Organizational Development

Executive summary

Organizational Development

It has been a little over 45 years since the term Organization Development (OD) was first used in print to refer to that distinctive profession and consulting practice which aims to help organizations become more effective by means of systematic interventions focusing on organizational culture, processes and structure. During its short history, the OD profession has maintained a predominant focus on whole system interventions that serve the purpose of aligning organizational structure, strategy, culture, and processes to optimize organizational performance. This focus on alignment reflected a tendency on the part of OD professionals and their clients to assume that organizational problems are for the most part internally generated, and that external factors constituting the organization’s environment remain relatively stable over time. At the height of the industrial era, it was reasonable to believe that a one-time OD intervention targeted at achieving optimal alignment of structure, strategy, culture and processes could place an organization on a path of virtually perpetual growth.

In the short period of a single generation, the world has changed in profound ways, and a new era is upon us. Today, organizations large and small must contend with the unprecedented 21st century context of a knowledge world that is dynamic, changing and fast-paced. Our current, prevailing context for OD is knowledge driven, technologically and electronically connected, globalized, boundary-less, human/intellectual capital intensive, interdependent, complex and culturally and ideologically diverse. Yet, even within this novel context, many managers continue to operate within the old paradigm that seeks to optimize organizational functioning in the same way that one might fine tune a machine contained within a static box.

The efficacy of organizational development is predicated on the adaptability of the organization and the overall successful integration of new ideas and strategies within an existing framework. Resistance to change is a fundamental organizational problem as all organizations have a degree of general inertia. Caution is replaced with accelerated action related to organizational development trends, and companies are realizing that today’s workforce has changed. The 21-century workforce represents new challenges, more flexibility, higher demands coupled with the lack of specialists and highly skilled workers. This means that trends in OD must change to align with the challenges of the 21-century workforce for both current and future organizational needs. The 21st-century workforce is comprised of tech-savvy, flexibility demanding, highly collaborative and engaged talent. Companies are faced with adding– new, innovative organizational development capabilities to share knowledge, improve corporate learning and education capabilities and connect with talent. Recent organizational development surveys conducted with business leaders around the world identify a number of common themes and initiative trends. The research identified three critical trends that are driving the OD agenda in coming years: worker attraction and retention, worker development and engagement; management leadership and succession.

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Service Methodology

Planning & Analysis

The OD process begins when an organization recognizes that a problem exists, which impacts the mission or health of the organization and change is desired. It can also begin when leadership has a vision of a better way and wants to improve the organization. During the Planning & Analysis phase, all data collection is undertaken. A thorough analysis of what the expected outcomes are is performed, the plan for the solution to be implemented is developed. The project team is engaged and resource/task planning begins. Required effort during the planning phase varies from project to project. It is important to have some key participants involved during this stage. Key Participants during this stage include the project owner, project manager and the designated stakeholders. The client needs to analyse its resources, issues management, metrics/status reporting plan, change management plan, risk management plan and baseline schedule. A needs assessment is the first place of the analysis process. The needs assessment identifies the need to improve performance and discovers opportunities for improvement. These results are used to guide decisions about what to focus on. The second phase, usually the cause analysis and identifies what is preventing performance.

Development

After the situation has been assessed, defined, and understood, the next step is to plan an intervention. The type of change desired would determine the nature of the intervention. Interventions could include training and development, team interventions such as team building for management or employees, or the establishment of change teams, structural interventions, or individual interventions.

Implementation

During the implementation of the intervention relevant data is gathered. The data gathered would be determined by the change goals. For example, if the intervention were training and development for individual employees or for work groups, then the data to be gathered would measure changes in knowledge and competencies. This data is then used to determine the effectiveness of the intervention. It is reported to the organization’s decision-makers. The decision-makers determine if the intervention achieved its goals. If the intervention achieved its goals, the process can end, which is depicted by the raising of the development bar. If it did not, the decision is made whether to continue the cycle and to plan and carry out another intervention or to end it.

Management

As we make all changes and implement the interventions that we have agreed upon, we need a constant management process to ensure that we are all aligned and headed in the right direction. I provide that anchor that assures the organization is on track and that all interventions are being coordinated to result in our pre-determined success variable.

Review

OD work must include a high degree of accountability for results. Processes, results, successes and failures should be measured and documented. Progress of implementation, as reflected in the data associated with indicators, should be monitored and adjustments should be made as and where needed. During the Review period I Help the client to agree the general areas of evaluation and the corresponding relevant metrics during an inception meeting, build the evaluation areas and metrics into the OD program report, set up a tracking mechanism from the beginning of the program – so that evaluative data can be collected throughout the project life and be used to adjust the project approach if required. It will also be important to involve the Program Team to undertake evaluative data gathering to increase program ownership. Once we have enough data to evaluate results, I Help the organization to determine what actions to take in order to adjust the outcome of the program interventions – reinforce what works, address what does not work and design further interventions.

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Service Options

Companies can elect whether they just require Appleton Greene for advice and support with the Bronze Client Service, for research and performance analysis with the Silver Client Service, for facilitating departmental workshops with the Gold Client Service, or for complete process planning, development, implementation, management and review, with the Platinum Client Service. Ultimately, there is a service to suit every situation and every budget and clients can elect to either upgrade or downgrade from one service to another as and when required, providing complete flexibility in order to ensure that the right level of support is available over a sustainable period of time, enabling the organization to compensate for any prescriptive or emergent changes relating to: Customer Service; E-business; Finance; Globalization; Human Resources; Information Technology; Legal; Management; Marketing; or Production.

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Service Mission

Ms. Asensio’s mission is to improve organizational performance by providing outstanding professionalism and customer service, ongoing needs assessment and skills development training, internal consulting and overall talent management. OD champions organizational learning and employee engagement through the delivery of diverse programs and services to companies and organizations. She provides program management and coordination as well as coaching, consulting and facilitation services to executives and managers.

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Service objectives

The following list represents the Key Service Objectives (KSO) for the Appleton Greene Organizational Development service.

1. Strategic Planning
   As an organization, you need to ask yourself: Does your strategy guide how you allocate resources? Can every employee articulate your strategy and are they empowered to execute on it? I work with companies to develop strategies that deliver results. I see things that others miss, offering you more creative solutions that combine my deep geographic experience, intimate sector knowledge and clear insights into how to create value in your business. I work collaboratively, build lasting capabilities into your team and help your organization mobilize for change. I define success by your results. My four step process can help you and your organization create a path toward implementation. I follow structured plan that works in phases: 1) analysis or assessment, where an understanding of the current internal and external environments is developed, 2) strategy formulation, where high level strategy is developed and a basic organization level strategic plan is documented 3) strategy execution, where the high level plan is translated into more operational planning and action items, and 4) evaluation or sustainment / management phase, where ongoing refinement and evaluation of performance, culture, communications, data reporting, and other strategic management issues occurs.
2. Change Management
   Changes in processes, systems and technology require that jobs be structured and performed differently. To enable and sustain lasting change, rigorous attention to a formal change management effort is integral to any significant project a company undertakes. Ms. Asensio can help equip your company to drive and sustain change through these key services: Organization Risk and Readiness – A holistic diagnosis is conducted that assesses an organization’s risks in dealing with large-scale change. The diagnosis incorporates key elements of a sound change management strategy, including culture transformation, executive sponsorship, organization design factors and workforce implications. Stakeholder Management and Strategic Communication – Identification of key influences and the design and execution of a systemic approach to communication that increases awareness, buy-in and ownership of the desired change. Workforce Transition – Job impact analyses are conducted, and targeted workforce transition programs designed, so that the full life cycle of the change process is supported. We help you equip people significantly affected by change for new roles, implement processes to support them, and coordinate integration of talent management and training to prepare them for success in the new environment.
3. Problem Solving
   Crucial to the success of a business faced with problems is their understanding of just what the problems are, defining them, finding solutions, and selecting the best solutions for the situations. I work directly with your organization to follow the stages and find the best plan of action, including: how to identify a problem; how to respond to it; the different techniques and methods used in problem-solving; how to find alternative solutions; how to select the best solution for the situation; designing a plan of action; how to implement the plan of action; how to assess the success of the solution and the plan of action.
4. Talent Management
   Talent management is an organization’s commitment to recruit, retain, and develop the most talented and superior employees available in the job market. The key to inciting a workforce to greatness is to align your talent management with company strategy, define consistent leadership criteria across all functional areas, and identify specific competencies (analytical, technical, education, experience) to cultivate for continuing growth. My focus is on a talent management process that can help the company reach this success. This includes: specific strategies to make your recruiting process more efficient and effective by using “competency based” recruiting instead of sorting through resumes, one at a time; focus on developing better managers and leaders to reinforce culture, instill values, and create a sustainable “leadership pipeline”; methodology to quickly identify competency gaps so we can deliver training, e-learning, or development programs to fill these gaps; learning how to manage people in a consistent and measurable way so that everyone is aligned, held accountable, and paid fairly; action items to identify high performers and successors to key positions throughout the organization to make sure you have a highly flexible, responsive organization. Business leaders who implement the best talent management processes are more prepared than their competitors to compete in the global economy and capitalize quickly on new opportunities. True success is only available when companies do more than adapt to long-term trends. They must be able to anticipate and jump on new opportunities before the rest of the market.
5. Team Development
   My team development programs and seminars focus on building higher levels of team performance. I can accomplish this through highly interactive skills-based training modules, team facilitation on real-world challenges, and the development of team leaders. Because no two teams are ever alike, I customize team development programs based on a thorough Needs Assessment of your people and your business goals. I often use team assessment tools to baseline and track how well your team has improved over time. My comprehensive team development program designs ensure that your people are engaged in applying what they have learned to your specific business challenges, often producing significant ROI. I can ensure that my program can help to build your people’s capacity to work together, and build authentic skills and competencies to work in – or to lead – high performance teamwork.

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Testimonials

Ferguson Plastics

“Ms. Asensio has helped us understand how to motivate employees and encourage performance. As an organization we knew where we wanted to be, but could not get there year after year. We underwent a long process of assessment into our own internal operations and were able to develop a comprehensive plan to improve staff performance on the floor. The change has been noticeable and we are not only achieving performance goals, but our employees are motivated to always think of ways we could improve. It has been a game changer.”

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XLT Ovens

“I always knew what I wanted my company to be but had a hard time communicating it to my employees. I sat with Ms. Asensio for four days and talked about my vision. She helped us take that vision and develop an implementation plan. We had a step by step guide to the changes that we needed to make in order to get to that vision. But for us, the most important part was the management of that plan. Ms. Asensio was making sure that all the pieces were in place and we all kept focus. It took about 24 months but I am happy to say that my vision has become a reality. We had the right employees, we just needed to make sure that they had the tools and knowledge to get their jobs done and lead the company into the future.”

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Corporate Lodging Consultants

“Ms. Asensio facilitated business development and product management initiatives through the conception and execution of innovative product marketing campaigns and strategies focused on expanding and regenerating product offerings and market growth. She tripled program revenue within 18 months with the engineering of a second-generation product offering that transformed an existing product line into an enhanced, updated, customer-focused product. She mastered advanced tactics that proved instrumental in expanding the target market to over 16 industries, resulting in increased sales and revenue for the company. She maximized product profitability through the analysis of marketing spend efficiencies and extensive market research and end-user behavior patterns, resulting in enhanced product offerings. She defined reporting parameters to accurately monitor and track product performance measurements.”

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Coors Brewing Company

“Ms. Asensio was recruited to lead product development functions and projects, developing annual sales objectives and tactics and performing industry, market, and competitor analyses to achieve corporate and customer marketing objectives. She collaborated with advertising agents in the creation and implementation of media and promotional campaigns. She controlled the marketing activities for the Frangelico brand, that resulted in an increase in distribution by 30% and a 45% increase in sales. She spearheaded the market launch of Hypnotiq, surpassing product launch goals by over 50%. She championed defensive brand strategies that were incorporated to minimize the impact of a sudden tax imposition on alcoholic beverages.”

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Cessna Aircraft Company

“Ms. Asensio championed the product marketing and strategy development for the effective communication of Customer Service’s position statement and industry messaging. Lead resource allocation efforts to coordinate the successful execution of product marketing campaigns targeted at building brand loyalty and profitability, while fostering relationships with new and existing customers. She also leveraged the company-owned service center network to re-engage and entice customers to participate with Cessna in a highly competitive service market, yielding $42 million in revenue in the first year.”

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More detailed achievements, references and testimonials are confidentially available to clients upon request.

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Industries

This service is primarily available to the following industry sectors:

Aviation

The global airline industry continues to grow rapidly, but consistent and robust profitability is elusive. Measured by revenue, the industry has doubled over the past decade, from US$369 billion to a projected $746 billion, according to the International Air Transport Association (IATA). Much of that growth has been driven by low-cost carriers (LCCs), which now control some 25 percent of the worldwide market and which have been expanding rapidly in emerging markets; growth also came from continued gains by carriers in developed markets, the IATA reported. Yet profit margins are razor thin, less than 3 percent overall. In the commercial aviation sector, just about every player in the value chain – airports, airplane manufacturers, jet engine makers, travel agents, and service companies, to name a few – turns a tidy profit. Yet it’s one of the enduring ironies of the industry that the companies that actually move passengers from one place to another, the most crucial link in the chain, struggle to break even. That is largely due to the complex nature of the business, manifested in part by the significant degree of regulation (which minimizes consolidation), and the vulnerability of airlines to exogenous events that happen with great regularity, such as security concerns, volcanic eruptions and infectious diseases. But ongoing price pressure is also a factor; the airline industry is one of the few sectors that have seen prices fall for decades. Since the 1950s, airline yields (defined as the average fare paid by a passenger per kilometer) have consistently dropped. Given these unique circumstances, airlines must continue to focus on top-line growth because their limited profitability depends almost solely on revenue gains, while increasing productivity in order to shore up and perhaps even increase margins. The way individual commercial airlines react to and navigate several trends playing out across the globe will determine carrier performance in the coming years.

Airlines need to make large and ongoing improvements to operate more efficiently. With few exceptions, the most successful airlines are those with the strictest cost controls. The biggest (albeit cash-intensive) lever to reduce costs lies in fuel efficiency, as jet fuel typically accounts for 40 to 55 percent of operating expenses. Carriers with sufficient funds have been gradually modernizing their fleet to incorporate more fuel-efficient aircraft. Yet, because planes are so expensive, this approach has real value only if it is thoughtfully implemented in line with the carrier’s long-term plans for the configuration of its network, such as the programmatic expansion of certain routes over a period of years. Cost reduction can also be achieved through enhancements in organizational structure, operating model, and work practices. In particular, legacy airlines have often built up complex processes over decades that cost far more than the streamlined processes of the LCCs. For example, the systems that legacy carriers have in place to handle transfer passengers – how to price connections, how to handle baggage between the two flights, whether to hold a connecting flight for a few late passengers or simply re-book them, and so on – were designed when their networks were far smaller. Today, those systems have layers and layers of complexity built in, making them cumbersome and costly in many cases.

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Consumer Goods

The United States is a world leader in consumer goods market research, product innovation, manufacturing, and branding and marketing. The United States also has a highly skilled workforce in the consumer products arena. In 2012, the U.S. consumer goods market was the largest in the world, estimated at $419.4 billion. The U.S. companies that make up the consumer goods industry are as varied as the sub-sectors within the industry. Opportunities exist for both large and small companies across the spectrum of sub-sectors that make up the consumer products landscape. Because the U.S. market is broad and open, the typical U.S. consumer is receptive to both domestic and imported brands. Industry sub-sectors include appliances, toys, furniture and home furnishings, recreational boats, recreational vehicles (RVs), motorcycles, games, gifts, greeting cards, school and office products, jewelry, sporting goods, musical instruments, processed foods, and beverages. Driving growth is the central challenge facing consumer product companies today. Companies not only have to contend with the impact of the global economic situation on consumer spending but also contend with the emergence of a more demanding and digitally empowered consumer.

Manufacturers of consumer packaged goods (CPG) face two key challenges. The first is continued slow or negative growth in people’s disposable incomes. The second is changing consumer attitudes toward products and brands, as the great fragmentation of consumer markets takes another turn. In response, companies must dramatically shift the route they take to reach consumers in terms of both product distribution and communications. In many markets, consumer wages have been static for five years. Even where economies are starting to perform better, the squeeze on after-tax wages, especially for the middle class, younger people, and families, is depressing consumer spending. Although growth in developing countries is still better than in the United States and Europe, a slowdown in emerging countries such as China – where many companies had hoped for higher sales – has translated quickly into lower-than-expected consumer spending growth. We expect continued weakness in consumer disposable income regardless of which way macro GNP uncertainties break. Meanwhile, what we call the great fragmentation is manifested in consumer behavior and market response. In both developed and emerging markets, there is a wider variety among consumers now than at any time in the recent past. Growth is evident both at the top of the market (where more consumers are spending for higher-quality food and other packaged goods) and at the lower end (where an increasing number of consumers are concentrating on value). But the traditional middle of the market is shrinking.

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Manufacturing

The violent economic downturn in 2008 hit the U.S. Manufacturing sector broadside. Portions of the sector were already limping along due to energy price shocks in 2005-2006 and the significant drop in consumer demand and global commerce early in 2008 resulted in the most significant contraction in over seven decades. Coming out of the steep contraction most economists expected a vigorous bounce back due to pent-up demand and the normal cyclical recovery of the sector. Yet, measures of activity for the Manufacturing sector have been more muted or at least mixed and have prompted concern over the resulting impact on the health of this key sector. Demand ultimately depends on consumer spending. The profitability of individual companies depends on efficient production and distribution. Large companies often have large economies of scale in purchasing, production, and marketing. Small companies can compete effectively by producing specialized products. The US manufacturing sector is fragmented: the largest 50 companies account for less than half of overall sales.

The entire supply chain ecosystem – encompassing manufacturers, distributors and retailers – is undergoing a business transformation. This is in response to changing dynamics involving shifting consumer expectations, time to market and intense global competition that is being dictated by the rising Internet and mobile economies. Advances in technology – coupled with changing labor demographics – are proving to be the lynch pin shaping this new business model. To remain economically viable, retailers must sell products faster and at competitive prices, which sends a ripple effect down the supply chain. For example, manufacturers must accelerate production cycles and distributors must shorten delivery times. Stakeholders throughout the supply chain have no choice but to adjust their business models to meet consumer demand and increase profits. However, technology is helping businesses stay relevant in these changing times.

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