EMERGING TRENDS

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

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?
2

CHECKING IN
Introductions
Please State in 15 Seconds
Name
Organization
What You Hope to Take Away from
Tonights Presentation

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

BACKGROUND

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

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
7

MACRO FORCES

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
9

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

10

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

PARTNERSHIPS &
ALLIANCES
3rd Biggest Impact
Companies Cant 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

12

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
13

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
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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

15

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
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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

17

EMERGING TRENDS IN
ORGANIZATIONAL
DEVELOPMENT

18

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

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

20

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
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TREND#1:
EXPANDING THE USE OF
OD

OD in Education

OD in Management Consulting
OD in Human Resources

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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

23

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
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TREND #2: COMBINGING

HARD BUSINESS
COMPETENCIES AND OD
MBA Programs Teach OD
Competencies in Core Classes
OD in Project Management
OD in Management Consulting
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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 Clients
Language
Measure OD Interventions in Bottom Line Metrics

26

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

27

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
28

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
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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

30

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

31

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

32

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

TREND#4: USING OD TO
FACILITATE PARTNERSHIPS
AND ALLIANCES
Helping Companies Prepare

Appreciative Inquiry
Culture Assessment
Organizational Assessment
Vision Development
Deal with Ambiguity

34

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
35

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

36

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
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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

38

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

39

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
40

Q&A
41

APPLYING EMERGING OD
TRENDS
TO 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
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FEEDBACK ON
PRESENTATION
43