1. Organizational Development
Elizabeth King
Organizational Development
Improvement of the Capital Equipment Order Policy
Hello,
This is Beth King.
I decided to use the research paper assignment to improve a current process in my job. I am the Capital Equipment Buyer for a large automotive parts supplier. This presentation covers the process improvement to the capital equipment order policy.
Siena Heights University
Fall 2012

2. Contents Introduction
Definitions ……………………….. Slide 3
Positive Model …...………………. Slide 4
Comprehensive Model for
Diagnosing Organizations ……..Slide 5
General Model of Planned Change.….Slide 6
Data Collection and Feedback Cycle…Slide 7
Force Field Analysis………………...Slide 8
Planning and Implementing Change…Slide 9
Evaluation and Implementation…….Slide 10
Conclusion.…………………...….Slide 11
Problem Statement
Gaps
Machine performance
Missed delivery dates
High costs
Introduction of Business
Automotive parts supplier
Producing vehicle heating and cooling exchange systems
Fully owned subsidiary
Parent company located in Japan
Workforce of approx 3,000
The contents of the presentation are listed on the left.
Four models were chosen as the foundation for the planned process change.
These were the
Positive Model
the General Model of Planned Change
The Comprehensive Model for Diagnosing Organizational Systems
and Force Field Analysis
I then applied the elements of the models towards the process improvement for ordering capital equipment.
On the right, the initial problem statement identified gaps in machine performance, missed delivery dates, plus higher than expected cost.
Following is the introduction of the business. Please note that a vehicle heating and cooling exchange system is the heater and air conditioning unit located inside the dashboard.

3. Definitions Organizational Development Capital Equipment
“A system-wide process of data collection, diagnosis, action planning, intervention, and evaluation aimed at: (1) enhancing congruence between organizational structure, process, strategy, people, and culture; (2) developing new and creative organizational solutions; and (3) developing the organization’s self-renewing capacity. It occurs through collaboration of organizational members working with a change agent using behavioral science theory, research, and technology. “
Organizational Development
Capital Equipment
Michael Beers
“Equipment that you use to manufacture a product, provide a service or use to sell, store and deliver merchandise. This equipment has an extended life so that it is properly regarded as a fixed asset.”
Of all the definitions of organizational development in our textbook, I chose Michael Beers’. It contained the steps of the general model of planned changed and explained three ways organizational development could benefit the company. I also liked that it mentioned collaboration and the use of a change agent.
Just in case you have not previously heard of the term, capital equipment is defined as “Equipment that you use to manufacture a product, provide a service or use to sell, store and deliver merchandise.” A few of examples would be a machine, a mold or die, and as pictured, a fork truck. They are not quickly consumed or a part of the product being made.
Cummings & Worley, 9e (c) 2008 South-Western Cengage Learning
Capital Equipment Small Business Encyclopedia, 2012

4. Positive Model Initiate the Inquiry Inquire into Best Practices
Initiate the Inquiry: Members choose problem that they have the most energy to undertake.
Inquire into Best Practices: Gather information of what work and why.
Discover the Themes: Decide as a group the common principles found in the list of best practices.
Envision a Preferred Future: Use the common principles as the starting point for moving from the standard practice into a ideal future.
Design and Discover Ways to Build a Preferred Future: Plans and actions intended to produce preferred future
Initiate the Inquiry
Inquire into Best Practices
Discover Themes
Envision a Preferred Future
Design and Discover Ways to Build a Preferred Future
The Positive Model was chosen as the framework for the activity. It focuses on what is going right in an organization and is often applied through Appreciative Inquiry. This is defined as the coming together of organization members to plan change by sharing past experiences.
The Positive Model requires members to invest in a shared vision.
Cummings & Worley, 9e (c) 2008 South-Western Cengage Learning

5. Comprehensive Model for Diagnosing Organizational Systems
Figure 3
Comprehensive Model for Diagnosing Organizational Systems
Inputs
Technology
Strategy Structure
HR Measurement
Systems Systems
General
Environment
Industry
Structure
Design Components
Culture
Organization
Effectiveness
e.g. performance, productivity, stakeholder satiisfaction
A. Organizational Level
C. Individual Level
Goal Clarity
Task Structure Team
Functioning
Group Group Norms
Composition
Design
Team Effectiveness
e.g. quality of work life, performance
Outputs
B. Group Level
Skill Variety
Task Identity
Autonomy
Task Feedback about
Significance Results
Group Design
Personal Characteristics
Individual Effectiveness
e.g. job satisfaction, performance, absenteeism, personal development
Outputs
Inputs
The next step in the change process, deciding which level of diagnoses to utilize, is illustrated in this slide.
For this project, group level diagnosis was chosen. Here, concentration is placed on the systems, structure, and culture of the smaller group within the organization.
Design components link to form the questions for analysis. Examples of these include
How well does the group understand its objectives?
How is everyday work designed?
How does the group divide tasks, make decisions and relate to each other?
Together, all of these design components combine to create outputs measured through performance results and quality of work life for employees.
Inputs
Cummings & Worley, 9e (c) 2008 South-Western Cengage Learning

6. General Model of Planned Change
Entering and Contracting
Initial step in the organizational development process involving initial contact from an organization, discussing the initial problem statement, determining the true client, and developing the contract.
Diagnosing
Process of understanding the systems that are functioning within an organization leading the consultant to determine the root cause of issues and the best method to implement change.
Planning and Implementing Change
Actions used to disrupt the normal running of business in order to create positive change that increases the organization’s effectiveness
Evaluating and Institutionalizing Change
Providing feedback to the organization about their success with the intervention. Includes next steps to make the change permanent, or the determination to start the organizational development process again.
Specific activities will follow the General Model of Planned Change. This is a template for interacting with the organization, collecting information, determining the root problem, and offering recommendations. The steps consists of Entering and Contracting, Diagnosing, Planning and Implementing Change, plus Evaluating and Institutionalizing Change.
Important to note, the steps of the process do not always follow a straight progression but engage more dynamic elements as the steps overlap, feedback, and influence each other.
Cummings & Worley, 9e (c) 2008 South-Western Cengage Learning

7. The Data-Collection and Feedback Cycle
Planning to Collect Data
Collecting Data
Analyzing Data
Feeding Back Data
Following Up
Core Activities
This slide skips ahead to the diagnosis phase, which is the process of understanding the systems that are functioning within an organization to determine the root cause The core activities of diagnosing incorporate data collection, analysis of data, and feedback.
For my project, the methods used to collect data were interview and unobtrusive measures, including my own experience within the organization. Interviews were chosen to build a stronger relationship with the members of the Engineering Team and to facilitate buy-in to project results. In addition, unobtrusive measures were used because of the availability of data and low cost associated with data collection.
Cummings & Worley, 9e (c) 2008 South-Western Cengage Learning

8. Force-Field Analysis Results Forces for Change Forces for Status Quo
Friction between two departments
Lack of time to devote to planning
Poor supplier performance
No personal reward for improving process
Current Performance
Desired Performance
High Machine Costs
Lack of Management Support
Created by Kurt Lewin, Force Field Analysis is a decision-making tool that clearly displays the forces in favor of change against the forces in opposition to change. The tool can be used to aid in decision-making and to improve chances that decisions will reach success. This is made possible through clear illustration of relevant factors. The user can easily see which factors need strengthening and which to confront or reduce.
As shown in this slide, the data collected was summarized into five forces contributing to change and four forces working to maintain the status-quo.
Lack of time to devote to daily problem solving
Low understanding of other departments process
Desire to improve from past failures
(MindTools, 2011)

9. Planning and Implementing Change
Results
Planning and Implementing Change
Structural Process Intervention
Best Practices
Supplier Kick-off Meeting
Detailed Cost Breakdown Sheet
Exception from Specification Worksheet
Order Policy Document
Purchasing involvement from project start
Using a structural process intervention, five best practices were determined and implemented for the capital equipment order policy.
1. Use of a multi-supplier kick-off meeting to show a similar machine and provide the opportunity to ask questions before quoting.
2. Requirement of a detailed cost breakdown on the quote to understand cost drivers and cost differences between the suppliers.
3. Quote submission will reference which elements of the specification will be omitted by using the exception from specification worksheet.
4. An order policy document contains the sourcing strategy within a classification of machines. It is a tool that helps to build a strong supply base through the use of companies who performed competently in the past and exposes areas that contain gaps; therefore, allowing adequate time before a project starts to find additional sources.
5. Sometimes, members of the Engineering Department charge ahead with supplier selection and obtain quotes without informing the Purchasing Department. By the time the Purchasing Department receives the request to order, many of the negotiable items have been predetermined and sources for leverage have been counteracted. Therefore, best practice would be to involve the Purchasing Buyer from project kick-off.

10. Implementation and Evaluation Feedback
Results
Evaluation and Institutionalization
Diagnosis
Implementation and Evaluation Feedback
Measures of the Features of the Intervention and Immediate Effects
Implementation Feedback
Measures of the Long-term Effects
Evaluation Feedback
Clarification of Interventions
Development of Plan for Next Implementation Steps
Implementation of Intervention
The final step, Evaluation and Institutionalization, involves feedback to the organization about their success with the intervention. It includes next steps that will make the change permanent or the determination to start the organizational development process again.
In the project for process improvement, all five recommendations were adopted and put into practice. Measurement will be seen in the tracking of delivery dates, recording of cost reductions, and supplier performance improvement.
Institutionalization will occur after the completion of training directed at cross-lining the improved process to additional commodities within the organization.
Design and Implementation of Interventions
Cummings & Worley, 9e (c) 2008 South-Western Cengage Learning

11. Conclusion
Diagnosis at the group level accompanied with adequate consulting skills brought positive changes to the organization.
Engagement of individuals from multiple departments to find best practices strengthened the work team.
In conclusion, the field of Organizational Development provides theories, guidelines, and numerous tools for individuals to employ in efforts aimed at improving components of any business. Highlighted in this presentation, diagnosis at the group level accompanied with adequate consulting skills brought positive changes to the organization.
In addition, engagement of individuals from multiple departments to find best practices strengthened the work team.

12. References
Capital Equipment Small Business Encyclopediea. (2012). Retrieved November 1, 2012, from Entrepreneur.com:
MindTools. (2011). Retrieved , November, from Force Field Analysis - Decision-Making Skills from MindTolls.com:
(2009). In T. G. Cummings, & C. G. Worli, Theory of Organizational Development and Change. Stamford, CT: CENGAGE Learning.