Organization Development (OD) related diagnosis associated with the change in the ORG and the need to ensure that all people, process and technology are aligned. This looks at the need for diagnosis, theg purpose behind and the methods that allow for diagnosis.
2. What are we attempting…
Need for diagnosis
Levels of diagnosis
Methods of diagnosis
Suggested Interventions
…
3. 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
4. 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
5. 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
6. Scope of Diagnosis
OrganizationalLevel
• Impact Points
• VMV
• Strategy
• Structure
• Culture
• Technology
GroupLevel
• Impact Points
• Goals
• Task
Allocation
• Group Norms
• Group
Composition
• Group
Dynamics
IndividualLevel
• Impact Points
• Skills
• Independence
• Identity
• Growth
• Inclusive or
Value
7. 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.
8. 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.
9. 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.
10. 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
12. 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
13. 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
14. 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
16. 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
17. “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
19. 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
This is inter-related with the OUTSIDE Environment – that which is not controlled solely by the behavior and outcomes of the ORG. This also means that the OUTSIDE ENV in many ways also contributes to the elements in the 6 box board. That is, for e.g., the opportunity is dictated by the existing of space in the current market or that the technology in play helps deliver the same product or offerings to existing marketplace or any other geography that is not sufficiently covered. As another example, the current demography and purchasing power of the market place may offer opportunities to enhance the current offerings. And so on
The same opportunity may offer a sufficiently and better able leadership and skills to work with the opportunity or any change agenda.
Produced by Tom Peters and Robert Waterman; at McKinsey in 1980;
Hard elements – Strategy, Structure, Systems
Soft Elements – Shard Values, Skills, Staff, Style
All these 7 elements have to be aligned to the change agenda to move forward.