In order to understand the challenge Managers and Organizational Development face we must forget some of the old knowledge about the organizations and build new knowledge on management systems and tools.

1. 9 things to change
when building 2020 organizations

2. 1st The Management Function

3. Management:
managing inputs to the business system and their
transformation to outputs
Traditional view

4. Managing how to organize ourselves to achieve
business results expected.
The new way

5. 2nd The Business Model

6. Inputs:
Material, Information
Labor
Capital
Outputs:
Value of the
Product,
Services
Technology Traditional view
Market Proposal

7. Input:
Customer request
Output:
Business results
KnowledgeMarket DemandThe new way

8. 3rd Business Objectives

9. Business Objectives:
Higher customer satisfaction
Higher quality
Lower operational cost
Lower capital expenditure
Shorter lead time / quicker time to market
Traditional view

10. Business Objectives:
Business results -
KPIs` values planned versus actual
Cost/Product
Operational cost
Cash flow
The new way

11. 4th Organizational Structure

12. Traditional viewOrganizational structure:
By Specialization of tasks
Vertically functional
Horizontally staff & line activities
Centralized/Decentralized/Matrix

13. Organizational structure:
By Business Impact of Positions
Executive indicators: planned versus actual (plan & organize)
Triggers: check & act
Lagging indicators: Continuous standardization of Problem
Solving/Improvement
The new way

14. 5th Leadership Function

15. Traditional view
Leadership functions:
Planning & Organization
Implementing & Controlling

16. Leadership functions: Execute planned versus
actual change rate
People Management - Change rate in People`s
Knowledge levels and content
Performance Management – Change rate in
Planning, Execution & Improving activity levels of
positions
Impact Management – Change rate in Process
improvement, Customer satisfaction level & KPIs`
values
The new way

17. 6th Dimensions

18. Traditional viewOrganizational Dimensions
Complexity – from inputs (external)
Flexibility – standardization of units of work;
different process elements (routing) for
different market segments (internal)
Control – leaders` function to reduce
complexity in accomplishing of tasks to
achieve common objectives (from above)

19. Organizational Dimensions
Complexity – related to positions through the
data handled and generated (internal,
cascaded)
Flexibility – different execution of the same
processes for different market segments
(external)
Control – at each position through planning,
organizing & checking and acting on (at the
position, cascaded)
The new way

20. 7th Development tools

21. Traditional viewOrganizational Development -
external/internal, focused, occasional
Process improvement
Competency development
Personal support

22. OrganizationalAdjustment – built in,
continuous
Process improvement
Knowledge management - Talent/Leadership
development
Business Result improvement through high
level adaptability to market changes
The new way

23. The only way…

24. The author is
Organizational psychologist (MA),
OD expert and leading consultant of PsyOn
Consulting, Hungary, US, Mexico
Former lecturer at Pázmány Péter Chatolic
University, Hungary
Author of “The reverse Help Chain”,
HBR Hungarian edition, 2010. April
Contact: farkasgj@psyon.hu
linkedIn profile: Farkas Judit