1. EMERGING TRENDS in ORGANIZATIONAL DEVELOPMENT By Jonathan Mozenter 7/29/99 A Massachusetts Bay OD Learning Group Event

2. 2 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?

3. 3 CHECKING IN Introductions Please State in 15 Seconds –Name –Organization –What You Hope to Take Away from Tonight’s Presentation

4. 4 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

5. BACKGROUND

6. 6 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

7. 7 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

8. MACRO FORCES

9. 9 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

10. 10 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

11. 11 CONSTANT CHANGE 2nd Biggest Impact A Derivative of Other Macro Forces Ramifications –Dealing w/ Uncertainty –Need More Flexible Process –Employee Burn Out

12. 12 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

13. 13 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

14. 14 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

15. 15 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

16. 16 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

17. 17 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

18. 18 EMERGING TRENDS IN ORGANIZATIONAL DEVELOPMENT

19. 19 OD INTERVENTIONS MOST FREQUENTLY USED TODAY Mission and Vision Statement Analysis Strategic Planning Reward and Recognition Change Management Leadership Team Building Facilitation

20. 20 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

21. 21 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

22. 22 TREND#1: EXPANDING THE USE OF OD OD in Education OD in Management Consulting OD in Human Resources

23. 23 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

24. 24 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

25. 25 TREND #2: COMBINGING “HARD” BUSINESS COMPETENCIES AND OD MBA Programs Teach OD Competencies in Core Classes OD in Project Management OD in Management Consulting

26. 26 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

27. 27 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

28. 28 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

29. 29 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

30. 30 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

31. 31 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

32. 32 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

33. 33 TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES Success Factors: Relationships, Culture, Communication, and Design Nicholson McBride Alliance Advantage

34. 34 TREND#4: USING OD TO FACILITATE PARTNERSHIPS AND ALLIANCES Helping Companies Prepare –Appreciative Inquiry –Culture Assessment –Organizational Assessment –Vision Development –Deal with Ambiguity

35. 35 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

36. 36 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

37. 37 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

38. 38 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

39. 39 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

40. 40 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

41. 41 Q & A

42. 42 APPLYING EMERGING OD TRENDS TO 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

43. 43 FEEDBACK ON PRESENTATION