Understanding Organizational Development and Its Importance on Your Business
Introduction
The success of a company today is not guaranteed in the future. In all businesses, no matter what industry, change is the only thing that’s constant. Technology, consumer preferences, marketing strategies, business models, and economic trends all shift.
Given this reality, the only way to ensure long-term success is through continuous improvement. There are many ways to achieve this, but organizational development is one of the most effective means. Simply put, it’s a process involving various strategies and changes to promote growth.
If you wish to learn more about organizational development and how it can benefit your company, you’re in the right place. Q2 HR Solutions is an HR solutions company that offers expert organizational development services in the Philippines. In this article, we’re taking a deep dive into organizational development and its importance to businesses.
What Is Organizational Development?
According to Maryville University, organizational development “is a planned, systematic change in the values or operations of employees to create overall growth in a company or organization.” It involves developing and improving processes, strategies, and structures to make a company more efficient, effective, and competitive.
Organizational development examples can be found in various business functions. For instance, companies can use it to update their research and development processes for the invention of a new product.
Businesses can also tap into organizational development to adopt a new work culture to increase employee retention rates as well as attract new talents.
Understanding the Organizational Development Process
Being science-based is one of the characteristics of organizational development. As such, it follows a step-by-step process that serves as a guide for companies.
The organizational development process can be summarized as follows:
Identify Problems – Before any action steps can be taken, companies must first determine any issues or areas that need improvement. This can be done by getting feedback through formal surveys.
Know What Is Causing the Problem – Once an issue has been identified, it’s time to investigate the factors causing it, such as by analyzing existing data, interviewing people, etc.
Plan for Action – An action plan must first be made to implement a solution properly. Here, we suggest consulting with an organizational development practitioner.
Implement the Solution – This is the part where the company carries out its action plan, which may include training employees, adopting a new process to carry out business operations more efficiently, and so on.
Evaluate – Assess the results of the action plan to determine if it was effective in meeting business outcomes. Make sure to identify what solutions worked, what didn’t, and what needs modifying.
Adapt the Plan – If the action plan for change is successful, the company may decide to adapt it for a longer period.
Impact of Organizational Development on Companies
The impact of organizational development on companies in the Philippines is massive, encompassing employees to product and service quality. To be more specific, below are several benefits of implementing organizational development strategies in a business:
Product and Service Innovation
A key aspect of organizational change and development is improving products and services. Through market research and analysis, various innovations that enhance products and services are achieved, which result in multiple benefits. One of these is reduced costs in production and operation. Through innovation, a company’s offerings become more valuable. Consequently, the company gains an edge over its competitors and a larger market share.
Increased Efficiency
Organizational development aids in finding business operations that need updating, with the aim of streamlining processes and maximizing company assets. This increases efficiency as more output is produced in less time and using fewer resources. And when less time and fewer resources are taken, this translates to cost savings for the business.
Embracing Changes
Companies utilize organizational development to embrace change instead of fighting it.
By accepting that change is inevitable, they take a proactive approach to handling it, allowing them to prepare for expected changes in the market. And by being a step ahead, facing the concerns that come with change becomes smoother and less disruptive for the business overall.
Employee Retention
Employee development is one of the key interventions under organizational development. This is critical because one of the main reasons why employees leave a company is the lack of opportunity for career development, according to data. Aside from reasonable expectations and attractive benefits, workers stay at organizations with the proper training to upskill.
Reduced Cost
The factors that cause businesses to lose money include operational mistakes, inefficient and time-consuming processes, and unequipped employees. Organizational development is integral in identifying the causes and implementing the solutions behind these issues. Once that is achieved, companies can save money, which they can use for other profit-generating expenses.
Increased Communication
Internal problems often arise from poor communication concerning handling conflict, promoting transparency, and obtaining employee feedback. A better work environment is achieved when these problems are pinpointed through organizational development, and proper measures are enacted. Consequently, employees become more motivated, engaged, and aligned with the company’s vision, mission, and goals.
Long-Term Success
According to Forbes, one of the steps for achieving long-term success in business is creating a growth plan. As mentioned earlier, the aim of organizational development is company growth and improvement. By improving efficiency, innovating products and services, embracing changes, and so on, sustaining business success is more attainable. As a result, they are at a much lesser risk of falling behind competitors.
Organizational Development Challenges
Without change, it is impossible to achieve growth. However, with change comes the possibility of resistance, among other challenges, such as:
Burnout
Implementing changes in workflows, systems, and processes can be exhausting for employees if they aren’t provided with enough support and encouragement. For this reason, the management must ensure that the changes it implements are gradual and realistic. Also, they should obtain feedback from their workforce. This will let employees know that their needs and desires matter to the organization.
Resistance To Try Something New
Company leaders should expect that not all employees are keen on growing and would rather stay in their comfort zone. Unfortunately, some are set on outdated systems and processes. Moreover, many are afraid to try new ways of doing things because of the fear of failure. To handle these concerns, leaders should communicate any changes to take place and the expectations for employees that come with them.
Misaligned Goals
Conflicts may also arise among company leaders if they are not aligned concerning the business’ goals, which usually relate to financial matters. Poor communication is one of the causes behind these conflicts. Getting the help of organizational development experts can greatly assist in ironing out these issues, allowing key individuals involved to reach an agreement.
Get an OD Consultation Today!
Organizational development is a worthy investment for all businesses. However, because it is a broad concept involving multiple facets of a company’s business operations, consulting experts with considerable experience is highly recommended. Doing so helps ensure that the right problems are identified, effective solutions are implemented, and challenges are handled professionally.
Q2 HR Solutions is a fully integrated HR solutions company that can help you craft a customized organizational development plan fit for your business goals and requirements.
While you may have your own human resources team to handle your organizational development needs, tapping into an expert outsider enables your company to obtain an unbiased review of its systems and structures. Schedule a meeting with our consultants today!
Frequently Asked Questions About Organizational Development in the Philippines
When Should I Use an Organizational Development Plan?
You can use an organizational development plan whenever your company wishes to improve its systems and processes. Specifically, you can use organizational development approaches for the following scenarios:
Job turnover rates are high.
You need to update the company’s vision and mission statement.
Customers are giving negative feedback.
There is internal conflict happening between teams.
Is Organizational Development Long-Term?
Yes. As explained by experts from Hubspot, it is “a long continuous cycle of initiating, implementing, and evaluating change in an organization.” If companies want to sustain business success, growth and improvement must not stop.
Do I Need Expert Consultation To Create an Organizational Development Plan?
Yes. It is highly recommended that you obtain expert consultation if your company wishes to create an organizational development plan. Doing so will ensure that the change you want to implement helps the business and its workforce instead of damaging it through improper measures.
Conclusion
Organizational development will always be necessary for all businesses to grow, face challenges, and achieve goals. The beauty of this concept is that it is an objective and evidence-based approach, making it a highly effective tool for implementing measures that improve structures and processes.
Our consultants here at Q2 HR Solutions bring over 40 years of relevant experience in various industries. Consult with us today to get started on creating an organizational development plan suited to your business. We look forward to hearing from you!
