1. Aspire 2.0 Cohort 2 - North West
Strategic HR & OD Business Partner Programme

2. Module 4 The Organisational Dynamic

3. Learning Objectives
To articulate and explore what OD is and how it add value as a strategic capability
Review and assess key frameworks that help develop and deliver OD capability
Explore OD as a system thinking mindset
Consider how OD is part of the HRBP toolkit

4. Exercise: So what is OD ..?

5. A Definition of OD …
“ … Theory and practice of planned, systematic change in the attitudes, beliefs, and values of the employees through creation and reinforcement of long-term training programs. OD is action oriented. It starts with a careful organization- wide analysis of the current situation and of the future requirements, and employs techniques of behavioral sciences such as behavior modelling, sensitivity training, and transactional analysis. Its objective is to enable the organization in adopting-better to the fast-changing external environment of new markets, regulations, and technologies…” - BusinessDictionary.com

6. https://soundcloud.com/cipd/podcast-28-organisational-development
CIPD Podcast - OD

7. Insight – Innovation - Integration

8. Emerging Organisational Models

9. Organisational Model …
Change Models …?

10. Simple OD Model of change 5 Phase Model
CASE FOR CHANGE
PHASE 2
ORGANISATIONAL ASSESSMENT
PHASE 3
DESIGNING THE NEW WAY
PHASE 4
IMPLEMENT AS CHANGE
PHASE 5
REVIEW
Identify business need for change. Future state analysis
ID the ‘sponsor’ for change
Feasibility and scenario planning
What do we have, what do we need?
Stakeholder analysis
Data analysis, trends, benchmarking
Which roles are affected?
Determine the right size, shape for the future
Systems thinking
New roles, changed roles?
Layers of management
Assigning the people
In-source, outsource etc
Leadership visibility
Facilitating phases of change
Talent and succession support
Knowledge protection
Measure effectiveness of the change
Measure alignment across the system
Did we achieve the strategy?
ORGANISATIONAL DEVELOPMENT
SKILLS, KNOWLEDGE, ATTITUDE, CULTURE, VALUES, HEALTH, NEW NORMS

11. Activity: The Need/Want/Drivers of Change
In small groups discuss:
Why do organisations change?
Is it a want or a need? Is there a difference?
What or who are the drivers of change?
Why is OD important in supporting these drivers?

12. OD Model of Change – Phase 1
CASE FOR CHANGE
PHASE 2
ORGANISATIONAL ASSESSMENT
PHASE 3
DESIGNING THE NEW WAY
PHASE 4
IMPLEMENT AS CHANGE
PHASE 5
REVIEW
Identify business need for change. Future state analysis
ID the ‘sponsor’ for change
Feasibility and scenario planning
What do we have, what do we need?
Stakeholder analysis
Data analysis, trends, benchmarking
Which roles are affected?
Determine the right size, shape for the future
Systems thinking
New roles, changed roles?
Layers of management
Assigning the people
In-source, outsource etc
Leadership visibility
Facilitating phases of change
Talent and succession support
Knowledge protection
Measure effectiveness of the change
Measure alignment across the system
Did we achieve the strategy?
ORGANISATIONAL DEVELOPMENT
SKILLS, KNOWLEDGE, ATTITUDE, CULTURE, VALUES, HEALTH, NEW NORMS

13. Understanding the Organisation – The Cascade
Strategy – long term/mid term?
Short term objectives?
Opportunities this creates?
Problems this creates?
How does this affect the people within the organisation ?
OD SOLUTION

14. The McKinsey 7S Model

15. The Hard S’s
Strategy
It is the ‘how’ of the business’s plan, and should detail the actions the business plans to take either in response to or in anticipation of changes in its external environment.
Structure
The way the business is structured in terms of reporting, is often strongly influenced by its size and diversity.
Systems
The daily activities and procedures staff undertake to get the job done, whether formal systems such as Finance and IT, or informal systems such as communication processes.

16. The Soft S’s
Style
The culture of the business, the way people behave and comprising two elements:
Business Culture: the dominant values, beliefs and norms, which develop over time and become relatively enduring features of organisational life - 'the way we do things round here.'
Management Style: the style of leadership adopted, what managers do and the way they do things, rather than what they say.
Staff
 The people, their skill sets and their levels of capability; it also encompasses talent management and staffing plans.
Skills
The ability to do the organisation’s work; it should reflect overall performance of the organisation - what it does well, how it shifts and develops to exceed in new areas.
Shared Values
A set of traits, behaviours, and characteristics the business believes in – these values would be evidenced in its culture and work ethic, and are often described in the business’s mission and vision statements. Placed in the middle of the model to emphasise their importance being central to the development of all other elements.

17. Forecasting the Future - Future State Analysis
Current State
Future State
Actions to close the gap

18. OD Model of Change – Phase 2
CASE FOR CHANGE
PHASE 2
ORGANISATIONAL ASSESSMENT
PHASE 3
DESIGNING THE NEW WAY
PHASE 4
IMPLEMENT AS CHANGE
PHASE 5
REVIEW
Identify business need for change. Future state analysis
ID the ‘sponsor’ for change
Feasibility and scenario planning
What do we have, what do we need?
Stakeholder analysis
Data analysis, trends, benchmarking
Which roles are affected?
Determine the right size, shape for the future
Systems thinking
New roles, changed roles?
Layers of management
Assigning the people
In-source, outsource etc
Leadership visibility
Facilitating phases of change
Talent and succession support
Knowledge protection
Measure effectiveness of the change
Measure alignment across the system
Did we achieve the strategy?
ORGANISATIONAL DEVELOPMENT
SKILLS, KNOWLEDGE, ATTITUDE, CULTURE, VALUES, HEALTH, NEW NORMS

20. Activity In your groups:
What are the core values in your organisation? What would you tell a friend about what is valued and not valued? (rewarded and punished etc)
How do these values play out in the way the organisation operates?

21. The Cultural Dimension
Culture includes organisational:
Vision - Aspirations
Values – Beliefs
Norms – Assumptions - Habits
Systems – Symbols - Language
“A pattern of collective behaviors and assumptions that are taught to new organisational members as a way of perceiving, and even thinking and feeling.”

22. Example : Current Culture Required Culture Visible signs
Different restaurants for different grades
Reserved parking for senior managers
Suits and ties
Address senior managers formally
Attitudes
Positive about the company
Negative about senior managers
Beliefs
You have to be here a long time to get promoted
The trade union sorts out problems
Behaviours
Managers command and control
Decisions are made top down
Employees don’t challenge decisions from the top

23. OD Model of Change – Phase 3
CASE FOR CHANGE
PHASE 2
ORGANISATIONAL ASSESSMENT
PHASE 3
DESIGNING THE NEW WAY
PHASE 4
IMPLEMENT AS CHANGE
PHASE 5
REVIEW
Identify business need for change. Future state analysis
ID the ‘sponsor’ for change
Feasibility and scenario planning
What do we have, what do we need?
Stakeholder analysis
Data analysis, trends, benchmarking
Which roles are affected?
Determine the right size, shape for the future
System thinking
New roles, changed roles?
Layers of management
Assigning the people
In-source, outsource etc
Leadership visibility
Facilitating phases of change
Talent and succession support
Knowledge protection
Measure effectiveness of the change
Measure alignment across the system
Did we achieve the strategy?
ORGANISATIONAL DEVELOPMENT
SKILLS, KNOWLEDGE, ATTITUDE, CULTURE, VALUES, HEALTH, NEW NORMS

24. Planning Having described in detail the future of the business:
What is the gap between where we are now and where we need to be in all of these areas? (for the whole business and for specific functions)
What actions must we take in HR to make this happen? Consider, reward, L & OD, ER, engagement, policies/procedures, performance management, resourcing, exits?
What (or who) is going to block success?

25. Prioritisation Tool Project Totals Business Driver 1 Business Driver 2
HR Action 1
HR Action 2
HR Action 3
Measurable value add

26. Prioritisation Tool 26 Project Totals (/40) 8 6 30 9 7 33 23 21 25 24
20% by 2020
Reduce Real Estate Costs
Increase Customer Connection
Digitise more of the service portfolio
Project Totals
(/40)
Revitalise Performance
Frameworks 8 6 30
Enhance Digital Fluency 9 7 33
Create a Comms Culture
Measurable value add 23 21 25 24 26

27. What is a System?
‘A system is an interconnected set of elements that is coherently organized in a way that achieves something (function or purpose).’
Characteristics:
Integrity or wholeness
Adaptive
Resilient
Evolutionary
Goal-seeking
Self-preserving
Self-organising

28. Impact on system when changes are made
Element
Interconnections
Function/Purpose
The elements are the parts of the system we are most likely to notice. They are least important in defining the unique characteristics of the system. Changing elements has the least effect to the system.
If interconnections change, the system may be greatly altered.
Function/purpose is the least obvious part of the system. It is the most crucial determinant of the system’s behaviour.
Changes in function or purpose can be drastic / profound.

29. Systems Thinking - Networked Organisation?
Devolved power to the lowest point without risk
High trust to virtual ‘communities’ – adaptive project teams
Reduce/eliminate ambiguity – collaboration/communication
Consistency where necessary but only where necessary
Effective empowerment and enabling
Managers/Leaders – mentor/coach/facilitator
Reward and recognise deliberate collaboration
Share talents and specialist knowledge across networks
Develop and nurture talent across the organization and beyond
View the system as an ecology and beyond perceived boundaries
Encourage learning and new ways to learn

30. Source: Jacob Morgan

31. Activity In-source or Outsource
In groups discuss
In your opinion and/or experience, what are the challenges with in-sourcing/outsourcing/commissioning?
What plans would you need to make to ensure success?

32. OD Model of Change Phase 4
CASE FOR CHANGE
PHASE 2
ORGANISATIONAL ASSESSMENT
PHASE 3
DESIGNING THE NEW WAY
PHASE 4
IMPLEMENT AS CHANGE
PHASE 5
REVIEW
Identify business need for change. Future state analysis
ID the ‘sponsor’ for change
Feasibility and scenario planning
What do we have, what do we need?
Stakeholder analysis
Data analysis, trends, benchmarking
Which roles are affected?
Determine the right size, shape for the future
Systems thinking
New roles, changed roles?
Layers of management
Assigning the people
In-source, outsource etc
Leadership visibility
Facilitating phases of change
Talent and succession support
Knowledge protection
Measure effectiveness of the change
Measure alignment across the system
Did we achieve the strategy?
ORGANISATIONAL DEVELOPMENT
SKILLS, KNOWLEDGE, ATTITUDE, CULTURE, VALUES, HEALTH, NEW NORMS

33. Change … a 3 Step Approach
Why?
Customers
Suppliers
Technology
Economy
Society
What?
Strategy
Structures
Mission
Services
Products
Processes
How?
Roles
Responsibilities
Methods
Thinking
Values
Behaviour

34. Understanding the Organisational Context:

35. Activity In groups discuss
What does history tell us about resistance to change in this organisation?
What do we need to anticipate and plan for with this knowledge?
What might be ‘new’ resistance?

36. What people need to know …
What is happening and why? Does it make sense?
Where will I be in 6 months?
Will I have a job?
Will I lose out?
What is expected of me?
Do I have a future?
What is the new framework?
What career opportunities do I have?
Business strategy
Organisational structure
Appointments, relocations etc
Terms and conditions
Managing performance
Training and development

37. The Change Experience – Human Reactions & Management Response
Energy more internally focused
Energy more externally focused
Shock - losing focus
Turbulent time
self
Blame
others
Discovery and learning
Integration and new meaning
coping
euphoria
pining
Denial
minimising
Feelings of satisfaction
Feelings of optimism, hope, and renewed energy
Testing/ experimenting
Feelings of panic, dread, helplessness, apathy
Numbness, daze
Holding On
Letting go
Moving on
Fighting Disintegration
Reintegration
Managerial / leadership tasks at each stage
Minimise shock
Give full and early communication of intentions, possibilities and overall direction
Be patient
Discuss implications of change with individuals
Notice and pay attention to people’s small signals
Listen, empathise, offer support and/or protection
Do not suppress conflict or expression of difficult views and emotions.
Help individuals to weather the storm.
Recognise how the change can trigger off ‘past’ experience in individuals
Try not to take others’ reactions personally
Help others complete e.g. rituals
Allow others to take responsibility
Encourage
Create goals
Coach
Encourage risk taking
Exchange feedback
Set up development opportunities
Discuss meaning and learning
Reflection
Overview of experience
Celebrate success
Prepare to move on

38. Creating Change Communities
Hackathon
5-Min Drills
Twubbing
Change Council
Surgeries
Agile Squads
WebChat
Lunch & Learn
Unconference
Slide no: 38
Slackathon
Meetups

39. The Importance of Good Leadership
Change is all about people – not just systems/structures
Leadership motivates people to respond
Critical factor that facilitates and drives change
Effective leadership is consistent and communicates
The leader innovates; the manager administrates
Leadership tells, sells and evolves the change narrative
Provides the map and compass to navigate the journey

40. OD Model of Change – Phase 5
CASE FOR CHANGE
PHASE 2
ORGANISATIONAL ASSESSMENT
PHASE 3
DESIGNING THE NEW WAY
PHASE 4
IMPLEMENT AS CHANGE
PHASE 5
REVIEW
Identify business need for change. Future state analysis
ID the ‘sponsor’ for change
Feasibility and scenario planning
What do we have, what do we need?
Stakeholder analysis
Data analysis, trends, benchmarking
Which roles are affected?
Determine the right size, shape for the future
Systems thinking
New roles, changed roles?
Layers of management
Assigning the people
In-source, outsource etc
Leadership visibility
Facilitating phases of change
Talent and succession support
Knowledge protection
Measure effectiveness of the change
Measure alignment across the system
Did we achieve the strategy?
ORGANISATIONAL DEVELOPMENT
SKILLS, KNOWLEDGE, ATTITUDE, CULTURE, VALUES, HEALTH, NEW NORMS

41. Reviewing
Did we create accurate measurements as the beginning to now know that we’ve succeeded?
Did we do what we said we would? If not, why not?
How well are the interconnections working?
What were the ‘unexpected consequences’?
What is still left to be done?
What have we learned and what next?

42. The roles that OD and HR Professionals play:
Change Thinker
understand the effects of change and how to counter them
Systems Thinker
understand the organisation as a system and the effect of change on that system
Business Translator
understand what the business needs and how this affects the business as a whole
Self Balancer
understand personal impact and how to influence change