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?

BACKGROUND

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
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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

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

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
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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

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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 13

EMERGING TRENDS IN ORGANIZATIONAL DEVELOPMENT

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OD INTERVENTIONS MOST FREQUENTLY USED TODAY

Mission and Vision Statement Analysis Strategic Planning Reward and Recognition Change Management Leadership Team Building Facilitation
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 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
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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

TREND#1: EXPANDING THE USE OF OD

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 OD in Education

TREND#1: EXPANDING THE USE OF OD

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

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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

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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

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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

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 Move from Isolated Interventions to Whole System Interventions Aligning Strategy with Org. Design, Culture, and Compensation More Effective, Longer Lasting, and More Expensive

TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGE

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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
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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
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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
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TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES

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

Appreciative Inquiry Culture Assessment Organizational Assessment Vision Development Deal with Ambiguity

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

Process Initial Design

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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
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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

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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
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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
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Q&A
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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

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