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EMERGING TRENDS in ORGANIZATIONAL DEVELOPMENT


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?. CHECKING IN.

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EMERGING TRENDS in ORGANIZATIONAL DEVELOPMENT

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EMERGING TRENDS in ORGANIZATIONAL DEVELOPMENT

By

Jonathan Mozenter

7/29/99

A Massachusetts Bay OD Learning Group Event


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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?


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CHECKING IN

Introductions

  • Please State in 15 Seconds

    • Name

    • Organization

    • What You Hope to Take Away from Tonight’s Presentation


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WHAT DO I MEAN BY AN EMERGING TREND?

  • 5 Minutes to Think About What You Think are the Emerging Trends and Why

  • 10 minutes to Break into Groups of 3 People Discuss Your Thoughts


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BACKGROUND


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HYPOTHESIS

  • Systemic Approach

    • OD Trends are Driven by Organization Challenges which are Driven by Macro Forces

  • Expected Results

    • Constant Change

    • Learning and Flexibility

    • OD trends: Learning Organizations, Knowledge Management, Change Management, and Org. Design


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METHODOLOGY

  • Library and Internet Research

  • Qualitative and Quantitative Research

  • 4 Groups of People Interviewed

    • External OD Consultants

    • Internal OD Consultants

    • Line Managers

    • Other Business Minds


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MACRO FORCES


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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


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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 Can’t 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

    • Finding “Right” Partner


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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


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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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TREND#1: EXPANDING THE USE OF OD

  • 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


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TREND#1: EXPANDING THE USE OF OD

  • OD in Education

  • 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 Client’s Language

    • Measure OD Interventions in Bottom Line Metrics


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

  • Move from Isolated Interventions to Whole System Interventions

  • Aligning Strategy with Org. Design, Culture, and Compensation

  • More Effective, Longer Lasting, and More Expensive


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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

    • Actively Manage Culture


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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 Generalists

    • 50% Performance and 50% Modeling Values


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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 Communication Programs


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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 Process

  • Initial Design

    • Environment of Trust and Openness

    • Type of Alliance

    • Scope of Project

    • Success Factors

    • How will it be Measured


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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

  • Learning

    • Match Learning Objectives w\ Learning System


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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 Learning


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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 TRENDSTO 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