EMERGING TRENDS in ORGANIZATIONAL DEVELOPMENT By Jonathan Mozenter

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 Tonight’s Presentation 3

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 4

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 6

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

PARTNERSHIPS & ALLIANCES • 3 rd 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 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 14

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 16

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 21

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

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 24

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

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 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 29

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 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 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 32

TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES • Success Factors: Relationships, Culture, Communication, and Design • Nicholson Mc. Bride • 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 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 37

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 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 42

FEEDBACK ON PRESENTATION 43