An organizational profile comprises of the way it operates, the environment, key working relationships and strategic challenges. The vision, mission, strategy, quality policy, quality objectives, corporate philosophy and core competencies are the basic foundation and driving principles for success of any organization.
For continuous growth of any organization, timely changes are required in major areas.
To improve overall people processes, the Process Capability Maturity Model (PCMM) is used to guide and make use of organizational patterns in a concerted effort. PCMM changes interrelationship between workforce and organization to enhance performance of an organization’s business activities and transforming organizations culture. Therefore, PCMM is a framework, which will guide an organization to improve organizational capability by improving workforce capability. It ensures that the capability required for core business activities are not limited to small number of people in the organization, creates environment for alignment of individual motivation with that of the organization and also helps the organization to retain people with critical knowledge and skills.
Level 1 – Initial (Inconsistent Management): Organizations at the initial level of maturity usually have difficulty retaining talented individuals.
Despite importance of talent, workforce practise in low maturity organizations are often ad hoc, inconsistent and ritualistic. Organization does not have defined workforce practises, it does not have trained responsible individuals to perform practises that exist. Workforce is emotionally detached.
Level 2 – Managed (People Management): Organizations at the managed level of maturity usually focus on managing people.
Work Environment that supports performance of business processes is established and maintained. Laws and regulations governing work environment are communicated to workforce and compliance of the same is done by deploying responsible individual.
Level 3 – Defined (Competency Management): Organizations at the defined level of maturity usually focus on core competencies and plans/tailors and executes its defined workforce practises to enhance its capabilities in core competencies as per following.
Level 4 – Predictable (Capability Management): Organizations at the predictable level of maturity usually focus on building competency based teams and establishing a quantitative understanding of trends in development of knowledge and skills. Mentoring is used to apply experience of individuals to build teams and integrate knowledge and skills required to accomplish business functions.
Level 5 – Optimizing (Change Management): Organizations at the optimizing level of maturity usually focus on continuously improving capability of both staff and organization. Continuous improvement of both staff and organization is achieved through quantitative feedback and adoption of innovative practises and technologies.
Change is “the coping process of moving from the present state to the desired state that individuals, groups and organizations undertake in response to dynamic internal and external factors’. Change can vary in complexity from introduction of relatively simple processes in a small work group to transform the strategies and design features of the whole organization.
Change Management Plan is the effective management of a business change such that executive leaders, managers and front line employees work in concert to successfully implement the needed process.
The Satir Change management model is used to implement business changes quickly to minimize impact on productivity, avoid unnecessary turnover or loss of valued employees, eliminate any adverse impact on your customers and achieve desired business outcomes as soon as possible.
Stage 1: Late Status Quo
The group is working at a familiar place delivering consistent results. Stable working relationships give team members a sense of belonging and identity. Team members know what to expect, how to react, and how to behave. The management has designed a road map for implementing change that would take the group to next level.
Stage 2: Resistance
The change is introduced to the group and they confront a foreign element that requires a response.
A foreign element threatens the stability of familiar power structures. Management may be met with resistance from the team. Resistance clogs awareness and conceals the desires highlighted by the foreign element. Members in this stage need help opening up, becoming aware, and overcoming the reaction to deny, avoid or blame. Communication becomes a very important element at this stage and clarity, timeliness & transparency would ensure this phase is dealt with accordingly.
Stage 3: Chaos
The group enters the unknown. Relationships may change; Old expectations may no longer be valid; old reactions may cease to be effective; and old behaviours may not be possible. The loss of belonging and identity may trigger anxiousness and vulnerability among staff. Leadership should take extra precaution during this stage as performance of groups may dip. Hence leadership touch point and focused communication to teams would become key to ride through this tough stage. Chaos is the period of erratic performance that mirrors the search for a beneficial relationship to the foreign element. All members in this stage need help focusing on their feelings, acknowledging their fear, and using their support systems. The chaos stage is vital to the transformation process as it helps breaks old bonds and fosters new ones.
Stage 4: Integration
The members discover a transforming idea that shows how the foreign element can benefit them. The group becomes excited. New relationships emerge that offer the opportunity for identity and belonging. With practice, performance improves rapidly.
Awareness of new possibilities enables authorship of new rules that build functional reactions, expectations, and behaviors. Members may feel euphoric and invincible, as the transforming idea may be so powerful that it becomes a panacea.
Stage 5: New Status Quo
If the change is well conceived and assimilated, the group and its environment are in better accord and performance stabilizes at a higher level than in the Late Status Quo.
A healthy group is calm and alert. Members are centered with more erect posture and deeper breathing. They feel free to observe and communicate what is really happening. A sense of accomplishment and possibility permeates the atmosphere.
After a whole cycle of implementation of all finalized initiatives, an organization analysis should be re-administered for ongoing alignment with the strategic roadmap of the business and Top level management and managers take a very active part to widespread the initiatives across organization.
Corporate organizations continued to grow in their confidence in OD throughout the 1970s. In 1980, Harvard Professor and strategic planning guru, Michael Porter, wrote the groundbreaking book, “Competitive Strategy” on the topic of strategic planning. 1980 represented a peak in corporate America’s interest as confidence in strategic planning for that decade. Military strategy books such as “The Art of War” by Sun Tzu, “On War” by von Clausewitz and “The Red Book” by Mao Zedong became enormously popular reading in business circles.
During the 1980s General Electric’s Chairman, Jack Welch, became highly influential and equally controversial in the world of strategic management. Although Welch focused on gaining competitive advantage for his organization, he also began downsizing and restructuring GE. GE’s strategic planning and operational efforts began a shift toward Total Quality Management and improving productivity.
The six rules of Jack Welch are:
- Control your destiny, or someone else will
- Face reality as it is, not as you wish it were.
- Be candid with everyone.
- Don’t manage, lead.
- Change before you have to.
- If you don’t have a competitive advantage, don’t compete.
Thus OD (organizational development) approaches to the problem of an organization give rise to organization creativity. Organizational creativity is defined as a deliberate and continuous change-making process of problem generation and formulation, problem solving, and solution implementation, and as synonymous with adaptability and innovation.
Under the new OD approaches, organizations can learn to mainstream adaptability by doing two things: encouraging employees to master new thinking skills which increases their creativity, motivation, and commitment; and creating an infrastructure that ensures that these skills will be used regularly. Research is reviewed supporting the new OD approach, and future research directions are suggested.