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Organizational Development
Diagnosis – Methods to develop ORG effectiveness
What are we attempting…
 Need for diagnosis
 Levels of diagnosis
 Methods of diagnosis
 Suggested Interventions
 …
 ORG in their journey are faced with various factors that
influence their growth, presence, brand, stakeholder
value, etc.
 Factors of influence can be
 Internal – people, process, technology, customer
fulfillment methods, offerings / products, etc.
 External – government, regulation, treaties, competition,
suppliers, etc.
 In change and development agenda these factors can
cause a fillip or drag in the pace of achievement(s)
 The impact is treated as an ORG being effective (OEV)
and efficient (OEN); or to the contrary
Introduction
 A fillip or drag is a deviation from the stated path, stated targets,
stated assumptions, etc.
 Deviation, positive or negative, is attached to the factors of
influence described previously
 Deviation need to be examined
 To understand cause-contribution
 Contribution to OEV and OEN;
 Replicate positive impact
 Reduce impact of negative forces
 Overcome drag
 To correct negative contribution and build further
 Institutionalize solution / corrections
 …
 Diagnosis is an important step before any solution is applied; it is a
scientific way to look at the situation and derive through methods
possible alternatives to address the impact
Need for diagnosis
 Develop a systematic way to look into deviations
 Collect data on people, people interactions, other behaviors, etc.
(in the light of OD) to study the cause-effect
 Evolve and confirm the problem definition; this is an important
narrative as a correct, complete definition leads to apt,
implementable solutions
 Determine the possible approach / intervention to deal with people
(action planning and action taking); feedback to the ORG, people;
 Correct, reflect and institutionalize the solution to the deviation
 Increase (replicate in case of high OEN, OEV) OEV, OEN; or bridge
the gap to target
 OEV – defines the gap between the “what was the target” to “what
has been achieved”
 OEN – defines the resources that has been used to achieve against
the target
Purpose of diagnosis
Scope of Diagnosis
OrganizationalLevel
• Impact Points
• VMV
• Strategy
• Structure
• Culture
• Technology
GroupLevel
• Impact Points
• Goals
• Task
Allocation
• Group Norms
• Group
Composition
• Group
Dynamics
IndividualLevel
• Impact Points
• Skills
• Independence
• Identity
• Growth
• Inclusive or
Value
Scope of Diagnosis – Org Level
Typical Influencers
 Society – People,
Environment, Buyer /
Consumer, Natural forces, etc.
 Economy – Govt. Policies,
Money Supply, Financial Status
of Country, Competition,
Suppliers and Partners,
Bilateral Treaties, etc.
 Company – Vision, Mission,
Products & Offerings, Culture,
Strategy, Structure,
Stakeholders, Shareholders
Typical Outcomes
 Increased or decreased
achievement based on
 OEN, OEV
 People alignment to cause
 People motivation
 Positive change in culture
 Synergy within teams
 New Products and Offerings
 Delivering shareholder value
 Etc.
Scope of Diagnosis – Grp Level
Typical Influencers
 Company Internal
 Org Structure
 Org Process
 Group & Individual Skills
 Group norms & dynamics
 Business practices delivering
services
 etc.
Typical Outcomes
 Increased or decreased
achievement based on
 Goal Clarity
 Shared Recognition
 Shared values
 Inter-personal relations
 Leadership & alignment to cause
 etc.
Scope of Diagnosis – Indi. Level
Typical Influencers
 Company Internal
 People demography
 People skills
 People principles
 Leadership styles
 Inter-personal relationships
Typical Outcomes
 Increased or decreased
achievement based on
 Empowerment
 Delegation
 Rewards and Recognition
 Shared Values
 Allocation of tasks
 Identity
 etc.
 Discussed earlier…
 Kurt Lewin
 Force Field Analysis to determine the force that obstruct /
restrict the change, and force that drive the change
 Action Research to determine the problem and work way up
to action taking and action planning
 Open System Method
 Evaluates the interaction, inter-play between the environment
inputs and outcomes through the processes in the ORG
 Helps diagnoses the deviation to the change
 Kepner-Tregoe method on problem solving and decision
making (PSDM)
Diagnosis Method - 1
Diagnosis Method-Weisbord 6 Box
Diagnosis Method- McKinsey 7-S
 Shared values – the values
that all in ORG stand by
 Strategy – how do we
execute on the mission &
vision
 Systems-process, technology
and its capabilities
 Staff-People, capability,
capacity, attitude, etc.
 Style-the leadership
behavior that carries the
ORG
 Structure – the schematics
and mechanics in the
transfer of data, information
and responsibility
 Skills – human capital what’s
available and what’s needed
 Strategy
 What is the organization’s strategy seeking to accomplish?
 How does the organization plan to use its resources and capabilities to deliver that?
 What is distinct about this organization?
 How does the organization compete?
 How does the organization adapt to changing market conditions?
 Structure
 How is the organization organized?
 What are the reporting and working relationships (hierarchical, flat, silos, etc.)?
 How do the employees align themselves to the strategy?
 How are decisions made? Is it based off of centralization, empowerment, decentralization or other
approaches?
 How is information shared (formal and informal channels) across the organization?
 Systems
 What are the primary business and technical systems that drive the organization?
 What and where are the system controls?
 How is progress and evolution tracked?
 What internal rules and processes does the team utilize to maintain course?
McKinsey 7s – Hard Elements
 Shared Values
 What is the mission of the organization?
 What is the vision to get there? If so, what is it?
 What are the ideal versus real values?
 How do the values play out in daily life?
 What are the founding values that the organization was built upon?
 Style –
 What is the management/leadership style like? How do they behave?
 How do employees respond to management/leadership?
 Do employees function competitively, collaboratively, or cooperatively?
 Are there real teams functioning within the organization or are they just nominal groups?
 What behaviors, tasks and deliverables does management/leadership reward?
 Staff –
 What is the size of the organization?
 What are the staffing needs?
 Are there gaps in required capabilities or resources?
 What is the plan to address those needs?
 Skills –
 What skills are used to deliver the core products and/or services? Are these skills sufficiently present and available?
 Are there any skill gaps?
 What is the organization known for doing well?
 Do the employees have the right capabilities to do their jobs?
 How are skills monitored, assessed, and improved?
McKinsey 7s – Soft Elements
Burke-Litwin Model
 Bias – caused by experiences, repetitive work flows, data exchange,
familiarity with people, systems and data; hence leading to
uncalled for assumptions
 Overriding authority – ignores data points, feedbacks and applies
the maximum pressure to align with idea, suggestion rather than
make informed decision based on ground realities
 Lengthy process – larger the organization the more time consuming
is to look at the triggers and solutions; by then data point would
have changed, premise / context would have changed; or external
influence may have diminished
 Complex – changing people behavior or culture is not easy; required
sustained effort and monitoring
 Technology-organizations are today built on technology;
overhauling this to accommodate change is next to impossible given
the reach and exorbitant cost of replacement; comprises are made
in deployment and use of technology
 …
Challenges in Diagnosis
 “injected” methods, state transitions tools, planned
actions to connect the dots and cross the “T” to help
OEN, OEV
 Has to support the change; has to align the people and
their contribution to the cause
 Has to fit the culture ethos of the ORG
 Applied when the context is right, the situation and
people are capable of dealing with the “injection”
 Measured on outcomes to help have facts deal with
subsequent planned efforts / actions
 …
Interventions
Interventions&Outcomes
Strategic
Culture
Capabilities
Knowledge
Structural
Org Design
Re-engineering
Downsizing
People Capital
Team Synergy
Community
Collaboration
Process
Consultation
Maturity
Types of Interventions
 Development and Change agenda requires a thorough
diagnosis on any of the section / elements of the ORG
 The objective is to assess whether OEV, OEN will suffer
due to the change foreseen
 Interventions needs to be applied ahead to help
alignment
 Elements can be “hard” (tangible) or “soft” (intangible)
and all of such elements needs to be addressed
 Methods of diagnosis can be any; can be based on the
complexity of the change, the time available to change,
the effort and cost of doing so, the external influences
and their part in the change
 …
In Summary
Thank You

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Od & change diagnosis

  • 1. Organizational Development Diagnosis – Methods to develop ORG effectiveness
  • 2. What are we attempting…  Need for diagnosis  Levels of diagnosis  Methods of diagnosis  Suggested Interventions  …
  • 3.  ORG in their journey are faced with various factors that influence their growth, presence, brand, stakeholder value, etc.  Factors of influence can be  Internal – people, process, technology, customer fulfillment methods, offerings / products, etc.  External – government, regulation, treaties, competition, suppliers, etc.  In change and development agenda these factors can cause a fillip or drag in the pace of achievement(s)  The impact is treated as an ORG being effective (OEV) and efficient (OEN); or to the contrary Introduction
  • 4.  A fillip or drag is a deviation from the stated path, stated targets, stated assumptions, etc.  Deviation, positive or negative, is attached to the factors of influence described previously  Deviation need to be examined  To understand cause-contribution  Contribution to OEV and OEN;  Replicate positive impact  Reduce impact of negative forces  Overcome drag  To correct negative contribution and build further  Institutionalize solution / corrections  …  Diagnosis is an important step before any solution is applied; it is a scientific way to look at the situation and derive through methods possible alternatives to address the impact Need for diagnosis
  • 5.  Develop a systematic way to look into deviations  Collect data on people, people interactions, other behaviors, etc. (in the light of OD) to study the cause-effect  Evolve and confirm the problem definition; this is an important narrative as a correct, complete definition leads to apt, implementable solutions  Determine the possible approach / intervention to deal with people (action planning and action taking); feedback to the ORG, people;  Correct, reflect and institutionalize the solution to the deviation  Increase (replicate in case of high OEN, OEV) OEV, OEN; or bridge the gap to target  OEV – defines the gap between the “what was the target” to “what has been achieved”  OEN – defines the resources that has been used to achieve against the target Purpose of diagnosis
  • 6. Scope of Diagnosis OrganizationalLevel • Impact Points • VMV • Strategy • Structure • Culture • Technology GroupLevel • Impact Points • Goals • Task Allocation • Group Norms • Group Composition • Group Dynamics IndividualLevel • Impact Points • Skills • Independence • Identity • Growth • Inclusive or Value
  • 7. Scope of Diagnosis – Org Level Typical Influencers  Society – People, Environment, Buyer / Consumer, Natural forces, etc.  Economy – Govt. Policies, Money Supply, Financial Status of Country, Competition, Suppliers and Partners, Bilateral Treaties, etc.  Company – Vision, Mission, Products & Offerings, Culture, Strategy, Structure, Stakeholders, Shareholders Typical Outcomes  Increased or decreased achievement based on  OEN, OEV  People alignment to cause  People motivation  Positive change in culture  Synergy within teams  New Products and Offerings  Delivering shareholder value  Etc.
  • 8. Scope of Diagnosis – Grp Level Typical Influencers  Company Internal  Org Structure  Org Process  Group & Individual Skills  Group norms & dynamics  Business practices delivering services  etc. Typical Outcomes  Increased or decreased achievement based on  Goal Clarity  Shared Recognition  Shared values  Inter-personal relations  Leadership & alignment to cause  etc.
  • 9. Scope of Diagnosis – Indi. Level Typical Influencers  Company Internal  People demography  People skills  People principles  Leadership styles  Inter-personal relationships Typical Outcomes  Increased or decreased achievement based on  Empowerment  Delegation  Rewards and Recognition  Shared Values  Allocation of tasks  Identity  etc.
  • 10.  Discussed earlier…  Kurt Lewin  Force Field Analysis to determine the force that obstruct / restrict the change, and force that drive the change  Action Research to determine the problem and work way up to action taking and action planning  Open System Method  Evaluates the interaction, inter-play between the environment inputs and outcomes through the processes in the ORG  Helps diagnoses the deviation to the change  Kepner-Tregoe method on problem solving and decision making (PSDM) Diagnosis Method - 1
  • 12. Diagnosis Method- McKinsey 7-S  Shared values – the values that all in ORG stand by  Strategy – how do we execute on the mission & vision  Systems-process, technology and its capabilities  Staff-People, capability, capacity, attitude, etc.  Style-the leadership behavior that carries the ORG  Structure – the schematics and mechanics in the transfer of data, information and responsibility  Skills – human capital what’s available and what’s needed
  • 13.  Strategy  What is the organization’s strategy seeking to accomplish?  How does the organization plan to use its resources and capabilities to deliver that?  What is distinct about this organization?  How does the organization compete?  How does the organization adapt to changing market conditions?  Structure  How is the organization organized?  What are the reporting and working relationships (hierarchical, flat, silos, etc.)?  How do the employees align themselves to the strategy?  How are decisions made? Is it based off of centralization, empowerment, decentralization or other approaches?  How is information shared (formal and informal channels) across the organization?  Systems  What are the primary business and technical systems that drive the organization?  What and where are the system controls?  How is progress and evolution tracked?  What internal rules and processes does the team utilize to maintain course? McKinsey 7s – Hard Elements
  • 14.  Shared Values  What is the mission of the organization?  What is the vision to get there? If so, what is it?  What are the ideal versus real values?  How do the values play out in daily life?  What are the founding values that the organization was built upon?  Style –  What is the management/leadership style like? How do they behave?  How do employees respond to management/leadership?  Do employees function competitively, collaboratively, or cooperatively?  Are there real teams functioning within the organization or are they just nominal groups?  What behaviors, tasks and deliverables does management/leadership reward?  Staff –  What is the size of the organization?  What are the staffing needs?  Are there gaps in required capabilities or resources?  What is the plan to address those needs?  Skills –  What skills are used to deliver the core products and/or services? Are these skills sufficiently present and available?  Are there any skill gaps?  What is the organization known for doing well?  Do the employees have the right capabilities to do their jobs?  How are skills monitored, assessed, and improved? McKinsey 7s – Soft Elements
  • 16.  Bias – caused by experiences, repetitive work flows, data exchange, familiarity with people, systems and data; hence leading to uncalled for assumptions  Overriding authority – ignores data points, feedbacks and applies the maximum pressure to align with idea, suggestion rather than make informed decision based on ground realities  Lengthy process – larger the organization the more time consuming is to look at the triggers and solutions; by then data point would have changed, premise / context would have changed; or external influence may have diminished  Complex – changing people behavior or culture is not easy; required sustained effort and monitoring  Technology-organizations are today built on technology; overhauling this to accommodate change is next to impossible given the reach and exorbitant cost of replacement; comprises are made in deployment and use of technology  … Challenges in Diagnosis
  • 17.  “injected” methods, state transitions tools, planned actions to connect the dots and cross the “T” to help OEN, OEV  Has to support the change; has to align the people and their contribution to the cause  Has to fit the culture ethos of the ORG  Applied when the context is right, the situation and people are capable of dealing with the “injection”  Measured on outcomes to help have facts deal with subsequent planned efforts / actions  … Interventions
  • 18. Interventions&Outcomes Strategic Culture Capabilities Knowledge Structural Org Design Re-engineering Downsizing People Capital Team Synergy Community Collaboration Process Consultation Maturity Types of Interventions
  • 19.  Development and Change agenda requires a thorough diagnosis on any of the section / elements of the ORG  The objective is to assess whether OEV, OEN will suffer due to the change foreseen  Interventions needs to be applied ahead to help alignment  Elements can be “hard” (tangible) or “soft” (intangible) and all of such elements needs to be addressed  Methods of diagnosis can be any; can be based on the complexity of the change, the time available to change, the effort and cost of doing so, the external influences and their part in the change  … In Summary

Editor's Notes

  1. This is inter-related with the OUTSIDE Environment – that which is not controlled solely by the behavior and outcomes of the ORG. This also means that the OUTSIDE ENV in many ways also contributes to the elements in the 6 box board. That is, for e.g., the opportunity is dictated by the existing of space in the current market or that the technology in play helps deliver the same product or offerings to existing marketplace or any other geography that is not sufficiently covered. As another example, the current demography and purchasing power of the market place may offer opportunities to enhance the current offerings. And so on The same opportunity may offer a sufficiently and better able leadership and skills to work with the opportunity or any change agenda.
  2. Produced by Tom Peters and Robert Waterman; at McKinsey in 1980; Hard elements – Strategy, Structure, Systems Soft Elements – Shard Values, Skills, Staff, Style All these 7 elements have to be aligned to the change agenda to move forward.