When things aren't going as planned with a system, program, or key business objective, an organizational development (OD) approach to identifying and solving the problems will get things back on track. Stakeholders and project teams are often surprised by the problem areas an OD method uncovers, which can include conflicting objectives, duplicative structures, a simple lack of communication, and much more.
OD is a performance-improving approach that utilizes a structured toolset to effect changes in an organization's culture and processes. This problem-solving method, which entails diagnosis, action, and program management, applies behavioral science principles to identify and correct the barriers to being a productive, efficient organization. OD techniques include alignment of mission and goals, leadership coaching, process optimization, and communications programs.
For example, the Small Business Administration (SBA) was concerned that one of its loan programs was underutilized. Interviews and focus groups revealed a lack of communication among stakeholders at the SBA and local banks as well as a lack of awareness among the banks' staffs and entrepreneurs in the market. The OD approach helped the banks clearly define when the SBA loan program is an appropriate alternative to a bank loan program. In addition to implementing some communications and marketing activities, stakeholders worked together to design a non-traditional credit check approach that helped qualify more loan candidates. As a result of their systematic OD approach, the program experienced a 2000% year-to-year growth rate, and the average dollar value of individual loans increased 500%.
One company utilized an OD approach to effectively merge two organizations after an acquisition. OD interventions helped them develop a new mission statement and objectives and then align the two organizations into a single entity, designing separate functions only where required. Though different market requirements mandated separate accounting processes, they developed a streamlined approach for rolling them up into a single set of financials. In addition to building relationships, sessions with department heads revealed many similarities in human resources and management policies, which they tweaked only slightly to maintain some consistency in a changing environment. Furthermore, they reallocated and retrained redundant staff members, which kept employee morale and productivity high. As a result, the company completed a smooth merger process in only six months, with no negative financial or customer service ramifications.
Organizational life in the U.S. is changing to meet the demands created by global markets, changing economies, and new expectations by both workers and companies. As a result, organizations are turning more frequently to structured OD methods to identify and resolve more complex obstacles to success.
The payoff of a systematic OD approach conducted by experienced professionals is well worth the investment. CherryRoad has the expertise required to help your organization identify and fill the gaps to its success. To learn more about how OD can help your organization, contact us at info@cherryroad.com.