Organizational development (OD) initiatives are commonly referred to as the types of programs devised to help solve a particular program.
Organization development continues to evolve on a regular basis in an attempt to keep up with the modern-day society that we reside in. Though organizations can appear to have excellent problem-solving abilities, there is still a setback based off specific criteria. They have access to a wide range of innovations at their disposal, but in order to continue to operate, compete in a competitive market, and grow accordingly, they require a certain set of development initiatives with your organization. The ultimate goal of organizational development initiatives is meant to expand the adeptness and efficacy of an organization.
“The achievements of an organization are the results of the combined effort of each individual.”
OD is a scientific method intended to acclimate change through development, improvement, and reinforcement of structures and strategies. Organizational development initiatives can incorporate an array of aspects such as:
- Worker engagement
- Economic performance
- Change management
- Customer/client fulfillment
Organizational development incorporates the hard aspects of the business, such as change management and the soft aspects, such as behavioral aspects of people (clients, customers, and stakeholders).
Goals Of Organizational Development
Organizational development initiatives are holistic and strategic. A multitude of inputs and tools much be put into place in order to handle the depth of an organization. OD reins the behavioral change of an organization. The following list embraces the chief goals of organizational development.
1. Foster A Culture That Embraces Transformation And Innovation
OD influences user performance, analysis, and marketing research in order to evolve into the latest and most influential goods and services of today. Organizational development fosters a culture of nonstop progress via committees specifically designed for it and by crafting new processes for the organization. It helps implement different strategies that are designed for quality and quantity; thus, resulting in employees being able to pivot without any additional obstacles.
2. Create An Improved Efficiency Process
The organizational development process promotes an improved efficiency process by supplying employees with the necessary skillset to succeed. This can be incorporated through upskilling, reskilling, or cross-skilling. Furthermore, there is a heightened communication standard throughout the organization in order to help employees to understand the company’s purpose and fulfill it accordingly. As employees become invested, they have a higher productivity level as well as greater employee engagement.
3. Cast A Growth In Gross Profits
The development of new and revolutionized initiatives can help serve the organizational development process via restructure. In turn, there is a greater level of employee productivity. As employee retention rates rise, operational costs decrease; thus, generating an escalation in the gross profits. These profit margins can prove to be considerable in size.
Stages Of Organizational Development
There are five stages of the organizational development process. In order to acquire the supreme advantage, all five of them must be at play within your organization.
Stage 1: Entry
This stage is indicative of the first point of contact with the setback or prospect. In order to best determine what situation lies ahead, it is detrimental to know where the organization currently stands. During this stage, you will put a plan in place based on the current state. This will allow you to understand the development and how to proceed moving forward. Examples of this stage:
- Customer complaints that are similar in nature
- Problematic high employee turnover rates that exceed retention rates
- Lowered gross profits or revenue streams
Stage 2: Diagnosis
This stage handles a data gathering process in order to acknowledge the root of the setback or prospect. The information is then reviewed by the organization to discuss the causes within the organization.
Stage 3: Response
This is commonly known as the response stage but may also be recognized as the intervention or action stage of OD. During this stage, the client (organization) obtains the analyzed information by means of a consultant. A consultant that is representative of the organization must be present to obtain the critical information. Then, the consultant presents it to the leading administration. The information should be broken down into layman’s terms in order to confirm it is fully comprehended. This will ensure the appropriate action is put into plan for OD. Questions to keep in mind while handling the response include:
- Which processes or tasks should the focus be on?
- What is the most effective method to distribute the response?
- Where should the target for adjustment be?
Stage 4: Solution
This stage is how the solution is selected. Typically, numerous solutions are diagrammed to ensure the appropriate course of action is taken. This stage will help close the door on any setbacks or spring forward for prospects. Regardless, this needs to be accomplished through a structured approach in order to ensure that no complications could arise. Communicate with the client to make certain that everything is correct, nothing is missing, and the client is content with the solution. Learning and development (L&D) is helpful in accessing OD solutions.
Stage 5: Evaluation
As this is the final stage, it involves a continuous evaluation of the executed solutions. This well help govern the total output to monitor goals, in order to maintain success. As the reports continue, evaluation is needed to improve at an ongoing rate.
Improving Your Organizational Development
Keeping your organizational development on track can prove to be challenge, even for the largest organizations. Here are a few points to help improve your organizational development on an ongoing basis.
Focus on people management such as:
- Enhancing your team building skills
- Creating a healthy work-life balance for employees
- Increasing employee morale
Concentrate on performance management like:
- Boosting employee and workplace productivity
- Set clear goals for the workplace and those in it
- Keep an open line of communication between employers and employees
Improve worker contentment through:
- Heighted experiences in the workplace
- An incentivized rewards program
- Fostering a culture of appreciation through recognition
Deploy a wellness program for employees by utilizing:
- Mobile based platforms to encourage movement
- Trending and modern-day programs
- Wellness boosting challenges
Foster a positive work culture experience for all by:
- Promoting diversity, equity, and inclusion (DEI)
- Training employees to mutually respect and have an appreciation for all colleagues and leading administration
- Hosting a safe, healthy work environment
Organizational development (OD) can be a challenging task for any organization, as it does require an immense amount of time, energy, and effort. But the benefits of it far outweigh the risks of not having it at all. Every organization has some form of organizational development initiatives in place, whether it is recognized clearly or not.
In order to ensure success, it is critical to understand what OD is, how it is important to your practice, the five stages it entails, and how to continuously improve it. Without this, your structured organization will lack the balance it needs to continue its business practices. Execution of this continuous evolution will prove to be the exact reason your practice is effective, efficient, and profitable.