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Understanding Organisation Development (Part 2)

Last week we looked at the meaning of Organization Development (OD) noting that it is a process oriented approach that focuses on increasing an organization’s efficiency, effectiveness and health. We noted that OD is important because, like human beings, organization have a life and do get ill. While it is easy for managers of organizations to take particular care of their human resources, they pay very little or no attention to the health and wellbeing of the organization. Many are not even aware that the organization’s health is a major contributor to the success of their businesses.

We also mentioned some of the distinguishing characteristics of OD from other types of interventions. We noted particularly the fact that OD is planned, it is an organization wide intervention, and it is participatory involving all segments of the organization in the diagnosis of the organization’s problems as well as the solutions.

Today we will focus attention on the typical process of OD. We already mentioned that OD is a process oriented approach to solving organization’s problems. It does not matter what the problems are, OD adopts a process approach.

The first step in the process is the contact and contract. In a normal situation, an organization that has a problem, a need, an issue or a challenge seeks help of the consultant by contacting him/her. The organization might be referred to the consultant by another organization or individual who has had experience with the services of the consultant. The contact might be by phone, by face to face meeting or through an email or snail mail to the consultant. The organization might also be contacted by the consultant through a proposal for an intervention on the basis of the consultant’s perceived understanding of the organization’s problem.

Once the organization and consultant are in contact, the organization (represented by someone who understands the issues and challenges and has the authority to contract the consultant) presents it issues, problems or challenges to the consultant. On the basis of their mutual understanding and agreement, the organization prepares terms of reference (ToR) for the assignment and a contract defining the financial arrangements for the assignment. Technically speaking, the ToR should be separate from the contract. The ToR defines the job to be done while the contract defines the consultancy fees and other financial agreements.

After signing the contract, the consultant begins the process of data collection as part of the process of organizational assessment (OA). The OA process ensures that all segments of the organization are included in the design for data collection. The assessment might involve reading the literature on the organization, interviewing key informants, organizing focused group discussions, developing and using questionnaire, observing people at work, reviewing the policies and procedures, etc. All these are done to get a sense of the situation with the organization in respect of its systems, structures, strategy and culture as it affects efficiency, effectiveness and health.

While the consultant might conduct the OA alone, the third stage of the process, the diagnosis, requires that the consultant works with members of the organization to develop a picture of emerging issues hindering the organization. Since the consultant is not part of the organization and might not know the organization as much as its members, the diagnosis of the data collected is done by the consultant with the active participation of the members of the organization. They provide the reality check for the consultant’s assumptions arising from the diagnosis.

The major difference between OD and expert or traditional consulting begins to show from this stage onwards. While the expert or traditional consultant undertakes the diagnosis alone in a surreptitious manner, the OD consultant works with the members of the organization in arriving at a diagnosis. The OD consultant facilitates the process of diagnosis leading to discovery by the members of the organization of the actual or potential solution(s) to their problems. Once they are able to identify the problem(s) they are more likely to be able to find the solution which will work for them rather than the external consultant.

While the expert or traditional consultant undertakes the diagnosis alone in a surreptitious manner, the OD consultant works with the members of the organization in arriving at a diagnosis.

From the diagnosis stage, the OD consultant proceeds to organizing a feedback session with all relevant stakeholders to present the preliminary findings on the issues affecting the efficiency, effectiveness and health of the organization. This is where the process expertise of the OD consultant shows up. At the feedback session, the OD consultant is merely holding out a mirror to the organization to behold itself. The issues are presented to them in a disaggregated manner to ensure that the information cannot be attributed to any one member of staff or stakeholder as their confidentiality has been guaranteed.

During the presentation of feedback, which might be done through role play, story telling, poetry, or any other creative method that captures the attention of the audience, the stakeholders of the organization might identify with the issues raised, might deny them or might simply say “we have always known that”. This is a demonstration that the OD consultant has reached an appropriate diagnosis of the situation. Once this stage is reached, the next obvious question is often so what or what should we do about the situation? Again, the OD expertise lies in turning the question around to the client to say what do you want to do about the situation? While the expert or traditional consultant will provide the solution for the client on the basis of his/her own diagnosis, the OD consultant will facilitate a process of the organization coming up with its own solutions to the issues or problems. Consequently, these solutions are often more likely to be implemented because members of the organization own them and can identify with them. The reason why many consultant’s reports and recommendations are not implemented is because they are not developed in a participatory manner or with the involvement of the stakeholders of the organization. Hence they are seen as “the consultants report or recommendations”. By facilitating the process of the organization identifying its own problems and solutions, the OD consultant creates an enabling environment for the implementation of the outcomes of the consultancy.

By facilitating the process of the organization identifying its own problems and solutions, the OD consultant creates an enabling environment for the implementation of the outcomes of the consultancy.

Once a consensus has been reached on the problems and the solutions, the OD consultant facilitate the development of an intervention plan to guide the process of what is to be done. This is a critical stage in the process as it makes or mares the entire process. This is why Akada Konsults have designed and developed a TransformAction Tool™ that captures all the interventions agreed with the client for the transformation of the organization.

Like in other stages of the process, the TransformAction Plan is developed with the active participation of the stakeholders of the organization with the OD consultant as facilitator. At this stage, a small group of people from across all layers of the organizational structure will be selected to form the process team to oversee the implementation of the plan and the management of the change processes arising from the plan. This team is supported by the OD consultant through capacity building in change management and accompanied mentoring support. From this stage on, the OD consultant’s role becomes that of providing support to this in-house team to enable them manage the changes and proposed interventions in the Plan. The empowering nature of OD is further demonstrated through the handing over of the baton to the team to lead the process of the implementation of change interventions.

Once the process of implementation is on, the role of the OD consultant is limited to periodic visitation as consultant to the team. However, there might be other areas emerging that might require direct intervention of the OD consultant such as working on improving the communication between departments or within a department, defining work processes for standardization, developing policies and procedures manuals, mentoring of management staff to sharpen their problem solving and strategic thinking capabilities, coaching the chief executive to be more effective and efficient or in adopting a more inclusive and participatory leadership style.

Along with the implementation phase is periodic monitoring of the processes to ensure that the change objectives and milestones are being met. If for any reason the objectives are not being met, the OD consultant will work with the process team to find out why the objectives are not being met. If they are met, then the final stage of the process is the evaluation of the entire interventions to assess their impact on the organization. Once the impact and outcomes are desirable and achieved according to the TransformAction Plan, the OD consultant will facilitate a process of closure to celebrate the end of the exercise by recognizing through various rewards and awards those who have contributed to the success of the process.

Closure means the end of one process and the possible beginning of another depending on if new issues or problems are identified during the implementation process.

In summary, the OD consultant working with the organization goes through this process facilitating rather than directing the process. In doing that, the OD consultant is guided by certain ethical principles such as always trying to be helpful, doing no harm to the organization, not intervening beyond the level the client is ready for and avoiding colluding with the client to deal with symptoms rather than the real issues. The OD consultant also recognizes that everything done in this engagement is an intervention and thereby takes every interaction as an opportunity for diagnosis. The OD consultant as a process expert recognizes the limitations placed on the assignment by the environment and attempts to work within this recognition by being sensitive and self – aware of every aspect of the process.

In a rapidly changing business environment such as Nigeria, the OD consultant is expected to be multi-skilled in various business and professional areas. This does not however mean being a jack of all trade but being aware of all areas in which a client might need support and facilitating the process of providing the skill to the client either directly or through outsourcing.

Next week we will look at how to know if your organization is ill or healthy and how to promote efficiency, effectiveness and health in your organization.

Understanding Organisation Development (Part 1)

Sometime in 1997, I went to see my father after completing two-year training in organization development (OD). We were discussing my welfare and work and I mentioned the training in OD. He quickly asked what that was. I had not anticipated the question so I really did not have a ready answer for him. After a couple of minutes of thinking, I informed him that I am a kind of physician to organizations - what physicians (doctors) do to individuals, I do to organizations.

This stimulated his interest and we went on to discuss various aspects of what organization development (OD) can do for organizations. As we start this series today, I find myself recalling most of our discussions and therefore using it as a starting point for those who do not know about OD. In addition to that discussion, I have practiced OD for ten years and I recall with fun how most people I meet when I tell them I am an OD Consultant or Practitioner, ask “what’s that?” My response to them will also form part of this introductory series on understanding organization development (OD).

For the avoidance of doubt, whenever I use the abbreviation OD, I am refereeing to Organization Development. In order to understand OD, we need to understand first and foremost that every organization, like an individual, has a life. It gets born when it comes into existence; it grows, gets ill (sometimes terminally) and, if not treated, dies. If treated it gets well and grows to maturity and faces the challenges of growth and maturity.

In order to understand OD, we need to understand first and foremost that every organization, like an individual, has a life. It gets born when it gets into existence; it grows, gets sick and, if not treated, dies. If treated it gets well and grows to maturity and faces the challenges of growth and maturity.

Organization Development (OD) is a process-oriented approach that helps an organization become and remains vital, flexible, efficient, effective, future oriented, innovative and healthy. While individuals are very good at having a periodic health check, not many organizations in Nigeria think about a periodic health check. In some organizations, annual health checks are mandatory for certain categories of staff but not for the organization itself. Consequently, we find healthy people working for very ill organizations and as a result productivity, organizational effectiveness and efficiency are reduced despite the huge sums of money spent on healthcare of the human resources.

In some organizations, annual health checks are mandatory for certain categories of staff but not for the organization itself. Consequently, we find healthy people working for very ill organizations and as a result productivity, organizational effectiveness and efficiency are reduced despite the huge sums of money spent on healthcare of the human resources.

Organization Development is therefore concerned with processes that promote efficiency effectiveness and health of the organization in order to maximize productivity, profitability and sustainability.

OD is appropriate for all types of organizations – micro, small, medium scale enterprises, non-profit organizations, public sector organizations and private sector organizations, multinational, bilateral and multilateral development agencies. Any organization that has concern for efficiency, effectiveness, health, productivity, profitability and sustainability should seek support or assistance from OD consultants to bring this about in a professional way.

There are certain characteristics that differentiate OD from any other organizational intervention. These are:

1. OD processes are planned, it does not just happen, it is planned, and it requires a conscious decision for long-range change, not a “quick fix”. Any organization interested in embarking on OD must plan for it. OD is not a happenstance. Just as you plan for your annual health check, so you plan for OD processes in your organization. Your organizational health check, termed organizational assessment, might reveal certain issues which are affecting efficiency and effectiveness and need to be taken care of urgently.

2. OD processes are organization-wide, and require involvement and participation by the entire members of the organization. In order to have a reliable diagnosis, everyone in the organization must be included or at least all strata of the organization must be represented in the process. By so doing, you are able to see the problem from different perspectives and most probably the solution.

3. OD processes are managed from the top. They require management commitment and full support because top managers control resources and reward systems. Although OD efforts can be undertaken at any level of the organization without direct top-management participation, OD is less likely to succeed if it does not have the tacit approval from top management.

4. OD processes increases organization effectiveness and health. Though it is oriented toward change and a desire for a better organization, it expands people’s ideas, beliefs and behaviours so that people can apply new ideas and approaches to solving old problems thereby increasing efficiency, effectiveness and health.

5. OD processes are participatory. OD emphasizes stakeholder participation in diagnosing problems, considering solutions, selecting a solution, identifying change objectives and implementing planned change. Everyone in the organization affected by change should have an opportunity to contribute to and accept responsibility for continuous improvement process.

6. OD processes draw largely from behavioural science knowledge. It draws largely from sociology, psychology, anthropology, political science, economics, management and business administration. In more recent times OD also draws from the arts, especially theatre, drama, drumming, singing, painting, etc. It adopts a multidisciplinary approach in designing interventions.

In summary, OD can be seen as a long-range programme of planned change that is designed to build organizational effectiveness and health. The OD Consultant helps the organization to achieve these goals by designing an intervention process which is contracted with the top of the organization. The process looks at the whole functioning of the organization and involves people from the entire organization. By using behavioural science, action research and other interventions deriving from different backgrounds, the OD consultant supports the organizations’ capacity to reflect, revise and organize its vision and strategy building process, to improve human and other resources, the information flow, and to reflect upon communicational patterns and the existing and desired culture of the organization.

OD has become recognized as the only organizational effort that takes into consideration the health of the whole organization. Its main emphasis and interventions are based on systemic approach in which all parts of the organization are examined in an effort to resolve crises and conflicts or promote efficiency and effectiveness. OD is thus concerned with the health, wellbeing and improving systems and process to ensure organizational sustainability.

OD, thus, focuses on assuring healthy inter- and intra-unit relationship and helping groups initiate and manage change. OD’s primary emphasis is on relationships and processes between and among individuals and groups.

OD consultants believe in “empowering employees” by giving them a say, if not the chief say, in decision-making, “creating open communication” “facilitating ownership of change processes and outcomes”, promoting a culture of collaboration, and promoting inquiry and continuous learning.

Organization Development (OD) is being increasingly discussed and prioritized as a key capacity-building strategy for various sectors (ranging from public, private and civil society), as organizations adapt to their fast changing environments due to globalization and as they seek to increase their impact. As a result, there is an increasing demand for OD consultancy appropriate to the sectors. For this type of support to be effective, however, it needs competent local OD practitioners who are able to facilitate development processes in organizations and individuals that support learning and change.

In Nigeria, however, there is very limited availability of such quality consultants able to meet this demand. This is where we in Akada Konsults have positioned ourselves to train consultants in OD and to provide result oriented OD consultancy services to clients in the public and private sectors.

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