The Process of Organizational Development: Diagnosing organizations

1. The Process of Organizational Development: Diagnosing organizations Compiled by Dr. M.Venkatesan

2. Objectives • Assess organizational readiness through evaluating the high level impact of change • Identifying key points of risk and plans to address them • Developing future state vision through articulating the change in a concise and compelling manner that can be shared broadly. • Articulating the change in a concise and compelling manner that can be shared broadly. • Developing a plan to gain the buy in and support of those individuals most critical to success. • Developing plans for staff transition, redeployment, separations and talen retention. • Building change adaptability skills and help individuals internalize and move through change • Evaluating relevant programs and policies, to identify points of incongruence and develop plans for alignment. • Developing a training strategy to create proficiency for operating under the new model. • Measuring adoption and performance and develop strategies to address problems.

3. Session 1 & 2 • Module 1: Introduction to Organizational Change: • Meaning of Organizational change • Nature of Organizational change • Pressure for change

4. Session 3 • Module 2: The Nature of Planned Change • Theories of Planned change • General model of planned change • Types of Planned change • Levels of change • Change cycle

5. Session 4 • Module 3: The Process of Organizational Development: Diagnosing organizations • Meaning of diagnosis • Concept of Organizational diagnosis • The need for diagnostic models • Open System Model • Objective of Organizational Development • OD interventions and their classifications • Organization level analysis

6. Session 5 • Module 4 Designing Interventions • Effective Intervention methods • Designing effective intervention • OD Interventions techniques • Module 5 Leading and Managing change • Overview of change activities • Motivating change • Creating a vision • Developing political support • Managing the transition • Sustaining momentum

7. Session 6 & 7 • Module 6: Strategic Change Interventions • Transformational change • Continuous change • Trans organizational Change • Module 7: Special Applications of Organizational Development • Organizational Development in global settings • Organizational development inn non organizational settings • Future directions in organizational development

8. Can P & G Turn the tide? • It’s a typical day. You wake up and brush your teeth with Crest toothpaste, bathe with Zest Soap, wash your hair with Head & Shoulders Shampoo, and apply your Cover Girl makeup. • You then begin your household chores, washing clothes with Tide, putting fresh Luvs diapers on the baby, and cleaning the kitchen floor with your Swiffer dust mop. • Taking a break, you sip your SunnyD as you pour yourself some Folgers coffee and munch on a few Pringles. If this sounds like you, then consider yourself a living advertisement for Procter & Gamble (P&G), the 170-year-old company whose products you’ve been using.

9. As you might imagine, a company that’s been around this long has made more than a few changes in its day. Some have been in response to fundamental changes in society, such as in the 1920s, when the advent of electric light bulbs pushed P&G out of the candle business. • Others have been aimed at proactively improving business operations, such as in 1919, when the company sought to stabilize uneven sales cycles by eliminating wholesalers and selling directly to retail stores, a move that would revolutionize the grocery business. • Perhaps more than anything, P&G has always been responsive to the ever-changing demands of consumers. Parents seeking modern conveniences in the 1960s, for example, found P&G on the scene with Pampers, the first disposable diaper.

10. Times may be different today, but P&G faces the same kinds of challenges to keep it at the top of the consumer products business. For example, although new products are the lifeblood of the company, P&G hasn’t developed many successful new brands of its own recently (the Swiffer dust mop was the only one in the last 15 year!). • Meeting the problem head on, former CEO Alan G. “A.G.” Lafley was buying brands – Clairol in 2001 and Wella in 2003, among them. In 2002, P&G also entered into an agreement with Clorox to produce Glad food wraps and plastic food-storage containers. • In a move to save money while also allowing the company to do what it does best – market products- Lafley has decided to outsource some business functions, including the manufacturing of bar soap (including Ivory, the company’s oldest surviving brand). • Another change has come in the form of marketing P&G brands more creatively. No longer just a toothpaste, for example, the Crest name now also appears on the company’s SpinBrush electric toothbrush, and its line of tooth-whitening products.

11. Acknowledging that the culture at P&G has been resistant to adopting new ideas- “insular,” some have complained – Lafley went out of his way to ensure that these fundamental changes will keep P&G vital for at least another 170 years. • The key to his approach rests on building “under-standing and commitment’ among his personnel. With this in mind, he regularly spends Monday mornings in the office with a dozen other top corporate officers working on the week’s game plan. • To ensure that everyone gets the message, communication barriers – literally, Walls on the eleventh floor of corporate headquarters- have been broken down and offices have been moved so that people now sit directly alongside those with whom they most often have to work.

12. Can P & G Turn the tide? • One of his colleagues referred to Lafley as “as excellent listener … a sponge.” From what he hears, Lafley patiently reshapes everything the company does. • And with profits rising even in today’s turbulent economy, it’s clear that P&G has become “new and improved” from his efforts.

13. Can P & G Turn the tide? • What adjustments were required at P&G as changes were made? • What source of resistance to change do you suspect were encountered at P&G and how do you think they were overcome? • What OD techniques might have been helpful for P&G to use? Explain your reasoning.

14. Diagnosis Defined Diagnosis is a collaborative process between organizational members and the OD consultant to collect pertinent information, analyze it, and draw conclusions for action planning and intervention.

15. Open Systems Model Environment • Inputs • Information • Energy • People • Outputs • Goods • Services • Ideas • Transformations • Social Component • Technological • Component Feedback

16. Properties of Systems • Inputs, Transformations, and Outputs • Boundaries • Feedback • Equifinality (end state can be reached by many potential means) • Alignment

17. Organization-Level Diagnostic Model Outputs Inputs Design Components Technology Strategy Structure HR Measurement Systems Systems General Environment Industry Structure Organization Effectiveness Culture

18. Key Alignment Questions • Do the Design Components fit with the Inputs? • Are the Design Components internal consistent? Do they fit and mutually support each other?

19. Organization-Level Inputs • General Environment • External forces that can directly or indirectly affect the attainment of organizational objectives • Social, technological, ecological, economic, and political factors • Industry Structure • External forces (task environment) that can directly affect the organization • Customers, suppliers, substitute products, new entrants, and rivalry among competitors

20. Organization Design Components • Strategy • the way an organization uses its resources (human, economic, or technical) to gain and sustain a competitive advantage • Structure • how attention and resources are focused on task accomplishment • Technology • the way an organization converts inputs into products and services

21. Organization Design Components • Human Resource Systems • the mechanisms for selecting, developing, appraising, and rewarding organization members • Measurement Systems • methods of gathering, assessing, and disseminating information on the activities of groups and individuals in organizations

22. Organization Design Components • Organization Culture • The basic assumptions, values, and norms shared by organization members • Represents both an “outcome” of organization design and a “foundation” or “constraint” to change

23. Outputs • Organization Performance • e.g., profits, profitability, stock price • Productivity • e.g., cost/employee, cost/unit, error rates, quality • Stakeholder Satisfaction • e.g., market share, employee satisfaction, regulation compliance

24. Group-Level Diagnostic Model Inputs Design Components Outputs Goal Clarity Task Team Structure Functioning Group Group Composition Norms Team Effectiveness Organization Design

25. Group-Level Design Components • Goal Clarity • extent to which group understands its objectives • Task Structure • the way the group’s work is designed • Team Functioning • the quality of group dynamics among members • Group Composition • the characteristics of group members • Group Norms • the unwritten rules that govern behavior

26. Group-level Outputs • Product or Service Quality • Productivity • e.g., cost/member, number of decisions • Team Cohesiveness • e.g., commitment to group and organization • Member Satisfaction

27. Individual-Level Diagnostic Model Inputs Design Components Outputs Goal Variety Task Identity Autonomy Task Feedback Significance about Results Individual Effectiveness Organization Design Group Design Personal Traits

28. Individual-Level Design Components • Skill Variety • The range of activities and abilities required for task completion • Task Identity • The ability to see a “whole” piece of work • Task Significance • The impact of work on others • Autonomy • The amount of freedom and discretion • Feedback about Results • Knowledge of task performance outcomes

29. Individual-level Outputs • Performance • e.g., cost/unit, service/product quality • Absenteeism • Job Satisfaction • e.g., internal motivation • Personal Development • e.g., growth in skills, knowledge, and self

30. 10 Great Companies That Lost Their EdgeHow to avoid three traps that ensnare even breakthrough companies.By Rick Newman Aug. 19, 2010 | 10:39 a.m.

31. Dell • Back when IBM and Hewlett-Packard still sold most of their products through stores, Dell had a different idea: Cut out the middleman and sell directly to consumers. • When the Internet arrived, Dell took off and competitors got whiplash trying to keep up with its skyrocketing sales. • But a decade later, Dell faltered as mobile devices began to displace PCs, cheap Asian machines cut into profitability, and big customers began to demand end-to-end service, not just hardware. • Dell has countered with mini-laptops, smartphones, and other trendy products, but it's now following the pack.

32. Eastman Kodak • For nearly a century, no company commercialized the camera as successfully as Kodak, whose breakthroughs included the Brownie camera in 1900, Kodachrome color film, the handheld movie camera, and the easy-load Instamatic camera. • But Kodak's storied run began to end with the advent of digital photography and all the printers, software, file sharing, and third-party apps that Kodak has mostly missed out on. • Since the late 1980s, Kodak has tried to expand into pharmaceuticals, memory chips, healthcare imaging, document management, and many other fields, but the magic has never returned. • Its stock price is now about 96 percent below the peak it hit in 1997.

33. Microsoft • It helped give the PC mass-market appeal, and still dominates much of the software industry. • But Microsoft has also fumbled or passed up many great ideas that others capitalized on, like Web TV, E-books, smartphones, and the tablet PC. • "Why didn't they commercialize any of this?" Govindarajan asks. "The problem is execution." • Sticking to one business line can be risky, especially in an industry as fast-changing as technology. • And sure enough, the market is shifting away from the PCs that Microsoft's software is designed for.

34. Sears • Many people still call it the Sears Tower, but Chicago's tallest building is now officially the Willis Tower, named after a British insurance broker that is one of its main tenants. • Sears moved out long ago—and also surrendered the spirit associated with such an architectural landmark. In earlier days, Sears put catalogs on the map, sold suburban Americans many of their household belongings, and introduced sturdy, affordable brands like Craftsman and Kenmore. • But later in life, Sears stood flat-footed as competitors like Wal-Mart, Target, and Amazon chewed up its turf. Sears has dabbled in insurance, financial services, real estate, Internet service, and many other business lines as it has tried to find its way. • Yet it's still looking for a winning strategy, and is now paired with Kmart in a kind of faded-glory holding company. Analysts think a Web strategy might ultimately save the firm as stores continue to vanish.

35. Sony • Not long ago, the Walkman was as ubiquitous as the iPod is today, and Sony dominated the market for TVs, cameras, video recorders, and many other consumer electronics. • But as Sony became a huge conglomerate with film and music divisions, it lost leadership in many of its core product lines. • What tripped up Sony and some of its competitors was the move from hardware to software, which put the emphasis on the brains of the device rather than the circuitry. • As a result, faster-moving competitors like LG, Samsung, Vizio, Apple, and the various makers of cell phones—which of course come with cameras these days—have outpaced this old-school innovator.

36. Sun Microsystems • Lucky timing only lasts so long. This computer startup began building high-end servers just as the computer revolution was revving up, and it foresaw the virtues of networking and universal software that could run on any computer. • Its Java programming language, introduced in the mid 90s, became an industry standard just as the Internet arrived, helping make Sun an industry giant by the late 1990s. • But the dot-com bust wiped out many of its customers and changed the way companies meet their technology needs. As PCs became more powerful, fewer big customers needed Sun's costly servers, and Sun spent most of the last decade downsizing and retrenching. • With Sun's market value just a fraction of what it had once been, Oracle bought the company earlier this year.

37. Yahoo • When Web search and aggregation were still virgin territory, the pioneering Yahoo tried to charge for services like E-mail and file sharing, while upstart Google offered everything for free. • Customers flocked to Google, which surged to a commanding lead in search that it still holds. Yahoo still grew into a huge Web portal, with strong sports, financial, and news coverage that generates billions in advertising revenue, but it also drifted into job-hunting services, video streaming, original entertainment, and other ventures it has since sold or folded. • And Yahoo's snub of a $45 billion buyout offer from Microsoft in 2008 now looks like a huge gaffe, since Yahoo's market value has fallen to a scant $19 billion or so. CEO Carol Bartz arrived in 2009 with a mandate to clarify the company's focus and amp up profitability. • One of her first moves: a partnership with old suitor Microsoft meant to increase revenue for both firms without the tension of a buyout.

38. Why Nokia Failed? Top Four Reasons • Failure of Symbian OS and Wrong Deal with Windows • NOKIA Became Laggard in Smartphone Market • Losing Market Share on Both Ends. • Failure to Implement the Right Umbrella Branding Strategy