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Organisational Development and HR Integrating OD into Strategic HR Dr Rica Viljoen

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Page 1: Organisational Development and HR Integrating OD … Competitor Analysis MESS HR Score Card EVP ... (Accenture). Innovation ... them as just another organisational asset to be

Organisational Development and HR Integrating OD

into Strategic HR

Dr Rica Viljoen

Page 2: Organisational Development and HR Integrating OD … Competitor Analysis MESS HR Score Card EVP ... (Accenture). Innovation ... them as just another organisational asset to be

On our interaction today ..

Plato said:

“Thinking is ���the talking of the soul ���

with itself”

Page 3: Organisational Development and HR Integrating OD … Competitor Analysis MESS HR Score Card EVP ... (Accenture). Innovation ... them as just another organisational asset to be

Sustainability thorough Inclusivity - energy on all dimensions

OD Interventions

New world of work

Nature of the world

Why we change Essence of Change

New Sciences

We change differently

Consciousness On

Diversity

The Individual

The

Team

The Organisation

How individuals change

How groups change

The What

Context: Industry

South Africa Africa Global

Leadership

Doing

Being Disconnect

Apathy

Engagement / Commitment

Inclusivity

Organisation

Group

Individual

EQ Journey

Dialoguing

World Cafe

Storytelling

Appreciative Inquiry

Inclusive and Adaptable

Flexible and Accountable

Change Resilience and

Responsible

How organisations change The way: How we change

Mandala Consulting™

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Role of OD

Strategic Framework

Strategic architecture The articulated and clearly understood concept of the desired future state

Strategy translation into Operational terms Leadership alignment

Vision

Mission

Core purpose

Structure Core values Core

capabilities Internal and

External Branding

Leadership Framework

Profit modeling

Shared views of the present and the future

Leadership formulates strategy

Change resilience

Agreement, Common

understanding

Renewed energy and rigour

Understanding differences

Engagement

Insight

Leadership Drives and implement

strategy

Strategy operationalised

Balanced Score Card and Values

Operational goals

Measures Targets

Strategic Initiatives

Strategic Goals

Values Group and

Individual BSC

Scenario planning

IDP KPA’s Behaviours

SWOT

Building strategic capability

SOAR

PESTLE

Competitor Analysis

MESS

HR Score Card

EVP

Organisational Culture

Resource Perspective

Translation

Performance Management

Process

Optimal Sourcing

Talent Attraction, Retention

Reward Strategy

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Page 6: Organisational Development and HR Integrating OD … Competitor Analysis MESS HR Score Card EVP ... (Accenture). Innovation ... them as just another organisational asset to be
Page 7: Organisational Development and HR Integrating OD … Competitor Analysis MESS HR Score Card EVP ... (Accenture). Innovation ... them as just another organisational asset to be

Quote

“I am a firm believer in people. If given the truth, they can be dependent upon to meet any

national crisis. The great point is to bring them the real facts.”���

���Lincoln

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Importance of Engagement

Page 9: Organisational Development and HR Integrating OD … Competitor Analysis MESS HR Score Card EVP ... (Accenture). Innovation ... them as just another organisational asset to be

Formal culture versus informal culture

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Beck and Cowan, 1994

Human Niches - Laubscher

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Understanding Human Niches

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• Circular tribal structure. • Led by elder(s), shaman, or chief who makes decisions. • Roles determined by kinship, strength, sex, age. • Ways of the tribe are sacred and rigidly preserved. • Demands obedience to leader(s)

“Tribe”

• Organisation of equals for mutual benefit. • Little concern with status or privilege. • The “people” make decisions as a group. • Frequent communication in all directions. • Emphasis on consensus, sensitivity to feelings, and human needs.

“Social Network”

• Power-orientated – strongest survives best. • Most powerful person makes decisions. • Big Boss directs Work Bosses who drives the masses. • Communication downwards only. • Strength determines relationships

“Empire”

• Rigid rules for structure and rank. • Person with appropriate position of power makes decisions. • Divine authority speaks through secular authority. • Communication downward and horisontally across classes. • People stay in their “rightful” places.

“Authority Structure”

• Bureaucratic and status-orientated. • Person with the delegated authority makes decisions. • Distribution of specific amount of responsibility. • Communication down, up and across. • Power relates to prestige and position within the structure allows for upward mobility.

“Strategic Enterprise”

“Systemic Flow”

• Structure according to task at hand. • Project-centred with changing “functional” leadership. • Competent person makes decision. • Communication only as needed. • May adopt “Tribe” through “Social Network” if appropriate to situation

Understanding Human Niches

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A state of nature

Mysterious and frightening

Rough and hard like a jungle

Divinely controlled and guilt-driven

Full of opportunities to take control

The natural habitat of all humanity

A complex system at risk of collapse

A single living interdependent entity

Act much like other animals

Placate spirits and gather for safety

Fight to survive in spite of others

Obey rightful higher authority

Pragmatically test options for success

Form communities to experience growth

Seek the order beneath earth’s chaos

Learn how to be free and question

Life Conditions Outside Thinking Systems Inside Colors

Internal Controls External Controls © Copyright 1997 NVC, Inc. Denton TX 76202-0797

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Human Niches

I am not saying in this conception of adult behaviour that one style of being, one form of human existence, is inevitably and in all circumstances superior to or better than another form of human existence, another style of being. What I am saying is that when one form of being is more congruent with the realities of existence, then it is the better form of living for those realities. Clare Graves

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Importance of Engagement •  From a global sample of 60 corporations the Corporate

Leadership Council found that over 80% of senior human resources (HR) professionals agreed that employee engagement was a high priority for 2009 and 40% claimed it had become more of a priority over the last year.

•  95% of senior private sector HR managers believe that the top challenge they face now is maintaining employee engagement.

•  75% of leaders have no engagement plan or strategy even though 95% say engagement impacts on business success. (Mandala and ACCOR)

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•  Out of 32 103 workers surveyed by the Benchmark of

Engagement in 32 countries, only 29% are engaged. 19% are actually disengaged.

•  Fewer than 1 in 3 employees worldwide (31%) are engaged. Nearly 1 in 5 (17%) are actually disengaged (Gallop).

•  Engagement surveys without visible follow-up action may decrease engagement levels, suggesting that organisations think twice before flipping the switch on measurement without 100% commitment for action planning based on the results.

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Business Case for Engagement

•  Disengaged employees costs the US economy $370 BILLION annually (Gallup).

•  February, June, and October of 2010, the number of employees voluntarily quitting surpassed the number fired or discharged. (US Bureau of Labor Statistics).

•  70% of engaged employees indicate they have a good understanding of how to meet customer needs; only 17% of non-engaged employees say the same. (Wright Management)

•  78% would recommend their company’s products of services, against 13% of the disengaged. (Gallup)

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•  86% of engaged employees say they very often feel

happy at work, as against 11% of the disengaged. •  45% of the engaged say they get a great deal of their life

happiness from work, against 8% of the disengaged. (Gallup)

Less than 50% of chief financial officers appear to understand the return on their investments in human capital (Accenture).

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Innovation •  Higher levels of engagement are strongly related to

higher levels of innovation. •  59% of engaged employees say that their job brings out

their most creative ideas against only 3% of disengaged employees. (Gallup)

•  From 2010 to 2012 perceived interest in welfare of employees declined with 12% from 53% to 41%.

•  At the same time encouragement to contribute declined with 10% to 41% (BeQ).

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Innovation •  Only 42% thought their senior managers communicated

openly and honestly; •  Only 12% thought their managers treated them as key

parts of the organsation; and •  No fewer than 64% felt their senior managers treated

them as just another organisational asset to be managed.

•  Only 51% of staff felt they were involved or consulted on decisions that might affect their work area, team or department (BeQ)

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•  Employees worldwide who know their managers as

“people” are more likely to be engaged; •  The higher up in the organisation you go, the more likely

you are to be engaged; •  Engagement levels are higher among older employees

and people in positions of power and authority; •  75% of people voluntarily leaving jobs don’t quit their

jobs; they quit their bosses (Roger Herman). •  Engagement increases with organisational tenure; and •  Trust in executives can have more than twice the impact

on engagement levels than trust in immediate managers does.

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Retention •  23% of workers are actively looking for other work in SA

(Mandala Consulting); •  1 in 4 workers intend to jump ship within a year

(Telework Research Network); and •  18% of dis-engaged employees actually undermine their

co-workers’ success. (Gallup).

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Change Efforts •  Engagement and involvement

are critical in managing change at work; nine out of ten of the key barriers to the success of change programs are people related (PWC).

•  Only 24% of private sector employees believe change is well managed in their organisations (15% in the public sector) (Ipsos MORI).

•  The actual turnover figure of non-engaged workers are 54% higher than employees that are engaged.

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Other dynamics •  32% of team members say they don’t see their

managers enough; •  64% of team are worried about their benefits; •  82% of managers don’t know how to accurately measure

their team members; •  42% of team doesn’t know their next move in the company; •  56% of new hires leave their jobs within the first year; •  83% of those who do not feel treated with respect intend to leave within two years.

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Recognition •  72% of employees would work harder if they were better

recognised •  78% of SA workers said being recognised motivates

them in their job •  52% of employees said they would leave their current

job for a company that clearly recognised employees for their efforts and contributions

•  65% of engaged said they would also work harder if they were better recognised at work.

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Business Outcomes •  Companies with high levels of employee engagement improved

19.2% in operating income while companies with low levels of employee engagement declined 32.7% (Towers Watson).

•  If organisations increased investment in a range of good workplace practices which relate to engagement by just 10%, they would increase profits by $2,400 per employee per year (IES/Work Foundation Report).

•  Increased employee engagement was accompanied by a 12% increase in customer satisfaction and significant double‐digit revenue and margin growth over the past three years (Serco Study).

•  Engaged organisations grew profits as much as three times faster than their competitors. They report that highly engaged organisations have the potential to reduce staff turnover by 87% and improve performance by 20%. (Corporate Leadership Council)

•  A 1% increase in employee commitment can lead to a monthly increase of 9% in sales. (IES)

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Quote

Page 29: Organisational Development and HR Integrating OD … Competitor Analysis MESS HR Score Card EVP ... (Accenture). Innovation ... them as just another organisational asset to be

Engagement Drivers Right Employers Correctly placed

Exceptional Leadership Organisatonal Systems and Strategies

Work Environment Aligned Strategy, Values and Effort

Engagement, Inclusiveness Teamwork

Growth and Development Support and Recognition

Engaged Employees Greater loyalty

Greater Corporate Citizenship behaviour Enhanced Commitment

Enhanced Effort Organisational Success Satisfied Stakeholders Increased Retention Higher Production

Less Incidents and accidents Higher Profitability

Growth

Engagement Value Proposition Model

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Typical OD process

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The real power of a vision is unleashed only when most of those

involved have a common understanding of its goals and

direction. Winkler 2002

Quote

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Leadership Team

No Visible Support for chosen Strategy

Dominant Coalitions Conflicting Goals

Delayed Decisions

Individualistic Culture Disconnect between Mission & meaning

Why organisational strategies fail?

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7 Lessons for OD 1.  Measure Engagement and determine ROI of interventions Through scientific diagnostic statistical tools (BeQ) that is cultural sensitive

2. Release voice “The most important thing is not the script but the story”

3. Listen as if your eyes are closed “The best leader is the one who listens the best to the total organisation”

4. Speak in colours Translate for type and human niche

5. Remember what made us successful in the first place “If you want to move forward, look back, look back…”

6. Position yourself in strategic business conversations

“Incorporate HR and OD strategies in line strategy”

7.  Integrate “I would do anything for the simplicity at the other side of complexity”

Page 34: Organisational Development and HR Integrating OD … Competitor Analysis MESS HR Score Card EVP ... (Accenture). Innovation ... them as just another organisational asset to be

Questions?

Page 35: Organisational Development and HR Integrating OD … Competitor Analysis MESS HR Score Card EVP ... (Accenture). Innovation ... them as just another organisational asset to be

Dr Rica Viljoen Mandala Consulting

0824495846 [email protected]

Skype: Rica.Viljoen