This document discusses emerging trends in organizational development (OD). It identifies 5 major macro forces influencing OD: changes in technology, constant change, partnerships and alliances, changes in work structure, and increasing diversity. It then outlines 5 emerging trends in OD: 1) expanding the use of OD, 2) combining hard business competencies with OD, 3) creating whole system change through organizational design and culture change, 4) using OD to facilitate partnerships and alliances, and 5) enhancing continual learning. Each trend is discussed in 1-2 paragraphs highlighting its importance and impact on organizations.

1. EMERGING TRENDS
in ORGANIZATIONAL
DEVELOPMENT
By
Jonathan Mozenter
7/29/99
Group 1:
Sheraz, Qaseem, Rafi & Muneer

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COVERING TODAY…
1. What is an
Emerging Trend?
2. Organization
Development (OD)?
3. Macro Forces
effecting OD
4. Emerging
Trends In OD

3. 3
Emerging Trend:
Something which is growing
in interest and utility over
Trend: A pattern of
gradual change

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5. 5
• Organizational Development (OD) is a field of
research, theory, and practice dedicated to
expanding the knowledge and effectiveness of
people to accomplish more
successful organizational change and performance
• Organizational Development is a planned,
systematic approach to improving organizational
effectiveness – one that aligns strategy, people and
processes. To achieve the desired goals of high
performance and competitive advantage.
Organizations are often in the midst of significant

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ARTICLE’S RESEARCH
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

7. MACRO FORCES
Effecting OD
& Resulting in
5 Emerging Trends..

8. MACRO FORCES
The major external and
uncontrollable factors that
influence an organization's
decision making,
and affect its performance
and strategies.
8

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DISCUSSION OF THE
MACRO FORCES
1. Changes in Technology
2. Constant Change
3. Partnerships and Alliances
4. Changes in the Structure of Work
5. Increasing Diversity in the Work Force
6. Shifting Age Demographics
7. Globalization
8. Mergers & Acquisitions

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1. CHANGES IN TECHNOLOGY
 Largest Effecting Macro Force
• Examples
– Speed of Microchips increasing with decrease
sizes
– Convergence of work and life
– Death of geography (globalization)
– Virtual offices and teams
– Jobs made routine by technology

11. • Results
– Speed of Change has increased
– New Strategies (manufacturing, outsourcing,
etc.)
– Supply and Distribution via seamless electronic
network
– New Relationships and spread teams
– Increased Competition
11

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2. CONSTANT CHANGE
• 2nd Biggest Impact
• “Organizations can no longer depend on
what they do today, to be successful
tomorrow”
• Managers facing dilemma to predict future
in constantly changing world

13. • Results
– Dealing with Uncertainty
– Need More Flexible Process
– Dynamic business models
– Employee Burn Out (not serving singular
function)
– HR efforts to attract and retain employees
13

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3. PARTNERSHIPS &
ALLIANCES
• 3rd Biggest Impact
• “Companies can’t do it all by themselves
anymore”
• Ex: Nike outsourcing its distribution
system
• Yesterday’s competitors, becoming

15. • Key is to actively manager relationships
• Challenges in Making P&A Work
– Dealing with Ambiguity
– Culture Differences
– Boundary Issues (fine line of
responsibilities, and not cannibalizing each
other’s businesses)
– Finding “Right” Partner
15

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4. CHANGES IN WORK
STRUCTURE
• By Product of other Macro Forces like
changes in technology, globalization,
mergers etc.
• Effects of these forces, how
organizations structure their processes
• Ex: ERPs like SAP, Oracle or Peoplesoft
etc.

17. • Types of Changes
– Information Technology Driven (ERP)
– More Global
– Virtual Organizations
– Focus on Core/Outsourcing
– Project Work and Cross Functional Teams
– Customer Focus
17

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5. DIVERSITY
• Diversity of workforce in order to
increase productivity, improve morale,
heighten creativity and enhance
decision making
• Managing diversity refers to collective
mixture of people with different race,
gender, education, systems, functions,
lines of business etc.

19. • 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 issue not a potential strategic
advantage
19

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6. CHANGES IN DEMOGRAPHICS
• Caused by
– Declining Birth Rates in developed
countries, whereas opposite in
developing ones
– Value Conflicts Between Generations
– Rise of Ethnic Minorities into
Leadership
• Examples of issues in
– Finance Industry
– Healthcare Industry

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7. Globalization
• Products and services sold globally
– Enabled by Technology
– Free Trade Laws
– Growing Interdependencies

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8. MERGERS & ACQUISITIONS
• Products and services sold globally
– Defensive Move to Take Advantage of
Economies of Scale
– Will Continue to Happen
– Often Fail: Culture Problems and/or Poor
Integration Program

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ORGANIZATIONAL
CHALLENGES RESULTING
FROM MACRO FORCES
1. Dealing with Inc. Competition and
Customization
2. Need to be Flexible and Cope with
Uncertainty
3. Create an Environment of Constant Learning
4. Adapting to New Technology and
Globalization
5. Developing New Management
Competencies

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EMERGING TRENDS IN
ORGANIZATIONAL
DEVELOPMENT

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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
• Maximize knowledge of human asset

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TREND#1:
EXPANDING THE USE OF OD
• Teamwork is important - Humanware
(Japan), Toyotism (France)
• IDC Forecasts Change Management
Consulting Fastest Growing at 18.6%
• Research Indicates High Use of OD
Interventions Lead to High Returns

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

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TREND #2: COMBIGNING
“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

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TREND #2: COMBIGNING
“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 Continous Learning
– Build Employee Self-Esteem
– Empower Employees

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TREND #2: COMBIGNING
“HARD” BUSINESS
COMPETENCIES AND OD
• MBA Programs Teach OD Competencies
in Core Classes
• OD in Project Management
(collaboration, team work, etc.)
• OD in Management Consulting (change
management)

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TREND #2: COMBIGNING
“HARD” BUSINESS
COMPETENCIES AND OD
• OD was Perceived as Too Soft and had a
Bad Reputation
– Historically it 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

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TREND #2: COMBIGNING
“HARD” BUSINESS
COMPETENCIES AND OD
• Need Knowledge of the Following
Business Areas
– Finance
– Business Management
– Operations
– Program Evaluation
– Information Systems

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TREND #2: COMBIGNING
“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

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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

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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

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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

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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

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

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

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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

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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

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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

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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

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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

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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