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Prof. R. Rijamampianina ODD & People Management: Session 4 Organisational Development: a Strategic Necessity By Rija Learning Outcomes • Explain why OD is a strategic necessity to their organisations; • Advise on the OD process and the necessary steps to be taken; • Choose the appropriate models of diagnosis and analysis and develop customised models for their organisations; • Lead an OD intervention. Speed Time 0 Pace of change Obeng, 2009; 2012; 2014 t Rate of learning Berinato, 2014; Casey, 2014; Kinsinger & Walch, 2015 "...when the rate of change outside an organization is greater than the change inside, the end is near..." – Jack Welch –

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Prof. R. Rijamampianina

ODD & People Management: Session 4

Organisational Development:

a Strategic Necessity

By Rija

Learning Outcomes

• Explain why OD is a strategic necessity to their organisations;

• Advise on the OD process and the necessary steps to be taken;

• Choose the appropriate models of diagnosis and analysis and develop customised models for their organisations;

• Lead an OD intervention.

Speed

Time0

Pace of change

Obeng, 2009; 2012; 2014

t

Rate of learning

Berinato, 2014; Casey, 2014; Kinsinger & Walch, 2015

"...when the rate of change outside an organization is greater than the change inside, the end is near..."

– Jack Welch –

Prof. R. Rijamampianina

ODD & People Management: Session 4

Change is a Strategic Necessity!

Change

• Intentional � Planned

• Accidental � Unplanned

OD

OD?

OrganisationalDevelopment

Planned-change

What does this imply?

Lussier, 2009; Neil, 2011; McGunagle, 2012; Turner, 2013; Patel, 2014

CHANGE

This Implies…

OD CHANGE

What if…

OD

Prof. R. Rijamampianina

ODD & People Management: Session 4

MATTERS

OD brings

LEADERS, MANAGERS

and

EMPLOYEES together

holding them all responsible

for the EFFECTIVENESS of the organisation

and the INNOVATION in the organisation.

OD is a team-based activity

Palmer, Dunford & Akin, 2009

OD?

Fact

Active Learning= Active Discovery

Readiness + Ability + Willingness to:• Create/find new possibilities• Break new grounds• Disrupt the status quo

Fact

Active Learning= Active Discovery

Networksof Exchanges

& EngagementReadiness + Ability + Willingness to:• Create/build collective intelligence

Fact

Active Learning= Active Discovery

Networksof Exchanges

& EngagementReadiness + Ability + Willingness to:• Disrupt past thinking patterns• Disrupt past practices

Prof. R. Rijamampianina

ODD & People Management: Session 4

Fact

Active Learning= Active Discovery

Networksof Exchanges

& EngagementReadiness + Ability + Willingness to:• Lead self + organisation to the future• Engage with the future

Fact

Active Learning= Active Discovery

Networksof Exchanges

& EngagementReadiness + Ability + Willingness to:• Create a desired future

“Smart leaders & managers are rewritingthe OD concepts & practices.”

Hill et al., 2014

OD Revisited

PAST

• A set of planned change interventions, activities or tools…

• To improve effectiveness � staying grounded� limited solution space

• Initiated, imposed and managed by an OD practitioner � rolled out

CURRENT & FUTURE

� A mind-set, a value-set, a talent-set and a role set…

� To innovate and invent � breaking new ground � limitless possibilities

� Socially constructed and responsibility of everyone � rolled up

Hamel & Zanini, 2014

OD Revisited

PAST

• Role of an OD practitioner = to design a change programme

• Conversation to solve problems and address issues

• An episodic interruption of the status quo: unfreeze � move � re-freeze

CURRENT & FUTURE

� Role of an OD practitioner = to build a change platform

� Conversation to create new knowledge, collective intelligence and new possibilities

� Constant discovery and experimentation:“permanent slush”

Hamel & Zanini, 2014

OD Revisited

PAST

• Role of an OD practitioner = to design a change programme

• Conversation to solve problems and address issues

• An episodic interruption of the status quo: unfreeze � move � re-freeze

CURRENT & FUTURE

� Role of an OD practitioner = to build a change platform

� Conversation to create new knowledge, collective intelligence and new possibilities

� Constant discovery and experimentation:“permanent slush”

Hamel & Zanini, 2014

Creating Possibilities

Prof. R. Rijamampianina

ODD & People Management: Session 4

Why OD?

We need/want to improve our effectiveness& innovate

• Individual• Team/Group• Organisational

Why OD?

ENVIRONMENTS(dynamic)

INTERNAL EXTERNAL

• External adaptation• External differentiation

� Internal operation� Internal coordination� Internal integration

Effective OD Process

EnvironmentalScanning

Identification/Recognitionof probl/needs/opport.

Diagnosis& Analysis

ActionPlanning

InterventionAudit

Lingham, 2009; Jones & Brazzel, 2012

• Observation

• Interactions

EnvironmentalScanning

Identification/recognitionprobl/needs/opport.

Diagnosis& Analysis

ActionPlanning

InterventionAudit

Open door policyvs.

Leading and managing by walkingHerb Kelleher

EMPLOYEE ENGAGEMENT

• Observation

• Interactions

EnvironmentalScanning

Identification/recognitionprobl/needs/opport.

Diagnosis& Analysis

ActionPlanning

InterventionAudit

Open door policyvs.

Leading and managing by walkingHerb Kelleher

EMPLOYEE ENGAGEMENT• At what level(s)?

– Individual

– Team/group

– Organisational

• Where?

– The ‘soft’ side: people (their values, skills, behaviour…)

– The ‘hard’ edge: strategies, structures, systems, processes/procedures/policies

EnvironmentalScanning

Identification/recognitionprobl/needs/opport.

Diagnosis& Analysis

ActionPlanning

InterventionAudit

Prof. R. Rijamampianina

ODD & People Management: Session 4

• Diagnosis and analysis are the process of understanding how the organization is currently functioning, and it provides information necessary to design OD interventions.

• It is also a collaborative process between organization members and the OD consultant/manager to collect pertinent information, diagnose and analyze them, and draw conclusions for action planning and intervention.

Org Diagnosis & Analysis

Weisbor, 2009; Janićijević, 2010; Hamid, 2011; Zarei, 2014

• Data/info collection

– Observation

– Interviews

– Questionnaire

– Archival records

• Select and use a diagnosis and analysis model

EnvironmentalScanning

Identification/recognitionprobl/needs/opport.

Diagnosis& Analysis

ActionPlanning

InterventionAudit

Probl/needs/opport:• Chronic or acute?• Pattern or event?• Tangible or intangible?• Etc…

Why Models?

• To guide how we think about situations that we face in our organisation: – How things work?

– What causes what?

– What can we do?

• Our experience is limited � cannot be generalised;

• Others need to be aware of the framework within which decisions are/will be made � putting everybody on the same page.

Palmer, Dunford & Akin, 2009; Hamid, 2011; Nickols, 2012

Prof. R. Rijamampianina

ODD & People Management: Session 4

The Burke-Litwin Model

Internal Operations

Transformational variables

Transactional variables

External Environment

Variables that interact with environmental forces Variables affected by

short-term, day-to-day, reciprocity among people and groups

Warner Burke George Litwin

Sources of MAJOR/RADICAL

changes

Sources of INCREMENTAL

changes

The Burke-Litwin Model

External Environment

LeadershipMission & Strategy Culture

Management Practices

Work Unit Climate

Motivation

Performance

Structure Systems

• Task Requirements• Individual skills Individual Needs & Values

Warner Burke George Litwin

Prof. R. Rijamampianina

ODD & People Management: Session 4

Congruence Model

David Nadler Michael Tushman

The Star Model

Jay Galbraith

Prof. R. Rijamampianina

ODD & People Management: Session 4

The Six-Box Model

Marvin Weisbord

McKinsey & CompanyHBSStanford Business School

The 7-SModel

Prof. R. Rijamampianina

ODD & People Management: Session 4

A. ORGANIZATIONAL LEVEL

B. GROUP LEVEL

C. INDIVIDUAL LEVEL

- General

Environment

- Industry

Structure

Inputs Design Components

Organization

Effectiveness

Outputs

Strategy

Structures Culture

HRSystems

Technologies

- Organization

Design

Inputs Design Components

Team

Effectiveness

e.g., quality of

teamwork,

performance

Outputs

Goal Clarity

Task Structures Group

Functioning

Group

Composition

Group

Norms

- Organization

Design

- Group Design

- Personal

Characteristics

Inputs Design Components

Individual

Effectiveness

e.g., job

satisfaction,

personal

development

Outputs

Skill Variety

Task Identity Autonomy

Task Significance Feedback about

Performance

Model for Diagnosing & Analysing Org

Weisbor, 2009

Prof. R. Rijamampianina

ODD & People Management: Session 4

• Analysis: use a combination of quantitative and qualitative methods– Employee opinion analysis

– SWOT analysis

– Capabilities/capacity assessment

– P²E²STLE analysis

– Cause-effect analysis

– Comparative analysis

– Etc…

• Interpretation and findings

Environmental

Scanning

Identification/recognition

probl/needs/opport.

Diagnosis

& Analysis

Action

PlanningInterventionAudit

• Identification and selection of possible actions (incl. communication)

• Action planning (incl. communication planning)

Environmental

Scanning

Identification/recognition

probl/needs/opport.

Diagnosis

& Analysis

Action

PlanningInterventionAudit

Time

Status quo

Desiredstate

Driving

forces

Restraining

forces

Communication

• Credibility of the OD/change agent � credibility of the message.

• Clarity

• Conviction

• Content:

– message of discrepancy

– message of efficacy

Communication Plan

� Who?� What?� Why?� How?� When?

� Remember to communicate even to those who are not impacted

Around 20% of your project activity!

Do for each group of

stakeholders

Communication Plan

WHAT I WANT TO SAY…

• As you would blurt it out.

WHAT I WILL ACTUALLY SAY…

• ISSUE:

Description of the probl./needs/opport.

• DATA:

Example to make it clear and unambiguous.

• QUESTION(S):

To trigger dialogue/engagement.

• BUILD SOLUTION TOGETHER

Obeng, 2009; 2012; 2014

TIMING:

• All at once

• As far as you can go in one conversation

• One step at a time

Prof. R. Rijamampianina

ODD & People Management: Session 4

Structured Action Planning

• Prioritizing issues/needs/opportunities identified by the diagnosis and analysis (at what level?)

• Identifying possible solutions/interventions (at what level?)

• Selecting and committing to specific interventions atthe appropriate level (organizational, team/group, individual)

• Planning the implementation of each intervention

• Following-up with a new data-gathering cycle for further improvements

When You Plan…

OD/change processes are not always sequential � we may loose out on timing.

• Identification and selection of possible actions (incl. communication)

• Action planning (incl. communication planning)

• Objectives and metrics setting

Environmental

Scanning

Identification/recognition

probl/needs/opport.

Diagnosis

& Analysis

Action

PlanningInterventionAudit

• Long-term• Medium-term• Short-term

� Sequence of decisions/actions

� Feasibility

� Risks

� Cost/benefit

� Impact� Timing� Important/urgent � priorities

� Probability of success

� Contingencies

� Etc…

Prof. R. Rijamampianina

ODD & People Management: Session 4

Measurement Plan

Measure no.

Measure Description How directly impacted by

change/OD project

Baseline measure

Measuring frequency

1.

2.

3.

Risk

Low High

Low

High

Probability of occurring

Impacton change

MonitorWork onreducing

Minimaleffort Manage

Prof. R. Rijamampianina

ODD & People Management: Session 4

Risk Analysis

Risk

No.

Description Proba-bility

Project impact

Priority Potential consequences

Proposed/ implemented actions

Status Respon-sible

1

2

3

4

Prof. R. Rijamampianina

ODD & People Management: Session 4

OD Intervention

• A set of sequenced planned actions or events intended to help an organization increase its effectiveness and/orinnovate (i.e., disrupt).

• OD interventions purposely disrupt status quo; they are deliberate attempts to change an organization or subunit toward a different and more effective state.

Cummings & Worler, 2009; Romme, 2011; Kongalla, 2013

Types of OD Intervention

• Human process intervention– Process consultation: This intervention focuses on

interpersonal relations and social dynamics occurring in work

groups.

– Team building: This intervention helps work groups become

more effective in accomplishing task.

• Structural intervention

• HRM intervention

• Strategic intervention

Cummings & Worler, 2009; Romme, 2011; Kongalla, 2013

Types of OD Intervention

• Human process intervention

• Structural intervention– Structural design: This change process concerns the

organization’s division of labor – how to specialize task performances.

– Downsizing: This intervention reduces costs and bureaucracy by

decreasing size of the organization.

– Reengineering: This intervention radically redesign the

organization’s core work process to create more responsive

performance.

• HRM intervention

• Strategic intervention

Cummings & Worler, 2009; Romme, 2011; Kongalla, 2013

Types of OD Intervention

• Human process intervention

• Structural intervention

• HRM intervention– Performance mgmt: This intervention is a systematic process to

align employees’ actions + behaviors + outputs to the org strategy.

– Career planning & dvpt: This intervention helps people choose

career paths and attain career objectives.

– Reward system: This intervention involves the design of

organizational rewards to improve employee well-being

� effectiveness.

• Strategic intervention

Cummings & Worler, 2009; Romme, 2011; Kongalla, 2013

Types of OD Intervention

• Human process intervention

• Structural intervention

• HRM intervention

• Strategic intervention– M&A: This intervention is a systematic process to integrate two or

more organizations.

– Culture change: This intervention helps organizations develop

cultures appropriate to their strategies and environments.

– Organisational learning: This intervention seeks to enhance an

organization’s capability to acquire, apply, share, exchange, develop

and create new knowledge.

Cummings & Worler, 2009; Romme, 2011; Kongalla, 2013

OD Intervention Success Factors

READINESS

for Change

CAPABILITY

to Change

CAPABILITY +

CREDIBILITY of the

Leader(s)

• Culture

• Context

• Environments

Cummings & Worler, 2009; 2014; Dike, 2012; Parumasur, 2012

Prof. R. Rijamampianina

ODD & People Management: Session 4

Institutionalisation

John P. Kotter

• Articulating the connections between the new actions + behaviours and the organisational performance;

• Incorporating the new approaches into the organisational culture(s);

• Developing the means to ensure continuous learning � improve effectiveness + innovation + invention.

• When?

• Celebrate quick-wins!

• Don’t declare victory too soon!

Environmental

Scanning

Identification/recognition

probl/needs/opport.

Diagnosis

& Analysis

Action

PlanningInterventionAudit

WHY ?

LEGAL AID BOARD

Balancing the Scales of Justice

By Tessa Murray

What Have We Learned?