Organizational Development

&
Change Management

Farah F. Arcebuche
MBA Student
 Research on Organizational Development &
Change Management

The ABCs of Change Management and Organizational Development

Change management and organizational development are critical business functions, especially in
the modern age.
Corporations, startups, and SMBs should all understand and develop these capabilities.
Here are a few reasons why:

 Organizational change is becoming more frequent in the digital economy

 Change management can mean the difference between success and failure 
 Project ROI depends, to a large extent, on the effectiveness of change management

Below, we will cover the essentials of organizational change, organizational development, and change
management.

Organizational Development

Organizational development is the study of successful organizational change.

During the last century, this discipline emerged as an approach to efficiently manage and
guide organizational transformation.
Key concepts of organizational development include:

 Organizational Climate – Behavioral patterns, feelings, attitudes, and perceptions of the people
within an organization

 Organizational Culture – The beliefs, assumptions, and ideas shared by the organization, which
shapes and affects the organizational climate

 Organizational Strategies – The organization’s mission, purpose, and strategic aims within the
context of the marketplace

In practice, these ideas help organizational development professionals systematically lead, manage, and
optimize change efforts.
Change Management

Change management shares many of the same goals, principles, and ideas as organizational
development.

The ideas of Kurt Lewin, for instance, have proven instrumental in the development of both fields.
His model of organizational change helped inspire many of today’s most popular change management
frameworks.

In practice, change management delivers business value by:

 Analyzing problems, risks, and change readiness

 Developing solutions and designing roadmaps for change
 Managing, optimizing, and possibly leading change efforts
These quick definitions can provide a basic introduction to change management.

However, change management, as with any other business discipline, is complex and sophisticated.

Understanding Organizational Change Management 

This article just scratches the surface.

For more in-depth information, it is advisable to research change management topics, such as:

 Change frameworks

 Change management strategies

 Change management blogs

 Employee training and onboarding

 Change management certifications

 Digital change, such as digital transformation and adoption

Why Change Management?

We have covered some of the basic concepts around change management.

But the most pertinent question for many business professionals is ROI.

In other words – what is the business value of change management?

Here are a few reasons why companies invest in change management:

 Changes are necessary – but unmanaged changes frequently fail. High failure rates can be
traced to a number of causes, such as bad leadership, poor communication, or lack of
executive sponsorship. Experienced change professionals are aware of such obstacles and
make plans to overcome such obstacles.

 Management improves project results, increases efficiency, and mitigates risk. Change

management can improve results across the boards – decreasing costs, enhancing results,
boosting engagement, and increasing ROI. Good management, in short, delivers better results.

 Effective change management helps align an organization with change projects and the
workforce. Unmanaged changes can decrease organizational harmony. A change program, for
instance, that isn’t synced with the company’s strategy can decrease alignment between
departments and business functions. 

 Change management aims to overcome resistance and other obstacles to change. Change is

not barrier-free. Experienced managers know which obstacles tend to reoccur and they have
strategies to handle those obstacles.

 Companies that can’t change will have trouble keeping up in the fast-paced digital
economy. Change is a requirement, especially in today’s volatile marketplace. Innovation and
disruption are fueling widespread digital transformation and organizational change. In such an
environment, companies that can manage change well will be able to adapt, survive, and thrive.

The decision is usually not “Should we manage change?” but “How will we manage change?”

As we have seen, change management can deliver significant business value. 

When assessing their stance on change management, companies should perform thorough cost-benefit
analyses.

Organizational Development Vs. Change Management

"What is change management?"  This is a question you may have heard from colleagues, coworkers or
classmates in passing or in formal presentations (school maybe). While many of us know intuitively what
change management is, we have a hard time conveying to others what we really mean. In thinking about
how to define change management, I think it is important to provide a context related to the topic that is
legit and easily to understand.

There are many definition of change management (CM) in the internet and books but the most definition
that enlighten me in terms of CM is the definition of Mr. Scott Span he is a Lead Consultant from Tolero
Solution (an organization that focus on Organizational improvement & Leadership) he define change
management as a structure approach to transitioning individuals, teams, and organization from a current
state to a desire future state. It can be applied to a situation such as downsizing, growing organizations, or
even adding new technology. Also he added it is an organizational process aimed at helping employees to
understand, commit to, and accept and embrace changes in their current business environment. 

As Mr. Scott Span defines the Change management (CM) as I understand it it’s a structure approach for
ensuring that changes are thoroughly and smoothly implemented and for achieving lasting benefits of
change. Its focus on the wider impact of change, particularly on people and how they as individuals and
teams move from the current state to the future state. Also I think that the underlying principle is that
change does not happen in one area of an organization it impacts the whole organization (system) around
it, and all the people touched by it. In order to manage change, it is therefore necessary to know who will
affect the impacts of the changes. As well as considering the tangible impacts of change, it's important to
consider the personal (the people or the employee of the organization) impact on those affected, and their
journey or process towards working and behaving in new ways to support the change. Change
Management is, therefore, a very broad field, and approaches to managing change is very wide, from
organization to organization and from project to project.
What is Organizational Development? The definition of Organizational Development (OD) varies even more
than that of Change Management (CM).Different people have defined Organizational Development
differently.

According to Matt Minahan,(MM & Associates, Silver Spring, Maryland) "Organization Development is a
body of knowledge and practice that enhances organizational performance and individual development,
viewing the organization as a complex system of systems that exist within a larger system, each of which
has its own attributes and degrees of alignment. OD interventions in these systems are inclusive
methodologies and approaches to strategic planning, organization design, leadership development, change
management, performance management, coaching, diversity, and work/life-balance."

Now, I can define that Organizational Development (OD) can be defined as a long-term, more
encompassing change approach meant to improve individual as well as organizational well-being in a
changed situation and Organizational Development (OD) is basically the application of tools, methods,
frameworks, technologies and processes to make your entire organization (that includes people) more
productive, innovative and profitable. Organizational Development (OD) is an ongoing, systematic process
of implementing positive and effective organizational changes. So therefore Change management (CM) is
just one part of Organizational Development (OD).

Organization Development and Change Management (ODCM) prepare employees, the management, and
the whole organization to adopt the changes needed to transform the company for good (better).

By means of that I can say that through Organization Development it make sure that your organization is
ready for any large scale management shifts or new technology solutions that go along with the
transformation in the company it also provide the tools, techniques, and methods to help the organization or
the company to improve productivity or resolve the problem inside the organization (downsizing the
organizational structure). It also help the company to enhance individual and team development, aligning
your employees' on the job behavior and performance with your overall vision, strategy and goals.
 Organizational Development and its Role in Change Management

It’s interesting working in the arena of organization development. All too often managers are confounded by
the fact that the employees resist any form of change whether the changes are better for the organization,
will secure their jobs, and will most probably make the employees lives better. Organizations spend
thousands of pounds and many hours putting together information packs and communication plans to
explain the changes, but no amount of information, no matter how rational, will seem move those who
chose not to be moved. What is more frustrating is that those who refuse to toe and line, and who engage
in acts of corporate terrorism will be able to justify their bad behavior with a perfectly rational and logic line
of reasoning– even if the rational remains unreasonable. Further investigation will also unveil the truth,
which is that the most reluctant will invent fabrications about the real motives of those trying to push for
change, even if those reasons are nothing more than lying to ourselves. Human behavior, the mind and
each individual’s personality are nothing if not curious and fascinating. You see we don’t like to consider
ourselves as being irrational. We need to deceive ourselves into believing that our bad behavior is rational.
If we are unable to cope with a current situation we may begin to regress, acting out like a petulant
teenager, or we might use a displacement defense where we know we have to be strong, so we take out
our frustration on a process of change that makes us feel fearful. Finally we might take hide from, and
refuse to acknowledge the change that we are experiencing by repressing that which we are finding
intolerable from our conscious mind and continuing as if nothing has changed at all.

If you are trying to implement a change program, it is important to consider how  people are acting as a
group, not just individually. When individuals are unsure how to behave they will look to the community of
which they are part to understand what the norms are, which are usually driven by their peers. If there is
someone who strongly represents the group displaying signs of cognitive dissonance, then that will
determine what reaction the group will have as a whole to the change situation.
Individuals who have a lot lose and in the current hierarchy are in a privileged position will seek to maintain
the traditions that keep them in a position of privilege, regardless of the expense to others. Destructive
behavior in a change situation will always be strongest where individuals who fear change the most are in a
position of influence within the wider community.
To make the change your organization seeks, it is essential that you first understand those who are key
stakeholders, and help them to transition their thinking prior to any change program happening. That way
the individuals who have most impact on cultural norms can help the group express their reaction to
change, which in turn will help make the change journey smooth.
Organization Development offers an alternative to the ‘information centric’ approach to change
management.  Rather than a top down change that tells people how to think and act, organization
development takes the organization on a journey of discovery.  Leaders are taught to role model, coach
and teach so they can reflect the change that is being asked for.  For individual employees, OD
interventions create safe places for them to consider the areas of thinking and belief structures that might
need to change, and provides the tools for the individual to make that change themselves.  For groups it
helps transition the change through careful facilitation of group’s dynamics to help the group help each
other make the transition.  Finally, OD considers the reinforcement mechanisms within the organization,
processes and systems which will support the culture change going forward, and removing barriers to the
successful change.
Organizational Change Management Strategies That Make Growth Easy

Follow Change Models

Luckily for modern-day managers, there’s an entire field dedicated to organizational development!

Academics have spent years developing models for change management, and there’s research to back
them up.

There are many common models of organizational development (OD) and change management. These
models are a template to set up change management, and you can customize the plans according to your
needs. Here are some to start your research:

1. Lewin’s Change Management Model

2. The McKinsey 7-S Model

3. Kotter’s 8-Step Change Management Theory

Lewin’s Change Management Model

Kurt Lewin’s Change Management Model is also known as the unfreeze-change-refreeze model, where
systems are analyzed, changed, and then cemented.

Think of your change process as a block of ice. The first thing you need to do in order to change the block
of ice is to unfreeze it. In this stage, you’re allowing the change to happen by “melting” out of the existing
state. This may mean gathering your team together and explaining the upcoming change and
communicating why it’s necessary. This will get your team out of the frozen state it’s currently in so they
can focus on the transition.

Then, it’s time to implement the change. You’re moving the melting ice block to another ice tray, so to
speak. Give your team the guidance and tools they need to start building the change process and continue
to communicate openly with them as everything is put into place. Here is your chance to address any
roadblocks, both physical and emotional, and to help your team achieve their goals. 

Once the transition is successful, you can then refreeze the ice block—that is, solidify the change.
Teamwide postmortems and feedback are critical here to ensure that everyone has the tools and support
needed to keep the change going. Keep this change solid by delivering positive reinforcement, reiterating
training, and making adjustments where necessary.
This model is best for small-scale changes, like new accounting software or a move to an open-office or
work-from-home format, where feedback and buy-in from your team are necessary for success.

The McKinsey 7-S Model

This model breaks change down into seven categories: strategy, structure, systems, shared values, style of
work, staff, and skills. Say that ten times fast.

When taking a full-systems approach to change, the 7-S model accounts for all the ways it will change your
team dynamic. Taking a look at all these S’s, you’ll notice that the first three—strategy, structure, and
systems—are much easier to identify within your organization than others. These are known as the “Hard
S’s” of the model; they account for measurable factors like business goals, workflow and management
tools, hierarchy, and more. The “Soft S’s”—shared values, style of work, staff, and skills—are more
individual and adaptable.

Once you’ve identified all seven categories within this model, you must evaluate how they impact each
other. Can you change the strategy of your business without compromising its shared values? If you
change the systems and software you work, what employee skills are you overlooking or undervaluing?
This approach will help you see the bigger picture and understand how change ripples through your
organization.

The McKinsey 7-S Model best suits major structural change, like a new hierarchy model or a merger. It
requires little team feedback and focuses instead on organizational well-being.

Kotter’s Change Management Theory

John Kotter’s model sorts change into eight steps: create a sense of urgency, build a guiding coalition, form
a strategic vision, enlist volunteers, remove barriers, generate short-term wins, sustain acceleration, and
institute change.

This waterfall method of guiding your team step-by-step through change is an excellent hands-on way to
encourage buy-in and reduce resistance. By giving a broad view of the change at hand and building a
coalition of teammates to help design new processes, you’re providing a level of transparency to your team
that helps rid the fear that typically comes with change. Allowing your team to participate also gives you
extra insight into obstacles that only certain individuals or small groups face. This way, you’re able to
implement more comprehensive change that takes everyone into account—not just the major stakeholders.
Kotter’s eight steps are ideal for a team that needs to adjust its strategy and re-approach problem-solving in
a new way. This could be most effective for an organization that is digitizing its records, changing its sales
approach, or adding a new product or service to its offerings.

Which system seems best for your team? As you begin your change management plan, analyze what your
team needs most. Will restructuring your team help more, or will you benefit from taking a systems analysis
approach?

Remember that these models are just a starting point. You know what works best for your team, and a
large change will always require more custom plans.

Know Your People

No one else in your company knows your team better than you do. Managers who work side-by-side with
their teammates get to understand their team’s working styles, personalities, quirks, and pet peeves. And
you’ll know right away who’s affected by the change.

Remember: change triggers flight-or-fight. So you should expect resistance at first, and you can embrace it.
Maybe Susan isn’t being stubborn about losing her Zendesk integration as you change to a new software;
her customer service processes rely on Zendesk to keep everyone informed of the latest inquiries and
urgent requests. Listen to your teammates and give them the chance to communicate
and complain throughout the process.

Find a feedback loop that works for everyone. Do you already have weekly team meetings? Set up a slot
on that meeting agenda to tackle problems as a group. Kotter’s change theory suggests building a coalition
to plan change. This is a great way to flatten the hierarchy during the change process. Not everything has
to be handed top-down all the time. Working with your team to identify pain points and solutions can help
streamline the change process. You may even find solutions you didn’t even know you need!

Make A Plan

As your team begins to identify necessary changes, you can build a plan together. First, start with a
process to recognize what changes your team needs. How will you approve those changes? Who will
implement, monitor, and measure those changes in progress? Set specific goals together, like cutting
customer service response time by 30%

Then, train your people. A new process goes nowhere if your teammates don’t know how to navigate it. If
there’s a new software, lead a training with a software expert who can walk everyone through best
practices and tips. If the new change requires consistent supervision, identify the individuals on your team
who can manage that and walk them through it. Don’t assume your team can handle it on their own—you
risk throwing them unknowingly to the wolves and losing some of your best people. Be a patient and
guiding manager as they face something entirely new for the first time.

Check In Regularly

As you’re implementing your new process, your teammates are bound to run into obstacles and questions.
These are things you want to hear! Set up some systems to capture feedback along the way. Pulse
surveys are an effective way to gather quick feedback from your team in a 1-2 question format. 

Don’t just rely on feedback from people, though—head to the new system itself. Measuring success along
the way is how you know to make adjustments, pause the process, or leave it as is.

Once you’ve made it through the change, you have the ultimate opportunity to gather feedback. Plan a
post-mortem where everyone can make assessments and suggestions. This is likely the point where
people will be most upfront about their struggles and complaints. And the best thing you can do here is to
allow space for those complaints to ensure you’re getting the whole story. This will make it easier to plan
change in the future.

Plan Ahead

Change is an ongoing process. One established change management process isn’t always going to be
your go-to. But you can take the lessons you’ve learned along the way and apply them to future changes.
And feel free to experiment with different change models along the way! There’s no one-size-fits-all
solution. Remember: everything changes.

REFLECTION
(Research on Organizational Development &
 Change Management)

Both organization development (OD) and change management (CM) provide necessary and crucial support
to successful change. This chapter explores the dynamics between the fields of OD and CM. It presents the
disciplines side-by-side, attempting to add clarity by delineating them and then drive convergence by
showing the differences and overlaps. Through the examination, there emerges a common set of shared
values and perspectives that should serve to unify the disciplines rather than promote divergence, namely
the critically important contribution of individual employees to the overall health and success of
organizations in times of change. With a better understanding and foundation of each discipline,
practitioners can better identify when each provides the greatest value and addresses the issues they are
facing at a given point in time.

Some of the best-known companies in the world have used organizational development to improve a
multitude of business processes. Amazon, for example, recently unveiled a $700 million plan to retrain its
workers to adapt to new technologies, working conditions, and business procedures.
Starbucks has also implemented organizational development policies. In recent months, the international
coffee chain introduced a series of eco-friendly initiatives across its entire enterprise, including more
expansive recycling programs and paper cup reduction. In addition to being environmentally friendly, these
new initiatives also improve the company’s public image and profit margins.
Google has worked to change its overall company culture to one of ongoing learning. New employees know
that they’ll constantly be attending workshops, training, and growing professionally. Given this culture,
employees sign on with enthusiasm for change and learning new things.
With a firm understanding of organizational development and a desired goal, companies can ignite
meaningful change. However, change is never easy. That’s why organizational development systematizes
every step in the process, facilitating improvement in businesses of every size and in every sector.

Organizational Development and Its Role In Change Management - (bohatala.com)

Organizational Development Vs. Change Management (linkedin.com)

Change Management and Organizational Development: The ABCs (walkme.com)