Strategic Interventions in Organisational Development

Strategic Interventions in OD
OD and CHANGE MANAGEMENT

Session 4
MBA (Executive) 2017-20 : SEM V
SCMHRD
Aug 2019
Organisational development 2
• Organization development (OD) is the study of successful organizational change and

performance.
• OD emerged from human relation studies in the 1930s, during which psychologists
realized that organizational structures and processes influence worker behavior
and motivation.
• More recently, work on OD has expanded to focus on aligning organizations with their
rapidly changing and complex environments through
• organizational learning,
• knowledge management and
• transformation of organizational norms and values.
• Key concepts of OD theory include:
• organizational climate …..the mood or unique “personality” of an organization, which includes
attitudes and beliefs that influence members’ collective behavior, organizational culture ; and
• organizational strategies …… how an organization identifies problems, plans action, negotiates
change and evaluates progress.
This presentation has been prepared by Prof. Gautam Chakravarti for class discussion
Organisational Development….2 3
• According to organizational development thinking, ……

• Organization development provides managers with tools and a
conceptual framework for introducing change systematically in
organisations.
• These activities or interventions lead to greater effectiveness…
• Personal effectiveness ,
• Group effectiveness, and
• Organizational effectiveness.
Organisational Development ….3 4
OD programs try to achieve the following objectives:
a. making individuals in the organization aware of the vision of the organization.
Organizational development helps in making employees align with the vision of the
organization
b. encouraging employees to solve problems instead of avoiding them
c. strengthening inter-personal trust, cooperation, and communication for the
successful achievement of organizational goals
d. encouraging every individual to participate in the process of planning, thus making
them feel responsible for the implementation of the plan
e. creating a work atmosphere in which employees are encouraged to work and
participate enthusiastically
f. replacing formal lines of authority with personal knowledge and skill
g. preparing members to align with changes and overcome stereotypes
h. creating an environment of trust so that employees willingly accept change
Organization Development Intervention 5
• A sequence of planned activities, actions, and events intended to

help an organization improve its performance and effectiveness.
• Interventions are designed to purposely disrupt the status quo.
• Effective interventions can be determined by 3 criteria
• The extent to which it fits the needs of the organization
• a. Valid information
• b. Free and informed choice
• c. Internal commitment
• The degree to which it is based on causal knowledge of intended outcomes.
• The extent to which it transfers change - management competence to
organization members.
Organization Development Intervention… 2 6
• Designing Effective Interventions is determined by ….

1. Individual differences among the people in the organization,
i.e. its members,
2. Organizational factors, and
3. Dimensions of the change process itself.
Besides, it is also contingent upon …Situational factors, viz;

• Readiness for Change
• Capability to Change
• Cultural Context
• Capabilities of Change Agent
4 types of OD interventions 7
• Human Process
• Human Resources Management
• Techno-Structural
• Strategic
Strategic Interventions 8
• Strategic Management
• Culture change
• Strategic Change
• Self-designing organisations
• Mergers & Acquisitions
• Alliances and Networks
Intervention Characteristics 9
• Need must be clearly articulated : The specific goals of the intervention (WHY)
• Scope has to be spelled out : What is the targeted level of change ? (WHAT)
• The focus of the intervention activity : Coverage (HOW)
• What is the internal support planned for the intervention ….. Resources,
Involvement of seniors, consultants’ / experts’ engagement
• Who is the sponsor ?
• Action plan ; and
• Responsibility for execution
• These are the interventions that link the internal functioning of the organization
to the larger environment and …..
• transform the organization to keep pace with changing environmental
conditions
• These are among the newest additions to OD Interventions menu.
• They are implemented organization-wide and seek to bring about a fit between
• Business strategy,
• Organisation structure,
• Culture, and
• The larger environment.
• The interventions are derived from the disciplines of Strategic management,
Organisation theory , Economics and Cultural anthropology.
• It includes……
• Strategic Management
• Culture change
• Strategic Change
• Self-designing organisations
• Mergers & Acquisitions
• Alliances and Networks
Difference Between Strategic Planning and
Strategic Management 13
Strategic management consists of:

• Formulating strategies
• Developing action plans
• Designing the firm’s capability
• Managing the
• implementation of strategies,
• Capability development
• Undertaking the planned actions
• Monitoring results and reviewing the strategies and capabilities
The Strategic Management Process 14
• The Framework for Strategic Management

• Company Vision and Mission
• Long term objectives
• Analysis of External environment
• Analysis of Internal capabilities
• Strategic analysis and choice
• Generic strategies
• Short term objectives / Annual Operating plans
• Management Control Systems
Michael Porter’s perspective on how
Strategic management has evolved 15
The Traditional Model Sustainable Competitive Advantage

• One ideal competitive position in
the industry • Unique competitive position for the Company
• Benchmarking of activities and • Activities in line with demands of strategy
achieving best practices • Clear trade-offs and choices vs competition
• Outsourcing and partnerships to • Competitive advantage is derived from
gain efficiencies consistency across activities
• Derive advantages from Core • Operational effectiveness is a given
competencies, Key Success factors
and Critical resources • Sustainability comes from the total set of
activities and not from individual activities
• Quick response to market and
competitive changes This presentation has been prepared by Prof.
Gautam Chakravarti for class discussion
Benefits and Risks of Strategic management 16
Benefits
Risks
• Enhances the probability of long term success
of the company • Imbalance in planning and
implementation focus
• Ensures key personnel are on “the same page”
• Enables Periodic “renewal” of the Company
• Time spent on strategy vs
tactical operations
• Enhances motivation
• Formal planning often inhibits
• Eliminates gaps and inconsistencies in activties
entrepreneurial and creative
• Ensures generation and systematic evaluation endeavours
of credible alternative courses of action
• Disappointment of participant
• Enhances acceptability of major management teams over
organisational changes and reduces resistance
topresentation
This changehas been prepared by Prof. Gautam Chakravarti for class discussion unattained expectations
• Minimises adaptive behaviour
Attributes of Strategic decisions 17
• Strategy is about competing differently …….
• Involves actions and moves which appeal to customers ,in a manner which
sets the company apart from the competitors
• It is not about mimicking success in the industry ….. it is about charting your
own specific template for success
• Strategic decisions
• are future oriented and determine the long-term prospects of the company
• Normally require large amounts of company resources …. Finance, people and
physical assets
• Usually have multi- functional or multi- business implications / consequences
• Have to be taken in a multi-dimensional context …. External environment,
competitive environment and organisational capabilities
• Havehasto
This presentation beenbe taken
prepared by Prof.by senior
Gautam Chakravartimanagement
for class discussion as they cover several areas of the
company’s operations
3 levels of Strategy 18
• Corporate Strategy – reflecting concerns of stockholders and investors
• Financial goals
• Non – financial goals
• What should the company be doing … portfolio approach
• Organisation structure
• Business Strategy
• How will we compete
• How shall we organise activities to implement
• Functional strategies
• Marketing and sales
• R&D
• Financial
• Manufacturing
Modes of Strategic Management 19
Type of Change
Management Incremental – Product / Service Discontinuous – Globalisation /
approach to action / Market development Divestment / diversification / new
Technology adoption
REACTIVE Trial and error reaction to Panic search to get a solution to the crisis
unsatisfactory performance
PRO- ACTIVE + ADHOC Bottom-up', episodic, logically Trial and error search in reaction
incremental initiatives by R & D to a perceived discontinuity
and Marketing Episodic, systematic anticipation of
discontinuities – management of crisis
PRO-ACTIVE + Firm-wide periodic extrapolation of Firm-wide periodic, systematic revision of the
SYSTEMATIC past trends and performance logic of the firm’s future development
This presentation has been prepared by Prof. Gautam Chakravarti for class discussion (Strategic Planning; Strategic Management).
Should Strategic management be a formal process ? 20
• What is a Formal process …
• Participation profile
• Role and Responsibility, Area of Authority
• Level of Discretion in decision making
• Accountability for consequences
• Degree of collectivity
• How much should be the formality …. Criteria for determination
• Size , complexity of environment,
• intensity of competition, complexity of operations,
• organisational ability to handle formal processes,
• predominant management style
Some options …. 21
Entrepreneurial mode Formal planning Adaptive mode of

of strategic planning systems strategic planning
• Informal, intuitive, • Comprehensive, data • Medium sized firms
limited scope and analysis driven • Relatively stable
• Low role of data and • Resource intensive , environments
detailed analysis Multi-level planning • Incremental changes
• Appropriate for • Firm time and action to broadly same
smaller firms calendar pattern of
• Focus on action competitive approach
planning
• Characteristic of
This presentation has been prepared by Prof. Gautam Chakravartilarge corporates
for class discussion
Strategic Management
Strategic Planning
1. Focused on producing strategic
1. Focused on optimal results
decisions • New products , markets, technologies,
2. Analytical process processes.
3. Looks at Business, 2. Organizational action process
Technology and Economic 3. Enlarges scope to include
variables psychological, social and process
4. Is about choosing things to variables
do 4. Is about what to do, how to do and
This presentation has been prepared by Prof. Gautam Chakravarti for class discussion who will do it
Strategic management consists of:

• Formulating strategies
• Developing action plans
• Designing the firm’s capability
• Managing the
• implementation of strategies,
• Capability development
• Undertaking the planned actions
• Monitoring results and reviewing the strategies and capabilities
Benefits and Risks of Strategic management 24
Benefits Risks
• Enhances the probability of long term success • Imbalance in planning and
of the company implementation focus
• Ensures key personnel are on “the same page” • Time spent on strategy vs tactical
• Enables Periodic “renewal” of the Company operations
• Enhances motivation • Formal planning often inhibits

entrepreneurial and creative
• Eliminates gaps and inconsistencies in activties endeavours
• Ensures generation and systematic evaluation • Disappointment of participant
of credible alternative courses of action management teams over unattained
• Enhances acceptability of major expectations
organisational changes
This presentation has been and
prepared by Prof. reduces
Gautam Chakravarti resistance
for class discussion • Minimises adaptive behaviour
to change
Your Role in Strategic Management 25
External Assess Internal

Environment Analyse + Add
Capabilities
Value
to respond
Act Assist
Implementation
of
Formulation of
Strategy strategy
Major interventions for managing Organization and
Environment relationships 26
Integrated strategic change. 27
• This comprehensive OD intervention describes how planned

change can make a value – added contribution to Strategic
management.
• Strategies and organizational systems must be changed together
in response to external and internal disruptions.
• A strategic change plan helps members manage the transition between
• A current strategy and organisation design ; and
• The desired future strategic orientation.
Organization re-design 28
• This intervention addresses the organization’s architecture …..

• …..The extent to which structure, work design, human resource practices,
management and information systems are in alignment …. and support each
other.
• It is a systemic view of the organization that attempts to direct member
behaviour in a consistent and strategic direction.
• This intervention helps organizations develop cultures (behaviors, values, beliefs,
and norms) appropriate to their strategies and environments.
• It focuses on developing a strong organization culture to keep organization
members pulling in the same direction.
Trans-organization development 29
• This refers to strategic interventions that shape the collaborative strategies

of organizations
• These intervention helps organizations enter into alliances, partnerships and
JVs to perform tasks or solve problems that are too complex or resource
heavy for a single company to resolve.
• It helps organizations recognize the need for partnerships and develop
appropriate structures for implementing them.
• Mergers and acquisitions.
• This intervention describes how OD practitioners can assist two or more organizations
to form a new entity.
• Addressing key strategic, leadership, and cultural issues prior to the legal and financial
transaction helps to smooth operational integration.
Trans-organization development : 2 30
Alliances. Networks.
• This collaborative intervention helps • This intervention helps to develop
two organizations pursue a set of relationships among three or more
private and common goals through the organizations to perform tasks or
sharing of resources, solve problems that are too complex
• Resources include intellectual for single organizations to resolve.
property, people, capital, technology, • It helps organizations recognize the
capabilities, or physical assets. need for partnerships and develop
• Effective alliance development appropriate structures for
generally follows a process of strategy implementing them.
formulation, partner selection, • It also addresses how to manage
alliance structuring and start-up, and change within existing networks.
alliance operation and adjustment.
Culture change 31
• This intervention helps organizations develop cultures (behaviors,

values, beliefs, and norms) appropriate to their strategies and
environments.
• It focuses on developing a strong organization culture to keep
organization members pulling in the same direction.
Culture and Culture Change 32
Organisation Culture 33
• Basically, organizational culture is the personality of the organization.
• Culture is comprised of the assumptions , values, norms and tangible signs
of organization members and their behaviors, which are widely shared
across the organisation.
• Culture is one of those terms which is but difficult to define but everyone
knows when they sense it.
• For example, the culture of a large corporate is quite different from that
of an hospital which is quite different from that of an university.
• Culture is the unwritten social order in organisations
• It shapes attitudes and governs behaviour.
Organisation Culture ….. 2 34
• Understanding Organisational culture is important for strategy formulation as it …..
• Guides decision making
• Provides identity for members
• Amplifies commitment
• Guides employee behavior
• Provides justification for actions
• Strategy and culture need to be aligned, for enabling successful implementation.
• A strong culture helps
• An organization to adapt to the environment .
• As an anchor when the organization is going through major change.
• Broadly 4 types of cultures have been talked about ….
• Bureaucratic
• Clan
• Market
• Entrepreneurial
This Presentation has been prepared for class discussion by Prof. Gautam Chakravarti
Organisation Culture….3 35
Entrepreneurial
Bureaucratic culture Clan culture Market culture
culture
• This is driven by • It is like an • This is what we see • is also known as
rules and SOPs. extended family. in a result- “adhocracy” ……
• The focus is on People share a lot oriented • It is dynamic
stability and it is of themselves organization whose entrepreneurial,
useful for managing within the major concern is and creative place
large scale. organisation. with getting the job to work.
• It is therefore • Behaviour is shaped done. • People stick their
consistent with by tradition, loyalty • People are necks out and take
production and and personal competitive and risks.
delivery of commitment. goal-oriented. • Experimentation is
standardised goods • Long tenure • People are encouraged and
and services. employment is the accountable for innovation is
norm. Old their performance demanded.
employees act as
mentors
This Presentation has been prepared for class discussion by Prof. Gautam Chakravarti
Culture …. 2 36
• Culture norms define….within the organisation seen as a “group”….
• What is encouraged
• What is discouraged
• What is accepted
• What is rejected
• When suitably aligned to personal values and needs….. It can unleash
• Tons of energy towards…..
• Shared purpose and organisation’s capability to succeed.
• Culture can evolve flexibly and autonomously in response to changing
opportunities and business imperatives
• Strategy is driven by top management ….. In contrast, culture could be built
up by intentions and behaviour of top leadership blended with the
knowledge and experience of frontline
This presentation employees
has been prepared by Prof. Gautam Chakravarti for class discussion
Culture …. 3 37
• The culture of an organization is its customary and traditional way of thinking and
doing things which is shared by and large, by all its members…… and which new
members must learn and accept in order to be accepted in the firm.
• Culture covers a wide range of behavior:
• the methods of production;
• job skills and technical knowledge;
• attitudes towards discipline and punishment
• The custom and habit of managerial behavior
• Its way of doing business
• The methods of payment
• The valuesa ttributable to different types of work
• Beliefs in democratic way of life
• Sigificance accorded to joint consultation
• Culture shows up in both visible and invisible ways.
Manifestations of Culture 38
• Invisible Manifestations of Culture:
• Visible Manifestations of Culture:
• Values
• Dress Code
• Private Conversations (with self or confidants)
• Work Environment
• Invisible Rules
• Benefits
• Attitudes
• Perks
• Beliefs
• Conversations • Worldviews
• Work/Life Balance • Moods and Emotions
• Titles & Job Description • Unconscious Interpretations
• Organizational Structure • Standards of Behavior
• Paradigms
• Assumptions
4 key attributes of Culture 39
• Shared
• It is a group phenomenon….. not an average of individual characteristics.
• It is reflected by way of unwritten rules, adhered to by most people.
• Pervasive
• It permeates multiple levels in the organisation.
• It is reflected in mind sets, collective behaviours, symbols and stories.
• Enduring
• It can direct, mold and shape the thoughst and actions of group members over long periods of
time.
• Organisations tend to select indivduals who “fit-in”
• It tends to become a self- perpetuating social pattern that grows increasingly resistant to change
and outside influences.
• Implicit
• It is a “silent” language
• Despite being subliminal in nature, people get effectively hardwired to recognise its sysmbols
and respond to it.
Cultural styles 40
• To understand the culture of an organisation, we need to examine where it falls along these 2
dimensions.
• People interactions
• Response to Change
• An organisation’s perspective on People Interaction and coordination will fall on a spectrum
stretching from … INDEPENDENCE to INTERDEPENDENCE.
• Those which emphasise INDEPENDENCE, place greater value on ……
• Autonomy,
• Individual initiative ; and
• Competitive behaviour
• Those which emphasise INTERDEPENDENCE, place greater value on…..
• Integration,
• Team spirit,
• managing inter-personal relationships ; and
• collaborative effort This presentation has been prepared by Prof. Gautam Chakravarti for class discussion
Cultural styles 41
• As regards “Response to Change”….. Some cultures emphasise “STABILITY”….while others
give greater weightage to “FLEXIBILITY”.
• Cultures emphasising STABILITY …. give greater value to consistency, predictability and
status quo…… They favour …
• Rules,
• Use control structures,
• Reinforce hierarchy, and
• Push for efficiency
• Cultures emphasising FLEXIBIITY…give greater value to adaptability and willingness to
change…… They favour ……
• Innovation,
• Openness, and
• Diversity.
• Based on these 2 dimensions, research has identified 8 cultural styles which apply to both
organisations and leadership. This presentation has been prepared by Prof. Gautam Chakravarti for class discussion
Eight Culture Styles : An integrated framework 42
FLEXIBILITY
Learning
How people respond to change

Purpose
Enjoyment Caring
INDEPENDENCE
INTERDEPENDENCE
How people interact
Results Order
Authority Safety
STABILITY This presentation has been prepared by Prof. Gautam Chakravarti for class discussion
Eight Culture Styles : 2 43
Caring Purpose Learning

• Focused on relationship • Characterised by idealism • Focus is on exploration and
and mutual trust. • Work enviroments are creativity
• Work enviornments are tolerant, and full of • Work encironments
warm and collaborative, compassion whre people promote innovation and
where people help and work for the longer term creativity; open-mided
support each other. future of the world spaces where people
• Employees are united by • Employees are united by generate new ideas and
loyalty ; and focus on super-ordianate explore alternatives
• Leaders emphasise goals like sustainability • Employees are united by
sincerity, teamwork and and global causes curiosity
positive relationships. • Leaders emphasise shared • Leaders emphasise
ideals and contribution to innovation, knowledge and
agreater cause. experimentation
Enjoyment Results Authority

• This is demonstrated • Focus is on • This is characterised
by excitement at the achievement and by strength,
workplace. winning. decisiveness and
• Work environments are • Work environments are boldness.
light-hearted places outcome oriented and • Work enviroments are
where people work meritocracy driven. competitive, where
sincerely but maintain • Employees are united people strive to get
a joyful demeanour. by a drive for personal advantage
• Employees are united capability • Employees are united
by stimulation and fun improvement and by stong control.
at work. target delivery. • Leaders emphasise
• Leaders emphasise • Leaders emphasise confidence and
spontaneity and sense goal accomplishment dominance.
of humour.
Safety…. Order ….
• This kind of culture is defined by • This is focused on respect, structure
planning, preparedness and caution. and shared norms.
• Work environments are stable, • Work environments are structured and
predictable and people are risk- methodical, where people live by SOPs
averse. and are keen to “fit-in”.
• Actions are preceded by careful • Employees are united by norms and
thinking cooperation.
• Employees are united desire to be safe • Leaders emphasise shared procedures
and secure, while anticipating change. and established customs.
• Leaders emphasise realism,
pragmatism and planning ahead.
Understanding the “integrated framework” 46
• Trade-offs are inherent in the framework and so are mutual consistencies.
• Styles adjacent in the framewerk can co-exist within the same
organisation … in different parts of the organisation…. E.g. Safety and
Order
• Safety and Learning are less likely to be together and would need much
more effort to build and sustain in the same organisational eco-system.
• Caring and Order are mutually consistent while Results and Caring, if
pushed as an agenda could create dissonance among the employees.
4 levers for evolving a “relevant” Culture 47
• Changing company culture is a tough task
• It is very heavily intertwined with emotional and social dynamics of the organisation
involving large number of people.
• 4 practices can lead to successful culture change
• Articulate the aspiration
• Select and develop leaders who align with the target culture
• Use organisational conversation about culture to highlight and emphasise the
importance of change
• Reinforce the desired change through organisation design changes.
• OD interventions are crucial to catalyse, foster and drive these changes in culture.
• But we have to be patient as it takes time.
• It has to be lead by the senior management through their own actions and
behaviours….”leading by example”.
• Initially a “critical mass” has to be nurtured …and then it will grow and spread.
Interventions that are designed to support
continuous change …. 48
Organization learning and knowledge

Self-designing organizations.
management.
• This change program helps organizations • This intervention describes two interrelated
gain the capacity to alter themselves change processes:
fundamentally. • Organization learning (OL), which seeks to
• It is a highly participative process involving enhance an organization’s capability to
multiple stakeholders in setting strategic acquire and develop new knowledge, and
directions and designing and implementing • Knowledge management (KM), which
appropriate structures and processes. focuses on how that knowledge can be
• Organizations learn how to design and organized and used to improve
implement their own strategic changes. organization performance.
• These interventions move the organization
beyond solving existing problems so as to
become capable of continuous
improvement.
Interventions that are designed to support
continuous change: 2 49
3. Built-to-change organizations.
• This approach to continuous change challenges traditional design
principles that ……
• View stability and equilibrium as the keys to success, and
• Support the belief that change is costly and should be avoided.
• Built-to-change organizations, are based on the premise that the
source of effectiveness is the ability to change continuously.
• The features, skills and knowledge, and processes of leading and
managing these adaptable organizations are laid down and
assimilated by the members.
Thank you…. 50

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Strategic Interventions in OD

OD and CHANGE MANAGEMENT

• Organization development (OD) is the study of successful organizational change and

• According to organizational development thinking, ……

• A sequence of planned activities, actions, and events intended to

• Designing Effective Interventions is determined by ….

Besides, it is also contingent upon …Situational factors, viz;

Strategic management consists of:

• The Framework for Strategic Management

The Traditional Model Sustainable Competitive Advantage

Entrepreneurial mode Formal planning Adaptive mode of

Strategic management consists of:

• Enhances motivation • Formal planning often inhibits

External Assess Internal

• This comprehensive OD intervention describes how planned

• This intervention addresses the organization’s architecture …..

• This refers to strategic interventions that shape the collaborative strategies

• This intervention helps organizations develop cultures (behaviors,

How people respond to change

Caring Purpose Learning

Enjoyment Results Authority

Organization learning and knowledge

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