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Creating and Sustaining an Internal Organization Development Value Proposition

By
Mike Horne
March 10, 2023
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From time to time, a leader or leaders in an organization decide to create an Organization Development (OD) function or department. The opportunity to create and build an OD department is an exciting and creative process. In some cases, funding will be sufficient to create a group of OD practitioners. OD departments vary in mission, size, and practices, and decisions to create standalone OD functions are as varied as organizations. At times, the decision to create an OD department is a reward or recognition for OD efforts that have been extended by a colleague or a group of colleagues. At other times, it may be the result of some episodic event or an upcoming organizational need. Alternatively, a function may be created because of an executive’s exposure to OD and a subsequent decision to allocate the resources necessary to create the department.Many factors affect the OD department's creation, growth, and development. Among those factors are vision, mission, and a set of performance goals. In addition, it’s important to select the right staff and concentrate on the group’s development if growing a team. Organizational leaders, and OD team members, should consider accountability for the OD function and its talented contributors a primary concern. Rather than account for all of the ways in which OD departments originate and develop, our focus is to consider the value proposition for OD and the actions necessary to sustain the function.Value PropositionDeveloping a value proposition for an OD department is similar to processes and techniques employed to work with other departments or groups within an organization. Typically, these activities begin with the identification of values that support the function, followed by a vision statement. Next, a mission statement is necessary to describe the nearer-term focus of the group. Finally, annual or periodic goals help to anchor the department in terms of meeting organizational requirements, needs and wants. Value propositions are too often static in organizational life, left to sit on a shelf following what is often an exhaustive effort by group members to describe the OD function and department. In this regard, it’s important for the OD team leader to keep the value proposition in the minds of those who are part of the department and other organizational stakeholders. When a value proposition is well constructed, well communicated, and reinforced, it adds tremendous power to individuals working in the OD group. How? It helps to build trust between and among team members to the extent that it anchors the group’s focus. In other words, when all team members live the department's values, mission, vision, and goals, they can trust each other that they are doing similar work in the organization. Team members are free to act in their own ways, trusting that each member of the function is directing the significance of the OD function in agreed-upon ways.ValuesThe topic of values raises an interesting question for the OD leader and the OD department. The question concerns whether to follow values of the OD field, embed organizational values, or create some hybrid. Some values espoused in the humanistic practice of OD are at odds with organizations or practices within organizations. For example, democracy is central to OD values and can be traced to the origins of the field. However, most organizations are not democracies, as individuals do not vote on those who lead or manage, for example. Consequently, the development of a set of values for OD should not be undertaken lightly and may be the most significant conversation for the team to have in the development of its value proposition.MissionA mission describes the purpose of the organization or team. For an OD group, the possibilities for creating a mission are open-ended. Mission statements help to explain the reason the organization or team exists. Vision statements for an OD team might read:• to make organizations better places for people• to encourage greater participation and democracy in organizations• to prepare leaders to meet the world’s most pressing concerns• to create just and inclusive societiesIn practice, I’ve experienced few groups taking the time to understand mission or to focus on the broader aspects of their work. It’s one thing to know that you are building leaders for Acme Corporation and quite another to know that you are preparing leaders to solve complex social challenges. The ability to create this lift in thinking requires the courage of the OD leader to persevere among doubters, particularly when concerned with immediate payoffs.VisionVision takes into account the current status of an organization and provides moderate-term focus and direction for the organization and its members. For the OD department, vision statements will be unique and consistent with the organization’s plan, particularly as it gives rise to elements affecting people and strategy. Vision statements can help to direct the focus of the team, focusing on goals that are superordinate to a particular client’s strategic needs. In addition, if the OD function is located with Human Resources (HR), visions may flow directly from the superordinate organization. For example, if vision existed relative to the advancement of women and people of color, the HR leadership team might take action in this regard. From this focus, the OD team might direct its energies into creating inclusive environments or conducting research and delivering recommendations in this particular focus area.GoalsThe greatest variation in the categories of values, mission, vision, and goals occurs in the goal arena. Goals are as unique as the circumstances and contexts that face any internal OD practitioner. If the OD team, for example, is divided to support different client groups in an organization (e.g., research and development, sales, administrative groups, and manufacturing), the team members will be typically driven by the strategic agenda of the client group, as we know OD is primarily engaged in the strategic aspects of organizational activities. If the OD team is focused on supporting enterprise initiatives, it’s likely that deliverables and outcomes will be more common among the group. Lacking any direction, as is too often the case in OD, any direction will work as long as clients are satisfied. Unfortunately, these behaviors contribute to a lack of understanding as to what OD professionals do.Sustaining the FunctionMany factors affect the life and longevity of the OD department. Changing business conditions may contribute to growth, demise, and a steady-course state for the function. Some of these factors may be outside of the control of the Organization Development team and may occur because of unexpected marketplace change, loss of customer accounts, disruptive technology, or a merger or acquisition. In addition, the department and its leadership are subject to the same ebbs and flows of perception and performance as other organizational members.Among the levers to sustain the OD department are attention, community, stakeholder relationships, and communication regarding department failures and achievements. OD teams, as part of organizational systems, benefit from feedback. Developing a function, growing it, and leading it into an uncertain future can be daunting tasks for any individual or group of dedicated team members. The keys to operating a reputable and successful OD team lie in the involvement of others at regular intervals. Through the processes of planning, doing, checking, and acting, OD professionals demonstrate their value to the organization. When OD teams work on strategy and operate from an aligned view on values, mission, vision, and goals, the practitioner and organization can recognize the inherent value in the person and function.

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