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 DiagnosisO

rganiz

ati

onal

Level• Impact Points

• VMV• Strategy• Structure• Culture• Technology

Gro

up

Level • Impact Points

• Goals• Task

Allocation• Group

Norms• Group

Composition• Group

Dynamics

Ind

ivid

ual Le

vel • Impact Points

• Skills• Independenc

e• 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

Leadership

- Managing Elements & Outcomes

Purposes- Why do we

exist?- What do we

delivery, offer?- To whom do we

deliver?

Structure- How do operate

to deliver?- How effective is

this?

Rewards- What’s the

incentive in play?- Who gets it?

Process- What’s the level

of interplay between teams?- How does co-ordination gets

achieved?

Relationships- How do we deal

with people?- How does technology

enable that?

OUTSIDE ENVIRONMENT

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

Inte

rventi

ons

&

Outc

om

es

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