A FUTURE-RESPONSIVE PERSPECTIVE FOR COMPETENT PRACTICE IN OD 191 Exhibit 7.1. Research on the Future of OD The current attention and debate over the future of OD is not new. In fact, the subject has been on OD people’s minds for some time. Articles considering this question, for example, first appeared in the OD Practitioner in the mid-1970s (Burke, 1973; Miles, 1977; Sperling, 1975), when the field was scarcely twenty years old. Today, the extant literature discussing the future of OD can be divided into three camps: (1) how prac- titioners need to be developed to meet the needs of the future; (2) how OD as a practice will evolve; and (3) what the research agenda for OD will be. A good deal of the literature on the future of OD has centered on the skills, knowledge, and competencies required to practice it and how these will evolve. Ini- tial surveys of OD practitioners by Argyris (1962), Beer (1980), Shepard and Raia (1981), and Burke (1982) have been followed more recently by those of Sullivan and McLean (1995), and Worley and Varney (1998). Among the commonalities across all of the results is a continuous emphasis on the importance of the personal growth of the consultant (Cheung-Judge, 2001; Quinn, Spreitzer, & Brown, 2000). Research by Eisen, Steele, and Cherbeneau (1995), which was published in an ear- lier edition of this book, also used a Delphi format. It identified five categories of trends and competencies that related to broadened frameworks in a global environ- ment, clients and client systems, cultural and demographic diversity, values and ethics, and trends within OD. The second type of research on the future of OD consists of descriptions of how OD practice will evolve. One stream of thought argues that current OD practice will cease to exist as organizations institutionalize the processes associated with OD, such as team building, survey feedback, conflict management, and sociotechnical work design (Jamieson & Bennis, 1981). Another stream discusses the variety of trends facing organizations and projects the needs for OD. A final stream has turned to discussions of whether there’s a difference between OD and change management (Farias & Johnson, 2000; Hornstein, 2001; Warren, Ruddle, & Moore, 1999). Finally, the future of OD has been concerned with issues of OD research. As early as 1976, Warner Burke was addressing the issue of how the research and practice agenda of OD needed to change, and he has kept this issue as a central topic in the OD literature (Burke, 1997, 2002). Pettigrew, Woodman, and Cameron (2001) noted that research in organization development and change faced six challenges, includ- ing the complexity of incorporating multiple contexts and levels of analysis, incorpo- rating time and process, using continuous versus discontinuous change processes, and attempting to relate change to organization performance. Clearly, there is con- tinuing research and reflection about the future of OD and its practitioners. of adversarial confrontation of ideas among participants. In view of these con- siderations, our design used an anonymous multi-voting process, and we pro- vided a discussion forum for dialogue among participants as concerns and disagreements emerged about the items being generated. These measures, 12_962384 ch07.qxd 2/3/05 12:18 AM Page 191 together with the range of demographic characteristics and the intentionally diverse professional expertise of panel members, made it possible to maintain a thoughtful diversity of views throughout the Delphi sequence. We structured this study into four phases, addressing each of the following sequence of objectives: 1. Scan the emerging and changing environment in which OD is prac- ticed. 2. Consider consequent challenges and opportunities for organizations and their managers. 3. Develop possibly new intervention strategies to respond to these chal- lenges and opportunities. 4. Identify practitioner competencies that will be required by these new interventions and practices in the coming decade. As indicated in our opening paragraphs, participants represented a range of relevant expertise. Of the thirty-nine participants, twelve had experience and expertise as internal consultants, eighteen as external consultants, twenty-one as educators in OD, nineteen as managers, and four as futurists. The list of par- ticipants is shown in Exhibit 7.2. Over a six-month period, participants logged onto a secure website 2 approx- imately once a week. They each read the current question posed by the facili- tator and posted three to six responses. After all participants had a chance to respond, they were asked to log onto the site again, review a summarized list of responses, and prioritize them using a multi-voting method. The top 25 to 30 percent of the total items generated was then used as the basis for the next question, and so on. Our purpose was to develop a broad context within which to consider implications for OD practice as we moved through succeeding phases of the Delphi process. 192 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION Exhibit 7.2. Delphi Panel Participants John Adams, Juana Anguita, Terry Armstrong, Mila Baker, Patti Barker, Peter Bishop, Steve Cady, Mary Choi, David Coghlan, Don Cole, Kathleen Dannemiller, Karen Davis, June Delano, Ray Dyck, Terri Egan, Saul Eisen, Richard Engdahl, Ann Feyerherm, Allan Foss, Sarah Gevirtz, Glen Hiemstra, Gary Hochman, Mike Horne, David Jamieson, Prasad Kaipa, Lenny Lind, Oliver Markley, Gary McLean, Steve Milovich, Ann Moreira, Joyce Reynolds, Carole Robin, Bev Scott, Charlie Seashore, Roland Sullivan, Brock Travis, Don Warrick, Tony Woodcock, and Chris Worley 12_962384 ch07.qxd 2/3/05 12:18 AM Page 192 DELPHI OUTCOMES: TRENDS, CONSEQUENCES, STRATEGIES, AND COMPETENCIES In this section, we tell the story of the Delphi process as it unfolded and sum- marize the panel’s prioritized responses to the sequence of four questions that addressed (1) emerging trends and forces; (2) their consequences for organiza- tions; (3) relevant intervention strategies for responding to those trends and their consequences; and (4) related practitioner competencies that will be required to implement these intervention strategies. Our intention, too, is to involve the reader so that the final competency out- comes can be understood in the context of the inquiry process as it unfolded. A second reason for our decision to involve the reader is our belief that an over- arching meta-competency for effective practice in OD involves practitioners’ ability to modify and evolve our practice continually in response to anticipated changes in the needs of client systems. Over and above the specific competen- cies listed as outcomes of Phase 4, we thus propose to engage the reader in a learning process about doing future-responsive learning itself. With this purpose in mind, we invite the reader to be an active participant in the Delphi process. Before reading the prioritized responses to each question, you might jot down your own responses. These can then be compared with those of our Delphi panel as reported here. In many cases, we would expect readers’ responses to be similar to those of our panel. Some readers’ responses may well be different—perhaps because readers like you may be aware of mate- rial that was not prioritized by us. Possibly, too, events occurring after the pub- lication of this book may signal significant new trends, challenges, and directions for the continually unfolding practice of OD. Your active participation while reading this chapter can help you to under- stand these future competency outcomes—and also to learn to maintain a future-responsive approach in your own practice. PHASE 1: EMERGING TRENDS AND FORCES Our world is changing at an accelerating rate and along multiple dimensions. Emerging trends and forces are changing the context in which organizations function and the requirements of their leaders for assistance from consultants. The first phase of this Delphi process provided an environment scan—or per- haps a future scan—for organizations in this changing world. Participants were asked, “What are the most significant trends and forces that you believe will affect organizations during the next decade?” They were asked to consider trends and forces in the following categories: A FUTURE-RESPONSIVE PERSPECTIVE FOR COMPETENT PRACTICE IN OD 193 12_962384 ch07.qxd 2/3/05 12:18 AM Page 193 • Business and the economy; • Science and technology; • Government and politics; • Population and demographics; • Education and training; • Health and the environment; and • Culture and belief systems. Reader response: Before reading the panel’s responses, use a notepad to write down your own thoughts about significant emerging trends and forces that may affect organizations and their managers in the next decade or so. The material generated by Delphi participants is voluminous—even after each list was prioritized and pared down. Still, even those shorter lists are so long that it is impractical to reproduce the entire list here, and to do so would be beyond the scope of this chapter. We have therefore summarized the prioritized items for the first three phases, and reproduced here only the fourth phase— future competencies—in full. 3 Summary of Delphi Panel Responses to Phase 1: Trends and Forces Accelerated Change, Inequality, and Interdependence The panel agreed that the perceived pace of change in many aspects of business will continue to increase and that the pressure for profits will remain intense. There was also agreement that the trend of increasing gaps between the “haves” and the “have-nots” will continue. The interdependence of the economies of the world will increase and create a very fragile system. Technology and the Knowledge Economy Science and technology trends included the increasing pervasiveness of the Internet, the proliferation of wireless technologies, the increasing importance of biotechnology on agriculture and health industries, and the continued trend toward a more knowledge-based society. Training will continue to be affected by technology, making education available any time, anywhere, and using multiple methods. Complexity, Diversity, and Linkage Across Domains There will be increasing partnerships and collaboration between business and government with complex interdependence across them. The world’s popula- tion will continue to grow, live longer, become more diverse, and be more mobile. Cultural differences will become increasingly apparent—and sometimes 194 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION 12_962384 ch07.qxd 2/3/05 12:18 AM Page 194 problematic. Successful managers and executives will become more culturally aware. Publicly traded corporations will continue to face unrelenting share- holder demands for profitability. Economic and business downturns will lead executives to focus even more on the bottom line and shareholder value. Ecology and Sustainability Change in the environment is occurring at an increasingly rapid pace. Our sci- ence and technology are advancing at a pace that prevents us from perceiving the social or ecological consequences of their use. Concerns about ecological sustainability, now a common issue in Europe, will move more strongly into North America. These were the outcomes of Phase 1, in which emerging trends were identi- fied. The reader might now compare them to her or his own views about these questions. What connections do you find? Are there new and important trends now affecting organizations? This awareness of the unfolding, sometimes tur- bulent, change in the environment in which organizations function can be a continual source of guidance and insight into the complexities and priorities to which our clients must respond and for which we can provide professional support. It is these conditions and their consequences for organizations that lead managers to seek assistance from internal or external consultants. Are you prepared to respond to these needs? PHASE 2: CHALLENGES AND OPPORTUNITIES FOR ORGANIZATIONS After completing the process of identifying significant emerging trends, the Delphi group was ready to explore what those trends might mean for organizations, man- agers, and OD practitioners. The question put to the group was as follows: “These are the top trends we have prioritized. Our task now is to consider possible impli- cations of these trends—what significant challenges or opportunities will they cre- ate for organizations and their managers and hence for OD practitioners?” Reader response: On a notepad, write down your own thoughts about the challenges and opportunities that may be created by emerging trends—for orga- nizations and their managers. Summary of Delphi Panel Responses to Phase 2: Challenges and Opportunities Knowledge, Information, and Decision Making Globalization and the accel- erating pace of technical, environmental, and organizational change combine to require executives, managers, and staff members to absorb, identify, sort, A FUTURE-RESPONSIVE PERSPECTIVE FOR COMPETENT PRACTICE IN OD 195 12_962384 ch07.qxd 2/3/05 12:18 AM Page 195 prioritize, and communicate a vast amount of information rapidly. They must also respond, make decisions, and move quickly. Human Resources The pace of change will require creative solutions to hiring, retaining, and devel- oping core skills and knowledge. Non-core capabilities will be outsourced. The human and business costs of stress will need to be managed. The boundaries between traditional HR functions and the processes of OD will become fuzzy and possibly more conflictual. Systems Thinking Ecological trends, globalization, increased partnerships and alliances among a variety of organizations and governments and other trends all point to the increased importance of whole-systems thinking to understand, predict, and manage human affairs. Whole-systems thinking considers the complex interde- pendence among elements of an organization and also between the organiza- tion and its relevant or strategic environment. Organic Organization Design New organizational forms must be understood. Our knowledge of networks, alliances, and public/private partnerships must continue to develop. New models of organization, where competition and collaboration can co-exist, where the orga- nization behaves more like a living organism that adjusts or evolves with the envi- ronment, rather than trying to control or modify it, or even worse, treat it as expendable, need to be developed. Effective, high-commitment work environments need to be developed so that front-line staff can take immediate action aligned with business objectives, seeking new partnerships when core competencies required to pursue new market opportunities exist outside the organization. Globalization and Cultural Awareness Globalization, the widening gap between the haves and have-nots, the increase in alliances and networks, the increased reach of technology to bring people together, and other trends all point to the need for increased awareness, knowledge, skill, and intervention processes that address cross-cultural relationships. OD prac- titioners need to see culture and culture work as central to what OD is about. One cannot do OD without engaging the culture and subcultures of an organization. These were the outcomes of Phase 2 in which possible challenges and oppor- tunities associated with emerging trends were considered. The reader might now compare them to her or his own views about these questions. What connec- tions do you find? Are there new and important challenges or opportunities now affecting organizations? Are you prepared to respond to these needs? The next phase of the Delphi study explored possible intervention strategies that may be necessary in the coming years. 196 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION 12_962384 ch07.qxd 2/3/05 12:18 AM Page 196 PHASE 3: EMERGING INTERVENTION STRATEGIES The third phase of the Delphi process asked participants to consider how the practice of OD should evolve in response to the trends identified in the first phase and the challenges or opportunities they would create for organizations and their managers: “Given the prioritized list we generated in Phase 2, what new or emerging intervention strategies or approaches will be needed to respond effectively to those challenges and opportunities?” Reader response: On a notepad, write down your own thoughts about possi- ble intervention strategies that may be called for by the organization challenges and opportunities listed in the previous phase. Summary of Delphi Panel Responses to Phase 3: Emerging Intervention Strategies Working with Whole Systems More and better techniques for diagnosing and intervening at the whole-systems level are required. For effective OD interventions to have “stickability” they must reflect a whole-systems perspective from both a practical, results-oriented focus and a process-oriented focus. We need strategies for identifying and sustainably affecting key leverage components. Methods for Building Collaborative Advantage The field of OD must develop intervention strategies that support collaborative decision making among multi-party, multi-organization, and total-system arrange- ments. OD needs to foster the capability to make collaborative decisions at the periphery of organizations based on consistency with organizational purpose. Supporting Virtual Teams Intervention practices that address the social, technical, and business implica- tions of virtual teams are required. We need to help client organizations to evolve from a limiting paradigm of expert individual decision makers to new methods, assumptions, and technologies of group, networked, and distributed nodes for making decisions, solving problems, and creating meaning. Appreciative Approaches The shift from problem-solving and deficit-based views of interventions to an appreciative view should continue. Frequently, significant learning and improve- ment can occur when organization participants build on what they have done “right” or what is working especially well, rather than only focusing on the solu- tion to a given obstacle or “problem.” Balancing problem solving with an appre- ciative inquiry into the healthy and high-functioning aspects of an organization can help to maintain its creative intelligence and initiative. A FUTURE-RESPONSIVE PERSPECTIVE FOR COMPETENT PRACTICE IN OD 197 12_962384 ch07.qxd 2/3/05 12:18 AM Page 197 Developing System Leadership New and more effective leadership development strategies are necessary to move thinking to new levels. Intervention designs must build capacity to think, make decisions, and take action systemically, that is, see the big picture, build in effective feedback loops, and recognize or anticipate and adjust for unin- tended, delayed, and counterintuitive long-term consequences. OD and Return on Investment OD interventions need to be more tied to critical business issues and more able to demonstrate their operational returns. Practitioners’ view of hard-driving— and financially driven—top executives as problems must change along with our view of ourselves. Our interventions need to include and value the priorities of all organization participants and support holistic, inclusive integration at the level of core goals of people at all levels of hierarchy, as well as customers, suppliers, and other stakeholders. Continuing Education of Practitioners OD as a field must re-invigorate the training and professional development of OD practitioners to include more business subjects, facilitation skills, research skills, and a broad appreciation of the social and behavioral sciences. If sustainability is becoming an increasingly significant business driver for U.S. companies, it is essen- tial to restore interdisciplinary perspectives to OD education and practice by adding economics, public policy, and ecological studies to organization development, organizational behavior, and industrial/organizational psychology curricula. Leveraging Diversity and Culture More sophisticated interventions are needed that appreciate, work with, and leverage cultural differences. Diversity, conceptual frames, and cultures need to assume more visible prominence in global business decisions to reduce the ten- dency to operate from an ethnocentric model. We need more advanced work on mediating relationships between groups and organizations and on building more sensitivity and skill in managing diversity and conflict. Because organi- zation culture needs to be understood as central to what OD is about, our inter- vention proposals, designs, and strategies must explicitly integrate culture awareness and culture work as a critical focus. These are the summarized outcomes of Phase 3 in which emerging inter- vention strategies were considered. The reader might now compare them to her or his own views about these questions. What connections do you find? Do your own thoughts on this diverge in some ways from those of the Delphi panel? And what competencies will be needed to use these intervention strategies? The next phase of the Delphi study considered the competencies that OD practitioners may need in the future. 198 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION 12_962384 ch07.qxd 2/3/05 12:18 AM Page 198 PHASE 4: OD COMPETENCIES FOR THE NEXT DECADE Our task for this phase was to consider possible implications of the previous three phases for the continuing professional development of OD practitioners. We asked, “What new or emerging competencies will be needed to implement emerging intervention strategies effectively?” We used the definition of competency that was developed by Bob Tannen- baum and Roland Sullivan (1992–2005): An OD competency is any personal quality that contributes to successful consulting performance. The term personal quality is intended to embrace areas of self, including values and driving principles; areas of knowledge, including fluency with relevant theories and models; and areas of skills and abilities, including the requisite behavioral capacity to perform certain tasks. Reader response: On your notepad, write down your own thoughts about important current or new OD competencies that will be required to implement emerging intervention strategies. We have reflected on global trends and the challenges and opportunities they may create for organizations and their managers. We then considered interven- tion strategies that will be required to respond effectively to these challenges and opportunities. Based on the outcomes of the first three phases of the Delphi process, participants generated ninety items about possible emerging compe- tencies. Using a multi-voting prioritizing process, they concluded that future OD practitioners will especially need the following thirty-five competencies to imple- ment emerging intervention strategies and practice effectively during the next decade. They are listed here in full, arranged in twelve thematic clusters. Prioritized Delphi Panel Responses to Phase 4: Emerging Competencies A. Parallel Interventions in Complex Human Systems 1. Knowledge and skills required to design and lead complex interven- tions, using multiple parallel techniques that work with individuals, teams, large-group stakeholder conferences, trans-organizational and trans-domain events, in fast-cycle sustained coherent change, and based on action, reflection, and learning at each of these levels. 2. Ability to design and implement individual and organizational inter- ventions that build capacity to think, make decisions, and take action systemically, that is, see the big picture; build in effective feedback loops; and recognize or anticipate and adjust for unintended, delayed, and counterintuitive long-term consequences. A FUTURE-RESPONSIVE PERSPECTIVE FOR COMPETENT PRACTICE IN OD 199 12_962384 ch07.qxd 2/3/05 12:18 AM Page 199 3. Knowledge of societies, communities, and social systems dynamics. The ability to convey the essence of “community” as a motivational concept. Deep understanding of the concept of “the tragedy of the commons” and how that is affected by factors such as mental models, structure, technology, and globalization. 4. Ability to support effective decision making for individuals, groups, teams, organizations, inter-organizations, and communities. Skills for rapid time-to-value decision-making models and methods. 5. Strong program/project management methodology skills to manage complex business change initiatives that require firm attention to scope, cost, quality, and risk. B. Global, Trans-Domain and Larger System Work 6. Ability to work ethically and courageously with inter-organization issues to create wider inclusive boundaries among stakeholders. 7. Skill in bridge-building and alliance management, including developing trust across a wide range of constituents simultaneously. 8. Awareness and skill related to working with the “larger” system, includ- ing contracting with the right persons for the right scope of work. 9. Expanded knowledge of systems thinking to include a global perspec- tive, how to build strategic alliances and use large group methods when appropriate. C. Culture Work 10. Deep understanding of culture: how it influences behavior, how it develops and changes, and the connection between culture and performance. 11. Understanding of culture as the core deep-structure organizing principle underlying all aspects of organizations—including hierarchies, reward systems, competitive strategies, technologies, work-flow structures, and shared belief systems. 12. Ability to adapt to each unique cultural situation in applying OD knowledge, skills, and strategies. 13. Ability to join with organization participants in any change process as an intentional, evolving, collaborative reconstruction of shared ways of understanding and embodying meaning in their ways of working and being together. D. Self-as-Instrument, Continuous Learning, and Innovation 14. Effective continuous learning as needed to respond appropriately to emerging complex social needs and organizational dilemmas. 200 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION 12_962384 ch07.qxd 2/3/05 12:18 AM Page 200 . multi-party, multi -organization, and total-system arrange- ments. OD needs to foster the capability to make collaborative decisions at the periphery of organizations based on consistency with organizational. support effective decision making for individuals, groups, teams, organizations, inter-organizations, and communities. Skills for rapid time-to-value decision-making models and methods. 5. Strong. need in the future. 198 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION 12_9 6238 4 ch07.qxd 2/3/05 12:18 AM Page 198 PHASE 4: OD COMPETENCIES FOR THE NEXT DECADE Our task for this phase was to