EMERGING TRENDS in ORGANIZATIONAL DEVELOPMENT

1. EMERGING TRENDS in ORGANIZATIONAL DEVELOPMENT By Jonathan Mozenter 7/29/99 A Massachusetts Bay OD Learning Group Event

2. AGENDA • Introductions • What is an Emerging Trend? • Background • Macro Forces • Emerging Trends In OD • Q+A • How Will the Emerging Trends Affect Your Work Life?

3. CHECKING IN Introductions • Please State in 15 Seconds • Name • Organization • What You Hope to Take Away from Tonight’s Presentation

4. 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

5. BACKGROUND

6. HYPOTHESIS • Systemic Approach • OD Trends are Driven by Organization Challenges which are Driven by Macro Forces • Expected Results • Constant Change • Learning and Flexibility • OD trends: Learning Organizations, Knowledge Management, Change Management, and Org. Design

7. METHODOLOGY • Library and Internet Research • Qualitative and Quantitative Research • 4 Groups of People Interviewed • External OD Consultants • Internal OD Consultants • Line Managers • Other Business Minds

8. MACRO FORCES

9. DISCUSSION OF THE MACRO FORCES • Changes in Technology • Constant Change • Partnerships and Alliances • Changes in the Structure of Work • Increasing Diversity in the Work Force • Shifting Age Demographics

10. CHANGES IN TECHNOLOGY • Largest Effecting Macro Force • Possible Cause Other Macro Forces • Ramifications • Speed of Change • New Strategies • New Distribution Channels • New Relationships • Increased Competition

11. CONSTANT CHANGE • 2nd Biggest Impact • A Derivative of Other Macro Forces • Ramifications • Dealing w/ Uncertainty • Need More Flexible Process • Employee Burn Out

12. PARTNERSHIPS & ALLIANCES • 3rd Biggest Impact • “Companies Can’t Do It By Themselves Anymore” • Key is to Actively Manage the Relationships • Challenges in Making P&A Work • Dealing with Ambiguity • Culture Differences • Boundary Issues • Finding “Right” Partner

13. CHANGES IN WORK STRUCTURE • By Product of Other Macro Forces • Types of Changes • Information Technology Driven (ERP) • More Global • Virtual Organizations • Focus on Core/Outsourcing • Project Work and Cross Functional Teams • Customer Focus

14. DIVERSITY • Effects will Grow by 15% over Next 3 Years (Highest of all Forces) • Possibly be Driven by Increased Globalization • Today Many People Still View Diversity as an Affirmative Action Issue Not a Strategic One

15. CHANGES IN DEMOGRAPHICS • Caused by • Declining Birth Rates • Baby Boomers Aging • Value Conflicts Between Generations • Rise of Ethnic Minorities into Leadership • Examples • Finance Industry • Healthcare Industry • Grocery Industry

16. OTHER MACRO FORCES • Mergers and Acquisitions • Defensive Move to Take Advantage of Economies of Scale • Will Continue to Happen • Often Fail: Culture Problems and/or Poor Integration Program • Globalization • Enabled by Technology • Free Trade Laws • Growing Interdependencies

17. ORGANIZATIONAL CHALLENGES RESULTING FROM MACRO FORCES • Dealing with Inc. Competition and Customization • Need to be Flexible and Cope with Uncertainty • Create an Environment of Constant Learning • Adapting to New Technology and Globalization • Developing New Management Competencies

18. EMERGING TRENDS IN ORGANIZATIONAL DEVELOPMENT

19. OD INTERVENTIONS MOST FREQUENTLY USED TODAY • Mission and Vision Statement Analysis • Strategic Planning • Reward and Recognition • Change Management • Leadership • Team Building • Facilitation

20. TREND#1: EXPANDING THE USE OF OD • More Accepted Because it is Needed to Enhance Productivity & Profitability • Companies Need to Change to Survive • Employee Performance is a Key Competitive Advantage • More Research: 55% of HBR Articles are OD Related Over Last Year

21. TREND#1: EXPANDING THE USE OF OD • IDC Forecasts Change Management Consulting Fastest Growing at 18.6% • Research Indicates High Use of OD Interventions Lead to High Returns • More Exposure to OD • Quantitative Data

22. TREND#1: EXPANDING THE USE OF OD • OD in Education • OD in Management Consulting • OD in Human Resources

23. 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 Metrics • Align Interventions with Strategy

24. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD • Line Managers Need: • Lead with Mission, Vision, and Values • Create and Maintain the Appropriate Culture • Manage Change • Create and Maintain Continuos Learning • Build Employee Self-Esteem • Empower Employees

25. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD • MBA Programs Teach OD Competencies in Core Classes • OD in Project Management • OD in Management Consulting

26. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD • OD is Perceived as Too Soft and has a Bad Reputation • Historically has Not Always Been Aligned with Business Goals and Metrics • OD Practitioner Needs to Enhance Business Knowledge • Understand Strategic Needs of Client Better • Sell Services Better by Speaking Client’s Language • Measure OD Interventions in Bottom Line Metrics

27. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD • Research on Ideal OD Grad Programs • Need Knowledge of the Following Business Areas • Finance • Business Management • Operations • Program Evaluation • Information Systems

28. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD • Measurement Needed to Advance the Field of OD • Measurement Improves Quality of Interventions • Research Indicates: Org. Who Strategically Use People Metrics have Higher Rates of Return • Using Balance Scorecard and ROI

29. TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGE • Move from Isolated Interventions to Whole System Interventions • Aligning Strategy with Org. Design, Culture, and Compensation • More Effective, Longer Lasting, and More Expensive

30. TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGE • Maximizing Flexibility • Focus on Core Competencies (Shamrock Org) • Work In Teams • Constantly Develop Core Staff • Retention • Proper Reputation • Screen for Emotional Intelligence • Actively Manage Culture

31. TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGE • Globalization • Be Big and Act Small at Same Time (ABB) • Business Units have 2 Managers and Freedom • Develop Global Mangers • Empowerment • Producers, Integrators, and Shapers • AES, Flat, Units Run by a Team of Generalists • 50% Performance and 50% Modeling Values

32. TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGE • Implementation • Restructure Entire Vertical Organization • Coordinating Mechanisms • Explicitly Map Out Decision Making Process • Mergers Acquisitions • New Culture and Org Design before M&A • Transformation Process and Communication Programs

33. TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES • Success Factors: Relationships, Culture, Communication, and Design • Nicholson McBride • Alliance Advantage

34. TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES • Helping Companies Prepare • Appreciative Inquiry • Culture Assessment • Organizational Assessment • Vision Development • Deal with Ambiguity

35. TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES • Help Mange Relationship by Facilitating Process • Initial Design • Environment of Trust and Openness • Type of Alliance • Scope of Project • Success Factors • How will it be Measured

36. TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES • Define Communication Patters at All Levels • Alliance Governance and Alliance Interfaces • Conflict Management & Quick Decision Making • Coach Executives • Constantly Reevaluate • Renegotiate • Learning • Match Learning Objectives w\ Learning System

37. TREND#5: ENHANCING CONTINUAL LEARNING • Necessary to Stay Competitive • Creates Awareness of Evolving Customer Needs and Market Dynamics • Fastest Growing Interventions • Knowledge Management • Learning Organizations • System Thinking • Improving Employees Ability to Learn

38. TREND#5: ENHANCING CONTINUAL LEARNING • Knowledge Management • Many Different Types • Use OD in Implementation • Learning Organizations • Fifth Discipline Vs. “Learning Mission” • Executive/Leadership Development • 360 Feedback, Coaching, Mentors, Job Rotations • Corporate University with Real Time Learning

39. TREND#5: ENHANCING CONTINUAL LEARNING • Community of Practices • Match Purpose with Type • Knowledge Communities • Social Networking Analysis • Improving Employees Ability to Learn • Defensive Routines • Emotional Intelligence • Personal and Social Competence

40. TREND#5: ENHANCING CONTINUAL LEARNING • Diversity • Culture that Appreciates Difference • Dialogue and Conflict Management Skills • Group Reflection • Promote Individual and Group Reflection both During and After Projects • Scenario Planning

41. Q & A

42. APPLYING EMERGING OD TRENDSTO YOUR ORGANIZATION • Break Into Small Groups of 3 • Answer Following Questions • How 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

43. FEEDBACK ON PRESENTATION