od workshop pres 25 june 09

8/8/2019 OD Workshop Pres 25 June 09

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June 2009

ORGANISATIONALDEVELOPMENT AND

CHANGE KNOWLEDGEEXCHANGE GROUP


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IMPACT OF GLOBALLEADERSHIP PERSPECTIVEON THE SOUTH AFRICAN

REALITY


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AGENDAy INTRODUCTION

y CONTEXT OF CURRENT GLOBAL SITUATION -

PESTELy INSIGHTS FROM LEADERS

y SOUTH AFRICAN REALITY - PESTEL

y HOW SHOULD OD RESPOND TO THIS


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INTRODUCTION OF SPEAKERSy Unathi Mdlungu Phulo Organisational Development

y Louise Niemand Phulo Organisational Development

y Beatrice Attrill Independent OD Consultant

y Ruwayne Kock The Human Resource Practice


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INTRODUCT

IONy Introduction to session

y Format of session

y Expectations of delegates


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CONTEXT OF CURRENT GLOBALSITUATION - PESTEL

y Political

y Economicaly Social

y Technological

y Environmental

y Legal


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PESTEL ANALYSISy Political Impact unrest in countries (Africa, Iran), conflict between

countries (Iran and USA), availability of nuclear technology (N-Korea,Pakistan, Israel, USA, USSR)

y Economical Impact current credit crunch (UK and USA hardesthit), rise of China and India, business revenue down between 20 30%,markets decline

y Social Impact global levels of poverty increasing, shrinking foreign

aid mainly due to economy, current state in developmental states suchas Zimbabwe, Somalia and Iraq


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PESTAL ANALYSISy Technological Impact rapid development of new

technologies, new sources of energy, mechanisation, medicalresearch, ICT and food security

y Environmental Impact global warming, need for energy,access to sufficient clean water

y Legal Impact trade agreements, creation of Unions (EU and

AU), competition commissions/ boards, possibility of King 111report, new Companys Act


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INSIGHTS FROM LEADERSy Leaders suggests the following key strategic responses in the

next six months?

y Stick to vision and review strategy

y Redefine and re-build core communities

y Ensure every cent and minute deployed in alignment to strategy

y Explore new opportunities for leadership and innovation

Source: Leadership Insights from three Continents (2009), WorldsViewConsulting


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Stick to visiony Test organisational strategy

y Do not follow previous decisions blindly

y Focus on growth and better, simpler execution

strategies

y Revisiting fundamental business principles, corepurpose and values

y Go back to basics


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Internal Communitiesy Disclosure and consultation

y Managing of uncertainty

y Need for meaningful engagement align peoples energy,

commitment, support and passion to strategyy Review of talent management and high potential programmes

y Centralised decision making

y Exposing younger leaders to current global situation

y

Exposing non-value adding staff


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External Communitiesy Get close to your customers

y Non traditional solutions to customer problems

yAppreciating where customer is in tough times

y Financial health

y Current functioning

y Create relationships with various stakeholders, evenprevious competition


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Alignmenty Cut the fat and not the muscley Optimise resources and redeployment

y Review/ cut operational expenditure- 12,5% cut will lead to break

even, 25% cut will lead to satisfying stakeholder desire for 10%EBIT

y Measure peoples contribution to strategy attainment

y Speed up consultation and execute smartly/ quickly

y Focus on what you know and can do best


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Innovationy Create new relationship/ review old relationship collaborationwith all players in value chain

y Leverage networks hard

y Best level of delivery at greatest level of variable cost

y Focus on interfaces and understanding dynamics of change

y Seeing organisations as open systems


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SOUTH AFRICAN REALITY -PESTELy Politics Elections in April 2009. ANC won 8 of 9 provinces, changes

in and increase of Cabinet, New and changed GovernmentDepartments mandates in both National and Provincial spheres,Tripartite relationship ANC, Cosatu and SACP, possible looming

strikes amidst economic downturn

y Economy downturn felt in South African Economy and seen in joblosses especially in manufacturing and mining sectors, reduction inGDP, possibility of changing economic policy, high need for imports,

exporting of raw material without developing skills to create products


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SOUTH AFRICAN REAL

ITYy Social increase in poverty, high levels of crime and corruption,

Poverty alleviation and job creation main aims of ANC andGovernment, Expanded Public Works Programme, Youth Development

Agency, FIFA 2010, Free Education until Matric, increase in social

spending (e.g. grants, UIF, pension fund etc)

y Technology broadband and internet access more accessible withnew optic fibre cable, Gauteng freeway improvement project, BRTsystems in major cities, other energy sources (Eskom), movement todigital technological operations


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SOUTH AFRICAN REAL

ITYy Environment changes in weather patterns observed, land re-

distribution vs. conservation, signed KYOTO protocol, tensionbetween conservation vs. economic growth

y Legal Legislation review due to changes in GovernmentDepartments, Consumer Protection Act, National Credit Act,National Health Insurance Proposal, National Companys Act,King 11 and possible King 111 reports (governance)


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WHAT IS ODs ROLE IN THIS?


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Definitions of ODy Organisational development is an effort planned

organisation wide and managed from the top to increaseorganisational effectiveness and health through planned

interventions in the organisations processes usingbehavioural science knowledge (Beckhard, 1969, p9)

y Organisational development is a response to change, acomplex educational strategy intended to change thebeliefs, attitudes, values and structure of the organisationsso that they can better adapt to new technologies, marketsand challenges and the dizzying rate of change itself(Bennis, 1969, p2).

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Definitions of ODy ..... improving organisations by applying knowledge from

behaviour science - psychology, sociology, culturalanthropology and related disciplines. If improvement of

the organisational functioning means change, thenbroadly defined, OD means organisational change (Burke,1982, p3).

y Organisational development is a top managementsupported long-range effort to improve an organisationsproblem solving and renewal processes with the assistanceof a consultant facilitator and the use of the theory andtechnology of applied behaviour science including actionresearch (French & Bell, 1990)

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Definitions of ODy Van Tonder & Roodt (2008) defined OD from a South

African perspective. They define OD as a scientificdiscipline and practice field concerned with themulti-faceted change processes, primarily of aplanned and sustainable nature, with the purpose ofenhancing the adaptive and self renewing capabilitiesof the organisational system in response to or in

anticipation of shifts in stakeholder needs or demandsthrough the application of behaviour scienceknowledge and technology that will contribute toimproved individual, organisational and social well-being.

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Key characteristic of ODy OD is a long-range perspective

y OD should be supported by top management

y OD effects changey OD empowers the system to take responsibility for

achieving and evaluating results.

Rothwell & Sullivan (2005)

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ExerciseWhy care about OD?

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Importance of ODy Powerful set of OD theories and practices aimed at

increasing organisational productivity and fostering

individual well-being.y It had humble roots that were enhanced to reach their

full potential and to reap the best benefits fromapplications of OD practices within certain settings.

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ExerciseHow do you use OD in your organisation?

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Application of ODy OD engages:

y People within and among human systems

(organisation) in activities (interventions) intended tobring about positive change.

y For specified clients and stakeholders.

y Direction towards the improvement of humanconditions guided by humane values by means ofsignificant application of knowledge rooted in socialand behavioural sciences.

(Massarik & Pei-Carpenter, 2002)

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ExerciseHow does OD relate to change?

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ODs relationship to changey Traditionally Organisational Development has dealt

with interventions to improve the organisations

people functioning in the here-and-now, acceptingand not questioning the soundness of the biggerorganisational setting.

y Organisational Transformation, which historically

came after Organisational Development involvesmore future orientated interventions aimed atchanging the total organisational landscape

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ODs relationship to changey However, transformation within South African

context would be inappropriate due to the unique

focus on employment equity and black economicempowerment.

y Therefore, Organisational Development and Change(ODC) are used to reflect this trend and involve:

y

the establishment and reinforcement of change.y Strategy, structure and process changes.

y Improving organisation effectiveness

(Corporate Leadership Council, May 2003)

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ExerciseWhy has OD become important for HR?

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Manage vendors, suppliers,budgets, and HR systems

Handle employeestransactions andenquiries

Develop and deliver

programmes that enhance theorganisations ability toattract, develop and retainsuperior performers

Align HR activities and programmeswith the strategic direction andbusiness needs of the organisation

TodayToday FutureFuture

Administration

Transactions

PerformanceEnhancement

Strategy

40%

30%

25%

5%

% Time, Effort,

Cost

20%

20%

20%

Strategy

Administration

Performance

Enhancement

40%

Transactions

Source: Hay/McBer & Company, presented by Lyle M. Spencer,Jr.,PhD

The Changing Face of HRHR Transaction and Administration functions are being enabled

through leading edge e-HR solutions


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Convergence Between HRM and

ODy Rothwell & Sullivan (2005) affirms that HR should

shift its focus:y To become more strategic in its thrust, by relegating

highly transactional efforts (such as processing forms orrecordkeeping) to outsourcing agents or downloadingthem onto employees to carry out.

y To become more oriented to human performanceimprovement or performance consulting, which helpsoperating managers to troubleshoot and solve peopleproblems that exceed their skills.

y To help managers and workers to manage change, andthat role links closely to OD.

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Generic ODC Framework

Theory

Content

Roles

Process

What

w

Where

Wh

Psycho

Classical

Active

Internal

SystemicTransformational

PeopleBehaviour

Post Modern

TechnicalConsulta

External

Total System

System

Mind-set

Transactional

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Action Research OD Approachy The ODC process (value chain) model consists of the

following phases:

y

Contracting;y Diagnose;

y Design;

y Build;

y Implement; andy Evaluation.

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OD Value Chainy Contracting phase involves the initial meetings with

the client serve to validate the expectations regarding

the timing and scope of the overall project.y Diagnosis phase involves the development of a

common context and understanding (between clientand the consultant), current challenges and futuredirection.

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OD Value Chainy Design phase involves the identification of the major

opportunities for performance improvement that areassociated with existing processes, technology andhuman resources.

y Build phase involves the construction and testing ofthe business solution.

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OD Value Chainy Implementation phase involves the setting in

motion the full suite of the process, technological andsocial changes that have been designed and built.

y Evaluate phase involves mechanisms to ensure thatperformance improvements resulting from the ODCintervention are sustained

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Appreciative Inquiry Approach The traditional OD approach of problem diagnosis

and feedback depleted the energy from the systemand brought about discomfort among members which

result in resistance Cooperrider et al., (2003)s Appreciative Inquire (AI)

4-D cycle consist of: Define affirmative topic

Discovery Dream

Design

Destiny phases

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pr nc p es o apprec a ve


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pr nc p es o apprec a ve

inquiry

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Constructionist

principleWords creates worlds

Simultaneity principle Inquiry creates change

Poetic principle Choose what we study

Anticipatory principle Images inspire action

Positive principle Positive questions lead to positive change

Wholeness principle Wholeness brings out the best

Enactment principle Acting as if is self fulfilling

Free choice Free choice liberates power

Narrative principle As we weave stories, so we create bonds

A areness principleAwareness unifies, amplifies and magnifies

the effect of the AI


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Appreciative Inquire 4-D Cycle

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DefineAffirmativeTopic choice

DREAMWhat might be(imagine what

the world iscalling for)Envisioning

DISCOVERYWhat gives life(best of what is)Appreciating

DESTINYWhat will be

(how to empower,learn and adjust)

Sustaining

Mohr / Jacobsgaard Four I Model of AI

Cooperrider et al., 200 AI 4 D CycleImagine

Initiate

Innovate Inquire

DESIGNHow it can be

(determine theideal)

Co-constructing

I t ti t i


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Integrative systemic

perspective on organisations

41Source: Van Tonder & Roodt (2008)


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Technical system Interventions

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Sub-system Intervention Types Intervention Description

Technology Sub-

system

Information Technology: Change

occur at 2 levels:

Level 1 entails the identifying,

informing and equipping of the

system end-user. Four core

change management

workstreams required.

Role design and mapping

Training

Communication

Performance stimulation

Level 2 entails assessing the

business risk and readiness to

ensure the path is clear for the 4

core workstreams

Manage stakeholders

Change readiness

assessment

Business impact

assessments

Business Process Re-

engineering

Business process redesign

Policies, practices and

procedures

Standard guidelines to

organisational members

Task

Sub-system

Job design Role analysis

Role negotiation

Responsibility charting


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Social system Interventions

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Sub-

system

Intervention Types Intervention Description

Psycho-

social Sub-system

Psycho-social process,

competencies or skills onindividual, group, team or

organisational level

Induction and socialisation

Team building

Process consultation

T-groups

Structural

Sub-system

Organisational design Redesign

Restructuring

Self directed work teams

Quality circles

Downsizing


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Integration Interventions

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Sub-system Intervention Types Intervention Description

External

Interface

Sub-system

Environmental Analysis SWOT

Stakeholder analysis Realignment of strategy

Goal

Sub-system

Performance

Management

Organisational goals (MBO)

Performance Appraisal

Strategic Planning Strategic Analysis

Strategic Choices

Strategic Plans

Strategic Execution

Culture

Sub-system

Culture shift Value clarification

Excellence or Quality award

Learning organisations


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Using OD to weather the

economic turmoily In todays desperate world economy, the HR fraternity

needs to take leadership in mediating the impact onpeople. Organisational development has an importantrole to play to create organisational effectiveness. Inparticular, organisational development initiativesneed to focus on:

y Increase organisational agility

y Improve employee morale

y Engage employees

y Build change resilience

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Using OD to weather the

economic turmoily Organisations need to focus on both the hard and soft

people issues. The soft people issues focus on thechange process to create an effective organisationalstructural design whereas the hard issues focus on thechange process to enhance the effectiveness of anorganisations culture

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od workshop pres 25 june 09

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