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Why organisational development is the strategic future of HR

Why Organisation Development is

the Strategic Future of HR

Quality & Equality LtdTel: +44 (0) 1865-744618E-Mail: info@quality-equality.comWebsite http://www.quality-equality.com

Dr L Mee-Yan Cheung-Judge

How is HR doing?

What is OD?

What does an “OD thinking HR professional” look like?

Complex world…..Macro Trends….. Organisation Evolution! Few cases to explore implications for HR?

How is HR doing?

Complex world…..Macro Trends….. Organisation Evolution ! Few cases to explore implications for HR?

What is OD?

What does an “OD thinking HR professional” look like?

1. HR is a matter of life and death

© Quality & Equality Ltd

Professor Michael West

2. Continuous Adaptation and Evolution

© Quality & Equality Ltd

Range of roles HR are expected to deliver1. Technical advisors

2. Employee champions

3. Internal Regulators of best legal practice

4. Resourcing specialists

5. Operational managers,

6. Advocate of key policy practice

7. Administrative experts

8. Project managers

9. Functional specialists in: recruitment, promotions, transfers, outplacement, measurement, rewards, training and development.

10. Centre of excellence specialist

11. Competency professionals

12. Human capital developers

13. Talent managers

14. Change agents

15. Internal consultants

16. Business partners

17. Trouble shooters

18. Confidants to leaders

19. Knowledge facilitators

20. Thought leaders

21. Client relationship managers

© Quality & Equality Ltd

From To

Employee champions

and advocates

Human capital developer

Administrative

experts

Functional Experts

Change agent and

project manager

Strategic business partner

HR leader in the

function

HR leader in the board

© Quality & Equality Ltd

Content Specialist ………………… Process Specialist

WHAT? …………….. HOW?

3. Becoming both “content” and “process” specialists

© Quality & Equality Ltd

In this current and future

business environment,

what types of areas do we

need our business leaders

to start engaging in? and

how we can support

them?

4. Becoming business and context focussed

© Quality & Equality Ltd

How is HR doing?

Complex world…..Macro Trends….. Organisation Evolution ? Few cases to explore implications for HR?

What is OD?

What does an “OD thinking HR professional” look like?

Growth of ‘Sustainability requirements’

Environmental concerns / change

New forms of energy / energy use

Shifting emphasis of government policy e.g. towards the Far Right

State companies

Governmentpolicy (domestic plusinternational)

Growing trend in transparency and accountability of org action

Increased demand for public diplomacy and transparency

Turbulent global economy – growing scarcity

Current public perception and awareness of the institution

Domestic employment

legislationOverseas Employment Legislation

Tech change /

IT

NT – information & knowledge explosion

Scale and size of Globalisation

Corporate reality -lean and mean way of working

Growing expectations of workforce

Social trends in labour (life/work/salaries/ a dual career.)

Changing political landscape

Competition in labour marketfor highly skilled people

Changing demographics (60+)

Growing importance of market economy

Increased competition in downstream business

Rising and fall of GDP

Competing entities

Local rules

Requirements from keyEquality & Diversity regulatorybodies

The increase scale and intensity of international conflict

Proliferating health and safety legislation

Expectations from investors / shareholders

The growth ofjoint ventureEndemic population movement

Population growth(low/high)

Shrinking Access to talents

Variety of customertastes

Environmental change

Public opinion

Growing disparity of World economy

Th

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© Quality & Equality Ltd

The “Infinite game”

• Many factors influence events and

yet important factors are unknown

• Causes are effects and effects are causes

• Change is nonlinear, no single/identifiable root cause for what happens

• The goal for many organisations is not to win but stay in the game.

• There are rules but they are constantly changing

• It is very hard to predict specific outcomes of a chosen intervention.

(James Carse, 1968)

Short reflectionWrite down your answers to these two questions:

1. What are the key macro trends in the environment that are impacting and will continue to impact on how your organisation will run?

2. How do you feel doing HR in this context?

(3 minutes)© Quality & Equality Ltd

Six mega Trends ?

16

The unpredictable complexity in the environment.

Increasing Global Resource scarcity

The growth of information technology –technological tipping points.

The demo-graphic shift

The endemic population /population movement

Consumer rights and transparency -ever increasing client aware-ness/ insight of what they want

Copyright © All rights Reserved: Dr L M Y Cheung-Judge, Quality & Equality

Understanding the context of our organisations

HR Challenges is to support Organisation to function well in this context

1. Get the strategic direction as right as you can in a complex and rapidly changing world. (strategic work)

2. Carry out the systemic “internal alignment” to support the strategic implementation. (building FIT organisation work)

3. Engage the people to support the constant shifting of strategy/change direction. (people engagement work)

4. Ensure the speed of internal changes match the speed of external changes. (Continuous transformation work)

5. Develop a collective and collaborative culture to stay agile, nimble, innovative…ahead of the curve.(culture work)

18© Quality & Equality Ltd

Flexible workforce Planning – the

case of the human cloud

Three parties

Those who post the request to get the work done

Those who bid for the work and get it done

Those who are the intermediaries who take care of the financial transaction, plus tracking the rating of the workers’ performance

© Quality & Equality Ltd

Human Cloud

on-line platforms

© Quality & Equality Ltd

(world-wide)

Writers

(mainly English speaking countries)

Online Advertising

(Kent, UK)

On Line Tutors

(Over 100 globally)

IT Development Office

(Mumbai, India 20+)

Customer Service Centre

(Delhi, India 10+)

Website Development

(Cheshire, UK)

1. CEO2. COO3. Product Manager4. Learning Manager5. Content Development6. Marketing7. Sales8. Intern/admin(overseen by UK Board)

An example ……………what role does HR play?

LONDON OFFICE

Legal, HR, Finance(outsourced)

© Quality & Equality Ltd

Evo

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f o

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isati

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Evolution of Organisation

Hierarchical organisation

Institutional organisation

Collaborative organisation

Learning organisation

Virtual organisation

Holacracies organisation

Wirearchies organisation

Network organisation

Flatarchy organisation

© Quality & Equality Ltd

• Roles vs Job Description• People have more than one role (by choice)• Bubble/circle – people can be in than

1 bubble/circle• More autonomy/less rigid control• Organising principles vs organisation design• High connectivity in a networked world. • Rapid prototyping and feedback• Highly relational• Community of practice• Culture and behaviour is crucial

Other scenario: Digital Revolution; Artificial Intelligence

New ways of working• What does the new “normal”

organisation look like?

• What are the “organising principles” for people, system, and processes?

• What human behaviour organisation needs to grow/ nurture to support the agile, nimble, collaborative way of working?

• What organisation culture will instigate behavioural changes to support the “new normal” organisation?© Quality & Equality Ltd

First bucket of issues for HR1. How human resources are organised – what will the risk be for the organisation to

function with such a flexible work force?

2. What types of terms and conditions will you have for both “permanent” staff, part time staff, human cloud performers?

3. What type of performance management system you will have?

4. What type of capability development will you have to make available to who?

5. What should the relationship be – between the office “permanent” staff and those who are working through the human cloud, what type of relationships should HR promote between them?

6. How to gel the team and have face to face meeting when the organisation is no longer office based?

7. What types of job role and competency are staff required to have when they are being moved in and out different projects, job roles, as part of the flexible deployment?

8. In those circumstances is investing in talent management still a worthwhile effort? If so, what criteria will the organisation use?

© Quality & Equality Ltd

Second bucket of issues for HR1. How do we help people to have action flexibility and behavioural

flexibility to join and leave different work groups?

2. How do we help people to develop a different type of identity when they no longer have a permanent home base at work?

3. How to prepare the workforce to be nimble enough to cross many professional boundaries in getting things done at any one time?

4. How do they work out their need for affiliation when they are in bubbles that work for two weeks and then burst?

5. How do we support them in managing the anxiety and insecurity that comes from being truly “flexible” in their multiple membership in different group?

6. How to grow collaborative attitude and behaviour, and what will help them to form new relationship constantly?

© Quality & Equality Ltd

How is HR doing?

Complex world…..Macro Trends….. Organisation Evolution ? Few cases to explore implications on HR?

What is OD?

What does an OD thinking HR professional look like?

What is Organization Development?

“OD is a long-range effort to improve an organization’s problem solving and self renewal processes……with the use of theories and

applied behavioral science.” (French)

“OD is all the activities engaged by leaders, managers, employees and helpers that are directed toward building and maintaining the

health of the organization as a total system.” (Edgar Schein)

“OD is a process (and its associated technology) directed at organizational improvement.” (Margulies)

© Quality & Equality Ltd

The field of Organisation Development Organisation Development is a systematic application of behavioural science researches,

principles and practices to understand how people and organisations function and how to

get them to function even more effectively within a turbulent time.

• Behavioural science disciplines such as psychology, social psychology, sociology, anthropology, systems theory, organisation behaviour, organisation theory, economic behaviour, and management literature

Origin

• Organisation improvement (organisation effectiveness -external)

• Continuous Organisation development (Internal health)

Goal (twin goals)

• Total system (alignment and interface between parts)Focus

• Action, plan interventionOrientation

• Human system within the social systemTarget

• Provide theory and methodology to system ‘practitioners’Application

• “Humanistic – democratic - optimistic”- Affirm respect for human differences, justice and life-long learning

Values

© Quality & Equality Ltd

OD has strong roots in …

Applied Behavioral Science based processes.

• Human development

• Group development

• Large system development

• Social engagement, quality relationships

• Organization participation

• Diversity, inclusion, social change

• Relationship between helper and those who are helped

© Quality & Equality Ltd

Role of OD Function1. Work with strategist to engage in strategic

formulation,

2. Work with line managers, HR and strategist colleagues to do strategic implementation,

3. Sharing and guiding leaders on the science of what is organisation,

4. Educating and working on how organisation functions as a whole system,

5. Supporting line leaders/colleagues to undertake how to do internal alignment when one aspect of organisation change,

6. Work with HR colleagues to mobilize people using applied behaviour science knowledge & data in the direction the change requires.

7. Get commission from internal clients to work with sub-optimal teams (group is the basic unit of change in OD)

8. How to work with changing individual behaviour, collective behaviour, group and sub group norms and culture

9. Become functional expertise on organisation design

10. Building, mainlining, shifting corporate culture

11. Provide change capability to equip system members to do their own change work

12. Work in alliances with HR in sorting out post-merger or post acquisition integration.

13. Support leaders on how to enrol participation on growth strategy.

14. Provide leadership in working with complex change.

© Quality & Equality Ltd

How is HR doing?

Complex world…..Macro Trends….. Organisation Evolution ? Few cases to explore implications for HR?

What is OD?

What does an OD thinking HR professional look like?

Five key areas:

1. To be stronger in THEORY in action (less formula and tools- more real time design to work in emergence within this complex world)

2. To be system thinker (WHOLE system + systemic alignment is a must)

3. To know more about applied behavioural science – to be more equipped to deal with a complex living system

4. To be more savvy in group/group dynamic – knowing how to work with groups to induce the best behaviour

1. 5. To develop oneself to provide “presence” to shift others (Self as instrument).

© Quality & Equality Ltd

Psychodynamic Theory

• Tavistock Work

• Family Therapy

Psychoanalytical Theory

• Eric Trist

• Fred Emery

• Bion

• Horney

• Fromm

• Freud

System Theory

• Ludwig von Bertalanffy

• Katz & Kahn

Group Dynamics

• How groups form and function

• Bales

• Schutz

• Tannenbaum

• Argyris

• Bennis

Change Theories

• Lippit

• Likert

• Ackerman

Action Research

• Lewin

Complexity & Chaos Theory

• Stacey

• Wheatley

• Black

• Morgan

• Snowdon

Social Constructionism

Theory

•Berger

•Luckmann

•Mead

•Vygotsky

•Fisk

Appreciative Inquiry

•Watkins

•Cooperrider

© Quality & Equality Ltd

1. OD – theory in action

Ability to work with EMERGENCE - in knowing what to do “in the moment”

1. Philosophy

2. Theory (there is nothing as practical as theory)

3. First principle (fundamental reasons)

4. Frameworks and models

5. Tools

Real-time design of Intervention to make things

happened (theories in action)© Quality & Equality Ltd

InterpersonalIntra-group

Intrapersonal

Inter-groupIntra-unitInter-unit

Bounded systemSystem network

Total system in its environments

© Philip J Mix for Q&E

Different theories at different level of system? All OD interventions should aim to intervene in a minimum

3 levels of system

2. Embrace Systemic Thinking -Organizations as Systems

© Quality & Equality Ltd

Quality of interface and

relationship is everyone

top work - quality of the

interface between parts

impact system

health/performance –

relationship is key

Help Leaders to be culture

builders

Boundary maintenance –

getting the tight- loose

polarity right – will shape

the system’s ability to

work with feedback

Be boundary spanners

Diversity gives the system

edge –

system diversity is to be

leveraged for more robust

data; greater innovation

and flexi-mindset – source

of agility, innovation

Be inclusive promoters

System connectivity and

interdependence - system is

made up of many parts

which are connected in

some way; and each part

depends on other parts for

survival knowingly or

unknowingly

Be linking agents

Whole System Lens is

critical –

Whole system is more

than sum of its part;

myopic perspective limits

leadership horizon –

hence action

Be an educator on holism

Open system –

most system is an open

system – has energy input,

via throughput, and give

required output –

Be externally savvy

Basic Ideas of System Thinking

© Q

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Environmental Context

Effective performance achieving and exceeding expectations of key stakeholders

Strong Leadership

Mission

Inte

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Wo

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Clarity about what we have

to offer the world and how

to keep our Competi-tiveness

© Q

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© Quality & Equality Ltd

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© Quality & Equality Ltd

3. Be a dedicated learner ofApplied Behavioural Science

We need to recognise human system is -- a living system –

© Quality & Equality Ltd

with strong life force/urges to create -- Choices, freedom, connection, community, agency, affiliation, productive … are basic human needs

The complexity of human behavior: Front vs back room

Sense of Self(Identity)

Values & Beliefs

Competency

Behaviour

Personality &Preference

Choices we make

Our Front Room

Our Back Room

© Quality & Equality Ltd

4. Knowledge of how Group works become essential -Group Dynamics is the key shaper of human behaviour

Be a confident intervenor to leverage group powers to shift culture to deliver change

We work with:

• Group dynamics

• Human dynamics

• System dynamics

© Quality & Equality Ltd

5. Why “Use of Self” is also crucial for HR?

Do

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Skills

Actions

Who we are

What we stand for

© Quality & Equality Ltd

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Using Self as an Instrument

• Self

• Use of the self

• Use of self

• Self reflection

• Self awareness

• Self differentiation

• Self management

• Self as instrument

• Self as intervention

• Jung

• Alexander

• Goffman

• Rogers

• Argyris

• Schön

• Bowen

• Weir

• Nevis

• Weisbord

Philip Mix

© D

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Profile of a competent

OD PractitionerEthics and Values

• Clear value set• Subscribe to OD values• Espouse & live the value• Ability to role model

ethical behaviour in practice

Strong individual group process skills

• Process consultation• Facilitation• Interpersonal work• Conflict resolution • Merger/acquisition

work.

Self confidence

• Sober judgement• Grounded sense of self• Not driven by need for

people’s approval• Non-judgemental

Self awareness• Clear knowledge of

who I am• How I work• Preferences• Style and approach• Impact• Theory oriented

• Big picture/strategic thinking• Diagnostic skills • Ability to handle data• Understand how

organisations work• Cultural interventionist

Conceptual competences

Technical experiences and

expertise in specific interventions

• Large scale system change• Whole system intervention • Organisation design• Complex transformational

change project

© Q

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In summary – the field of OD can support HR team to become …….

1. stronger in theory in action (less and less formula and tools will work in this complex world); real-time recalibration of design is necessary.

2. a robust system thinker (whole system +optimal alignment is a must)

3. more curious about human behaviour – learn widely from different Applied Behavioural Science fields

4. more savvy in group dynamics – knowing how to work with groups to induce the best behaviour

1. 5. able to constantly increase the potency of who you are and how you work – self as an instrument

© Quality & Equality Ltd