Organization Development, Change Management and Leading the organization requires a good understanding of how change influences business. Economic ecosystems are increasingly seeing the symptoms and effects of a VUCA world – Volatile, Uncertain, Complex and Ambiguous. The traditional methods of goal setting, long term visioning and capital-intensive strategies are becoming difficult to pursue if not redundant. In the new VUCA world, the approach to organization development, change and leadership is going through a significant shift.
Leadership, organization development and change management aim to proactively embrace change and leverage it for the organization’s renewal. Organization development process creates a closed loop process of planning, executing, monitoring, evaluating and improving the business.
A major benefit of organization development is innovation achieved through employee development and enhancing their morale. By continuously engaging with the market, analysing competition, researching consumer behaviour and expectations, organization development drives renewal and financial success.
When the business has a high level of complexity (for example due to different legal and tax requirements in different countries), or uncertainty (with fast paced technological advancements change the landscape of competition every day), volatility (with unexpected changes to the market such as changing rain patterns effecting grain prices) and ambiguity (with little or data available on how a new technology to change the market), organization development and change management requires a leadership that adjusts to the demands of a VUCA world.
The leadership should:
- Retain a clear vision at least in the short term and provide for a greater sense of agility and responsiveness to unexpected challenges.
- Despite shifting priorities, provide a clear and consistent communication about the methods, result areas and expectations from business and people.
- Anticipate and mitigate risk on the go without relying on old proven ways of solving problems but innovating and find new ways of solving problems.
- Rely not just on data but also intuition and experience of the stakeholders.
Process of Change Managing
By finding solutions to managing complexity, one can in fact leverage complexity to one’s advantage. People are at the centre of this and technology could be used to leverage the talent and expertise they bring. Diversity of opinions and preferences can help organizations dilute complexity. Uncertainly too can be converted into an opportunity by making bold moves and having the agility to change paths mid-way. Uncertainty and ambiguity can both be managed by relying on extensive networks of people and playing on the interconnections to bring agility to a business’s response to it.
Organization development change and leading it involves developing a workforce that can adjust to the change. Leading change requires that organizations prioritize the following:
Continuously invest in employee engagement – Because people have a varying level of comfort with change, they also respond to change different. By actively involving the key stakeholders in the process of managing change, organizations can not only cope with change but also leverage it to their advantage.
Compensation and benefits including incentives and bonus need to be aligned to agility and change management so that employees can comprehend what’s in it for them in managing change.
Thirdly, the management must close the feedback loop for any initiative – ensuring that communication is clear, swift and two-way so that minor and major adjustments to the strategy and approach to market, employees and customers could be made appropriately.