6 Steps and benefits of organizational development

Organizations can improve their capacity for change adaptation and increase their effectiveness by developing, enhancing, and combining strategies, structures, and procedures. The term “organizational development” refers to this process. 

Steps in the organizational development process

The action research model is considered the most common model in organizational development, and is used by many industry experts and organizations to advise their organizational development processes. The model encompasses both research and action, as its name suggests, and includes the following steps:

1. Problem diagnosis
   Problem recognition is the first step in the organization development process, that intends to shed light on the known to the unknown challenges facing an organization. The process of diagnosing typically involves gathering information, determining the cause, and conducting an initial investigation to identify potential solutions.
2. Feedback and assessment
   The feedback and assessment step calls for thorough investigation of issues that have been observed in order to fully understand the challenge at hand. This step might entail going over paperwork, holding focus groups, speaking with current workers or clients, hiring consultants, or running surveys. On the basis of the results of this step, the model can be developed further.
3. Documenting a plan of action
   Following identification and comprehension of the challenges ots facing, an organization creates an action plan. The plan outlines every intervention strategy believed to be necessary for the current issue. The typical measures include team-building activities, seminars on training, adjustments to the makeup of the team, and workshops. Quantifiable goals that describe the desired outcomes are also included in the overall plan.
4. Intervention and implementation
   The intervention phase starts once a plan is in place. Implementation processes are a crucial component of the model because organizational development is a challenging process. The evaluation of the training process will be based on the test results, for instance, if training classes are chosen over other approaches. At this point, the goal is to make sure the necessary changes happen. If that’s not the case, the feedback is evaluated and used to make the necessary changes.
5. Evaluation
   As soon as the intervention plan is complete, the results of the change in the organization are assessed. If the required change does not take place, the organization looks into the cause of the issue with the goal of making the necessary adjustments to the plan to make it more effective at achieving the desired results.
   
   Read The 6 steps of management by objectives in an organization
   
6. Success
   Success means the desired change occurred. To guarantee that the new switch is sustainable, a suitable plan and efficiency standards are put in place. To make sure that changes are implemented permanently, ongoing monitoring is required. New issues may also arise as markets and organizations change, driving the need for more advancement. Great companies are always changing.

Benefits of organizational development

Organizational development aims to make the organization more effective. It consequently has a range of (business) outcomes, which include:

1. developing, improving, and reinforcing strategies, structures, and processes. Companies that participate in organizational development constantly improve their business models. Through organizational development, strategies are developed, assessed for overall quality, put into action, and assessed for effectiveness.
2. aligning employees with the organization’s mission by keeping them informed about the organization’s goals and missions, it works to align the employees in order to achieve the organizational goal.
   
   Read The difference between a business vision and mission for great businesses
3. encouraging employee participation by encouraging them to take part in the planning process in accordance with their skill sets. This helps to create a sense of accountability among the staff and inspires them to give their best effort. Effective interaction, communication, and feedback within an organization are highly beneficial to organizational development. Employees who are in tune with the company’s goals, values, and objectives are more productive. Such engagement facilitates a culture of management by objectives and high workplace productivity by helping managers create challenging, yet doable, personal goals.
4. establishing a culture of change and innovation. Innovation, which significantly contributes to the development of products and services, is one of the main benefits of organizational development. One strategy for change is employee development, with rewards for achievement and motivation as a primary focus. Engagement among employees boosts innovation and output. Through consumer expectations, competitive analysis, and market research, organizational development promotes change.
5. raising the workplace’s level of confidence, communication and support between the different stakeholders and levels of management. An open communication system enables employees to understand the importance of change in an organization. An organization’s communication improves with active organizational development, and feedback is continuously shared to promote improvement. Trust, communication and support create an environment that allows for effective conflict management;

According to Gallup’s State of the Local Workplace report, 85% of employees are disengaged at work, costing $7 trillion in lost productivity. Organizational development also improves internal communication to better align team members with the organization’s vision. When workers feel empowered, they are driven to give their best work and are ready to take on more responsibility.

Have you begun your organizational development journey? Talk to us about it.