Title: IMPACT OF GLOBAL LEADERSHIP PERSPECTIVE ON THE SOUTH AFRICAN REALITY
1ORGANISATIONAL DEVELOPMENT AND CHANGE KNOWLEDGE
EXCHANGE GROUP
June 2009
2IMPACT OF GLOBAL LEADERSHIP PERSPECTIVE ON THE
SOUTH AFRICAN REALITY
3AGENDA
- INTRODUCTION
- CONTEXT OF CURRENT GLOBAL SITUATION - PESTEL
- INSIGHTS FROM LEADERS
- SOUTH AFRICAN REALITY - PESTEL
- HOW SHOULD OD RESPOND TO THIS
4INTRODUCTION OF SPEAKERS
- Unathi Mdlungu Phulo Organisational Development
- Louise Niemand Phulo Organisational Development
- Beatrice Attrill Independent OD Consultant
- Ruwayne Kock The Human Resource Practice
5INTRODUCTION
- Introduction to session
- Format of session
- Expectations of delegates
6CONTEXT OF CURRENT GLOBAL SITUATION - PESTEL
- Political
- Economical
- Social
- Technological
- Environmental
- Legal
7PESTEL ANALYSIS
- Political Impact unrest in countries (Africa,
Iran), conflict between countries (Iran and USA),
availability of nuclear technology (N-Korea,
Pakistan, Israel, USA, USSR) - Economical Impact current credit crunch (UK and
USA hardest hit), rise of China and India,
business revenue down between 20 30, markets
decline - Social Impact global levels of poverty
increasing, shrinking foreign aid mainly due to
economy, current state in developmental states
such as Zimbabwe, Somalia and Iraq
8PESTAL ANALYSIS
- Technological Impact rapid development of new
technologies, new sources of energy,
mechanisation, medical research, ICT and food
security - Environmental Impact global warming, need for
energy, access to sufficient clean water - Legal Impact trade agreements, creation of
Unions (EU and AU), competition commissions/
boards, possibility of King 111 report, new
Companys Act
9INSIGHTS FROM LEADERS
- Leaders suggests the following key strategic
responses in the next six months? - Stick to vision and review strategy
- Redefine and re-build core communities
- Ensure every cent and minute deployed in
alignment to strategy - Explore new opportunities for leadership and
innovation -
- Source Leadership Insights from three
Continents (2009), WorldsView Consulting
10Stick to vision
- Test organisational strategy
- Do not follow previous decisions blindly
- Focus on growth and better, simpler execution
strategies - Revisiting fundamental business principles, core
purpose and values - Go back to basics
11Internal Communities
- Disclosure and consultation
- Managing of uncertainty
- Need for meaningful engagement align peoples
energy, commitment, support and passion to
strategy - Review of talent management and high potential
programmes - Centralised decision making
- Exposing younger leaders to current global
situation - Exposing non-value adding staff
12External Communities
- Get close to your customers
- Non traditional solutions to customer problems
- Appreciating where customer is in tough times
- Financial health
- Current functioning
- Create relationships with various stakeholders,
even previous competition
13Alignment
- Cut the fat and not the muscle
- Optimise resources and redeployment
- Review/ cut operational expenditure- 12,5 cut
will lead to break even, 25 cut will lead to
satisfying stakeholder desire for 10 EBIT - Measure peoples contribution to strategy
attainment - Speed up consultation and execute smartly/
quickly - Focus on what you know and can do best
14Innovation
- Create new relationship/ review old relationship
collaboration with all players in value chain - Leverage networks hard
- Best level of delivery at greatest level of
variable cost - Focus on interfaces and understanding dynamics of
change - Seeing organisations as open systems
15SOUTH AFRICAN REALITY -PESTEL
- Politics Elections in April 2009. ANC won 8 of
9 provinces, changes in and increase of Cabinet,
New and changed Government Departments mandates
in both National and Provincial spheres,
Tripartite relationship ANC, Cosatu and SACP,
possible looming strikes amidst economic downturn - Economy downturn felt in South African Economy
and seen in job losses especially in
manufacturing and mining sectors, reduction in
GDP, possibility of changing economic policy,
high need for imports, exporting of raw material
without developing skills to create products
16SOUTH AFRICAN REALITY
- Social increase in poverty, high levels of
crime and corruption, Poverty alleviation and job
creation main aims of ANC and Government,
Expanded Public Works Programme, Youth
Development Agency, FIFA 2010, Free Education
until Matric, increase in social spending (e.g.
grants, UIF, pension fund etc) - Technology broadband and internet access more
accessible with new optic fibre cable, Gauteng
freeway improvement project, BRT systems in major
cities, other energy sources (Eskom), movement to
digital technological operations
17SOUTH AFRICAN REALITY
- Environment changes in weather patterns
observed, land re-distribution vs. conservation,
signed KYOTO protocol, tension between
conservation vs. economic growth - Legal Legislation review due to changes in
Government Departments, Consumer Protection Act,
National Credit Act, National Health Insurance
Proposal, National Companys Act, King 11 and
possible King 111 reports (governance)
18WHAT IS ODs ROLE IN THIS?
19Definitions of OD
- Organisational development is an effort planned
organisation wide and managed from the top to
increase organisational effectiveness and health
through planned interventions in the
organisations processes using behavioural
science knowledge (Beckhard, 1969, p9) - Organisational development is a response to
change, a complex educational strategy intended
to change the beliefs, attitudes, values and
structure of the organisations so that they can
better adapt to new technologies, markets and
challenges and the dizzying rate of change itself
(Bennis, 1969, p2).
20Definitions of OD
- ..... improving organisations by applying
knowledge from behaviour science - psychology,
sociology, cultural anthropology and related
disciplines. If improvement of the
organisational functioning means change, then
broadly defined, OD means organisational change
(Burke, 1982, p3). - Organisational development is a top management
supported long-range effort to improve an
organisations problem solving and renewal
processes with the assistance of a consultant
facilitator and the use of the theory and
technology of applied behaviour science including
action research (French Bell, 1990)
21Definitions of OD
- Van Tonder Roodt (2008) defined OD from a South
African perspective. They define OD as a
scientific discipline and practice field
concerned with the multi-faceted change
processes, primarily of a planned and sustainable
nature, with the purpose of enhancing the
adaptive and self renewing capabilities of the
organisational system in response to or in
anticipation of shifts in stakeholder needs or
demands through the application of behaviour
science knowledge and technology that will
contribute to improved individual, organisational
and social well-being.
22Key characteristic of OD
- OD is a long-range perspective
- OD should be supported by top management
- OD effects change
- OD empowers the system to take responsibility for
achieving and evaluating results. Rothwell
Sullivan (2005)
23Exercise
24Importance of OD
- Powerful set of OD theories and practices aimed
at increasing organisational productivity and
fostering individual well-being. - It had humble roots that were enhanced to reach
their full potential and to reap the best
benefits from applications of OD practices within
certain settings.
25Exercise
- How do you use OD in your organisation?
26Application of OD
- OD engages
- People within and among human systems
(organisation) in activities (interventions)
intended to bring about positive change. - For specified clients and stakeholders.
- Direction towards the improvement of human
conditions guided by humane values by means
of significant application of knowledge rooted in
social and behavioural sciences. - (Massarik Pei-Carpenter, 2002)
27Exercise
- How does OD relate to change?
28ODs relationship to change
- Traditionally Organisational Development has
dealt with interventions to improve the
organisations people functioning in the
here-and-now, accepting and not questioning the
soundness of the bigger organisational setting. - Organisational Transformation, which historically
came after Organisational Development involves
more future orientated interventions aimed at
changing the total organisational landscape
29ODs relationship to change
- However, transformation within South African
context would be inappropriate due to the unique
focus on employment equity and black economic
empowerment. - Therefore, Organisational Development and Change
(ODC) are used to reflect this trend and involve - the establishment and reinforcement of change.
- Strategy, structure and process changes.
- Improving organisation effectiveness
- (Corporate Leadership Council, May 2003)
30Exercise
- Why has OD become important for HR?
31The Changing Face of HR
HR Transaction and Administration functions are
being enabled through leading edge e-HR solutions
Today
Future
Time, Effort, Cost
Align HR activities and programmes with the
strategic direction and business needs of the
organisation
5
20
Strategy
Strategy
Develop and deliver programmes that enhance the
organisations ability to attract, develop and
retain superior performers
Performance Enhancement
40
25
Performance Enhancement
Transactions
30
Handle employees transactions and enquiries
Transactions
20
Administration
Administration
20
40
Manage vendors, suppliers, budgets, and HR systems
Source Hay/McBer Company, presented by Lyle M.
Spencer,Jr.,PhD
32Convergence Between HRM and OD
- Rothwell Sullivan (2005) affirms that HR should
shift its focus - To become more strategic in its thrust, by
relegating highly transactional efforts (such as
processing forms or recordkeeping) to outsourcing
agents or downloading them onto employees to
carry out. - To become more oriented to human performance
improvement or performance consulting, which
helps operating managers to troubleshoot and
solve people problems that exceed their skills.
- To help managers and workers to manage change,
and that role links closely to OD.
33Generic ODC Framework
34Action Research OD Approach
- The ODC process (value chain) model consists of
the following phases - Contracting
- Diagnose
- Design
- Build
- Implement and
- Evaluation.
35OD Value Chain
- Contracting phase involves the initial meetings
with the client serve to validate the
expectations regarding the timing and scope of
the overall project. - Diagnosis phase involves the development of a
common context and understanding (between client
and the consultant), current challenges and
future direction.
36OD Value Chain
- Design phase involves the identification of the
major opportunities for performance improvement
that are associated with existing processes,
technology and human resources. - Build phase involves the construction and testing
of the business solution.
37OD Value Chain
- Implementation phase involves the setting in
motion the full suite of the process,
technological and social changes that have been
designed and built. - Evaluate phase involves mechanisms to ensure that
performance improvements resulting from the ODC
intervention are sustained
38Appreciative Inquiry Approach
- The traditional OD approach of problem diagnosis
and feedback depleted the energy from the system
and brought about discomfort among members which
result in resistance - Cooperrider et al., (2003)s Appreciative Inquire
(AI) 4-D cycle consist of - Define affirmative topic
- Discovery
- Dream
- Design
- Destiny phases
3910 principles of appreciative inquiry
40Appreciative Inquire 4-D Cycle
41Integrative systemic perspective on organisations
Source Van Tonder Roodt (2008)
42Technical system Interventions
43Social system Interventions
44Integration Interventions
45Using OD to weather the economic turmoil
- In todays desperate world economy, the HR
fraternity needs to take leadership in mediating
the impact on people. Organisational development
has an important role to play to create
organisational effectiveness. In particular,
organisational development initiatives need to
focus on - Increase organisational agility
- Improve employee morale
- Engage employees
- Build change resilience
46Using OD to weather the economic turmoil
- Organisations need to focus on both the hard and
soft people issues. The soft people issues focus
on the change process to create an effective
organisational structural design whereas the hard
issues focus on the change process to enhance the
effectiveness of an organisations culture