizational success - Develop means to ensure leadership development
and succession