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Organization Development and Strategy

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Countries. Slower domestic. growth. More aggressive. exporters ... and Socialist Regimes. More countries linked to the. capitalist system. More privatization ... – PowerPoint PPT presentation

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Title: Organization Development and Strategy


1
Organization Development and Strategy
  • Planned long-term, system-wide changes and
    interventions that enable strategies to be
    developed and implemented.

2
Economic 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
3
Change Targets
  • Organizational goals and objectives
  • Organizational structure
  • Human resources
  • Technological improvements
  • Job design
  • Budgets

4
Change Impacts
  • Cultural
  • Work methods
  • Motivation and performance
  • Psychological/emotional issues
  • Social relationships

5
Resistance to Change???!!!
6
Organizational Transition and Transformation
  • Absorption rate
  • Transition period
  • Alignment

7
Applied Behavioral Science and Organization
Development
  • Psychology
  • Social Psychology
  • Sociology
  • Anthropology
  • Political Science

8
OD - 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

9
OD 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

10
OD and Organization Health
  • Openness
  • Problem-solving atmosphere
  • Trust
  • Participation
  • Self-control
  • Self-direction
  • Ability to deal with change and resistance to
    change

11
Change and Transition
12
Implications of Change
  • We must
  • Understand change
  • Prepare for the constancy of change
  • Learn how to manage transitions now and on an
    ongoing basis

13
Change 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
14
What are the reactions to change?
15
Reactions 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
16
What do people need in times of change?
17
What People Need
  • During each phase of transition, people need
  • Support
  • Information
  • Structure
  • Why do they need these things?

18
What are the phases of transition?
19
3 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

20
A 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

21
A 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

22
A View of New Beginnings
  • New Beginnings Characteristics
  • Commitment
  • Action
  • New Beginnings Reactions
  • Energy
  • Anxiety
  • Enthusiasm
  • New Beginnings Goal
  • Achieve the new beginning

23
How important is productivity, employee
satisfaction and organization climate?
24
What are the consultant and manager/leaderroles?
25
Performance 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
26
Determinants of Strategic Options and Choices
Past and Current Strategies
Strategic Problems
Strategic Choices
Organizational Capabilities/Constraints
Financial Capabilities/Constraints
Strengths/Weaknesses
27
Structuring 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
28
The 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

29
The 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)
30
OD Emphases
  • Diagnosing the needs of a system
  • Planning intervention
  • Gaining managerial sponsorship
  • Assessing sociopolitical and technical dimensions

31
So what?
32
Process 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

33
Establish a Sense of Urgency
  • Examine the market and competitive realities
  • Identify and discuss crises, potential crises and
    major opportunities

34
Create a Coalition
  • Put together a group with enough power to lead
    the change
  • Get the group to work together as a team

35
Develop a Vision and Strategy
  • Create a vision to help direct the change effort
  • Develop strategies for achieving that vision

36
Communicate the Vision
  • Use every vehicle possible to constantly
    communicate the new vision and strategies
  • Have coalition model the behavior expected of
    others

37
Encourage 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

38
Generate Short-Term Wins
  • Plan for visible improvements in performance, or
    wins
  • Create those wins
  • Visibly recognize and reward people who made the
    wins possible

39
Keep 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

40
Embed 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
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