OD Intervention Strategies

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Chapter 8

• OD Intervention Strategies

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Learning Objectives

• Identify and understand range of major OD
  intervention techniques and how they can be
  applied.
• Identify ways interpersonal, team, and intergroup
  techniques fit into OD program.
• Understand the change strategies.

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Leading Change at PG(part 1 of 3)

• PG CEO Lafley makes changes that began with
  previous CEO in the 1990s.
• Significant changes made on structural lines.
• Previous CEO, Jager, made changes using combative
  style.

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Leading Change at PG(part 2 of 3)

• Corporate headquarters undergoing change.
• Executives have open offices.
• Division presidents offices located with their
  teams.
• Changes made without alienating employees.

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Leading Change at PG(part 3 of 3)

• Why did one CEO succeed in making changes while
  another failed?
• Jager gruff and Lafley soothing.
• Jager bullied and Lafley persuades.
• Lafley says of change we are in the business
  of leading change.

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Organizational Change

• Starting point for setting change program is
  definition of total change strategy.
• OD strategy is a plan for integrating different
  activities to accomplish objectives.

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Three Basic Approaches to Organization Change

• Structural
• Technical
• Behavioral
• Developing strategy includes planning activities
  to resolve difficulties and build on strengths.

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Structural Approach to Change

• Changes that relate elements of organization to
  one another.
• Includes removing or adding layers to hierarchy.
• Downsizing associated with restructuring.
• Changes can involve decentralization and
  centralization.

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Technical Approach to Change

• Changes in machinery, methods, automation, and
  job design.
• Changes help companies become more productive.

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Behavioral Approach to Change

• Emphasizes better utilization of human resources
  by improving
• Morale.
• Motivation.
• Commitment of members.
• OD traditionally associated with behavioral
  strategies.

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Changes Require All Strategies

• Structural, technological, and behavioral
  strategies not OD change strategies per se.
• Determining feature of an OD strategy is process
  used to arrive at strategy.

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Our Changing World Japan Tries to Restructure
(part 1 of 2)

• In 1980s Japanese companies model to world.
• Recently, Japanese companies failed to respond to
  changing world.
• Nissan first company to close major factory in
  Japanese auto-industry.

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Our Changing World Japan Tries to Restructure
(part 2 of 2)

• Nissan failing when Renault took control.
• Ghosn brought in to turn company around.
• Shut down 5 plants, reduced workforce by 23,000,
  shifted production to U.S.
• Most experts say do not count Japan out.
• A viable Japan may emerge.

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Integration of Change Strategies (part 1 of 2)

• OD deals with change from integrated standpoint
  that considers
• Structure Technology Behavior
  
• Interdependence of subelements (departments)
  needs to be considered.

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Figure 8.1Integrated Approach to Change
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Integration of Change Strategies (part 2 of 2)

• Change strategies need to take account of overt
  and covert elements.
• Second-order consequences consider change in one
  area that influences others.

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Figure 8.2Organization Iceberg Approach to OD
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Stream Analysis

• Useful in planning.
• Helps organization plan interventions.
• Provides graphical view of changes.
• Allows progress to be plotted.

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Figure 8.3Stream Analysis Chart
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Selecting an OD Intervention

• Practitioner and client consider
• Potential results of technique.
• Potential implementation of technique including
  costs versus benefit.
• Potential acceptance of technique.

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OD in Practice Is It a Kindler, Gentler
Microsoft? (part 1 of 3)

• Changes at Microsoft initiated at top.
• Gates stepped down as CEO and appointed Ballmer
  CEO and president.
• Both wanted to reinvent Microsoft.
• Microsoft restructured to be responsive to
  customers.

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OD in Practice (part 2 of 3)

• Executives given power to run units with less
  supervision.
• Ballmer encouraging everyone to rethink the way
  they do their jobs.
• Ballmer wants people to be respectful to others.

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OD in Practice (part 3 of 3)

• He wants managers to work collaboratively.
• Collaboration may produce complacency and stifle
  innovation.
• Ballmer has history of humiliating executives
  that may discourage real change.

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Overview of Major OD Intervention Techniques

• Intervention techniques focus on 4 categories
• Individual or interpersonal level.
• Team or group level.
• Intergroup level.
• Total organizational system level.

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Table 8.1OD Interventions An Overview (part 1
of 2)
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Table 8.1OD Interventions An Overview (part 2
of 2)
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Key Words and Concepts

• Behavioral strategies - places emphasis on human
  resources.
• OD intervention - actions designed to improve the
  health of the client system.
• OD strategy - a plan for change using structural,
  technical, and behavioral methods.

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• Parkinsons Laws - summarizes the problems of
  inefficient practices in organizations.
• Second-order consequences - indirect consequences
  that result from change.
• Stream analysis - method useful in planning that
  plots interventions over period of time.

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• Structural strategies - alters framework that
  relates parts of organization to one another.
• Technological strategies - changes in machinery,
  methods, and job design.
• Virtual meetings - meetings that occur
  electronically over telecommunications lines and
  Internet.

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Preparations for Next Chapter

• Read Chapter 9.
• Complete Step 1 of OD Skills Simulation 9.1.
• Simulation 9.3, complete Steps 1 and 2.
• Read and analyze Case The Sundale Club.