Organization Design and Development Siena Heights University Fall

Organization Design and Development Siena Heights University Fall 2012 Team Presentation BTC Consultants Submitted by Beth King, Trish Halder, Cheryl Bluthardt 12/26/2021

BTC Consultants Inc. External Consultants specializing in Organizational Development and Problem Solving l l l Based out of Battle Creek, Michigan 10 Years in Business Owners Beth King, Trish Halder, and Cheryl Bluthardt 2 / 30 12/26/2021

Beth King Credentials • M. A. in Organizational Leadership, Siena Heights University Specialized Skill Set l • B. A. in Business Administration with minors in Marketing and Management, Siena Heights University l l l 10 years consulting experience through BTC Consultants l • 10 years in Procurement l • ISO 14001 Environmental Auditor • TS 16949 Quality Auditor • l l Systems analysis Manufacturing processes Assertiveness Active Listening Negotiation Data analysis and evaluation Project management Understanding and managing resistance to change 3 / 30 12/26/2021

Cheryl Bluthardt Credentials • • Masters of Arts Organizational Leadership Program, Siena Heights University Bachelor of Science Business Administration, Miller College • Associates Degree Human Resources, Community College of the Air Force • Vocational Diploma Business Administration, North Central Technical Institute • Twenty years experience military specializing in Customer Service, Communications and Human Resources. • Currently specializing as Program Analyst with the Department of Defense. 12/26/2021 Specialized Skill Set • • • Communications on all levels Management of Flow of Processes Foster Teamwork 4 / 30

Trish Halder Credentials l Master of Science in Organizational Design and Development, Kaplan University Specialized Skill Set l l Two years Human Resource experience l l Ten years consulting experience l Member, National Organizational Development Association l Individual assessment Small group process Systems of psychology Coaching Work motivation 5 / 30 12/26/2021

Contents l Entering and Contracting l Client l Elements of Contracting l Contract with Citibank l Diagnosis l Data Collection l Analyzation of Data l Feedback l Intervention l Evaluation and Institutionalizing l Conclusion 6 / 30 12/26/2021

Entering and Contracting Presented by Elizabeth King Definition: Initial step in the organizational development process; involving initial contact from an organization, discussing the initial problem statement, determining the true client, and developing the contract. 7 / 30

Entering and Contracting l Entering with Citibank l Call from a secretary at Citibank (name withheld) l Citibank presented initial problem l Problem statement l Citibank is experiencing difficulty in meeting diverse customer needs, earning profit and maintaining supremacy amongst intense business competition. l Scheduled first meeting between BTC Consultants and Citibank l Determined actual client within organization 8 / 30 12/26/2021

Client: Citibank l Sanford Weill, Chief Executive Officer Jorge Bermudez, Executive Vice President l Company Information l l l Global, Multidimensional Financial Institution Employs > 325, 000 staff Service> 200 million customers Operates in > 100 countries Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning. 9 / 30 12/26/2021

Elements of the Contract I. Boundaries of Org. Development Study Ø II. Project Objectives Ø III. Project start date, milestones, and completion date Confidentiality Ø IX. Specific request from the consultant to the client for best project results Schedule Ø VIII. Format for feedback to the client Client Involvement Ø VII. Explanation of the relationship style consultant wants to utilize with client throughout project Deliverables Ø VI. Examples include technical and financial data, work-process flow, employee attitude assessment Define consultant’s role throughout the project Ø V. Consultant’s goals if project is successful Description of Information Requested Ø IV. Reiterate problem statement Individuals in organization who will be given final study results Feedback to You Later Ø (Block 2011) Option to revisit Citibank after a period of time to review results of organizational changes 10 / 30

Contract with Citibank I. BTC will utilize organizational development theory and application to study root cause of Citibank’s difficulty in meeting diverse customer needs, earning profit and maintaining supremacy amongst intense business competition II. Our main objective is to prepare the organization to fully realize its innovative capabilities and reach its full profit potential. III. To fully diagnose the problem, BTC will need access to financial documents, new product launch program schedules and permission to interview employees It is our intent to work collaboratively with (client’s name) to diagnose and develop recommendations for change. IV. BTC will create a presentation to outline major conclusions from the study For the best chance of success, (client’s name) has committed one staff member to assist with data collection. VII. This project will start immediately and conclude in six weeks VIII. BTC will reported results back only to (client’s name) Finally, BTC requests to return to Citibank six months from project completion to evaluate the effects changes through interview of key individuals. IX. 11 / 30

Diagnosis Presented by Cheryl Bluthardt Definition: Process of understanding the systems that are functioning within an organization leading the consultant to determine the root cause of issues and the best method to implement change. 12 / 30

Comprehensive Model for Diagnosing Organizational Systems A. Organizational Level Inputs Outputs Design Components Technology General Environment Inputs Industry Structure Strategy Structure Culture HR Systems B. Group Level Inputs Measurement Systems Design Components Goal Clarity Task Structure Team Functioning Organization Design Inputs Group Composition C. Individual Level Inputs Organization Design Inputs Group Norms Design Components Skill Variety Task Identity Group Design Personal Characteristics Organization Effectiveness Task Significance Autonomy Feedback about Results Cummings & Worley, 9 e (c) 2008 South-Western/Cengage Learning e. g. performance, productivity, stakeholder satiisfaction Outputs Team Effectiveness e. g. quality of work life, performance Outputs Individual Effectiveness e. g. job satisfaction, performance, absenteeism, personal development 13 / 30

Collecting Diagnostic Information Collection Method l Questionnaires l Interviews 14 / 30

Results of Data Collection General Environmental Analysis l Industry Trends l Use of technology to increase banking efficiency Hitt, et al, 2011) l Use of electronic payments (Hitt, et al, 2011) l Increased number of consumers with credit cards (Citibank, 2006) l Preference of brand recognition and proven history of financial security (Hitt, et al, 2011) 15 / 30

Results of Data Collection SWOT Analysis Strengths: • Strong Brand Recognition Weaknesses: • Declining Capital • • Continuous Investments in Technology Global Presence Diversification of Products and Services Opportunities: • Expand Good Reputation • • • Improve Existing Web Features & Expand Global Banking Increase Customer Service Offer Fresh Approach to Banking • • • Debt Obligations Due to subprime Market High Customer Demands Complicated Products Lack of ability to keep up with advancing technology Threats: • • Competition Heavy Investments in Technology Regulatory Scrutiny Weakening Financial Markets Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning. 16 / 30

Results of Data Collection Financial Analysis l l l Profitability Ratios = Acceptable Liquidity Ratios = Acceptable Leverage Ratios = Acceptable Activity Ratios = Acceptable Shareholders’ Return Ratios = Acceptable Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning. 17 / 30

Results of Data Collection Citibank’s Consumer Citigroup. (2006). 2005 Financial Information. Retrieved April 13, 2011 from http: //www. citigroup. com/citi/fin/data/k 05 c. pdf? ie. Nocache=353. 18 / 30

Analysis of Diagnostic Data Goal Options Improves Quality Cost to Implement Time Required Ease of Staffing Financial Return TOTAL Points Technology enabling customers to conduct business anywhere 3 2 2 3 3 13 Partner alignment 3 3 13 Technologybased A/R, A/P, and liquidity mgmt 3 2 2 11 Reach new markets 1 1 1 2 3 8 Customer Service 3 1 1 1 2 8 Cut costs 1 1 3 19 / 30 7

Feedback of Diagnostic Data l Reporting diagnostic results to the organization is crucial l l Creating client ownership of the data Promoting organizational action Directing energy toward organizational problem solving Two feedback considerations: l l Identifying the content of the data Designing an effective feedback process 20 / 30

Process 1) Restate the original contract 6) Halfway through, ask clients if they are getting what they want 2) State the agenda/structure of the meeting 7) Decision to proceed 3) Present clear picture (Block 2011) 8) Test for concerns about control and commitment 4) Present recommendations 9) Practitioner asks if client got all that they wanted 5) Ask client for reactions 10) Give support 21 / 30

Feedback of Diagnostic Data Root Problem Limited availability of technology to satisfy rapidly changing customer needs. Recommendations • Provide customers with technology to conduct secure business anywhere. • Align with partner companies • New technology to streamline A/R, A/P, and liquidity management • Reach new markets • Improve customer service • Cut costs Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning. 22 / 30

Intervention Presented by Trish Halder Definition: Actions used to disrupt the normal running of business in order to create positive change that increases the organization’s effectiveness 23 / 30

Strategic Change Intervention l Strategic Alliance Intervention l Intervention in which two organizations pursue a set of common goals by sharing their individual resources, such as people, capital and technology. 24 / 30 12/26/2021

Intervention Selected Change l Align with Square l l Make credit card processing software/hardware available to current Citibank customers, Allows Citibank customers to conduct secure credit card processing at low cost, at any time, and at any location. 25 / 30

Intervention Action Plan • Negotiate terms with Square • Create processes for Sales Department once marketing plan has been implemented • Collaborate with Square to accommodate backend accounts receivable and accounts payable software Leadership IT Operations Processes (Sales) Marketing • Develop and implement marketing campaign 26 / 30

Evaluation and Institutionalizing Presented by Trish Halder Definition: Providing feedback to the organization about their success with the intervention. Including next steps to make the change permanent, or the determination to start the organizational development process again. 27 / 30

Evaluation and Institutionalizing l Evaluation of the intervention process l l Evaluation of the intervention outcomes l l Implementation feedback through qualitative evaluation using Content Analysis Evaluation feedback through quantitative evaluation using a Difference Test Institutionalizing: Continued efforts through measurement of the outputs as listed in the Action Plan 28 / 30 12/26/2021

Conclusion BTC Consultants worked collaboratively with Citibank to design a solution that fit the organization’s systems, helped them reach their goals, and boosted their profitability. 29 / 30 12/26/2021

References Block, Peter (2011). Flawless Consulting: A Guide to Getting Your Expertise Used. San Fransico Pfeiffer Citigroup. (2006). 2005 Financial Information. Retrieved April 13, 2011 from http: //www. citigroup. com/citi/fin/data/k 05 c. pdf? ie. Nocache=353. Cummings, T. G. , & Worli, C. G. (2009). Theory of Organizational Development and Change. Stamford: CENGAGE Learning. Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning. 30 / 30