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

1
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 NetworkAnnual Sharing Day
May 4, 2006 Malcolm Conway, Managing
ConsultantIBM Global Business Consulting
ServicesElena Feliz, Principal, Feliz
ConsultingTim Lannan, Tim Lannan
ConsultingDavid Lipsky, Sony ElectronicsJeana
Wirtenberg, Ph.D, President, Jeana Wirtenberg
Associates, LLC
2
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)

3
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
• ???

4
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

5
Leading in the 21st Century
New Jersey OD NetworkAnnual Sharing Day May
4, 2006 Malcolm Conway, Managing
ConsultantIBM Global Business Consulting
Services
6
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.

7

• 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

8
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

9

• 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

10
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.

11

Demographics of For Profit Respondents
Respondents are predominantly male, middle-aged,
executives.
235 Total respondents 120 For Profit and 115
Nonprofit
12
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)
13
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".
14
Business Success FactorsPerformance Gaps
Gap 1.03 1.35 1.02 1.26 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

• Aligning and executing strategies in a way that
  meets financial goals and are consistent with
  core values
• Effectively addressing organizational culture
  during organizational realignments, industry
  consolidations and mergers and acquisitions
  (MAs)
• Effectively applying organizational change
  principles to business and product life cycles
• Aligning strategies, people, systems and
  processes organization-wide to enhance
  productivity and profitability
• Developing and maintaining the commitment of the
  workforce to the goals of the organization for
  better overall performance results
• Clarifying purpose and mission to inspire and
  engage the workforce
• 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 competitive advantage
• Using information technology to support learning
  and innovation
• Enhancing reputation among communities where we
  work, with consumers and with employees and
  investors
• Enhancing employees commitment by focusing on
  corporate citizenship in the community and
  contributions
• Ensuring accountability for business ethics among
  employees at all levels
• 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 to market and profit for
  critical products and services through shared
  commitments and organizational values

15
Business Leader For Profit Survey Key Findings
for Importance and Effectiveness



Note Items were pre-selected as important based
on Phase I research and KITs.
16
Business Leader For Profit SurveyKey Results
Urgent? Items 2. Effectively addressing
organizational culture during organizational
realignments, industry consolidations and mergers
and acquisitions (MAs) 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
17
Business Leader For Profit SurveyKey Results

• High Priority?
• Items
• 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
• Aligning strategies, people, systems and
  processes organization-wide to enhance
  productivity and profitability
• Importance 4.64 Effectiveness 3.38 Gap
  1.26
• 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
• Importance 4.74 Effectiveness 3.46 Gap
  1.27

18
Support Sources


Urgent Areas? Positioning industry
consolidation, MA, 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, MA,
and strategic alignment for success from a
cultural perspective.
19
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

20
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

21
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.
22

• 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.

23
Leading in the 21st CenturyNonprofit Review

• New Jersey OD Network
• Annual Sharing Day
• May 4, 2006
• Tim Lannan, Tim Lannan Consulting

24

Demographics of Nonprofit Respondents
Respondents are predominantly female,
middle-aged, executives.
235 Total respondents 120 For Profit and 115
Nonprofit
25

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 0.64 0.89

• 1. Aligning and executing strategies in a way
  that advances the mission and is consistent with
  core values
• 2. Effectively addressing organizational culture
  for collaboration and strategic alliances
• 3. Effectively applying organizational change
  principles
• 4. Aligning strategies, people, systems and
  processes organization-wide to enhance
  productivity and sustainability
• 5. Developing and maintaining the commitment of
  staff and volunteers to the goals of the
  organization for better overall performance
• 6. Clarifying purpose and mission to inspire and
  engage staff and volunteers
• 7. Attracting and retaining top talent
• 8. Leveraging and aligning existing information
  technology with business and people strategies
• Facilitating adoption and use of new information
  technologies for mission effectiveness
• 10. Using information technology to support
  learning and innovation
• 11. Enhancing reputation among communities where
  we work, and with clients, employees and
  donors/funders
• 12. Enhancing employees commitment by focusing
  on service and contributions in the community
• 13. Ensuring accountability for values and ethics
  among employees and volunteers
• 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
• 17. Increasing speed of response to emerging
  client and stakeholder needs through shared
  commitments and organizational values

26
Survey of Nonprofit Leaders Key Findings for
Importance and Effectiveness

High Priority
Urgent
Weakness
Actual Items appear on slides 15. Note Items
were pre-selected as important based on Phase I
research and KITs.
27
Survey of Nonprofit LeadersKey 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
28
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
29
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

30
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.

To whom do you/would you most likely turn for
support in each of the following areas?
31

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

32

• 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

33
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.
• ???

34
Enterprise Sustainability Action
Team(ESAT)Jeana Wirtenberg, Ph.D David
Lipsky, Ph.D Annual Sharing Day May 4,
2006
35
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.

36
What is Sustainability?
37
When It All Comes Together!tm
What does it take to build The Sustainable
Enterprise?
Structures Processes
Culture
The Sustainable Enterprise
Current State?
Leadership
Strategy
Performance Measures Reward Systems
Alignment
Skills Competencies
Alignment
Alignment
38
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.

39
Enterprise Sustainability Action Team

• Fieldbook Outline
• Mental Models and Sustainability
• Strategy Formulation
• Leadership
• Employee Engagement
• Trans-Organizational Collaboration
• Change Management
• Making it Personal

40
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
• Coordinator

41
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

42
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

43
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

ltInsert Your Video Heregt
44
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.

45
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

46
What Next?Not the end of the story

• What is your passion around these areas?