Impacting Organizational Capability - Organization Development and Culture

David A. Nadler and Michael L. Tushman

David A. Nadler and Michael L. Tushman (1997) describe a Congruence Model and "Seven S" approach for examining how interdependent, organizational subsystems scan and transform input from the external environment to outputs in the organization across individual, group, and total levels. The seven Ss are strategy, structure, systems, shared values, skills, style and culture, and staff.

I. Principles of Organizational Management

TD professionals should understand how the principles of organizational management influence the lines of authority and responsibility for OD efforts.

W. Warner Burke-George H. Litwin Model

W. Warner Burke-George H. Litwin Model (1994) identifies the variables involved in creating first-order (transactional) and second-order (transformational) change. It distinguishes between organizational climate and organizational culture as: Climate represents individuals' collective assessment of an organization in terms of whether it is a good or bad place to work Culture represents a collective assessment of an organization based upon deeper, relatively enduring, often unconscious values, norms, and assumptions. Transformational change and fundamental culture shifts are produced by solutions that are directed toward leadership, mission, strategy, and organization. Transactional change or changes in climate are produced by solutions directed toward management practices, structure, and systems produce.

3.3.8.2 Create a Culture That Encourages Collaboration

A collaborative culture is one that works across boundaries to build connections and shared purpose. Employees at all levels have increased demands for collaborative cultures and supportive peer networks, projects that connect with their strengths, and managers that challenge them through team-based training and development (Jaramillo and Richardson 2016). Beyond the increased demand from workers, jobs simply require more collaboration among people from different units and supervisory levels than they did in the past. The ability and flexibility to collaborate and connect with others has a proven impact on employee satisfaction and retention, as well as organizational performance and innovation. While most organizations recognize that collaboration makes good business sense, many organizations expect employees to work well together without properly showing them how or defining what collaboration looks like in terms of daily practice and behavior (Ashkenas 2015). In addition, collaboration often fails because it's viewed as an activity instead of a skill or because collaboration is a mandated performance requirement focusing on compliance instead of commitment. TD professionals can help promote collaboration as a cultural value by teaching leaders and teams new processes for working together, resolving conflicts, providing constructive feedback, and making decisions. They can also foster collaboration by leveraging technologies that break down silos and enable information sharing across boundaries.

3.3.10.3.3 Earn Employees' Trust

A lack of trust and transparency from leaders can drive up to 50 percent of employees to seek new employment. Trust is earned when employees have confidence in leaders' decisions, when they believe that leaders are on "their side," and when they know they will be treated fairly. Aligning leaders' words and actions is a key pillar for building workplace trust and increasing engagement and retention. TD professionals can foster organizational trust by encouraging leaders at all levels to "walk the talk" and consistently model the behaviors they seek. They must also emphasize that building trust involves conscious, intentional effort over time—and once trust is lost, it can be very difficult to recover.

3.3.10.3.4 Encourage Employee Creativity

Although many companies say they value creativity, they don't necessarily have any initiatives or policies in place to support it. TD professionals should help organizations foster creativity by setting up innovation teams or idea-funding programs and linking compensation to innovation to signal the value of creative solutions.

3.3.13.2 Elements of Well-Being That Transcend Countries and Cultures

Although the elements of well-being are universal across faiths, cultures, and nationalities, people take different paths to increase their individual well-being. Some individuals may say that faith is the most important facet of their lives, that it is the foundation of their daily efforts, and that spirituality drives them in all areas of well-being. For others, a deep mission, such as protecting the environment, is what inspires them each day. Although it's important to recognize that the things that motivate individuals may differ greatly from one person to the next, the engagement outcomes related to an employee's overall well-being do not. Specifically, engagement strategies that emphasize career development (career well-being), social connections (social well-being), total rewards and recognition (financial well-being), work-life balance (physical well-being), and organizational values and cultures that promote a sense of community and purpose (community well-being) are more likely to create the kind of positive employee experience that drives engagement, retention, and high performance.

3.3.7.10 Factors That Contribute to a Learning Culture

Although there is no ideal approach to developing a learning culture, key factors and focus areas have been proven to help facilitate, reinforce, and advance the transformation process. They include: Leadership. Commitment to a learning organization must start at the top, with the active involvement of CEOs in such roles as "leader-teachers," executive advisors, or mentors. Mid-level and frontline supervisors also play an important role as coaches, developers, and managers of multigenerational, dispersed work teams (Mitchell, Ray, and van Ark 2014). Alignment. Higher-performing learning cultures are more likely than their lower-performing counterparts to have strategies that are aligned with strategic business objectives. An aligned learning strategy is one that engages leaders in defining relevant performance requirements. Measurement. High performing learning cultures monitor the impact of learning to determine whether processes are adding value and achieving desired results. They regularly measure the success of their learning strategies and use results to identify improvement opportunities (Prokopeak 2013). Collaboration. In high-performance learning organizations, employees share knowledge through communities, social networks, and technology-based, collaborative learning tools. Meaningful connections drive innovation and engagement and boost the value of the learning organization (Kelly and Schaefer 2015). Change capability. Mature learning organizations build change readiness by integrating change capabilities with leadership development and management training, using disciplined change management processes, and leveraging employee networks to build change capability across an enterprise (Anand et al. 2019). [See 3.3.7.6] Integration. Sustainable learning organizations build and leverage integrated talent management processes (recruiting, onboarding, engagement, rewards, performance management, knowledge management, and learning) to demonstrate an organization's commitment to learning (Oaks and Galagan 2011). TD professionals should audit human capital practices for alignment and consistency. [See 3.4] Innovation. What sets mature, sustainable learning cultures apart is their commitment to continual innovation, and their ability to renew or reinvent themselves and their organizations as new conditions and demands emerge (Burkett 2017). They hire for and reward innovation, link incentives to creative solutions and innovative behaviors, and approach innovation as a core capability and learnable skill. Adopting these factors is not a single accomplishment, but rather a continuous evolution of growth and maturity.

3.3.4.2 Identifying Relationships and Organizational Charts

An organizational chart illustrates the structure of an organization and the relationships and relative ranks of its parts and positions. It gives an overall picture of company hierarchy and personnel reporting relationships and provides insight to TD professionals seeking to identify relationship structures. However, organizational charts only show "formal relationships" and say nothing about the pattern of human (social) relationships or managerial styles that influence organizational culture. To go beyond the organizational chart, TD professionals can use several tools to identify how relationships work formally and informally, such as a stakeholder analysis, an environmental scan, or a network diagram. TD professionals should seek to identify, build, and influence relationships across all organizational levels.

3.3.5.1 Organizational Systems

An organizational system defines how a company is set up; its structure dictates how each business division is aligned, the hierarchy of who reports to whom, and how communication is meant to flow throughout the organization. There are five main types of organizational structures: Functional organizational structures are a traditional hierarchy common in larger corporations that feature several specialized divisions with division heads who report to senior management. Because of these specialized divisions, employees also tend to become specialized. This structure provides clear reporting lines and a more obvious path for promotion and growth. Divisional organizational structures divide the organization into teams based on the projects employees are working on. Each project team has a director or vice president and exercises a certain level of autonomy within the organization. This structure allows employees to become familiar with other skill specialties and their team member's work. Matrix organizational structures are a cross between a functional and a divisional structure. It is set up with a traditional hierarchy and specialized divisions, with each division then split into projects and smaller teams. This structure encourages cross-collaboration by exposing employees to other departments and projects. Horizontal or flat structures flatten much of the hierarchy and allow employees more autonomy over their work. This setup may consist of temporary teams, although they don't usually have formal structures. While top-down dynamics are minimal, at least some level of senior leadership is typically involved. This structure has been adopted by many startups and tech companies because it encourages innovation and employee input. It also increases communication across teams and eliminates some of the communication issues that can happen when messages travel up a top-down structure. Network structures are less hierarchical but also more decentralized and flexible than other structures because they outsource noncritical, specialized works. This structure depends on open communication and reliable internal and external partners. It is viewed as more agile than other structures because it has more control and bottom flow of decision making. It also eliminates unnecessary departments and minimizes administrative costs.

3.3.7.3 A Learning Culture Is an Organizational Imperative

As automation and robotics improve, globalization increases, and workplaces become more complex, multigenerational, and diverse, the only competitive advantage for today's organization is to learn faster than the competition (Volini et al. 2019). Continuous learning is a necessary resource for closing skills gaps, building change capabilities, and fueling the innovation needed to survive and thrive in an age of disruption.

Organizations with a reputation of having a learning culture are better able to:

Attract top talent. Develop leaders at all levels, which is essential in succession planning. Improve employee retention. Develop employees who more readily embrace and adapt to change. Promote growth mindsets and high performance. Learn at a rate faster than change.

Implications for TD Professionals

Because TD professionals apply, develop, and deploy their skills and talents in organizational systems, it is important to understand how OD competencies and capabilities are defined, distinguished, and supported by the capabilities outlined in ATD's Capability Model. Integrating OD skill sets with learning and development, performance improvement, and talent management capabilities will help increase professional and organizational effectiveness. Keep in mind, however, that it would be a challenge for any one person to develop proficiency in all possible OD or TD capabilities. Therefore, it's best for TD professionals to focus on those few vital skills and knowledge sets that will most influence success in a given role, and to leverage the experience and expertise of leaders, subject matter experts, team members, and professional networks for additional support.

3.3.8.1 Elements of a Learning Culture

Becoming a viable learning culture is about learning. Learning can be viewed as the process of absorbing knowledge or skills through experience or study to make use of it in various contexts. To remain agile and responsive to rapid workplace changes, knowledge acquisition needs to be built into what employees do every day. This means creating an environment where they can acquire knowledge or skills through continuous, accessible, and progressive learning experiences designed to accelerate skill development, engagement, and innovation. The focus is upon creating meaningful learning experiences. The drive to seek learning experiences comes from a growth mindset, which is an essential element of any learning culture. In a growth mindset, people believe that their most basic abilities can be developed through dedication, deliberate practice, and hard work—brains and talent are just the starting point. This view creates a love of learning and a resilience that is essential for accomplishment. Individuals are not discouraged by failure—rather than seeing themselves as failing in those situations, they see themselves as learning (Dweck 2007). TD professionals should assist their organizations to foster a growth mindset by systemically building continuous learning into daily work with short, frequent "pull" versus "push" bursts of information that is readily accessible and available to all employees at the time and place of need. Other elements of modern learning organizations include: organizational values that reference the importance of learning and development strategic plans that ensure business goals include the capabilities the workforce needs open communication channels for all employees flexible and accessible opportunities for employees to share knowledge across boundaries employees have demonstrated commitment to seek new knowledge and apply it for improved individual and organizational performance (Morrison 2016). Transforming from a training culture to a learning culture means that learning is repositioned from a business cost to a true business driver, from a tactical nice-to-have to a strategic must-have. TD professionals should frame a learning culture as the glue that connects the organization and the engine that attracts and engages the talent needed to grow strategic capabilities and fuel innovation.

Other characteristics of open systems that influence organization development include:

Boundaries. An open system has a permeable boundary that allows exchange of information, resources, and energy between the system and the environment. Feedback mechanisms. An open system has feedback mechanisms through which it imports information from the environment. Integration and coordination. Every system must provide mechanisms, processes, and procedures for integrating and coordinating its various parts. Homeostasis. Systems strive to achieve a steady state of equilibrium when faced with disruptive forces, whether internal or external. The basic principle is preservation of the system.

3.3.7.7 Show Value

Clients and managers who approve TD budgets need evidence that TD efforts are worth the investment of time, money, and resources. That elusive seat at the executive table must be earned through a strategic, results-oriented focus. A learning organization can demonstrate a results-focus by using evidence-based data to show business leaders how it has achieved results that are important to them. While impact measures are valuable, some managers may simply want to know whether initiatives are on track, meeting targets, and achieving strategic goals. In general, systematically showing the value of learning organization initiatives helps TD professionals and stakeholders determine whether: the right strategy is driving the right issue strategy execution is happening according to plans and timelines the right tools and resources are being provided in the right way, at the right time, and to the right people organizational constraints or cultural barriers are interfering with learning, performance, and business objectives. Using evidence-based data as a form of storytelling has also been shown to win funding and sponsor support, gain added commitment of stakeholders, inform decision making about program investments and resources, and help identify improvement opportunities (Biech 2018).

3.3.9.1 Defining a Culture

Culture is the collective assessment of an organization based upon enduring, often unconscious, values, norms, and assumptions. The informal elements of a company's culture include the distinguishing sights, sounds, atmosphere, and work environment. Culture represents the sense of cohesion and shared identity among employees—the "secret sauce" that carries organizations through eras of change (De Geus 2002). [See 3.3.3.2] At its essence, a clear organizational culture keeps everyone pointed in the same direction, provides employees with a shared meaning and purpose about their work, and empowers engagement and performance, despite organizational changes (Clow 2015).

3.3.12.1 Elements of an Engaged Culture

Culture represents a system of values, beliefs, and behaviors that influence how work is accomplished within an organization. Engaging cultures start with a clear set of values and a compelling mission supported by strategies, policies, and performance-based practices that allow employees to reach their full potential at work. Eight common elements of highly engaging cultures and barriers to them are outlined in Table 3.3.12.1-1 (Ray et al. 2015).

3.3.9.2 Principles of Shaping a Culture

Despite increased emphasis on culture as a competitive advantage, global executives consistently cite culture and engagement as top challenges and very important organizational problems (Deloitte 2015). Senior leaders are increasingly turning to TD professionals as partners in transforming cultures. They should consider these factors: Culture is every day. Culture is created, sustained, or changed by daily behaviors, interactions, and overall business practices. Culture does not change overnight. Culture doesn't change as much as it evolves over time. Deeply embedded assumptions, beliefs, or values cannot be replaced with simple upgrades or even major overhauls. Growing a mature learning culture may take years, and it requires largescale alignment of people, structures, systems, processes, tools, and technology, as well as an intentional, future-focused growth mindset from all those leading the charge. Culture is not one-size-fits-all. Valuable information can be gained by researching other learning cultures, but it's most important to focus on the values and behaviors that work best for a TD professional's current business or industry. Culture can always improve. A culture does not have to be toxic to warrant nudges forward. TD professionals should consider driving their culture where it needs to be. Culture change doesn't guarantee success. A great culture is no guarantee of sustained excellence or success. It's not something that can be imposed. Culture literacy is key. TD professionals should understand what culture is, how it's assessed, and how it affects employees' motivation, performance, and engagement. Culture change must draw upon positive cultural traits embedded in an organization and minimize negative ones (Burkett 2017).

Most consulting processes follow distinct phases; the OD consulting process has three:

Diagnosis. A collaborative process between the organization's members and the TD professional to collect data about the total system and its processes, culture, or other areas of interest. It stems from two needs—the need to know the current state of "what is" and the need to know "what should be." [See 3.6.4.1] Action. The activities and solutions designed to improve how the organization functions. Program management. These are activities designed to ensure the success of OD strategies or solutions; for example, project management, managing relationships, stakeholder expectations, change or project teams, communication strategies, implementation plans, goal setting, and risk mitigation plans (French and Bell 1999). [See 3.2.1]

3.3.10.1 Defining Engagement

Employee engagement can be defined as "A heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or co-workers that, in turn, influences him/her to apply additional discretionary effort to his/her work" (Ray et al. 2015). Gallup's 2016 research across 230 organizations in 49 industries and 73 countries describes three levels of employee engagement: Engaged. Employees who willingly go the extra mile, work with passion, and feel a profound connection to their organization. Engaged workers stand apart because of the discretionary effort they consistently bring to their roles. Not engaged. Employees who are likely to do just enough to fulfill their job requirements and have essentially "checked out." Converting this group into engaged workers is an effective strategy to increase performance. Actively disengaged. Employees who are more or less out to damage a company and undermine whatever engaged employees do, such as solve problems, innovate, and create new customers (Reilly 2014).

3.3.10.4 Engagement and Retention Influence Organizational Outcomes

Employee engagement can have significant organizational benefits. For example, Gallup research supports a well-established connection between employee engagement and key performance outcomes, including customer ratings, profitability, productivity, safety incidents, shrinkage, absenteeism, safety incidents, quality, and turnover (Reilly 2014). Turnover can cost an average of six to nine months of that employee's salary, including its negative financial impact for the cost of recruiting, hiring, and training their replacement. Despite the documented costs of poor retention and employee turnover, however, many organizations are more apt to invest in recruiting new employees as opposed to retaining existing talent. Other significant barriers preventing organizations from improving engagement and retention outcomes include: Budget constraints. A primary obstacle to improving employee retention and the biggest hurdle to implementing technology that would reduce manual or administrative work Conflicting priorities. HR leaders may not be able to adequately focus on attraction and retention as critical issues because of competing priorities and perpetual emergencies. Outdated technology. Poor automation or manual processes detract from acting strategically. Lack of support. A lack of executive support and organizational vision prevent addressing retention (HR.com 2019). Armed with these findings, TD professionals should plan to implement employee retention strategies that are driven from the top and visibly supported across all organizational levels. [See 3.3.11 and 3.3.12]

3.3.10.3.6 Offer a Competitive Base Salary or Hourly Wage

Employees want to believe the effort they put into work is worth their time. When it comes to employee retention, money isn't everything, but offering a competitive wage can help people feel like their work and time is valued.

From an employee perspective, learning organizations are better environments because they:

Encourage independent thought. Increase change readiness. Increase productivity. Increase job satisfaction and commitment. Provide opportunities for continuous learning and development. Increase employability due to a focus on "upskilling." Learning cultures have been proven to improve employee engagement, lower turnover, increase employee satisfaction, encourage problem solving among employees, and increase employee retention. Employees want an environment that's conducive to continuous learning and growth; if they aren't learning, they're leaving (Asghar 2014).

TD professionals should integrate OD skills with the growing number of L&D, performance improvement, and talent management solutions focused upon increasing organizational effectiveness. The process used by OD practitioners to design and implement OD strategy is structured in five phases:

Entry represents the initial contact between consultant and client where they present and explore the problem, opportunities, or situation. The output of this phase is generally an engagement contract or project plan that establishes mutual expectations and preliminary agreements on project scope (such as time, money, and resources). Diagnosis (assessment) represents the fact-finding phase. It is a collaborative data collection process between organizational stakeholders and the consultant where relevant information about the presenting problem is gathered, analyzed, and reviewed. Feedback represents the return of analyzed information to the client or client system; exploration of the information for understanding, clarity, and accuracy; review of preliminary agreements about scope and resource requirements; and the beginning of ownership of data by the client. The output of this phase is typically an action plan that outlines the change solutions to be developed, along with defined success indicators based on the information and data analysis. Solution represents the design, development, and implementation of the solution or set of solutions meant to correct the problems, close gaps, improve or enhance performance, or seize opportunities. Outputs may include a communication plan, a role-and-responsibility matrix, a training plan, a training curriculum, an implementation plan, a risk management plan, an evaluation plan, or a change management plan. Evaluation represents the continuous process of collecting formative and summative evaluation data to determine whether the initiative is meeting the intended goals and achieving defined success indicators. Outputs generally include an evaluation report with recommendations for continuous improvement.

3.3.11.3 Common Mistakes

Even the most well-aligned, well-designed, and well-implemented engagement survey has limitations. TD professionals should understand the advantages and disadvantages of the various assessment tools, methods, and processes used to collect and analyze engagement data. Using multiple modes of assessment provides the greatest insight and perspective. A basic requirement for any assessment system is that it is progress-oriented, trustworthy, easy to work with, and individualized. While there is an increasing amount of "nudge" technology to remind and motivate managers to monitor or track the right things, it's important that tools don't become "nag" technologies that are soon ignored. In a typical evaluation process, organizations deploy annual surveys to benchmark a company's level of employee engagement or satisfaction from year to year. Potential problems with this approach include: no strategy for aligning and leveraging engagement data poorly constructed survey instruments lack of decisions about how survey data will be used and who will see it concerns about confidentiality or anonymity in providing feedback failure to communicate results failure to support managers to act on results poor follow-up and follow through with recommended actions.

Executive Leadership

Executives approve or sponsor TD projects or programs because of their promise to add value and meet business needs. To serve senior leaders, TD professionals should be ready to: Use data-driven approaches to communicate the value of learning strategies or solutions. Continuously improve leadership development programs to build critical capabilities. Establish and demonstrate expertise as a learning leader, organizational consultant, performance improvement professional, or talent manager. [See 3.3.1.2]

3.3.10.3.5 Challenge Employees in a Balanced Way

Finding the balance between challenge and support is rarely easy because every employee is different, and what one might find rewarding, another might find tedious and too complex. Best practices include: Express belief in employees. Push people out of their comfort zone, giving them a chance to take risks. See failure as a learning opportunity; process failure together by learning from it. Encourage a growth mindset—reward effort, not just results or talent.

3.3.10.3.7 Establish Work-Life Balance

Flexible scheduling and work-from-home opportunities can play a major role in an employee's decision to take or leave a job (Gallup 2017). Employees want companies to break down the long-established structures and policies that influence their workdays.

3.3.5.3 Principles of Organizational Management

Henri Fayol pioneered the five functions of management and is considered the founding father of concepts such as the line and staff organization. His ideas and strategies remain useful tools for forecasting, planning, process management, organization management, decision making, coordination, and control. Fayol's five functions of management are: Planning, which involves looking ahead. According to Fayol, drawing up a good plan of action is the hardest of the five functions of management because it requires active participation of the entire organization and available resources must be linked to and coordinate on different levels. Organizing, which is necessary because an organization can only function well if it is wellorganized. This means that there must be sufficient capital, staff, and raw materials to run smoothly and build a good working structure with the appropriate division of functions and tasks. Commanding, thanks to clear working instructions that allow employees to know exactly what is required of them. Successful managers can motivate a team and encourage employees to take initiative with a participatory approach. Coordinating all resources and activities for the organization to be at its best. Coordination also aims at stimulating motivation and self-discipline within teams. Controlling verifies whether activities are carried out according to the plan. This takes a four-step process:Establish performance standards based on organizational objectives.Measure and report on actual performance.Compare results with performance and standards.Take corrective or preventive measures as needed (Van Vliet 2014). The five functions are key to management in all levels and all functions linked to one another.

3.3.13.1 Essential Elements of Well-Being

In partnership with leading economists, psychologists, and scientists, Gallup studied elements of wellbeing through a comprehensive global study of more than 150 countries representing more than 98 percent of the world's population. Based upon this research, five broad categories of well-being were defined: Career well-being. How individuals occupy their time or simply like what they do every day. Social well-being. Whether individuals have strong relationships and love in their life. Financial well-being. How effectively individuals manage their economic life. Physical well-being. How individuals maintain good health and the energy to complete tasks on a daily basis. Community well-being. How individuals maintain a sense of engagement with where they live. Struggles in any one of these domains damages a person's well-being and wears on daily life. From an engagement perspective, each element of well-being has the potential to spark or diminish employees' motivation and capacity to exert the discretionary effort that characterizes engagement. Employee engagement recognizes that all the basic well-being needs must be met for a person to perform effectively (Volini et al. 2019). Elements related to physical well-being have gained prominence as a critical human capital and engagement issue, given the increased prevalence of employee burnout. The World Health Organization (WHO) describes three characteristics of burnout: feelings of depleted energy or exhaustion increased mental distance from one's job or negativity or cynicism about one's job reduced professional efficacy (Borysenko 2019). For example, 95 percent of human resource leaders say employee burnout is one of the biggest threats to retention, with some saying it causes more than 50 percent of annual workforce turnover. Deloitte researchers have also cited the "overwhelmed employee" as a global business concern, given conditions like information overload and the always connected 24/7 work environment (Bourke 2014). TD professionals should recognize the importance and impact of the burnt-out, overwhelmed, hyperconnected employee upon learning, job performance, and engagement. After all, the message of a perfectly aligned, designed, and delivered development initiative will be lost if employees are too fatigued and checked-out to hear it. Talent development must partner with organizational and HR leaders to shape the kind of flexible, employee-centric work climate that promotes well-being and engagement. This includes making the right information easier to find, simplifying processes and systems, keeping teams small, and making sure leaders provide time for employees to think, reflect, and practice self-care.

Managers

Middle and frontline managers are usually tasked with executing strategic initiatives, identifying and allocating resources (time, material, people), and establishing priorities to support project implementation. Managers are critical to successful execution and have the most influence on how learners transfer skills and knowledge back on the job. In general, serving managers' needs involves: sharing tools and resources to prepare managers for new roles, including coaching roles providing performance support to ensure managers' participation before, during, and after project implementation having managers identify enablers and barriers to learning transfer supporting managers in their efforts to improve team performance (Biech 2018)

3.3.10.3.2 Foster Respect in the Workplace

Jobseekers value respect in prospective employers (Casserly 2013). Encouraging mutual respect in the workplace can reduce workplace stress and conflict, improve communication between colleagues, increase teamwork, and increase productivity and knowledge. TD professionals can foster a culture of respect by promoting feedback, rewards, and recognition, as well as encouraging creativity and collaboration. Improving communication skills is a critical element. TD professionals should help employees learn how to engage in respectful discourse to encourage knowledge-sharing and collaboration.

Kurt Lewin's Force Field Analysis

Kurt Lewin's Force Field Analysis (1947) is based on the premise that what is occurring at any point in time is the result of forces pushing in opposite directions. Lewin suggests that change is a three-stage process of:unfreezing the old behaviormoving to a new level of behaviorrefreezing behavior at the new level [See 3.6.1.2].

3.3.7.5 Build Effective Partnerships

Learning cultures start at the top with leadership and are driven by middle managers. To ensure executive support of a learning culture, TD professionals should partner with leaders and organizational units who own the business need and have authority to make decisions and allocate resources toward learning and performance solutions (Skibola 2011). Promoting partnerships across all organizational levels helps TD professionals improve their knowledge of the organization and identify areas where the learning organization can help solve real problems in real time. For example, partnerships ensure that TD professionals can properly identify the: best solution to meet identified needs context in which learning solutions will be used extent of environmental support available to reinforce learning transfer and application of knowledge and skills on the job specific performance and impact measures for assessing the success of learning and performance improvement solutions. [See 3.2] TD professionals should also partner with leaders, managers, and teams to keep the perspective of the "modern learner" in mind when assessing needs and designing and delivering solutions (Hart 2019). This means ensuring that solutions focus on providing relevant learning experiences (versus learning events) and making sure that learners have a choice and personal responsibility for their development. Taking time to strengthen alliances and understand the needs of the organization from multiple customer perspectives will establish credibility and trust for TD professionals (Robinson et al. 2015).

3.3.7.8 Challenge Organizational Assumptions and Beliefs About Talent Development

Many leaders have long thought of employee learning as something that happens in a classroom, delivered by a trainer away from the worksite, with content and activities selected by an instructional designer. Managers, as well as many TD professionals, have also come to believe that good training can solve any performance problem. However, the workplace has changed, and beliefs about learning need to change with it. In an age of automation and disruption, an organization's competitive advantage will be in the application of its collective knowledge and expertise, not in how many courses it offers. This means that organizations need to transition from a training culture to a learning culture (Burkett and Holliday 2018). Building a learning culture begins by examining the deep underlying beliefs and assumptions, along with the values and principles that influence organizational action (Schein 2010; Gill 2017). Critical beliefs and assumptions that distinguish training from a learning culture are shown in the table.

Marvin Weisbord's Six Boxes Model

Marvin Weisbord's Six Boxes Model (1976) is a research-based OD model that tells practitioners where to look and what to look for when diagnosing organizational problems. It categorizes six critical areas as leverage points for influencing organizational success and achieving maximum impact. The model is used to teach leaders, managers, and performance professionals how to think systemically when identifying factors that currently enable or obstruct organizational behavior.

3.3.11.2 Measuring and Tracking Engagement Outcomes

Measuring and tracking engagement outcomes is a fundamental element to a successful engagement culture. The three most common ways of measuring employee engagement are: Having engagement measured by an employee engagement survey provider. Using constructs provided by the organization, such as engagement factors, organizational commitment, or job satisfaction, the provider designs a survey to measure each construct through several questions and manages the logistics and software. The survey's results are reported to the company on a high level. Measuring employee engagement internally. When measuring engagement internally, organizations can own their data, include engagement data in tactical and strategic reporting, and use results from previous years to improve questionnaire design. A hybrid approach in which annual engagement is measured by the survey provider while pulse engagement surveys are given by the company throughout the year. Hybrid approaches include surveys, pulse polls, or questionnaires for specific employee segments. These are done in addition to the annual survey and specific analyses, for example, to assess sales performance or analyze reasons for absenteeism in a specific department (van Vulpen 2018). New solutions are emerging to help organizations adopt an "always on" approach to tracking and increasing engagement. For instance, companies can leverage a new generation of "pulse" survey tools and open anonymous feedback systems that employees use to rate managers, executives, or workplace issues on a near-real-time basis. The thoughtful use of such tools can create a true "listening environment" for employees while giving leaders critical insight into what's working and what's not on an operational level. Engagement, retention, and employee productivity are complex, multifaceted issues, and merely measuring engagement is not the whole answer. The primary task around engagement is not simply to have an engagement index, but rather to address the broader, more significant challenge of building an engaging culture. [See 3.3.8.1 and 3.3.12.1]

Types of Initiatives OD initiatives are typically categorized

OD initiatives are typically categorized as: Human process initiatives include team building, interpersonal and group process approaches, and coaching. Techno-structural initiatives include restructuring organizations; for example, mergers and acquisitions, flexible work design, downsizing, business process engineering, total quality management (TQM), quality of work life (QWL), Six Sigma, and Agile. Human resource management initiatives include employee engagement, performance management, succession planning, coaching and mentoring, career development, and diversity awareness. Strategic initiatives include organization transformation, culture change, leadership development, attraction and retention initiatives. Most initiatives have elements of each category. TD professionals should ensure that any OD solution is aligned to specific strategic objectives.

Body of Knowledge and Practice Used

Organization development (OD) can be viewed as the use of organizational resources to improve efficiency and productivity in the workplace. It involves an ongoing, systematic, long-range process of improving an organization's problem-solving capabilities and its abilities to cope with changes in the external and internal environment. OD is both a field of applied behavioral science and a field of scientific study and inquiry. It is interdisciplinary, with research rooted in social psychology, adult education, anthropology, social work, human resource management, change management, individual psychology, group dynamics, theories and models of change, organization behavior, research analysis and design, culture, and innovation, among others. A core foundation of OD is its emphasis on systems theory and systems thinking, which pervades all theory and practice on the topic, from diagnosis to solution implementation to evaluation. Systems thinking is a conceptual framework that looks at a problem or issue from a holistic perspective to understand how the links and interactions between system "components" influence one another and the whole system (Senge 2006). A system is an arrangement of interrelated parts that represent interdependency and interconnectedness, as well as a set of elements that constitute a holistic, identifiable whole. All open systems take in input from the environment in the form of energy, information, money, people, raw materials, and so on. For example, an open system may take in input from customers through surveys or market research and then channel that input with throughput processes that get converted to outputs meant to influence the environment. Outputs, in this example, might be advertising, marketing, or lobbying activities.

3.3.3.2 Planned Change Models

Organization development is an ongoing, systematic process of implementing positive and effective organizational changes. Change models that influence OD practice include:

3.3.5.4 Political Dynamics

Organizational politics refers to a variety of activities associated with the use of influence tactics to improve personal or organizational interests. Political dynamics consist of the implicit norms, hidden assumptions, and unspoken processes and guidelines that define how "things get done" in an organization. The degree of organizational politics varies from one company to another, but the reality is all organizations have some sort of internal political dynamic that can help or hurt its effectiveness. To deal with these dynamics, TD professionals should be aware of the players, rules, and landscape where issues get played out; the company's organizational chart will provide some insight into the political landscape. Gaining and leveraging political savvy has important benefits for TD professionals. Studies show that individuals with political skills tend to do better in gaining more personal power as well as managing stress and job demands, than their politically naive counterparts. They also have a greater impact on organizational outcomes (Jarret 2017).

3.3.11.1 Organizations Must Measure Engagement to Determine the Value

Organizations can only drive engagement if they know how it is measured. Approaches that best-practice organizations use to determine the value of engagement efforts include (Reilly 2014): Define engagement goals in realistic, everyday terms. Leading organizations make engagement goals meaningful to employees' day-to-day experiences and describe what success looks like using powerful descriptions and emotive language. TD professionals should weave engagement into daily interactions. Coach managers and hold them accountable for their employees' engagement. Managers are primary drivers of their employees' engagement. TD professionals should provide coaching to managers on building engagement plans with their employees, holding managers accountable, and tracking their progress. Invest time and resources. Best practice organizations invest in integrated processes and internal or external expertise to make sure that the right engagement criteria are being targeted, and that targeted measures are making the right impact on strategic outcomes. They also invest in a dedicated workforce to identify key insights from data (Ray et al. 2015). Use ongoing measures. Best practice organizations apply a regular cadence for collecting and analyzing ongoing measures of engagement versus relying exclusively on a "rear-view" annual engagement survey (Brown 2018).

3.3.10.3 Retention Strategy

Organizations known for their engaging cultures consistently outperform their peers in terms of employee attraction, retention, engagement, productivity, profit, and customer satisfaction. TD professionals can help organizations develop retention strategies by incorporating several best practices.

3.3.5.2 Evolution of Organizational Structures

Organizations of the future must adapt to evolving changes around how they work, how they lead, and how companies are structured. In his book the Future of Work (2015), Jacob Morgan introduced 14 principles of the future organization, which were based on the growing shift away from hierarchical command structures. These principles emphasize the need for flatter, more collaborative and adaptive structures where any employee can act as a teacher or student and learn from colleagues anytime and anywhere. The 14 principles are: globally distributed with smaller teams connected workforce intrapreneurial (that is, the practice of employees who work internally but are expected to act using entrepreneurial attributes) operates like a small company focuses on "want" instead of "need" adapts to change faster innovation everywhere runs in the cloud more women in senior management roles flatter structure tells stories democratizes learning shifts from profits to prosperity adapts to the future employee and the future manager.

3.3.10.3.1 Foster an Inclusive Workplace

Organizations that prioritize inclusion strategies are eight times more likely to achieve better business outcomes (Bourke 2018). While an inclusive culture includes a commitment to workplace diversity, it also includes a climate where respect, equity, and positive recognition of differences are all cultivated. To foster inclusion, TD professionals should help leaders address and overcome their unconscious biases, create open forums for discussion, and ensure that leaders and managers view diversity and inclusion as a business imperative.

Peter Senge

Peter Senge (2006) described organizations as organisms, challenging the concept of the top-down, hero-leader, and large-scale change. Senge advises small, incremental change through five disciplines of organizational learning. [See 3.3.7.1]

Prosci ADKAR Model

Prosci ADKAR Model is a goal-based change management model used to guide both individual and organizational change. It is different from many other change management models because it focuses on guiding change at the individual level through five distinct phases: awareness (A), desire (D), knowledge (K), ability (A), and reinforcement (R).

The evolution of organizational structures has led to these recommendations for high performance:

Push responsibility down to employees operating in flatter organizations. Increase the emphasis on line managers to support tasks traditionally handled by HR. Instill learning as a priority in all organizational systems. Decentralize decision making to autonomous units and employees. Link performance measures for employees to financial performance indicators (Cascio 2012).

3.3.6.1 Purpose of Reporting Structures

Reporting structure refers to the authority relationships in a company—who reports to whom— and is created by these authority boundaries. Reporting frameworks establish who is in charge of different tasks, departmental areas, and the organization as a whole.

Figure 3.3.7.1-1. Senge's Five Disciplines of a Learning Organization

Senge's five disciplines are all interrelated and focus on long-term organizational growth. While it may be more manageable for organizations to focus narrowly on one or two disciplines while working incrementally on the others, it's the use and integration of all five disciples that ultimately leads to longterm growth.

3.3.7.9 Link TD Strategies to Organizational Strategy

Studies show that companies that align learning with business priorities are significantly better able to improve company revenue (Carter, Ulrich, and Goldsmith 2004). In broad terms, a learning strategy identifies what a learning organization wants to accomplish, how it will add overall business value, and how it will achieve and support organizational goals. TD professionals need to know when to adapt, pivot, or reverse course with their TD strategy. By continually reviewing strategic needs and objectives that reflect organizational priorities, TD professionals can: Better position the learning organization as a catalyst for business success. Lay the foundation for effective program evaluation by identifying critical measures of success. Help create shared ownership of learning results. [See 3.4]

The five major capabilities for OD professionals are:

Systems change expert. Includes competencies as a systems change leader, culture builder, and innovator. Requires knowledge of system dynamics; theories and models of change; organization behavior, design, and research; analysis and diagnosis; group dynamics; individual psychology; culture; and innovation. Efficient designer. Includes competencies as an efficient designer, process consultant, and data synthesizer. Requires knowledge of data collection; data analysis; designing, selecting appropriate initiatives or solutions; and collaboration. Business advisor. Includes competencies as a strategic catalyst, results-oriented leader, and trusted advisor. Requires knowledge of developing client relationships; managing the consulting process; project management; and evaluating organizational change. Credible strategist. Includes competencies as a credible influencer, collaborative communication, and globally diverse integrator. Requires knowledge of strategic planning; communication; developing client capability; and managing the consulting process. Informed consultant. Includes competencies as an exemplary consultant, emotionally intelligent leader, and lifelong learner or practitioner. Requires knowledge of business acumen; group facilitation; process consultation; and managing conflict. Also includes awareness of one's own biases and how they may influence interactions, such as emotional intelligence. [See 1.2]

TD professionals should be familiar with these OD theories:

Systems thinking is based on the belief that the component parts of a system can best be understood by examining their relationships with one another and with other systems, rather than in isolation. The holistic view is important to change initiatives because small changes to any part of a system affect the whole system, based on their level of interconnectedness [See 3.1.1]. Open systems theory refers to how organizational structure affects the flow of information and interaction, both internally and with the external environment. They are characterized by inputthroughput-output mechanisms. Open systems planning involves scanning the environment to determine the demands and expectations of external stakeholders; developing scenarios of possible organizational futures; and developing action plans to ensure that a desirable future occurs. This kind of thinking is a requirement for creating learning organizations (Senge 2006). [See 3.3.1.1] Complexity theory defines an organization as a complex, adaptive system that needs to respond to the external and internal environment by remaining on the edge of chaos while also self-organizing and continuously reinventing itself. In complexity theory, the future is unknowable and, as such, the ability to learn is absolutely critical to ongoing organizational effectiveness. Application requires experimentation and innovation to develop new operations patterns. Chaos theory is an interdisciplinary theory that says there are underlying patterns, constant feedback loops, repetition, and self-organization, even in the apparent randomness of chaotic, complex systems. The butterfly effect describes how a small change in one state of a system can result in large differences in a later state, meaning there is sensitive dependence on initial conditions. Social network theory represents how people, organizations, or groups interact with others inside their network. Networks comprise actors and the relationships between those actors, who are referred to as nodes and can be individuals, organizations, or companies. Actors are always the smallest single unit inside a network. Action research, a term first coined by Kurt Lewin in 1944, is also known as participatory research. It is learning by doing in the sense that a group of workers—or teams as part of a community of practice—identifies a problem, develops a resolution, implements the solution, and then analyzes the final results. Transformative change occurs through the simultaneous process of taking action and doing research, which is linked by critical reflection.

Knowledge of Relationships in Organizations

TD professionals should be able to identify, establish, and maintain strong trusting relationships with clients and organizational stakeholders to: Identify business needs, performance gaps, and change opportunities. Gain support for organizational change initiatives. Align solutions to strategic business priorities. Promote participation and collaboration with solution design, development, implementation, and evaluation. Identify risks and barriers to solution implementation. Determine follow-up mechanisms to reinforce and sustain change progress. Establish credibility as a strategic change agent and business advisor.

I. Designing Employee Engagement Strategies

TD professionals should be able to lead the design and implementation of employee engagement strategies for their organizations.

3.3.10.2 Job Elements That Influence Engagement

TD professionals should be aware that the job elements that influence engagement the most are "autonomy, mastery, and purpose" (Pink 2011). Autonomy is how much freedom employees have while working. Higher levels of autonomy tend to increase job satisfaction and engagement. Mastery is the urge to get better at something that matters. It begins with "flow," when job challenges are matched with abilities. Flow must be coupled with a growth mindset to achieve mastery. Employees with growth mindsets are more likely to seek improvement opportunities. Purpose and meaningful work ensures that employees know their work matters (Sinek 2011). Having a direct connection that shows how work contributes to organizational performance is a key driver of engagement (Ray et al. 2015). Other job factors that help drive engagement include career growth opportunities, job and person "fit" factors, task variety, feedback, and workload balance (McCormick 2016).

Organization Development Basics

TD professionals should comprehend organization development concepts because organizational systems reflect the environment and context that influence talent attraction, retention, engagement, and learning transfer.

I. Assessing and Evaluating Employee Engagement

TD professionals should know how to assess and evaluate employee engagement initiatives to determine whether the right strategy is driving the right issue and whether engagement strategies are achieving targeted learning, performance, and business objectives.

I. Defining and Articulating an Organization's Culture

TD professionals should know how to assess, build, and maintain workplace cultures that promote continuous learning, high performance, and high engagement.

I. Learning Cultures Encourage Dialogue, Feedback, and Collaboration

TD professionals should know how to build learning strategies that emphasize dialogue, continuous feedback, collaboration, and social learning to foster knowledge sharing, increase innovation, and improve employee engagement.

3.3.7.4 Help Managers Create a Learning Culture

TD professionals should recognize that managers are the most important factor in building a learning culture. They should ensure managers across all levels—as team leaders, managers of other managers, or executive leaders—be provided with challenging experiences where they are engaged and developing through their strengths (Biech 2018). Managers are much more likely to inspire big-picture, cross-team cooperation and knowledge-sharing among their employees when they are also engaged. Companies that include high-impact coaching as a component of a learning culture outperform their peers, according to studies conducted by the Human Capital Institute (HCI) and the International Coaching Federation (ICF). High-impact coaching practices include leveraging external coaches, a cadre of trained internal coaches, or leaders and managers as coaches to accelerate learning and development.

TD professionals should recognize that there is no single, uniform approach to applying OD theories to talent development

TD professionals should recognize that there is no single, uniform approach to applying OD theories to talent development. Yet, understanding different OD theories and their unique value will help determine which approach is best suited to specific business needs or organizational change requests. [See 3.6.1 and 3.6.4.1]

. General Theories Supporting Organization Development

TD professionals should understand general OD theories to determine which theory and approach is best suited for the problem, opportunity, or change request. Effective solutions depend upon marshaling the appropriate theory and practice for a given situation. Because theories have been vetted, there is a good chance for success when used in the correct situations. Different theories are better suited to different areas of need or practice. Understanding the advantages and disadvantages of respective theories helps TD professionals select the best approach to use.

I. Employee Engagement and Retention

TD professionals should understand how a learning culture influences employee engagement and retention so they can position learning as a catalyst for driving engagement and retention strategies.

Designing and Implementing OD Strategy

TD professionals should understand how to design and implement OD strategy to successfully lead and support initiatives focused on increasing organizational effectiveness. When implementing OD strategies, the target of any solution is the organization as a whole system. Learning-oriented strategies tend to be targeted more to individuals or groups within the system.

I. Understanding Organizational Relationships, Hierarchies, and Power Dynamics

TD professionals should understand organizational relationships, hierarchies, and power dynamics so they are better equipped to influence and drive talent and organization development strategies.

I. Organizational Reporting Structures

TD professionals should understand organizational reporting structures to determine the relationship between structure and culture, assess the impact of structure upon organizational performance, and identify who and where to go to for support when leading or supporting OD efforts. Organizational structure, roles, and relationships provide guidance and clarity on specific HR issues, such as managerial authority and resource allocation, and must continually adapt to meet the evolving needs of the workplace and its workers. [See 3.3.5.3]

I. Fostering a Learning Organization

TD professionals should understand the characteristics of a learning culture and be able to leverage their role as learning leaders to help organizations build and sustain a culture of continuous learning.

Competencies and Capabilities: The Global OD Practice Framework

The Global OD Practice Framework defines the competencies needed for TD professionals who work as OD practitioners and represents the knowledge, skills, and behaviors they require. The framework was developed through research by the Organization Development Institute and is endorsed by OD thought leaders. Foundation competencies include interpersonal skills, consultation skills, business acumen, collaboration, problem solving, conceptualizing, project management, technological savvy, and presentation skills. These competencies are broad, inclusive skills that describe how OD professionals can carry out their responsibilities and succeed in their role. Competence is a prerequisite for having a capability—for instance, capability involves the use and deployment of competencies to accomplish professional or organizational goals.

3.3.7.2 Characteristics of a High Performing Learning Organization

The focus on organizational learning and performance is what distinguishes a learning culture from a training culture. In a learning culture, the focus is less on training and more on creating a culture of learning where "employees continuously seek, share, and apply new knowledge and skills to improve individual and organizational performance" (ASTD 2014). In these cultures, learning is embedded as a "way of life" in everyday activities and is an organizational value that permeates all aspects of an organization. Since Senge's pioneering efforts, many groups have conducted research on the characteristics of high performing learning organizations and what they do differently. Table 3.3.7.2-1 shows the hallmarks of high-performing learning organizations based upon collective research findings (Burkett 2017).

3.3.9.3 Articulate and Codify Principles That Guide the Organization's Culture

The mission and values of an organization create a shared understanding of what an organization is trying to achieve and how employees should go about trying to achieve it. They are meant to convey a sense of purpose and meaning for employees and customers. The mission defines the direction of the organization and, to some extent, describes what an organization will and will not do. Values are an important supplement to a mission statement because they define the specific behaviors and principles with which the organization wants to lead. Values help the culture take shape and provide the everyday context for how employees should act. When an organization's mission and values are clearly stated and aspirational, employees can connect to a higher purpose and find more meaning in their work.

3.3.7.1 Origins of the Learning Organization

The notion of organization-wide learning can be traced back to research from the 1940s, when companies like Shell Oil, General Electric, Pacific Bell, Honda, and Johnsonville Foods began to realize its potential for increasing organizational performance and competitive advantage (Marquardt 2011). However, it was Peter Senge's seminal work The Fifth Discipline: The Art and Practice of the Learning Organization that brought the concept of organization-wide learning to the forefront of organization development. Learning organizations are places "where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together" (Senge 2006). As shown in Figure 3.3.7.1-1, he proposed the use of five component technologies or disciplines to shape an organization's overall capability to harness learning for continuous growth and revitalization: Systems thinking involves the ability to see the big picture and distinguish patterns instead of conceptualizing change as isolated events. Personal mastery, considered the cornerstone of a learning organization, begins when individuals commit to lifelong learning and continuously achieve results that are important to them. Mental models begins with self-reflection; unearthing deeply held beliefs, assumptions, and mindsets, and understanding how they dramatically influence our actions and world view. Mental models are used to stimulate "learningful" conversations that support reflection and inquiry. Building shared visions involves the practice of unearthing commonly shared pictures of the future that foster genuine commitment rather than mere compliance. Team learning is the process of developing a team's ability to come together, share goals, and create desired results.

3.3.7.6 Engaging With Leaders to Learn About the Business

The sustained success of a learning culture depends on the support of leaders who own the business need, have the authority to put learning on the agenda, and make decisions about how learning resources will be allocated (Dearborn 2015). The reality is that most leaders recognize that they need the support of talent development to address pressing performance challenges. Yet many leaders hesitate to engage the learning organization because TD professionals may view the world through a learning lens versus a business lens. TD professionals should engage senior leaders' support by establishing credibility as a business partner who is focused more on the performance that results from learning than on the learning itself. Taking the time to understand and speak the language of the business shows stakeholders that TD professionals are interested in helping leaders get the results they want to succeed; and helping stakeholders get the results they want is the best way to get the kind of leadership support and commitment that TD professionals need to grow the learning culture. A mature, high impact learning organization is one where business executives and employees throughout the organization are aligned around continuous learning (both formal and informal), aided by the adoption of strategic tools for L&D and a flexible, agile structure where processes, practices, and programs are fully optimized to support a range of development needs that shift over time. Achieving optimal levels of process maturity is a transformative process characterized by distinct, iterative phases of development. While learning organization maturity levels may not be absolute, they do give leaders a strong sense for where their companies are and what they need to do to move forward. Four commonly used levels are recognition, resistance, refinement, and renewal (Burkett 2017). [See 3.2.1 and 3.2.3.3]

3.3.6.2 Current Reporting Structures

There are four common types of reporting structures: Vertical means that authority increases incrementally up to the top of the reporting structure, stopping at the owner or CEO, creating a power hierarchy. Operational, middle, and top management have line authority over those they directly supervise. Employees only have the authority to do their individual jobs and are at the bottom of the hierarchy. Horizontal establishes peer and lateral relationships, where individuals and groups from across the organization must coordinate efforts to achieve goals. This structure lays out each manager's span of control, which is the number of people reporting to them. Staff authority occurs when staff workers are empowered to advise line managers and functions (such as production and sales). Their role is to create, develop, collect, and analyze information, which flows to line workers in the form of advice. Line managers retain authority over those who report directly to them, while staff have advisory authority. Functional authority provides some staff managers with authority over certain procedures or tasks. For instance, a human resources manager may have created procedures that all managers must follow to prevent discrimination. Managers from across the company report their compliance to the human resources manager, who holds functional authority over the procedures.

3.3.4.3 How Relationships Support Organization Development

There are many benefits to building healthy working relationships with clients, teams, and stakeholders. These people have a stake in the success of OD efforts, can secure resources for projects, and can help ensure that projects stay on track. TD professionals cannot expect to practice and promote OD as a participatory, problem-solving process without modeling collaborative behaviors and mindsets. Healthy working relationships include: trust, which means others can rely upon the character, ability, strength, or truth of someone or something mutual respect, which means taking time to understand and value the opinions and ideas of others mindfulness, which means being intentional and responsible for words and actions welcoming diversity, which means accepting and welcoming diverse people and opinions open communication, which means communicating authentically, transparently, and candidly. Building and maintaining healthy working relationships not only increases engagement and commitment when identifying issues and developing solutions, they can also open doors to key projects, career opportunities, and potential coaches or mentors.

II. Well-Being for Organizational Success

To effectively build engagement cultures, TD professionals should understand how essential elements of well-being influence individuals' motivation, capability, and learning capacity. To effectively build engagement cultures, TD professionals should understand how essential elements of well-being influence individuals' motivation, capability, and learning capacity.

Organization Development & Culture

To remain relevant, organizations must continually develop capability and capacity. Organization development (OD) is an effort that focuses on improving an organization's capability through alignment of strategy, structure, management processes, people, rewards, and metrics. Organizational culture encompasses the values and behaviors that contribute to the social and psychological environment of a business. Understanding an organization's culture, its norms, formal and informal relationships, power dynamics, and hierarchies informs the planning of initiatives to develop systems, structures, and processes to improve effectiveness.

3.3.12.2 Compensation and Rewards

While compensation is an important factor in employee satisfaction, increasing it does not directly increase engagement. It's the company's total rewards package (such as salary or compensation, benefits, work-life flexibility, performance, recognition, growth, and development) that is the most important factor. Recognition, in particular, is a core component of an organization's total reward system and a key engagement driver. Companies with a culture of recognition might have social reward systems (tools that give people points or ways to reward to others), regular thank-you activities, and an unspoken mantra of appreciating everyone from top to bottom. TD professionals should be aware of how to create a social environment where recognition can flow from peer to peer, freeing managers from being the sole responsibility for employee recognition. [See 3.3.10.2]

William Bridges's Transition Mode

William Bridges's Transition Model (1991) describes planned change as situational, and transition as psychological. This model focuses on transitions and "letting go" versus planned change. Bridges describes three phases of transition: ending, neutral zone, and new beginning. [See 3.6.1.4]

During change management, TD professionals move the organization from the "what is" to the "what should be." TD professionals must focus on three primary tasks when designing and implementing OD strategies:

helping the client system to generate valid data enabling the client system to have free, informed choice aiding the client system as it generates internal commitment to the choices made (French and Bell 1999).