What is organizational development? (Goals, process, and guide)

February 29, 2024 - 10 min read

Wrike Team

You walk into a company where every employee feels energized, the teams are in sync, and the business is thriving. These are signs of a company that’s nailed organizational development (OD).

But what is organizational development? It’s a process that involves planned changes to improve an organization’s efficiency and effectiveness by aligning its activities with its goals and vision.

This doesn’t happen overnight, though. It takes time and effort, and sometimes it’s a bit of a grind. But it pays off big time. Better teamwork, more innovative processes, and a place where everyone’s pumped to come to work — that’s the dream, isn’t it?

Organizational development is a big deal for any business. You have to ensure everyone is pulling in the same direction, understanding the company’s goals, and motivated to work toward them. But getting there? It’s not always straightforward. You need the right tools to help everyone stay on track, communicate better, and keep improving.

Keep your company ahead of the curve with a leading work management tool like Wrike — start your free trial now.

Organizational development isn’t a quick fix. Whether you’re part of a startup or own a large-scale business, embracing organizational development can lead to transformative changes.

So why should you care? Whether you’re running the show or part of the team that makes it all happen, organizational development makes work less like work and more like a team sport where everyone’s winning.

In this article, we’ll walk you through what it is, why it’s a must-have, and how it can make a difference in any business. Ready? Let’s go!

Understanding organizational development

Let’s get down to the nitty-gritty of organizational development. What is it exactly? Well, think of it as giving a company its growth strategy — not just in terms of profits or size but in how it operates on a day-to-day basis, how the team bonds together, and how it faces new challenges.

Organizational development is planned, systematic, and considers the people, processes, and structure of an organization. Now, why do we need it? Simple. Change is always happening. Markets shift, new tech pops up, and what worked yesterday might not cut it tomorrow.

So, how does organizational development work? It starts with a good look at the current state of affairs. What’s going great, what’s not, and what’s “meh”? Then, you set goals. Not just any goals, though — smart ones that push the company to grow correctly. You need to consider every detail, like how a team communicates, how decisions are made, and how work gets done daily. It can mean rethinking old policies, shaking the status quo, or introducing new ways to boost productivity and job satisfaction.

One thing you can do to rethink old processes is implement new technology. Imagine seeing at a glance how adjustments in one area of your organization affect the overall timeline and goals of other areas. That’s the power of integrating Gantt charts into your organizational development strategy. With Wrike’s Gantt charts, you can clearly represent your project timelines, including task dependencies and milestones. You can easily plot out the sequence of actions needed to achieve organizational development goals, ensuring that each task is automatically scheduled right after the preceding one.

History and evolution of organizational development

Let’s take a stroll through history to see how OD has become today’s powerhouse tool for transforming organizations. Back in the 1920s and 1930s, the foundation of OD was laid. This period saw the emergence of human relations studies, particularly the Hawthorne effect, which highlighted the impact of social relations and worker satisfaction on productivity.

Fast forward to the 1950s, a time of innovation and the actual birth of OD as a field. Influential thinkers like Kurt Lewin began to apply behavioral science to organizational change. Lewin’s change model — unfreeze, change, refreeze — became a guiding principle for managing organizational change. The term “organizational development” was coined during this decade, bringing a more systematic and planned approach to implementing change.

The 1970s and 1980s brought economic turmoil, which forced organizations to focus on efficiency and effectiveness. OD practitioners began to incorporate strategic planning and corporate culture into their work. OD later faced new challenges and opportunities as the digital age dawned in the 1990s and early 2000s. Technology started revolutionizing the workplace, and OD had to adapt. The rise of the internet and global communication meant that change was happening faster than ever, and organizations needed to be agile to keep up.

Goals of organizational development

The main goals of organizational development include:

Enhance organizational effectiveness

You’ve got a team, a playbook, and a game to win. How do you ensure your team is playing and scoring those points effectively? That’s where organizational development (OD) steps in. OD says, “Let’s get this team in shape!” You look at the processes, structures, and systems in place and ask, “Can we do better?” And guess what? The answer is almost always a resounding “Yes!” Whether it’s streamlining communication or redefining roles, you need to ensure everyone’s playing to their strengths.

You can optimize your task management with project management software templates to track your team’s objectives and progress. For instance, Wrike’s agile teamwork template can help you prioritize tasks, manage sprints, and track progress all in one place.

Then there’s the attendance tracker template, which keeps tabs on employee attendance rates, offering a clear view of who’s in the game and on the bench. You can organize tasks in folders by team or department using the action plan template, moving projects from “To Do” to “In Progress” to “Completed” in one click.

Improve employee satisfaction and performance

Now, let’s talk about the employees who make it all happen. OD looks at the work environment and asks, “Are we creating a superstar environment here?” You need to ensure that people are engaged, motivated, and ready to bring their best to work.

The goal is to understand what makes employees happy. You need to provide opportunities for growth, recognize achievements (high-fives all around!), and make sure the workplace is more “We’ve got this!” and less “Oh no, not this again.” When employees are satisfied, they perform better.

Facilitate change and adaptability

The only constant out there is change. Businesses can stay responsive and proactive to industry and external changes by identifying and implementing effective change management strategies.

If an organization is facing a significant change, such as a merger or acquisition, an OD consultant can aid in developing a change management plan that addresses the concerns of employees and stakeholders.

On the subject of change management, according to Wrike’s “Dark Matter of Work” report, a staggering 91% of business leaders witnessed digital transformation accelerate due to the pandemic, a shift fundamentally altering the traditional workplace. Now, 84% of these leaders see the move to hybrid working as an irreversible trend, with 75% of knowledge workers affirming they’re never returning to pre-pandemic work styles.

These figures paint a clear picture: the future of work is hybrid, and organizational development strategies must pivot to accommodate this new normal.

Find out how Wrike can help you manage a hybrid workplace without any hassle — start your free trial now.

Key components of organizational development

The key components of OD include organizational assessment, intervention strategies, and evaluation and feedback. Let’s examine each of these components further:

Organizational assessment

The first step in OD involves gathering data and analyzing the organization’s current state. What’s working? What’s not? Where are we losing steam? You’ve got a map (your organization), and you’re looking for spots to dig for gold (areas of improvement). You’re not just wandering around with a shovel; you’re assessing the terrain, looking for clues, and marking the best spots. That’s your organizational assessment — it’s the strategic search for opportunities to strike gold in productivity and performance.

In measuring performance, you can boost your decision making with advanced analytics, where you can turn raw data into actionable insights. Imagine having a dashboard that presents data and brings it to life with interactive widgets. Wrike’s advanced analytics feature allows you to drag and drop tables, charts, or boards that crystallize complex information into clear insights.

Intervention strategies

Once you’ve mapped out where you need to dig, it’s time to grab that shovel — or, in our case, an intervention strategy. These are your action plans, the steps you take to shake things up and improve. Intervention strategies are all about action. Did you notice a communication breakdown? Maybe it’s time for some team-building exercises or a new chat tool. Intervention strategies are bold moves that say, “We’re not just going to stand here; we’re going to do something about it!”

Evaluation and feedback

Lastly, there’s evaluation and feedback. After you’ve put those strategies into play, you’ve got to circle back and ask, “Did it work?” This is your reality check. This stage is important because you learn from what you’ve done. Maybe that bridge wobbled a bit, and you need to reinforce it. Or perhaps it’s holding up like a champ, and it’s time for a high-five. Evaluation and feedback involve continuous learning, tweaking, and improving. The loop keeps you moving forward, smarter and more equipped for the next challenge.

The organizational development process

Let’s dive into the specific steps of the organizational development process.

Step 1: Identify the need for change

Have you ever had that “Something’s gotta give” feeling? That’s what we’re talking about here: the realization that something in your organization needs to change to move forward. Maybe customer satisfaction scores are dropping, or your team is burning out. The first step is acknowledging the warning signs and deciding it’s time to do something about it.

Identifying the need for change is a wake-up call. It requires you to be proactive and listen to what’s happening around you. Feedback from customers and employees can be eye-opening. Look at your competitors, too. What are they doing that you’re not? Gathering this information helps you pinpoint exactly where change is needed.

This step doesn’t just revolve around spotting problems; it helps you recognize opportunities, too. Maybe there’s a new market you could enter or a more efficient way of working that could boost productivity. You ask questions like, “Where do we want to be?” and “What’s stopping us from getting there?”

Step 2: Collect and analyze data

This stage involves collecting relevant information to identify the issues, needs, and opportunities for change. During this step, you’ll also collect data to understand the problems or opportunities you’ve identified.

Surveys, interviews, performance metrics, and market analysis are your tools for step 2. You’re collecting evidence to help you make informed decisions. Once you’ve got your data, it’s time to analyze. You find patterns, identify trends, and get to the root causes of the problems.

This might reveal some hard truths, but it’s all part of the process. The goal is to have a clear picture of the current state of things so you can plan your next moves effectively.

Step 3: Make an action plan

With a clear understanding of what needs to change, it’s time to make a plan. This step turns insights into action. What specific changes will you make? Who will be responsible for each part? What resources will you need? It’s important to set clear goals and timelines here. Think SMART — be specific, measurable, achievable, realistic, and time-bound.

Step 4: Monitor and evaluate

You’re in the thick of it now, but how do you know if your efforts are actually paying off? That’s why you should monitor and evaluate. This step tracks progress and measures the impact of your implemented changes.

Use the goals you set in Step 3 as your guide. Are you meeting them? If not, why? This is a chance to learn from what’s working and what’s not. Be honest with yourself and your team. If something isn’t working, don’t be afraid to pivot. The goal is to stay focused on your ultimate goals and strive toward them.

Step 5: Sustain the change

Finally, you’ve made some changes and seen some improvements, but how do you make sure these changes last? Sustaining change means ensuring that new processes, behaviors, and mindsets become the norm, not just a one-off initiative.

This might involve training programs, updating policies, or simply continuing to champion the new way of doing things. Keep the lines of communication open and continue to seek feedback. It’s also important to keep monitoring performance and adjusting as needed. The goal is to ensure that the changes you’ve worked so hard to implement continue to deliver value over the long term.

Communicate progress and make decisions in real time with Wrike — start your free trial now.

Organizational development is a necessary process to succeed

And that’s a wrap. We’ve taken quite the journey through the ins and outs of organizational development. From understanding its basics and history, explaining its goals, and diving into its key components, I hope you’ve picked up a thing or two along the way!

Now, you might be wondering, “What’s next? How do I put all this knowledge into action?” Start small. Pick one area you think could boost — for example, improving team communication with Wrike’s templates, laying out your course with Gantt charts, or streamlining processes with advanced analytics.

Here’s how Brynne Roberts, Director of Creative Operations at Fitbit, outlined her experience with Wrike’s project management software:

“We work faster, update key dates for deliverables much more quickly, and eliminate human error. We’ve likely saved around 200 or more hours per year in our launch prep.”

So, why not give Wrike a shot? Who knows, the next success story could be yours.

With Wrike managing your operations, you’re already one step closer to making it happen.

Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

Wrike Team

Occasionally we write blog posts where multiple people contribute. Since our idea of having a gladiator arena where contributors would fight to the death to win total authorship wasn’t approved by HR, this was the compromise.

#Team Management #Employee Productivity #Project Management Concepts

Productivity 7 min read

What is Organizational Development and How Does It Apply to Business?

Organizational development (OD) refers to a systematic approach to improving the performance of an organization. It involves the application of principles and practices aimed at fostering positive change and growth within companies. The use of OD techniques can enhance productivity, collaboration, and creativity, thus enabling businesses to achieve their strategic goals. This article will explore the concept of organizational development, the principles underlying it, and how it can drive the success of any business. Try Wrike for free Understanding Organizational Development Organizational development is a dynamic and evolving field that has gained significance in recent years. An effective approach to improving business performance by developing healthy and effective organizations, OD involves the use of data-driven and collaborative techniques to enhance various aspects of an organization's workflow, culture, and structure. The aim is to create an environment where people can work more efficiently and effectively to achieve organizational objectives. Organizational development is not a one-time event but a continuous process that requires ongoing effort and commitment. It requires a comprehensive approach to change management that focuses on the people, processes, and systems within an organization. Key Principles of Organizational Development Several critical principles underlie the practice of OD, including: Collaboration: Working together to achieve common objectives helps to build trust and commitment among stakeholders. When people work together, they're more likely to achieve their goals and objectives. Participation: Involving all stakeholders in the change process ensures that everyone affected by the change has a voice in the process. When people are involved in decision-making, they're more likely to support the change and take ownership of it. Feedback: Providing information on performance and results to enable continuous improvement helps to identify areas for improvement and provides a basis for measuring progress. When employees receive feedback, they're more likely to make changes and improve their performance. Continuous Learning and Growth: Encouraging ongoing learning and development to support positive change can build capacity and develop new skills. When people are encouraged to learn and grow, they're more likely to adapt to change and take on new challenges. Systems Thinking: Understanding the interconnectedness of various parts of an organization to facilitate effective decision-making and problem-solving assists in being able to identify the root causes of problems and develop comprehensive solutions. When people understand the interdependencies within an organization, they're more likely to make informed decisions and solve problems effectively. The Importance of Organizational Development in Business Organizational Development (OD) is a process that helps businesses improve their performance, adapt to changes, foster innovation and creativity, and enhance employee engagement and satisfaction. Enhancing Business Performance By addressing issues such as poor communication, inadequate training, and a lack of engagement among employees, OD techniques can enhance workforce productivity and effectiveness. This, in turn, can drive business success and help companies achieve their goals. If an organization is struggling with low employee morale and high turnover rates, OD techniques such as employee engagement surveys, leadership training, and team-building activities can help address these issues. By improving employee satisfaction and retention, businesses can create a more stable and productive workforce. Facilitating Change and Adaptability Whether it's changes in the market, industry, or technology, businesses need to be able to adapt quickly to stay competitive. This is where OD can be particularly useful. OD techniques can help businesses create a culture of innovation and flexibility that enables them to adapt to changes more easily. Consider involving employees in the change process to reduce resistance to change and increase buy-in. This can lead to smoother transitions and less disruption to the business. Fostering Innovation and Creativity OD can support innovation and creativity by encouraging collaboration, risk-taking, and idea-sharing among employees. By creating a safe and supportive environment where employees feel free to express their ideas and opinions, businesses can tap into the creativity and expertise of their workforce. Techniques such as brainstorming sessions, innovation workshops, and cross-functional teams can help companies generate new ideas and develop innovative products, services, and processes. This can give businesses a competitive edge and help them stay ahead of the curve. Improving Employee Engagement and Satisfaction When employees are engaged and satisfied, they're more productive, more committed to the company's goals, and less likely to leave. This can lead to a more stable and productive workforce, an essential for business success. OD techniques can also enhance employee engagement and satisfaction by creating a positive workplace culture that values personal development and well-being. By providing opportunities for employee training and development, businesses can help employees grow and develop their skills. Moreover, promoting work-life balance and offering flexible work arrangements allow employees to achieve a better work-life balance and reduce stress. Try Wrike for free Components of Organizational Development Organizational Assessment and Diagnosis Collect data on an organization's performance, culture, and structure, and then use it to identify areas requiring improvement and develop appropriate interventions. Strategy Development and Planning Setting goals, identifying potential obstacles, and defining the steps required to achieve desired outcomes requires collaboration among key stakeholders, including leadership, employees, and customers. Implementation and Execution Take action to implement the strategies developed in the previous phase via training, communication, and ongoing feedback to ensure the success of the interventions. Evaluation and Continuous Improvement Assess the effectiveness of the interventions implemented in the previous phases. Collect data to determine whether desired outcomes have been achieved and to identify opportunities for further improvement. Organizational Development Interventions and Techniques In this section, we’ll discuss some of the most common OD interventions and techniques. 1. Team Building and Group Dynamics Team building and group dynamics involve fostering collaboration, trust, and communication among team members. Effective team building can lead to improved productivity, increased employee satisfaction, and better decision-making. Consider using techniques such as personality assessments, conflict resolution, and experiential learning activities. Personality assessments allow team members to understand each other's strengths and weaknesses. Conflict resolution techniques let team members manage disagreements constructively. Experiential learning activities, such as team-building exercises, can help team members develop trust and improve communication. 2. Leadership Development Leadership development requires enhancing the skills and abilities of managers and supervisors to lead and motivate employees effectively. Effective leadership can result in improved employee engagement, increased productivity, and better organizational performance. Consider coaching, mentoring, and leadership training programs. Coaching can help managers and supervisors improve their leadership skills by providing feedback and guidance. Mentoring provides managers and supervisors with the opportunity to learn from more experienced leaders. Leadership training programs can also help managers and supervisors gain more knowledge and skills they need to lead effectively. 3. Conflict Resolution and Negotiation Conflict resolution and negotiation call for resolving conflicts and disagreements among employees, teams, and business partners. Effective conflict resolution and negotiation can lead to improved relationships, increased productivity, and better decision-making. Techniques used may include mediation, communication training, and negotiation strategies. Mediation can help parties in conflict reach a mutually acceptable solution. Communication training allows parties in conflict to improve their communication skills. Negotiation strategies can help parties in conflict find a win-win solution. 4. Change Management Change management involves facilitating transitions and changes within an organization. Effective change management can translate into improved organizational performance, increased employee satisfaction, and better customer service. Consider communication planning, stakeholder analysis, and performance metrics. Communication planning allows organizations to communicate changes effectively to employees and other stakeholders. Stakeholder analysis can help organizations identify and manage the interests and concerns of different stakeholders. Performance metrics aid organizations in measuring the effectiveness of change management initiatives. Don’t overlook the OD process Organizational development (OD) is a valuable approach to improving business performance by fostering positive change and growth within companies. It involves a systematic approach that seeks to identify and address areas that require improvement, enhance workforce productivity and effectiveness, and create a culture of collaboration and innovation. By understanding and applying the key principles and techniques of OD, businesses can gain a competitive advantage and achieve their strategic goals. Enhancing your business has never been easier. Take a step towards elevated efficiency and profitability with Wrike. Begin your free trial today and see the difference.Try Wrike for free Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

Leadership 10 min read

What are organizational development interventions?

It sounds like a mouthful but organizational development interventions are actually a pretty simple concept.

Project Management 7 min read

Change Is Now: Resolving Issues in Enacting Organizational Development in HR

Organizations are constantly evolving to stay competitive and adapt to new trends and technologies. As a result, Human Resources (HR) departments are undergoing significant transformations to support organizational development. However, enacting successful change in HR can be a challenging task. In this article, we will explore the various aspects of organizational development in HR and discuss strategies for overcoming the challenges associated with it. Understanding the Need for Change in HR The role of HR in organizations has evolved significantly over the years, from transactional to more strategic and proactive. Traditionally, HR departments focused primarily on administrative tasks such as payroll, recruitment, and employee benefits. However, in today's dynamic business environment, HR has a presence in talent development, employee engagement, and fostering a positive work culture. Identifying Areas for Improvement in HR Practices Recruitment and selection process: HR professionals must ensure that they are attracting and selecting the right candidates who align with the organization's values and culture. This may involve revisiting job descriptions, reevaluating interview techniques, and implementing innovative recruitment strategies to attract a diverse pool of candidates. Use of technology in HR practices: With advancements in HR technology, organizations have the opportunity to streamline processes, improve efficiency, and enhance the employee experience. HR professionals should assess their current technology infrastructure and identify areas where automation or digitization can bring about positive change. Effectiveness of HR initiatives: This can be done through regular feedback sessions with employees, analyzing key performance indicators, and benchmarking against industry best practices. By regularly assessing the impact of their practices, HR professionals can identify opportunities for improvement and make data-driven decisions to drive positive change. Challenges in Implementing Organizational Development Implementing organizational development in HR can be met with various challenges that need to be addressed to ensure successful transformation. Let's explore two common challenges: Resistance to Change in HR One of the most significant obstacles to implementing change in HR is resistance from employees and other stakeholders. Change can be perceived as threatening, leading to fear and apprehension among employees. This resistance may stem from a variety of factors, such as a fear of job loss, a lack of understanding about the benefits of the proposed changes, or a general aversion to change itself. To overcome this resistance, HR professionals should focus on effective communication. It is crucial to clearly articulate the reasons for change and the potential benefits it can bring to both the organization and the employees. It is also suggested to include employees in the decision-making process so that they feel valued. This involvement can be achieved through focus groups, surveys, or regular town hall meetings where employees have the opportunity to voice their concerns and suggestions. Lastly, feel free to provide comprehensive training programs and support for all of your staff members during the transition phase. Lack of Resources and Support Another challenge in enacting organizational development in HR is a lack of resources and support. Oftentimes, HR departments operate with limited budgets and face difficulties in securing sufficient resources for training, technology, and process improvements. When faced with this challenge, HR professionals can advocate for the allocation of resources by demonstrating the potential return on investment. It is especially crucial to highlight how the proposed changes can lead to increased efficiency, improved employee satisfaction, and ultimately, better organizational performance. Collaborating with other departments can also help overcome resource constraints. By working closely with finance, IT, and other relevant departments, HR professionals can leverage existing resources and expertise to support the implementation of organizational development initiatives. You can also explore external partnerships to overcome resource limitations. By partnering with external training providers, consultants, or industry associations, HR departments can access additional resources and expertise that may not be available internally. Strategies for Successful Organizational Development in HR Overcoming the challenges in implementing organizational development requires the adoption of effective strategies. Let's explore two strategies: Building a Culture of Continuous Learning HR professionals should encourage employees to embrace learning and growth opportunities by providing access to training programs, workshops, and mentorship initiatives. By fostering a learning mindset, HR can ensure that employees are equipped with the necessary skills and knowledge to drive organizational success. Building a culture of continuous learning goes beyond simply offering training programs. It involves creating an environment where learning is valued and encouraged at all levels of the organization. This can be achieved by implementing initiatives such as lunch-and-learn sessions, where employees can share their expertise and learn from one another. Additionally, HR can establish a mentorship program where experienced employees can guide and support their colleagues in their professional development. They can incorporate online learning platforms and e-learning modules so that staff can learn at their own pace and on their own schedule. Leveraging Technology for HR Development Technology plays a vital role in enabling HR transformation. For instance, implementing a human resource management system (HRMS) automates various HR processes, such as employee onboarding, performance management, and payroll administration. Additionally, an HRMS provides a centralized database for employee information, making it easier to track and analyze workforce data for strategic planning purposes. Another technology tool that HR can leverage is an applicant tracking system (ATS). An ATS streamlines the recruitment process by automating tasks such as resume screening, candidate tracking, and interview scheduling. As for employee self-service portals, these empower employees to access and update their personal information, view their pay stubs, request time off, and participate in training programs. Case Studies of Successful Organizational Development in HR Examining case studies of organizations that have successfully undergone HR transformations can provide valuable insights and learnings. Let's explore two examples: Innovative HR Practices in Leading Companies Leading companies such as Google and Netflix have been at the forefront of redefining HR practices. These companies prioritize employee empowerment, flexibility, and work-life balance. By adopting innovative HR practices such as unlimited vacation policies, flexible work hours, and creative employee engagement programs, these businesses have created a positive work environment that attracts and retains top talent. Lessons Learned from Successful HR Transformations When organizations successfully navigate HR transformations, valuable lessons can be learned. For example, effective change management, strong leadership support, and employee involvement are common factors in successful HR transformations. By studying these lessons, HR professionals can gain insights into the strategies and best practices that can be applied to their own organizational development initiatives. The Future of HR and Organizational Development Emerging trends such as the increasing adoption of artificial intelligence, remote work, and the gig economy are transforming the HR landscape. HR professionals must stay informed about these trends and adapt their practices to effectively attract, develop, and retain talent in this changing landscape. To prepare for the future, HR professionals need to be proactive in upskilling themselves and embracing technology. Developing digital literacy, data analytics skills, and staying updated with industry trends are vital for HR professionals to stay relevant and drive organizational development in the digital age. Ultimately, enacting organizational development in HR is crucial for organizations to thrive in today's rapidly changing business landscape. By understanding the need for change, overcoming challenges, implementing effective strategies, and learning from successful case studies, HR professionals can successfully drive organizational development. Change is now, and organizations that prioritize HR development will be better positioned to navigate the challenges and opportunities that lie ahead. Embrace change with Wrike by resolving common issues in enacting organizational development in HR. Try our platform for free and shape a thriving, development-oriented HR culture. Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

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What is organizational development? (Goals, process, and guide)

Understanding organizational development

History and evolution of organizational development