What does organisation development mean?

Organisation development (OD) is refining, adjusting and evolving a business to improve and advance it. OD focuses on maximising the value of an organisation’s resources, including its employees, finances, technology and physical assets. It considers the business’s purpose, goals and strategy and ensures all practices support them. Organisation development is an ongoing process of driving improvement and success.

Types of organisation development models

Behavioural scientists Kurt Lewin, Larry Griener and Harold Leavitt developed the three most well-known organisation development models. OD practitioners use these models to guide their OD processes and increase their chances of success.

Unfreezing, changing and refreezing model

Developed by Kurt Lewin, the unfreezing, changing and refreezing model equates businesses to water in solid and liquid states. The model’s title refers to the three stages companies should go through for every OD change.

1. Unfreezing: In this stage, businesses discard old behaviours and relax into a less formed state. This process minimises resistance to change.
2. Changing: After unfreezing, businesses are ready to change. During this process, the company absorbs new attitudes and information. These new elements help the business take its new form.
3. Freezing: Finally, the business solidifies the changes and becomes a new, stable entity.

Griener sequential model

Named after developer Larry Griener, the Griener sequential model views change as sequential phases businesses must pass through for success. An external stimulus, such as changing consumer attitudes, triggers the process. Each stage has two parts: a stimulus on the power structure and the power structure’s reaction. The phases are as follows:

1. Pressure on top management, then inspiration to act
2. Intervention at management level, then reorientation to internal problems
3. Diagnosis of problems, then recognition of problems
4. Invention of a solution, then commitment to solving the problem
5. Experimentation with solution, then search for results
6. Reinforcement of action after a positive result, then acceptance of new practices

Diamond model

Harold Leavitt’s diamond model arranges critical business systems into a diamond shape. These systems are:

• Task
• People
• Structure
• Technology

In this diamond formation, every system is interconnected, so changing any system impacts every other system. As companies make changes in one area, they must consider the effects on other systems. By considering all systems, OD practitioners can achieve the best results for their business.

How to implement organisation development processes

A systematic approach to organisation development processes concentrates efforts and increases your chances of success. Take the following steps when implementing new organisation development processes into your business:

1. Diagnose an area which requires a change

Diagnosing an area needing change helps your business target its OD processes. You should only change parts of your business if the change can bring significant positive benefits. Consider your business’s goals and evaluate your KPIs to determine areas of greatest need.

2. Plan your OD strategy

Consider the causes of performance gaps and plan a strategy to improve your performance. Your strategy should outline:

• Your new OD processes
• The order you’ll implement them
• Your desired outcomes
• How you’ll evaluate your success

You can then start implementing OD processes. Implement one process at a time to focus on implementation and evaluation processes.

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3. Communicate with participants

Before implementing an OD process, try to communicate with the people involved to prepare them for the change. For example, a retailer implementing new register software should communicate with shop managers and checkout staff. Depending on the size of your businesses, communication may occur face-to-face or via email. Explain the following to your employees:

• The changes ahead
• Why changes are being made
• How those changes should benefit employees, customers and the business
• How you’ll implement the changes
• The expected time frame for the changes

Answer questions about the process to help employees feel more comfortable. Encourage employees to offer feedback about your proposed changes. Incorporate good suggestions into your processes before implementing them.

4. Put infrastructure in place

Some processes require new infrastructure. For example, implementing a recycling scheme requires sourcing a local recycling waste contractor or licensed drop off facility, purchasing recycling bins and creating educational signs and guides. Try to take all necessary preliminary steps to prepare your business for your OD process.

5. Implement the process

With the proper infrastructure and understanding of your employees, you can implement your process. Some processes, such as reducing reliance on single-use plastics, can occur automatically. Others, such as introducing a new computer program, may require training. Schedule training for as soon as possible, after implementation to boost productivity. Expect employees to take time adjusting to changes before evaluating their success.

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6. Evaluate your process

Once your OD process has been in place for some time, evaluate it. You could evaluate simple processes after a month while more complex ones may need three months or more before producing meaningful data. Use a variety of methods to assess your process, such as:

• Collecting feedback from impacted employees
• Analysing relevant data such as costs, energy usage or website traffic

Use your evaluation to revise your process and make it more successful. Once your process achieves its goals, you can implement another OD process.

FAQs

Here are a few common questions about organisation development that will help deepen your understanding:

What are examples of organisation development?

Examples of organisation development include:

• Employee training: Effective employee training occurs when new employees start, and it continues throughout their career. Ongoing training helps employees become proficient in new procedures, upskill throughout their careers and boosts productivity and efficiency. It also helps employees achieve their potential.
• Cultural change campaigns: Cultural change campaigns help corporate culture evolve as structures and strategies change. Continuous culture change campaigns ensure a company’s culture always aligns with its mission and values.
• Product and service research and development: This ongoing process helps businesses continue serving customers by satisfying their current wants and needs and using new or emerging technologies. This process can increase profits, customer loyalty and positive word-of-mouth.
• Environmental stewardship: Environmental stewardship is another continuous process involving introducing environmentally-friendly initiatives such as installing solar panels, replacing plastic straws with paper ones and reducing energy use. Companies often set energy use targets that help them get closer to becoming carbon neutral. These efforts improve the environment and company image. They can also save money in the long-term.

What is the difference between HR and OD?

Human resources (HR) focuses on getting optimum value from employees. Like OD, HR helps companies grow and be more successful. However, it focuses only on how employees help companies. OD is more holistic, examining how all business elements contribute to success.

HR’s work often addresses short-term concerns, such as filling vacant positions or rewarding good work with pay rises. OD focuses on achieving long-term goals through continuous effort over time. HR and OD both aim to improve businesses, but their different focus can put them in conflict. For example, HR may want to boost staff morale by giving all employees an end-of-year bonus. However, an OD practitioner may suggest delaying the compensation if the company needs money for new product promotion in the coming months.

What do OD practitioners do?

OD practitioners create OD strategies that help businesses achieve their goals and remain competitive. They work with business leaders to implement their strategies and measure success. Typical duties of OD practitioners include:

• Learning more about employees and their experiences through interviews, focus groups and surveys
• Assessing company and industry data to determine areas of greatest need
• Developing OD plans and strategies in line with these plans
• Working with senior employees to implement organisational strategies
• Analysing data concerning OD strategies and reporting on results, including recommending changes for improvement