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  1. 1. EMERGING TRENDS in ORGANIZATIONAL DEVELOPMENT By Jonathan Mozenter 7/29/99 A Massachusetts Bay OD Learning Group Event
  2. 2. AGENDA <ul><li>Introductions </li></ul><ul><li>What is an Emerging Trend? </li></ul><ul><li>Background </li></ul><ul><li>Macro Forces </li></ul><ul><li>Emerging Trends In OD </li></ul><ul><li>Q+A </li></ul><ul><li>How Will the Emerging Trends Affect Your Work Life? </li></ul>
  3. 3. CHECKING IN <ul><li>Introductions </li></ul><ul><li>Please State in 15 Seconds </li></ul><ul><ul><li>Name </li></ul></ul><ul><ul><li>Organization </li></ul></ul><ul><ul><li>What You Hope to Take Away from Tonight’s Presentation </li></ul></ul>
  4. 4. WHAT DO I MEAN BY AN EMERGING TREND? <ul><li>5 Minutes to Think About What You Think are the Emerging Trends and Why </li></ul><ul><li>10 minutes to Break into Groups of 3 People Discuss Your Thoughts </li></ul>
  6. 6. HYPOTHESIS <ul><li>Systemic Approach </li></ul><ul><ul><li>OD Trends are Driven by Organization Challenges which are Driven by Macro Forces </li></ul></ul><ul><li>Expected Results </li></ul><ul><ul><li>Constant Change </li></ul></ul><ul><ul><li>Learning and Flexibility </li></ul></ul><ul><ul><li>OD trends: Learning Organizations, Knowledge Management, Change Management, and Org. Design </li></ul></ul>
  7. 7. METHODOLOGY <ul><li>Library and Internet Research </li></ul><ul><li>Qualitative and Quantitative Research </li></ul><ul><li>4 Groups of People Interviewed </li></ul><ul><ul><li>External OD Consultants </li></ul></ul><ul><ul><li>Internal OD Consultants </li></ul></ul><ul><ul><li>Line Managers </li></ul></ul><ul><ul><li>Other Business Minds </li></ul></ul>
  9. 9. DISCUSSION OF THE MACRO FORCES <ul><li>Changes in Technology </li></ul><ul><li>Constant Change </li></ul><ul><li>Partnerships and Alliances </li></ul><ul><li>Changes in the Structure of Work </li></ul><ul><li>Increasing Diversity in the Work Force </li></ul><ul><li>Shifting Age Demographics </li></ul>
  10. 10. CHANGES IN TECHNOLOGY <ul><li>Largest Effecting Macro Force </li></ul><ul><li>Possible Cause Other Macro Forces </li></ul><ul><li>Ramifications </li></ul><ul><ul><li>Speed of Change </li></ul></ul><ul><ul><li>New Strategies </li></ul></ul><ul><ul><li>New Distribution Channels </li></ul></ul><ul><ul><li>New Relationships </li></ul></ul><ul><ul><li>Increased Competition </li></ul></ul>
  11. 11. CONSTANT CHANGE <ul><li>2nd Biggest Impact </li></ul><ul><li>A Derivative of Other Macro Forces </li></ul><ul><li>Ramifications </li></ul><ul><ul><li>Dealing w/ Uncertainty </li></ul></ul><ul><ul><li>Need More Flexible Process </li></ul></ul><ul><ul><li>Employee Burn Out </li></ul></ul>
  12. 12. PARTNERSHIPS & ALLIANCES <ul><li>3rd Biggest Impact </li></ul><ul><li>“ Companies Can’t Do It By Themselves Anymore” </li></ul><ul><li>Key is to Actively Manage the Relationships </li></ul><ul><li>Challenges in Making P&A Work </li></ul><ul><ul><li>Dealing with Ambiguity </li></ul></ul><ul><ul><li>Culture Differences </li></ul></ul><ul><ul><li>Boundary Issues </li></ul></ul><ul><ul><li>Finding “Right” Partner </li></ul></ul>
  13. 13. CHANGES IN WORK STRUCTURE <ul><li>By Product of Other Macro Forces </li></ul><ul><li>Types of Changes </li></ul><ul><ul><li>Information Technology Driven (ERP) </li></ul></ul><ul><ul><li>More Global </li></ul></ul><ul><ul><li>Virtual Organizations </li></ul></ul><ul><ul><li>Focus on Core/Outsourcing </li></ul></ul><ul><ul><li>Project Work and Cross Functional Teams </li></ul></ul><ul><ul><li>Customer Focus </li></ul></ul>
  14. 14. DIVERSITY <ul><li>Effects will Grow by 15% over Next 3 Years (Highest of all Forces) </li></ul><ul><li>Possibly be Driven by Increased Globalization </li></ul><ul><li>Today Many People Still View Diversity as an Affirmative Action Issue Not a Strategic One </li></ul>
  15. 15. CHANGES IN DEMOGRAPHICS <ul><li>Caused by </li></ul><ul><ul><li>Declining Birth Rates </li></ul></ul><ul><ul><li>Baby Boomers Aging </li></ul></ul><ul><ul><li>Value Conflicts Between Generations </li></ul></ul><ul><ul><li>Rise of Ethnic Minorities into Leadership </li></ul></ul><ul><li>Examples </li></ul><ul><ul><li>Finance Industry </li></ul></ul><ul><ul><li>Healthcare Industry </li></ul></ul><ul><ul><li>Grocery Industry </li></ul></ul>
  16. 16. OTHER MACRO FORCES <ul><li>Mergers and Acquisitions </li></ul><ul><ul><li>Defensive Move to Take Advantage of Economies of Scale </li></ul></ul><ul><ul><li>Will Continue to Happen </li></ul></ul><ul><ul><li>Often Fail: Culture Problems and/or Poor Integration Program </li></ul></ul><ul><li>Globalization </li></ul><ul><ul><li>Enabled by Technology </li></ul></ul><ul><ul><li>Free Trade Laws </li></ul></ul><ul><ul><li>Growing Interdependencies </li></ul></ul>
  17. 17. ORGANIZATIONAL CHALLENGES RESULTING FROM MACRO FORCES <ul><li>Dealing with Inc. Competition and Customization </li></ul><ul><li>Need to be Flexible and Cope with Uncertainty </li></ul><ul><li>Create an Environment of Constant Learning </li></ul><ul><li>Adapting to New Technology and Globalization </li></ul><ul><li>Developing New Management Competencies </li></ul>
  19. 19. OD INTERVENTIONS MOST FREQUENTLY USED TODAY <ul><li>Mission and Vision Statement Analysis </li></ul><ul><li>Strategic Planning </li></ul><ul><li>Reward and Recognition </li></ul><ul><li>Change Management </li></ul><ul><li>Leadership </li></ul><ul><li>Team Building </li></ul><ul><li>Facilitation </li></ul>
  20. 20. TREND#1: EXPANDING THE USE OF OD <ul><li>More Accepted Because it is Needed to Enhance Productivity & Profitability </li></ul><ul><li>Companies Need to Change to Survive </li></ul><ul><li>Employee Performance is a Key Competitive Advantage </li></ul><ul><li>More Research: 55% of HBR Articles are OD Related Over Last Year </li></ul>
  21. 21. TREND#1: EXPANDING THE USE OF OD <ul><li>IDC Forecasts Change Management Consulting Fastest Growing at 18.6% </li></ul><ul><li>Research Indicates High Use of OD Interventions Lead to High Returns </li></ul><ul><li>More Exposure to OD </li></ul><ul><li>Quantitative Data </li></ul>
  22. 22. TREND#1: EXPANDING THE USE OF OD <ul><li>OD in Education </li></ul><ul><li>OD in Management Consulting </li></ul><ul><li>OD in Human Resources </li></ul>
  23. 23. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD <ul><li>Managers Need OD Skills to Successfully Do Their Jobs </li></ul><ul><li>OD Practitioners Need: </li></ul><ul><ul><li>Measure Results Using Bottom Line Metrics </li></ul></ul><ul><ul><li>Align Interventions with Strategy </li></ul></ul>
  24. 24. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD <ul><li>Line Managers Need: </li></ul><ul><ul><li>Lead with Mission, Vision, and Values </li></ul></ul><ul><ul><li>Create and Maintain the Appropriate Culture </li></ul></ul><ul><ul><li>Manage Change </li></ul></ul><ul><ul><li>Create and Maintain Continuos Learning </li></ul></ul><ul><ul><li>Build Employee Self-Esteem </li></ul></ul><ul><ul><li>Empower Employees </li></ul></ul>
  25. 25. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD <ul><li>MBA Programs Teach OD Competencies in Core Classes </li></ul><ul><li>OD in Project Management </li></ul><ul><li>OD in Management Consulting </li></ul>
  26. 26. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD <ul><li>OD is Perceived as Too Soft and has a Bad Reputation </li></ul><ul><ul><li>Historically has Not Always Been Aligned with Business Goals and Metrics </li></ul></ul><ul><li>OD Practitioner Needs to Enhance Business Knowledge </li></ul><ul><ul><li>Understand Strategic Needs of Client Better </li></ul></ul><ul><ul><li>Sell Services Better by Speaking Client’s Language </li></ul></ul><ul><ul><li>Measure OD Interventions in Bottom Line Metrics </li></ul></ul>
  27. 27. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD <ul><li>Research on Ideal OD Grad Programs </li></ul><ul><li>Need Knowledge of the Following Business Areas </li></ul><ul><ul><li>Finance </li></ul></ul><ul><ul><li>Business Management </li></ul></ul><ul><ul><li>Operations </li></ul></ul><ul><ul><li>Program Evaluation </li></ul></ul><ul><ul><li>Information Systems </li></ul></ul>
  28. 28. TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD <ul><li>Measurement Needed to Advance the Field of OD </li></ul><ul><li>Measurement Improves Quality of Interventions </li></ul><ul><li>Research Indicates: Org. Who Strategically Use People Metrics have Higher Rates of Return </li></ul><ul><li>Using Balance Scorecard and ROI </li></ul>
  29. 29. TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGE <ul><li>Move from Isolated Interventions to Whole System Interventions </li></ul><ul><li>Aligning Strategy with Org. Design, Culture, and Compensation </li></ul><ul><li>More Effective, Longer Lasting, and More Expensive </li></ul>
  30. 30. TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGE <ul><li>Maximizing Flexibility </li></ul><ul><ul><li>Focus on Core Competencies (Shamrock Org) </li></ul></ul><ul><ul><li>Work In Teams </li></ul></ul><ul><ul><li>Constantly Develop Core Staff </li></ul></ul><ul><li>Retention </li></ul><ul><ul><li>Proper Reputation </li></ul></ul><ul><ul><li>Screen for Emotional Intelligence </li></ul></ul><ul><ul><li>Actively Manage Culture </li></ul></ul>
  31. 31. TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGE <ul><li>Globalization </li></ul><ul><ul><li>Be Big and Act Small at Same Time (ABB) </li></ul></ul><ul><ul><li>Business Units have 2 Managers and Freedom </li></ul></ul><ul><ul><li>Develop Global Mangers </li></ul></ul><ul><li>Empowerment </li></ul><ul><ul><li>Producers, Integrators, and Shapers </li></ul></ul><ul><ul><li>AES, Flat, Units Run by a Team of Generalists </li></ul></ul><ul><ul><li>50% Performance and 50% Modeling Values </li></ul></ul>
  32. 32. TREND#3: CREATING WHOLE SYSTEM CHANGE - ORGANIZATIONAL DESIGN AND CULTURE CHANGE <ul><li>Implementation </li></ul><ul><ul><li>Restructure Entire Vertical Organization </li></ul></ul><ul><ul><li>Coordinating Mechanisms </li></ul></ul><ul><ul><li>Explicitly Map Out Decision Making Process </li></ul></ul><ul><li>Mergers Acquisitions </li></ul><ul><ul><li>New Culture and Org Design before M&A </li></ul></ul><ul><ul><li>Transformation Process and Communication Programs </li></ul></ul>
  33. 33. TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES <ul><li>Success Factors: Relationships, Culture, Communication, and Design </li></ul><ul><li>Nicholson McBride </li></ul><ul><li>Alliance Advantage </li></ul>
  34. 34. TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES <ul><li>Helping Companies Prepare </li></ul><ul><ul><li>Appreciative Inquiry </li></ul></ul><ul><ul><li>Culture Assessment </li></ul></ul><ul><ul><li>Organizational Assessment </li></ul></ul><ul><ul><li>Vision Development </li></ul></ul><ul><ul><li>Deal with Ambiguity </li></ul></ul>
  35. 35. TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES <ul><li>Help Mange Relationship by Facilitating Process </li></ul><ul><li>Initial Design </li></ul><ul><ul><li>Environment of Trust and Openness </li></ul></ul><ul><ul><li>Type of Alliance </li></ul></ul><ul><ul><li>Scope of Project </li></ul></ul><ul><ul><li>Success Factors </li></ul></ul><ul><ul><li>How will it be Measured </li></ul></ul>
  36. 36. TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES <ul><li>Define Communication Patters at All Levels </li></ul><ul><ul><li>Alliance Governance and Alliance Interfaces </li></ul></ul><ul><ul><li>Conflict Management & Quick Decision Making </li></ul></ul><ul><li>Coach Executives </li></ul><ul><ul><li>Constantly Reevaluate </li></ul></ul><ul><ul><li>Renegotiate </li></ul></ul><ul><li>Learning </li></ul><ul><ul><li>Match Learning Objectives w Learning System </li></ul></ul>
  37. 37. TREND#5: ENHANCING CONTINUAL LEARNING <ul><li>Necessary to Stay Competitive </li></ul><ul><li>Creates Awareness of Evolving Customer Needs and Market Dynamics </li></ul><ul><li>Fastest Growing Interventions </li></ul><ul><ul><li>Knowledge Management </li></ul></ul><ul><ul><li>Learning Organizations </li></ul></ul><ul><ul><li>System Thinking </li></ul></ul><ul><ul><li>Improving Employees Ability to Learn </li></ul></ul>
  38. 38. TREND#5: ENHANCING CONTINUAL LEARNING <ul><li>Knowledge Management </li></ul><ul><ul><li>Many Different Types </li></ul></ul><ul><ul><li>Use OD in Implementation </li></ul></ul><ul><li>Learning Organizations </li></ul><ul><ul><li>Fifth Discipline Vs. “Learning Mission” </li></ul></ul><ul><li>Executive/Leadership Development </li></ul><ul><ul><li>360 Feedback, Coaching, Mentors, Job Rotations </li></ul></ul><ul><ul><li>Corporate University with Real Time Learning </li></ul></ul>
  39. 39. TREND#5: ENHANCING CONTINUAL LEARNING <ul><li>Community of Practices </li></ul><ul><ul><li>Match Purpose with Type </li></ul></ul><ul><ul><li>Knowledge Communities </li></ul></ul><ul><ul><li>Social Networking Analysis </li></ul></ul><ul><li>Improving Employees Ability to Learn </li></ul><ul><ul><li>Defensive Routines </li></ul></ul><ul><ul><li>Emotional Intelligence </li></ul></ul><ul><ul><ul><li>Personal and Social Competence </li></ul></ul></ul>
  40. 40. TREND#5: ENHANCING CONTINUAL LEARNING <ul><li>Diversity </li></ul><ul><ul><li>Culture that Appreciates Difference </li></ul></ul><ul><ul><li>Dialogue and Conflict Management Skills </li></ul></ul><ul><li>Group Reflection </li></ul><ul><ul><li>Promote Individual and Group Reflection both During and After Projects </li></ul></ul><ul><li>Scenario Planning </li></ul>
  41. 41. Q & A
  42. 42. APPLYING EMERGING OD TRENDS TO YOUR ORGANIZATION <ul><li>Break Into Small Groups of 3 </li></ul><ul><li>Answer Following Questions </li></ul><ul><ul><li>How Do You Seeing The Trends Play Out in Your Organization and/or Your Clients? </li></ul></ul><ul><ul><li>What is Inhibiting Them? </li></ul></ul><ul><ul><li>How Can You Deal with this Resistance </li></ul></ul>