inn vating od...inn vating od od network 2013 annual conference october 5 – 8, 2013 • doubletree...

INN VATING OD

OD NETWORK 2013 ANNUAL CONFERENCE

October 5 – 8, 2013 • DoubleTree by Hilton San Jose • San Jose, California

Organization Development Network

Social Systems • Learning • Networks • Organizations • Practice Development

© David W. Jamieson, Ph.D, 2013

Strategic Organization Design: A Core Platform for Innovating in HR &

Change

David W. Jamieson, Ph.D.

Professor & Department Chair, Org.

Learning and Development, University of St.

Thomas

OD NETWORK 2013 ANNUAL CONFERENCE • www.odnetwork.org Organization Development Network


Strategic Organization Design (SOD)

• Not extensively known in HR or OD, yet

provides foundation for how

organizations work, are effective &

change

• Organizations are systems. SOD helps

to conceptualize the components,

relationships & dynamics

• Highlights importance of alignment-

internal & external-for effectiveness




Behavior

Environment

Strategy

Design



• Can be useful platform in:

• Determining what’s going on

• Recognizing interdependencies

• Targeting needed work & leverage points

• Designing/selecting interventions

• Strategic HR needs to set policies, systems & processes that drive behavior for the strategy

• OD needs to align people, structures, culture & systems for effectiveness & health

Understanding Organizations:

Strategic Organization Design

STRATEGY

CULTURE

BEHAVIOR

SYSTEMS STRUCTURE

VISION

LEADERSHIP

© David W. Jamieson, 2009

ENVIRONMENT

How work, technology & people are put together:

The Values in Operation Ongoing operating policies, processes and procedures

What people do that produces results

MISSION

What the organization intends to do



Every organization is perfectly

designed to get the results it’s getting

Hanna



Unprecedented Era

Scope and pace of change

Work, workers and the workplace

Change in all environmental sectors • Continuous

• Fast

• Simultaneous

• VUCA



ENVIRONMENT

RELEVANT

TRENDS AND EVENTS

FORCES FOR AND AGAINST

S.T.E.E.P.

“To succeed in a changing

world, you need to

understand the changes

that drive it”



MISSION

WHY YOU EXIST

WHY PEOPLE JOIN

YOUR PURPOSE

YOUR HEART



STRATEGY

CULTURE

BEHAVIOR

SYSTEMS STRUCTURE

VISION

LEADERSHIP


ENVIRONMENT




MISSION




STRATEGY

CHOICES ABOUT WHAT TO DO AND NOT DO

YOUR MISSION IN YOUR ENVIROMENT

HOW TO BE MOST SUCCESSFUL & EFFECTIVE

CREATING COMPETETIVE ADVANTAGE



STRATEGY

What to do to be successful in accomplishing your mission in your environment

The “what” and “how” distinction

Planned and adaptive

Outside-in and Inside-out

Positioning, intent and identity

It’s ultimately about choices!



Factors Shaping Strategy

• Relevant

environment trends

and forces

• Competitive

conditions and

industry

characteristics

• Specific

opportunities and

threats

• Resource strengths

and weaknesses,

competencies and

capabilities

• Key executive

drives, passions,

principles and

ambitions

• Organization culture



Determining the Strategic Situation and

Strategy

Conclusions about how the external and

internal factors stack up and their

implications for strategy

Identification and evaluation of strategic

alternatives

Crafting your strategy to fit the situation



STRATEGIC VISION

Roadmap

Direction headed

Intended positioning

What you’re creating

Capabilities you’re emphasizing

Provide meaning to everyone’s efforts—

”Building cathedrals, not laying stones”



STRATEGIC THINKING

A way of orienting/thinking

Scanning and analyzing for meaning,

relevance and impact

Separating driving forces from “noise”

Seeing possibilities and opportunities

Anticipating

Being entrepreneurial



STRATEGIC THINKING

Challenging constraints, assumptions and conventional wisdom

Outside the….

Playing “why” and “what if”

Weighing costs and benefits

Tapping your intuition, passion, values and drive

Avoiding the detail and perfectionist traps



BEING STRATEGIC

Wholeness (not individual parts or units)

In relation to organization mission &

strategy

Contributes to how the organization’s

“business” works

Value added to work with strategic impact

Longer time horizon

Connected to organization environment

influences



The Big Picture: Integrated Strategic

Change Framework

Two time periods—strategic horizon

A current environment with opportunities and threats

A current strategy

A current organization with strengths and weaknesses

A current alignment between the strategy and environment and between the organization and the strategy



The Big Picture: Integrated Strategic Change Framework

A future environment with opportunities

and threats

A future strategy to be chosen for the

anticipated environment

A future organization to be designed

with desired strengths for the chosen

strategy

Leading and managing the execution



SUSTAINABLE COMPETITIVE

ADVANTAGE

Perceived Customer Value

Product/Service Quality Responsiveness Costs/Difficulty Relationship

You have something someone wants and you can deliver it better than anyone else.




ADVANTAGE

Uniqueness

Distinctive competence or resource base

Desired capabilities

Able to continue over time

What you offer is hard to replicate and you can

sustain it over time




ADVANTAGE

Multiple sources

Resources, capabilities, assets,

competencies, identity/reputation

Physical, financial, human and

organization capital

Tangibles and intangibles

Real and perceived



Potential Sources of Competitive

Advantage

Low cost structure

Valued differentiation in services/products

Distinctive competence in a key success factor or valuable process of your business

Valuable physical assets

Valuable human assets

Valuable organizational assets

Valuable relationships and alliances

Intangible assets-brand name, reputation, customer loyalty, unique organization culture


SUSTAINABLE COMPETITIVE ADVANTAGE

• Source Strength Competitive Advantage

• Valuable-what you possess enables firm to respond

to opportunities and threats; valued by the customer

• Rareness-what you possess is not found in other

firms

• Imitability-what you possess is hard or costly to

obtain or replicate

• Organization-the firm is organized to leverage or

exploit the competitive potential of what you possess



Some Generic Strategies

Low cost leadership

Product/service differentiation

Market focus

Innovation

Diversification

Vertical integration

Growth

Relative superiority

Change the playing field (KSF’s)


Results Triangle

Strategy

Organization Execution

Results


“The ultimate competitive advantage in today’s business environment is the ability to change. Lawler & Worley


“The ability to learn faster than your competitors, may be the only sustainable competitive advantage” Arie de Gues



Strategy & HR/OD

Strategic HR implications of strategy

change?

Strategic OD implications of strategy

change?



STRATEGY

CULTURE

BEHAVIOR

SYSTEMS STRUCTURE

VISION

LEADERSHIP


ENVIRONMENT




MISSION




STRUCTURE DEALS WITH:

TASKS, ROLES, WORK SYSTEMS, UNITS, GROUPINGS, LEVELS OPTIMIZING SOCIAL AND TECHNICAL NEEDS DIFFERENTIATING AND COORDINATING CORE AND SUPPORT FUNCTIONS INFORMATION PROCESSING DECISIONS AND CONTROLS FOCUS



BASIC TYPES OF STRUCTURES

FUNCTIONAL

PRODUCT/SERVICE

MARKET/POPULATION

GEOGRAPHICAL

PROCESS



TRENDS IN STRUCTURING

• WIDER SPANS AND FLATTER STRUCTURES

• INFORMATION AND DECISIONS CLOSER TO FRONT LINE OF CORE PROCESSES

• MORE WHOLE PROCESSES

• MORE TEAMS

• MORE FOCUS ON END USERS/RECIPIENTS/CUSTOMERS



Structure Changes & HR/OD

HR implications when structures

change?

Potential OD work with structure

changes?



STRATEGY

CULTURE

BEHAVIOR

SYSTEMS STRUCTURE

VISION

LEADERSHIP


ENVIRONMENT




MISSION




Understanding Culture

• Central concept in behavior

• Guides and shapes behavior

• Drives mindset, perspectives, beliefs and attitudes

• Pervasive manifestations

• Internalized and taken for granted

• Learned, taught, passed down- ”Keepers of the Culture”



Culture Is…

• Underlying assumptions about the nature of reality

• Shared pattern of beliefs and values

• Set of tacit, shared understandings and meanings

• Collective consciousness

• “How we do things around here”

• Values in operation



Organization Culture

• Values in operation

• Evident in and reinforced by:

• Policies • Structures

• Systems • Behaviors

• Language • Humor

• Stories • Symbols

• Rituals • Ceremonies

• Evaluation and success criteria

• Social inclusion and exclusion



Culture change & HR/OD

Ways HR can drive/support desired

culture changes?

OD work to support/drive culture

change?



STRATEGY

CULTURE

BEHAVIOR

SYSTEMS STRUCTURE

VISION

LEADERSHIP


ENVIRONMENT




MISSION




ORGANIZATIONAL SYSTEMS/PROCESSES

• REGULAR, REPETITIVE, ORGANIZED

• PROCESSES, PROCEDURES, POLICIES,

FORMS

• MANAGE OPERATIONAL FLOWS

• CAN BE DESIGNED LIKE STRUCTURE AND

CULTURE TO ALIGN WITH STRATEGY



COMMON SYSTEMS

• Planning

• Budgeting

• Hiring

• Procurement

• Pay

• Benefits

• Careers

• Evaluation

• Rewards

• Development

• Promotion

• Performance

Management

• Information

• Control

• Decision-making



KEY SYSTEMS

Information

Reward

Decision-making/Control

Human Resource



Systems/Processes & HR/OD

Critical systems needing change with

strategy?

Critical HR systems involved in strategy

change?



ALIGNMENT Organization with environment; components of

organization system & behaviors with strategy

• INTERDEPENDENT COMPONENTS

WORK TOGETHER

• ARE MUTUALLY REINFORCING;

SYNERGISTIC

• WORK WITH CONSISTENCY

• HAVE INTENTIONAL FOCUS

• LEVERAGED FOR SUPPORT



Alignment

• Alignment needed for operational

efficiency, clear communications &

organizational effectiveness

• Alignment needed for environmental

survival

• Alignment reduces ambiguity,

confusion & conflict

• Alignment creates

reinforcing/supporting mechanisms



Common Mis-alignments

STRATEGY --- DESIGN STRUCTURE CULTURE SYSTEMS

AMONG DESIGN COMPONENTS STRUCTURE—CULTURE STRUCTURE—SYSTEMS

CULTURE—SYSTEMS

STRATEGY---DESIGN---BEHAVIOR


Aligning Human Resources with Business & Organization Strategy



Strategic HR Thinking

• Find

• Attract

• Select

• Orient

• Deploy

• Develop

• Move

• Contract

• Engage

• Evaluate

• Reward

• Inform

• Involve

• Empower

• Commit

• Retain

• Design jobs &

organization

• Manage learning &

change




Plan-Attract-Select-Orient

• Identify, acquire and integrate talent

Deploy-Develop-Move

• Provide opportunities for growth, challenge,

building experience & careers

Contract-Engage-Evaluate-Reward

• Develop agreements on work and performance

• Tap motivation, passion & engagement

• Provide meaningful feedback and reward

excellence




Inform-Involve-Empower-Commit-Retain • Provide relevant information and include people in

decisions

• Expect responsible thinking, initiative and innovation

• Capture hearts and minds and manage to keep the best

Design jobs-work systems-organization • Create meaningful roles, efficient work processes and an

aligned organization that works

Manage learning-change • Focus on critical knowledge management

• Invest in learning

• Make managing change a core competency



Strategic HR brings…

• Talent needs, projections, sourcing,

movement strategies, development

processes & changing competencies

• Engagement, retention, rewards,

performance strategies for desired workforce

• Risk management in ensuring legal

compliance, policy management & ethical

behavior

• Cultural & diversity implications of strategies



Strategic HR brings…

• Integration of technologies with human

systems for performance & efficiencies

• Analytics for assessing impact and adding

human capital data into decision-making

• Changing leadership needs for new

organizational environments



OD Brings… • Systems thinking; whole systems views of

organizations

• Consultative/partnering relationship

• Understanding strategy-design (structure,

culture, systems)-behavior relationships

& dynamics

• Inquiry with data-based

assessment/diagnostic

skills to understand present reality



OD Brings…

• Behavioral science knowledge for understanding & changing human/group behavior

• Group/team management skills including problem-solving, conflict, facilitation, participation

• Change theories, designs & interventions

• Values base including humanistic approach to people, inclusion of stakeholders, developing potential & democratic processes



Resources

• Worley, C., Hitchin, D. and Ross, W. (1996). Integrated Strategic Change: How OD Builds Competitive Advantage. Reading, MA: Addison-Wesley Publishing.

• “Strategic Business Partner Role: Definition, Knowledge, Skills & Operating Tensions” (co-author with Sue Eklund & Bob Meekin) in Rothwell, W & Benscoter, G (Eds.).The Encyclopedia of Human Resource Management, Volume III: Topical Essays.. San Francisco: Pfieffer/Jossey-Bass. (2012)

• “Strategic Human Resource Thinking” in Preziosi, R. The 2007 Pfieffer Annual: Human Resource Management. Pfieffer/Jossey-Bass (2007)

• Handbook for Strategic HR: Best Practices in Organization Development from the OD Network (Co-editor with John Vogelsang and others), AMACOM/OD Network (2012)

• “OD & HR: Today’s Practice and Tomorrow’s Possibilities “. Guest Co-Editor (with Judy Vogel), Special Issue of the Organization Development Practitioner, Vol 42, No 4 (Fall 2010)

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