Leading in the 21st Century

The Role of OD as a Business Partner: Lessons Learned from the Global Committee on the Future of OD (GCFOD) Volunteers
New Jersey OD Network Annual Sharing Day May 4, 2006

Malcolm Conway, Managing Consultant IBM Global Business Consulting Services Elena Feliz, Principal, Feliz Consulting Tim Lannan, Tim Lannan Consulting David Lipsky, Sony Electronics Jeana Wirtenberg, Ph.D, President, Jeana Wirtenberg & Associates, LLC

Global Committee on the Future of OD (GCFOD)

Vision: Linking OD values and contributions worldwide to create vital, successful organizations and communities Mission: Uniting, energizing and mobilizing thousands of OD practitioners, business leaders and academics worldwide to advance the field of OD and add value to all stakeholders, in an ever-changing world Organization 10 person self managing Leadership Team Over 200 volunteers, over 60 Advisory Board Members Project Sponsors Institute for Sustainable Enterprise, Fairleigh Dickinson University The OD Institute (ODI) OD Network (ODN) International OD Association (IODA)

GCFOD TIMELINE
September 2003 Ted Nguyen organizes The Global Committee on the Future of OD January 2004 OD SWOT Survey 2004 Business Sector COP launched 2004 Advisory Board Meetings 2004-2006 Presentations: ASD, ODN, ODI, AOM, FDU, AU, many others 2004 Portal launched September 2004 Nonprofit Sector launched December 2004 JABS article published 2005 Referenced in Bradford/Burke book Reinventing OD 2005 Business Leader Survey (For Profit/Non Profit) 2005 Decision to become a Self-Managed Team 2006 Action Teams launched ???
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Goals for Today

To provide insight on Leadership in the 21st Century To demonstrate how OD has to change (this is not your mothers/fathers OD) To support you to become a better OD practitioner To help you understand how your knowledge can support GCFOD efforts To support your understanding of GCFOD as a resource
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Leading in the 21st Century

New Jersey OD Network Annual Sharing Day

May 4, 2006

Malcolm Conway, Managing Consultant IBM Global Business Consulting Services

Acknowledgments
The survey was supported by the Institute for Sustainable Enterprise, Fairleigh Dickinson University. The web survey design and administration was generously supported by Quantisoft, LLC. The work was performed by the Global Committee Research Team, led by Jeana Wirtenberg, Ph.D, Jeana Wirtenberg & Associates, LLC, and The Institute for Sustainable Enterprise, Fairleigh Dickinson University. Acknowledgments for significant contributions go to Elliott Greene, Quantisoft; Lilian Abrams, Ph.D; Joan Slepian, Ph.D; and Jeff Wides, Ph.D. This material states the authors' opinions but does not necessarily reflect the positions or practices of the IBM Corporation or the other presenters companies.

Topics
SWOT Survey 2004 Business Leader Survey 2004 Purpose & Objectives Key Findings For Profit Sector
Demographics

Business Success Factors Performance Gaps

Sources of OD Support OD Investment Plans Summary of Findings

Phase I OD SWOT Survey Over 900 Responses

GCFOD survey sent to over 6000 members of OD Network, O.D. Institute, International Organization Development Association, NTL Institute and NJ OD Network to assess present weaknesses and strengths of the field.

Findings published in article by J. Wirtenberg, L. Abrams, & C. Ott, Assessing the Field of Organization Development, Journal of Applied Behavioral Science, December, 2004.

Top Three Strengths

Systemic Orientation/Change Management Techniques and Processes Teamwork/Leadership Development Values OD Brings to Practice

Top Four Areas For Improvement

Lack of Definition and Distinction of the Field of OD Lack of Quality Control of Practitioners Insufficient Business Acumen of Practitioners/Insufficient Emphasis on Customer Needs Insufficiently Clear ROI/Value of the Work
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Survey Purpose and Objectives

Gather information from business leaders to help define the future of Organization Development

Identify the most important factors driving business success from a people and organizational perspective, as reported by senior business leaders
Understand the most likely sources of expertise and resources that senior business leaders will use to address those challenges (and to see where HR/OD professionals fit in) Determine potential OD clients awareness and perceptions about OD Identify the likelihood of future investments in OD resources Provide the academic community with information that may be useful in planning/redirecting academic programs and courses

Business Leader Survey

For Profit Methods: Survey designed and piloted with COPs (Nov-Dec 2004) Internet based survey sent to approx. 16,500 business leaders:
CEOs, VPs, Directors of Fortune 1000 companies across all industries from a purchased list, mostly from U.S. with some Canada Supplemented by COPs forwarding to their actual/potential clients and/or submitting names anonymously Supplemented by e-mail notices with links in newsletters of five sponsoring organizations, GCFOD newsletters and notices, letters to Advisory Board members, etc. Press releases sent to 36 major business and HR organizations with personal follow-up Numerous announcements at OD network meetings, conferences, etc.

10

Demographics of For Profit Respondents

Respondents are predominantly male, middle-aged, executives.
Respondent Gender

235 Total respondents:

120 For Profit and 115 Nonprofit

36%

Respondent Age
9% 5% 13%

64%

41%

Males

Females

32%

Respondent Level of Management

20 - 29

30 - 39

40 - 49

50 - 59

60+

9% 32%

59%

Middle Management

Executive Management

Other

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Questionnaire Design

Business Success Factors (17 questions)

Framed by the six KITs from Phase I research

Future Investments (4 questions)

Sources of Expertise and Support (17 questions)

Framed by the six KITs from Phase I research

Respondent Demographics (9 questions)

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Sample Questions for Importance and Effectiveness

Section 1: Business Success Factors: A series of statements about key areas of business success follows. For each statement there are two questions for you to answer: 1. What is the importance of this key area to your organization (i.e., that level of your company with which you are most closely associated, e.g., entire enterprise, business unit, etc.)? 2. How effective is your organization's performance in this key area? In answering each question, think about how it impacts your "bottom-line results".

Performance Gap = Importance - Effectiveness

Question Importance
Very Unimportant 1 2 3 Very Important 4 5 Dont Know

Effectiveness
Very Ineffective 1 2 3 Very Effective 4 5 Dont Know

1. Aligning and executing strategies in a way that meets financial goals and are consistent with core values. Comments: 2. Effectively addressing organizational culture during organizational realignments, industry consolidations and mergers and acquisitions (M&As). Comments:

13

Business Success Factors: Performance Gaps

Gap 1.03 1.35 1.02 1.26 1. Aligning and executing strategies in a way that meets financial goals and are consistent with core values 2. Effectively addressing organizational culture during organizational realignments, industry consolidations and mergers and acquisitions (M&As) 3. Effectively applying organizational change principles to business and product life cycles 4. Aligning strategies, people, systems and processes organization-wide to enhance productivity and profitability 5. Developing and maintaining the commitment of the workforce to the goals of the organization for better overall performance results 6. Clarifying purpose and mission to inspire and engage the workforce 7. Attracting and retaining top talent 8. Leveraging and aligning existing information technology with business and people strategies 9. Facilitating adoption and use of new information technologies for competitive advantage 10. Using information technology to support learning and innovation 11. Enhancing reputation among communities where we work, with consumers and with employees and investors 12. Enhancing employees commitment by focusing on corporate citizenship in the community and contributions 13. Ensuring accountability for business ethics among employees at all levels 14. Building leadership capacity for now and the future 15. Solving organizational problems systemically as opposed to solving them on a piecemeal basis 16. Establishing collaborative relationships and partnerships among public, private and nonprofit sectors 14 17. Increasing speed to market and profit for critical products and services through shared commitments and organizational values

1.12
1.07 1.27 0.92 0.78 0.72 0.67 0.34 0.63 1.45 1.27 0.58 0.93

Business Leader For Profit Survey Key Findings for Importance and Effectiveness* **

For Profit Importance & Effectiveness

4.20 HL HH 13

Strength

1 11

Effectiveness

5 3.55 12 16 10 9 17 2 3 LL 2.90 3.80 15 4.35 LH 4.90 14 8 6 4 7

Weakness

Importance

Gap of 1.35

Gap of 1.45

Note: Items were pre-selected as important based on Phase I research and KITs.
15

Business Leader For Profit Survey Key Results

Urgent?
Items:

2. Effectively addressing organizational culture during organizational realignments, industry consolidations and mergers and acquisitions (M&As)

Importance = 4.52 Effectiveness = 3.17 Gap = 1.35

14. Building leadership capacity for now and the future Importance = 4.63 Effectiveness = 3.18 Gap = 1.45
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Business Leader For Profit Survey Key Results

High Priority?
Items:

1. Aligning and executing strategies in a way that meets financial goals and are consistent with core values
Importance = 4.80; Effectiveness = 3.77; Gap = 1.03 4. Aligning strategies, people, systems and processes organization-wide to enhance productivity and profitability Importance = 4.64; Effectiveness = 3.38; Gap = 1.26 5. Developing and maintaining the commitment of the workforce to the goals of the organization for better overall performance results Importance = 4.78; Effectiveness = 3.66; Gap = 1.12

6. Clarifying purpose and mission to inspire and engage the workforce

Importance = 4.56; Effectiveness = 3.50; Gap = 1.07

7.

Attracting and retaining top talent

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Importance = 4.74; Effectiveness = 3.46; Gap = 1.27

Support Sources
Urgent Areas? Positioning industry consolidation, M&A, and strategic alignment for success from a cultural perspective?
Business leaders turn to line management first, consulting firms second, HR third, and OD fourth when positioning industry consolidation, M&A, and strategic alignment for success from a cultural perspective.
For Profit
40

30

20

10

Percent

0 Internal OD External OD HR Line Magm't Cons ulting Firm

Position f or Success f rom Cultural Perspectiv e

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Support Sources (continued)

Urgent Areas? Building leadership capacity for now and the future
Business leaders turn to HR first, and line management second for identifying, attracting, developing and retaining leadership talent. Business leaders turn to line management to foster leadership courage, decision making and problem solving

For Profit
60
80

For Profit

50
60

40

30

40

20
20

Percent

10 0 Internal OD External OD HR Line Magm't Cons ulting Firm

Percent

0 Internal OD External OD HR Line Magm't Cons ulting Firm

Identif y /Attracting/Dev elop/Retain Leadership Talent

Foster Leadership Courage/Decision Making/Problem Solv ing

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Support Sources (continued)

High Priority Areas: Building a Performance Culture Leaders turn to Line Management first, HR second, and OD third, for: Enhancing workplace, productivity and performance culture Fostering employee engagement and commitment

For Profit
60
70 60 50

For Profit

50

40
40

30
30

20

20

Percent

Percent

10 0 Internal OD External OD HR Line Magm't Cons ulting Firm

10 0 Internal OD External OD HR Line Magm't Cons ulting Firm

Foster Employ ee Engagement/Commitment

Enhance Workplace, Productiv ity and Perf ormance Culture

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Likelihood of Investing in OD Resources

63% of respondents indicated they were either very likely (40%) or somewhat likely (23%) to invest in OD over the next three years.

Do you expect that your investments in OD resources over the next three years will be less, about the same or more than during 2004?
39% of respondents indicated their investments in OD would be more, 54% about the same and 7% less than in 2004.

For Profit
50
60 50

For Profit

40
40

30
30

20
20

Percent

0 Very Unlikely Neither L or UL Very Likely Somewhat UnL Somewhat Likely

Percent

10

10

0 Less About the Same More

OD Inv estment in Next 3 Y ears Compared to 2004

Likely to Inv est in OD ov er Next 3 Y ears

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Summary of Findings and Implications for Organization Development and Human Resources
Business Leaders across a wide swath of industries see opportunity for HR and OD related work There is considerable room to improve the perceived effectiveness of organizations in areas that business leaders consider very important.

A high percentage of business leaders are likely to invest in OD over the next three years, with about half planning to invest about the same, and more than another third planning to invest more.
However, OD as a distinct field or function is barely even on the radar screen for much of the work that OD could/should be helping with. Business leaders usually go elsewhere, at least initially, for the support they need and want (especially line management, HR, and consulting firms). OD needs to work with line management to support them, transfer their knowledge, and exhibit a high degree of flexibility to make it happen. Findings call for further inquiry as to ODs fundamental identity, marketing, branding, and positioning with executives and line managers.
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Leading in the 21st Century

Nonprofit Review

New Jersey OD Network Annual Sharing Day May 4, 2006

Tim Lannan, Tim Lannan Consulting

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Demographics of Nonprofit Respondents

Respondents are predominantly female, middle-aged, executives.
Respondent Gender

235 Total respondents:

120 For Profit and 115 Nonprofit
43%

57%

Respondent Age
Males Females

14.8%

2.6%

9.6%

Respondent Level of Management

45%
3.5% 23.5%
20 - 29 30 - 39 40 - 49 50 - 59 60+

27%

67.8%
Middle Management Executive Management Other

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Organization Success Factors: Performance Gaps

Gap 0.91 1.01 1.24 1.25 0.99 0.79 0.90 1.00 0.84 0.83 0.81 0.37 0.75 1.44 1.33 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Aligning and executing strategies in a way that advances the mission and is consistent with core values Effectively addressing organizational culture for collaboration and strategic alliances Effectively applying organizational change principles Aligning strategies, people, systems and processes organization-wide to enhance productivity and sustainability Developing and maintaining the commitment of staff and volunteers to the goals of the organization for better overall performance Clarifying purpose and mission to inspire and engage staff and volunteers Attracting and retaining top talent Leveraging and aligning existing information technology with business and people strategies Facilitating adoption and use of new information technologies for mission effectiveness Using information technology to support learning and innovation Enhancing reputation among communities where we work, and with clients, employees and donors/funders Enhancing employees commitment by focusing on service and contributions in the community Ensuring accountability for values and ethics among employees and volunteers Building leadership capacity for now and the future Solving organizational problems systemically as opposed to solving them on a piecemeal basis Establishing collaborative relationships and partnerships among public, private and nonprofit sectors Increasing speed of response to emerging client and stakeholder needs through shared 25 commitments and organizational values

0.64
0.89

Survey of Nonprofit Leaders Key Findings for Importance and Effectiveness* **

Non-Profit Importance & Effectiveness
4.2 HL
16 11 7 5

HH
1

High Priority

13 6

Effectiveness

12

3.7
4 2 17 9 10 8 3 14 15

Urgent
LH 4.9

3.2

LL 4

Weakness

4.45 Importance

*Actual Items appear on slides 15. **Note: Items were pre-selected as important based on Phase I research and KITs. 26

Survey of Nonprofit Leaders Key Results Urgent

2. Effectively addressing organizational culture for collaboration and strategic alliances Importance = 4.60; Effectiveness = 3.59; Gap = 1.01 3. Effectively applying organizational change principles Importance = 4.51; Effectiveness = 3.28; Gap = 1.24 4. Aligning strategies, people, systems and processes organization-wide to enhance productivity and sustainability Importance = 4.74; Effectiveness = 3.49; Gap = 1.25 14. Building leadership capacity for now and the future Importance = 4.75; Effectiveness = 3.30 Gap = 1.44 15. Solving organizational problems systemically as opposed to solving them on a piecemeal basis Importance = 4.58; Effectiveness = 3.24; Gap = 1.33

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Survey of Nonprofit Leaders: Key Results High Priority

Items:

1. Aligning and executing strategies in a way that advances the mission and is consistent with core values Importance = 4.90; Effectiveness = 3.99; Gap = 0.91 5. Developing and maintaining the commitment of staff and volunteers to the goals of the organization for better overall performance Importance = 4.88; Effectiveness = 3.88; Gap = 0.99 6. Clarifying purpose and mission to inspire and engage staff and volunteers Importance = 4.70; Effectiveness = 3.90; Gap = 0.79 7. Attracting and retaining top talent Importance = 4.83; Effectiveness = 3.91; Gap = 0.90 11.Enhancing reputation among communities where we work, and with clients, employees and donors/funders Importance = 4.85; Effectiveness = 4.04; Gap = 0.81 13.Ensuring accountability for values and ethics among employees and volunteers Importance = 4.72; Effectiveness = 3.99; Gap = 0.75 16.Establishing collaborative relationships and partnerships among public, private and nonprofit sectors Importance = 4.64; Effectiveness = 4.00; Gap = 0.64

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Survey of Nonprofit Leaders: Key Results High Priority Verbatim themes and illustrative quotes
Establishing collaborative relationships and partnerships among public, private, and nonprofit sectors (Item # 16)

This is the key to sustainability in the 21st century

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Sources of Expertise and Support

Building leadership capacity for now and the future
Nonprofit leaders turn to Line Management first and HR second for identifying, attracting, developing and retaining leadership talent. Line management is the primary resource for fostering leadership courage, decision making and problem solving, with HR and Internal OD a distant second.

Non-Profit
40 50

Non-Profit

40 30

30 20 20

10

Percent

0 HR/Internal O.D. Dep Line Management Nonprofit Management Other External O.D. Firm Cons ulting Firm

Percent

10

0 HR/Internal O.D. Dep Line Management Nonprofit Management Other External O.D. Firm Cons ulting Firm

Identif y /Attracting/Dev elop/Retain Leadership Talent

Foster Leadership Courage/Decision Making/Problem Solv ing

To whom do you/would you most likely turn for support in each of the following areas?

30

OD Investment Intentions
How likely is it that your organization will invest/continue to invest in OD resources (people and money), either in-house or outsourced, over the next three years?
67% of respondents indicated they were either very likely (36%) or somewhat likely (31%) to invest in OD over the next three years

Do you expect that your investments in OD resources over the next three years will be less, about the same or more than during 2004?
40% of respondents indicated their investments in OD would be more, 47% about the same and 9% less than in 2004
Non-Profit
40 60

Non-Profit

50 30 40 20

30

10

20

Percent

0 Very Unlikely Neither L or UL Very Likely Somewhat UnL Somewhat Likely

Percent

10

0 Less About the Same More

31

Likely to Inv est in OD ov er Next 3 Y ears

OD Inv estment in Next 3 Y ears Compared to 2004

Summary of Findings and Implications for the Organization Development Community

Nonprofit Leaders across a wide swath of industries see opportunity for HR and OD related work There is considerable room to improve the perceived effectiveness of organizations in areas that nonprofit leaders consider very important. A high percentage of nonprofit leaders are likely to invest in OD over the next three years, with about half planning to invest about the same, and more than another third planning to invest more. However, OD as a distinct field or function is barely even on the radar screen for much of the work that OD could/should be helping with. Business leaders usually go elsewhere, at least initially, for the support they need and want (especially line management, HR, and consulting firms) OD needs to work with line management to support them, transfer their knowledge, and exhibit a high degree of flexibility to make it happen Findings call for further inquiry as to ODs fundamental identity, marketing, branding, and positioning with executives and line managers

32

Conclusions and Next Steps

Promote awareness of survey results: Disseminate and
facilitate dialogue about and use of findings with key stakeholders (HR, OD, line management, professional organizations, academics, etc.)

Continue to evolve Nonprofit Sector Team: Recruit others

with expertise in and passion around organization development and nonprofits to join us in exploring how Organization Development as a profession can add value to US-based nonprofit organizations and empower them to deliver their missions more effectively
Define Organization Development within the larger context of capacity building in nonprofit organizations Make available online a list of resources that OD professionals working in the nonprofit sector have found helpful (ideally in a wikipedia-type format), along with a summary of how OD is understood and used in the sector. ???

33

Enterprise Sustainability Action Team (ESAT)

Jeana Wirtenberg, Ph.D

David Lipsky, Ph.D

Annual Sharing Day May 4, 2006

What is Sustainability?
How can the present generation meet its needs in ways that are not only economically viable, environmentally sound and socially equitable but that also allow future generations to do the same
United Nations World Commission on Environment and Development (The Brundtland Commission), Our Common Future, 1987

Companys ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental and social opportunities into its business strategies.
From participants of Symposium on Sustainability Profiles in Leadership, NYC, October 2001.

35

What is Sustainability?

36

What does it take to build The Sustainable Enterprise?

When It All Comes Together!tm

37

Enterprise Sustainability Action Team

Overview and Purpose: Develop a fieldbook or primer including practical tools, case studies, references and resources for supporting the sustainable enterprise. Outputs will be multi-dimensional: online, multi-media (DVDs, CDs), and a hard copy book Target Audience: Boards of Directors, Senior Management, Business leaders and managers, OD practitioners working (internal and external), HR Leaders and HR professionals Methods: Sub-teams design and work on sections on Sustainability Knowledge Network Portal (www.sknworldwide.net). Monthly conference calls of entire team to dialogue, ensure integration and synthesis, build momentum, and create accountability.

38

Enterprise Sustainability Action Team

Fieldbook Outline: 1. Mental Models and Sustainability 2. Strategy Formulation 3. Leadership 4. Employee Engagement 5. Trans-Organizational Collaboration 6. Change Management 7. Making it Personal
39

Enterprise Sustainability Action Team

Who is on the team? Overall Team Leaders: Jeana Wirtenberg & David Lipsky Mental Models and Sustainability John Adams, Tom Drucker,* Beth
Applegate, Linda Kelley

Strategy Formulation John Adams, Eric Balinski, Govi Rao, Susan

Nickbarg*

Leadership Dan Twomey, Karen Davis, Shakira Abdul-Ali, Beth

Applegate, Terri McNichol, Linda Kelley* Employee Engagement Jeana Wirtenberg*, Bill Russell, Orrin Judd, Dick Knowles, Kent Fairfield Trans-Organizational Collaboration, Social Networks - Bill Russell*, Linda Kelley, Govi Rao, Karen Davis, Susan Nickbarg Change Management Rosemary Dietrich*, Sangeeta Rao

Making it Personal David Lipsky*, Beth Applegate

40

Enterprise Sustainability Action Team

Chapter Contents. Examples:

Mental Models and Sustainability

Introduction and overview Mental Models and sustainability Building the Case for Sustainability The Role of Global OD in Fostering Mental Models for Sustainability Building a Critical mass of Sustainability Thinking Implementing Change Key Success Factors
41

Enterprise Sustainability Action Team

Chapter Contents. Examples:

Employee Engagement

Key Assumptions Employee engagement underlies and is foundational to an organizations ability to be sustainable We co-create the conditions and invite people to come into the conversations that are important to the people in the organization and the organizations sustainability Key Question: How do we purposefully engage with the natural tendencies to self-organize rather than doing something to employees, manipulating or coercing them? Methods: Identify and interview key representatives from companies which are committed to moving towards sustainability for lessons learned, best/next practices. Create how tos and Case Study examples to illustrate Examine companies that have great employee engagement initiatives but have not applied to sustainability
42

Making It Personal
Team Leaders: Beth Applegate & David Lipsky

Purpose: Create a vehicle where people who are passionate about sustainability have the opportunity to learn and share personal stories of success and failures. Make these learnings available to the Sustainability community to help build the energy for our efforts.
Example:

<Insert Your Video Here>

43

Business Strategy Action Team (BSAT)

BSAT plans to produce a reference guide for senior executives interested in utilizing OD principles and practices to improve overall business performance (late 2006, working title only Strategic Talent Development Investments: A Reference Guide for Business Executives). The Scope Team has recommended the following focus areas:

What measurable value does OD offer to profit & nonprofit organizations? How Can clients recognize an OD opportunity What benefits may clients expect from OD interventions? What professional competencies should clients consider in selecting a consultant to pursue potential OD benefits? The ROI team has recommended:

Expanding focus beyond ROI formula to business performance metrics Defining the role of metrics within OD, focusing on tangible (quantifiable) and intangible (non-quantifiable) benefits of OD initiatives on business results Examining metrics targeting key OD/talent development areas of a) business impact; b) processes and approaches; c) learning organizations; d) OD/talent development department performance; and e) individual OD/talent development program performance The Systems team has summarized key topics covered in the latest OD practitioner literature to outline the headings to be included in the new executive reference guide.
44

Change Model Action Team (CMAT)

More challenging to launch; need more members Emphasis on Action Learning Will partner with ESAT and Change Management subteam Will review Boeing Change Model and other models
45

What Next?
Not the end of the story What is your passion around these areas?

46