1. Chapter 8
OD Intervention
Strategies
An Experiential Approach to Organization Development 7th edition Chapter 8
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2. Learning Objectives
 Identify and understand range of major OD
intervention techniques and how they can be
applied.
 Identify ways interpersonal, team, and
intergroup techniques fit into OD program.
 Understand the change strategies.
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3. Leading Change at P&G
(part 1 of 3)
P&G CEO Lafley makes changes that began
with previous CEO in the 1990s.
Significant changes made on structural lines.
Previous CEO, Jager, made changes using
combative style.
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4. Leading Change at P&G
(part 2 of 3)
Corporate headquarters undergoing change.
Executives have open offices.
Division presidents’ offices located with their
teams.
Changes made without alienating employees.
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5. Leading Change at P&G
(part 3 of 3)
Why did one CEO succeed in making changes
while another failed?
• Jager gruff and Lafley soothing.
• Jager bullied and Lafley persuades.
Lafley says of change: “…we are in the
business of leading change.”
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6. Organizational Change
Starting point for setting change program is
definition of total change strategy.
OD strategy is a plan for integrating different
activities to accomplish objectives.
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7. Three Basic Approaches to
Organization Change
1. Structural
2. Technical
3. Behavioral
Developing strategy includes planning activities
to resolve difficulties and build on strengths.
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8. Structural Approach to Change
Changes that relate elements of organization to
one another.
Includes removing or adding layers to hierarchy.
Downsizing associated with restructuring.
Changes can involve decentralization and
centralization.
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9. Technical Approach to Change
Changes in machinery, methods, automation,
and job design.
Changes help companies become more
productive.
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10. Behavioral Approach to Change
Emphasizes better utilization of human
resources by improving:
• Morale.
• Motivation.
• Commitment of members.
OD traditionally associated with behavioral
strategies.
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11. Changes Require All Strategies
Structural, technological, and behavioral
strategies not OD change strategies per se.
Determining feature of an OD strategy is
process used to arrive at strategy.
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12. Our Changing World: Japan Tries
to Restructure (part 1 of 2)
In 1980s Japanese companies model to world.
Recently, Japanese companies failed to
respond to changing world.
Nissan first company to close major factory in
Japanese auto-industry.
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13. Our Changing World: Japan Tries
to Restructure (part 2 of 2)
Nissan failing when Renault took control.
Ghosn brought in to turn company around.
Shut down 5 plants, reduced workforce by
23,000, shifted production to U.S.
Most experts say do not count Japan out.
A viable Japan may emerge.
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14. Integration of Change Strategies
(part 1 of 2)
OD deals with change from integrated
standpoint that considers:
Structure Technology Behavior
Interdependence of subelements (departments)
needs to be considered.
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15. Figure 8.1
Integrated Approach to Change
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16. Integration of Change Strategies
(part 2 of 2)
Change strategies need to take account of overt
and covert elements.
Second-order consequences consider change
in one area that influences others.
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17. Figure 8.2
“Organization Iceberg” Approach to OD
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18. Stream Analysis
Useful in planning.
Helps organization plan interventions.
Provides graphical view of changes.
Allows progress to be plotted.
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19. Figure 8.3
Stream Analysis Chart
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20. Selecting an OD Intervention
Practitioner and client consider:
 Potential results of technique.
 Potential implementation of technique
including costs versus benefit.
 Potential acceptance of technique.
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21. OD in Practice: Is It a Kindler,
Gentler Microsoft? (part 1 of 3)
Changes at Microsoft initiated at top.
Gates stepped down as CEO and appointed
Ballmer CEO and president.
Both wanted to reinvent Microsoft.
Microsoft restructured to be responsive to
customers.
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22. OD in Practice (part 2 of 3)
Executives given power to run units with less
supervision.
Ballmer encouraging everyone to rethink the
way they do their jobs.
Ballmer wants people to be respectful to others.
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23. OD in Practice (part 3 of 3)
He wants managers to work collaboratively.
Collaboration may produce complacency and
stifle innovation.
Ballmer has history of humiliating executives
that may discourage real change.
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24. Overview of Major OD
Intervention Techniques
Intervention techniques focus on 4 categories:
2. Individual or interpersonal level.
3. Team or group level.
4. Intergroup level.
5. Total organizational system level.
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25. Table 8.1
OD Interventions: An Overview (part 1 of 2)
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26. Table 8.1
OD Interventions: An Overview (part 2 of 2)
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27. Key Words and Concepts
 Behavioral strategies - places emphasis on
human resources.
 OD intervention - actions designed to improve
the health of the client system.
 OD strategy - a plan for change using
structural, technical, and behavioral methods.
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28.  Parkinson’s Laws - summarizes the problems
of inefficient practices in organizations.
 Second-order consequences - indirect
consequences that result from change.
 Stream analysis - method useful in planning
that plots interventions over period of time.
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29.  Structural strategies - alters framework that
relates parts of organization to one another.
 Technological strategies - changes in
machinery, methods, and job design.
 Virtual meetings - meetings that occur
electronically over telecommunications lines
and Internet.
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30. Preparations for Next Chapter
 Read Chapter 9.
 Complete Step 1 of OD Skills Simulation 9.1.
 Simulation 9.3, complete Steps 1 and 2.
 Read and analyze Case: The Sundale Club.
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