the OD resource is stretched and limited, while leaders in the organization need immediate tools for rapid transformation. However, as the organization progresses from start-up to expansion mode, the internal OD function will likely adapt its accountabilities, grow with the business, create multiple levels of responsibility, or alter reporting relationships and key contacts. As the business matures, the focus of the internal OD function may shift to fostering employee engagement or enterprise-wide change initiatives because of the size and complexity that matu- rity brings. Finally, the internal OD function may be called on to facilitate divesti- ture of assets or reductions in the number of employees and may itself face reductions of staff within a mature business. A key point about this evolution is that the internal OD function rarely drives these changes within the organization. Rather, the internal OD function responds as the organization changes, growing or shrinking in staff and adding or elimi- nating capabilities to meet the changing needs of the organizational clients. Although some internal practitioners identify issues across the stages of the life cycle and initiate or advocate potential interventions to address them, the evo- lution and stage of the life cycle directly influence the specific responsibilities of the internal OD practitioners involved. BRANDING THE INTERNAL OD FUNCTION The success of internal OD practitioners depends also on their ability to com- municate to clients, from top executives to line workers, an understanding of how the OD function can add value to the organization. Branding of the internal OD function is a process of building a reputation similar to what other staff organizations do to promote their contribution to the organization. Rather than “selling” a particular intervention or approach, internal OD practitioners make a practice of meeting regularly with key stakeholders to define organizational needs and what capabilities may be required of the internal OD practitioner. They then offer services to meet those needs. Others advocate that staff func- tions such as OD should make a choice and risk being accountable for results (Sullivan & Olson, 2003). An approach recommended by some internal practi- tioners is to develop a charter, endorsed by the senior leadership, which clearly delineates the vision, mission, modus operandi, key products and services, and accountabilities. This charter becomes the basis for contracting between the internal OD function and the organization and can be used to select and prior- itize projects. Marketing the OD function internally takes several forms. In a small organi- zation, word about the quality and effectiveness of an internal OD function can easily spread, gaining potentially many more clients. Like a small business, more requests come in by virtue of reputation. That reputation contributes to PRACTICING INTERNAL OD 631 35_962384 ch27.qxd 2/3/05 12:20 AM Page 631 the “brand” of internal OD. In small or large organizations, the senior OD prac- titioner may make frequent and regular contact with senior decision makers to ensure continued alignment between the strategic business needs and the capa- bility of the internal OD function. Maintaining a conscious connection with executives is also important so that they think to contact the internal OD func- tion when potential needs arise. In a large organization, more formal methods of marketing, such as brochures, flyers, or websites, might be necessary so poten- tial clients know that the internal OD function exists in the organization. Spe- cific services, such as leadership development or team interventions, are often standardized and publicized throughout the organization, especially in more mature entities, so that potential clients know what to expect from an OD engagement. Unlike external practitioners, an internal OD function markets to one organizational client and often repeatedly to the same individuals. Internal practitioners are bound to “run into” potential clients in elevators or parking lots and must be prepared to offer succinct, interesting explanations of capa- bilities and resources available. Finally, an internal OD practitioner may use sharing of best practices or other word-of-mouth marketing to extend the influ- ence of the internal OD function. COMPETENCIES SPECIFIC TO THE INTERNAL PRACTITIONER The role, context, and positioning of the internal consulting function contribute to the success of the internal OD practitioner. However, competencies required for the internal to deliver the desired results are perhaps even more critical. Competency in the field of organization development has been defined as including skills and knowledge as well as attitudes. It is the sum total of every- thing needed to be a successful OD practitioner. Basic areas of OD competency include relevant knowledge of professional theories, techniques, and methods; human values; self-awareness; and performance skills (see Chapter Five). The list of OD competencies offered in Appendix I by Worley, Rothwell, and Sullivan suggests little difference in OD competencies between internal and external consultants. For this chapter, results from those designating themselves as internal practitioners were compared to the survey population as a whole. There was virtually no difference in the two groups’ views of which competen- cies were important for OD practitioners. On the face of it, this might suggest that competencies important for an OD practitioner differ little between internals and externals. The authors of this chapter who have been or are now internal practitioners bring their own expe- rienced perspective to the identification of competencies uniquely required for success in such roles. That experience suggests that, although OD competen- cies may be very similar to those required by external practitioners, success as an internal OD practitioner does require consulting competencies different from 632 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION 35_962384 ch27.qxd 2/3/05 12:20 AM Page 632 those required for external OD practitioners. To test this perspective, a small qualitative research study was conducted with internal OD practitioners, and three other studies were considered. Table 27.2 shows the categories of internal consulting competencies and some of the descriptive behaviors developed from the results of the interviews. While the descriptive phrase might seem the same, the competency is not the same for internal OD practitioners and external OD practitioners. Internal prac- titioners manifest the competencies differently because the context of the inter- nal practitioner is different from that of the external practitioner. Although other competencies may be needed, these are a starting point for discussion, and future research on the consulting competencies of internal practitioners is required. To show how the consulting offered by the internal practitioner is influenced by the context, consider how the following five competencies named by those interviewed are critical to success. Demonstrates Organizational Savvy. The insider’s knowledge of how things get done in the organizational system is essential for the internal’s success. Seeking out the history, the stories, and the informal operating rules is impor- tant for the internal to understand the organizational culture. The internal prac- titioner, however, gathers this information piece by piece, often over extended periods. This deep organizational knowledge of the insider results in interven- tions with a good cultural fit. The internal must be capable of building relationships with senior leaders who will be principal clients and whose power, goals, and sponsorship are critical to effecting change. The internal must also build a broader network of contacts throughout the organization in order to tap into information about events, prac- tices, and attitudes that can impact OD work. This network helps the internal practitioner to understand cross-functional interdependencies and quickly take into account the organization’s complexity when customizing an intervention. Learning the organization is critical to the external OD practitioner’s success as well. An external consultant may become savvy over the course of an engage- ment with the organization. Internals, however, must know how to maneuver within the organization and abide by all the organization’s norms, protocols, cus- toms, and formal and informal rules. They are not given the latitude to violate local customs and culture or be excused if they violate organizational norms, as externals are. External OD practitioners often rely on getting this insider knowl- edge from the internal practitioner when starting an engagement. Understands the Business. As an employee in the organization, often in the middle of the hierarchy, the internal OD practitioner can be seen as just another subordinate. The ability of the internal practitioner to use an understanding of business developments and market trends to recommend strategic moves is PRACTICING INTERNAL OD 633 35_962384 ch27.qxd 2/3/05 12:20 AM Page 633 634 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION Table 27.2. Competencies Reported by Internal OD Practitioners as Critical to Their Success Competency Behavioral Description Collaborates with Others Ensures that interpersonal relationships with clients, peers, and others in the organization are collaborative, healthy, and team based. Seeks balanced, win-win part- nerships. Emphasizes follow-up and good customer ser- vice. Humble, caring, compassionate, and capable of celebrating client’s success. Establishes Credibility Establishes credibility and respect by doing good work, delivering value, and achieving results. Holds high ethi- cal standards, maintains integrity through professional- ism, ethics, and contracting. Provides realistic picture to client of what is achievable in the time available through clear expectations for the role of client and consultant partners, the degree of difficulty of change, and the approach used. Takes Initiative Assertive in taking a stand, delivering tough messages, and pushing for decisions and outcomes. Demonstrates entrepreneurial spirit. Acts to achieve results tied to the organization’s goals. Understands, respects, and effec- tively uses power in the organization to assist clients in achieving their goals. Maintains Detachment Able to remain detached from the organization in order to maintain independence, objectivity, and neutrality. Able not only to be sufficiently congruent with the client organization to find acceptance, but also able to keep an external mindset to provide more balanced per- spective. Avoids getting trapped into taking sides or car- rying messages. Markets the Value of OD Helps clients and the organization understand the prac- tice of OD and the value the practice delivers to them and the organization. Works toward clarity of roles with other staff assistance units (e.g., HR consultants, qual- ity improvement staff, finance, or information technol- ogy consultants). Offers clear statement of organization development products and services as distinct from products and services offered by others in the organiza- tion. Also clarifies products and services as distinct from external consultants. At times manages contracts with external consultants. 35_962384 ch27.qxd 2/3/05 12:20 AM Page 634 PRACTICING INTERNAL OD 635 Competency Behavioral Description Demonstrates Organizational Understands and knows how to succeed in the organi- Savvy zation. Builds relationships with senior leadership and develops an extensive network of contacts at all levels. Leverages insider knowledge to address organizational issues. Uses appropriate judgment, recognizing cross- functional interdependencies, political issues, and the importance of cultural fit. Recognizes the importance of systems thinking. Acts Resourcefully Able to use imagination, creativity, and forward think- ing. Is resourceful, flexible, and innovative in utilizing methods and resources. Not wedded to specific approach. Takes advantage of windows of opportunity; most often functions with “just-in-time” approach to client needs. Understands the Business Knows what makes the business run as well as the key strategy. Able to think strategically and leverage support for critical strategic issues. Supports managers in align- ing the organization with the strategy. valuable to a senior client. An internal practitioner can spontaneously demon- strate how an intervention can improve organizational effectiveness or con- tribute to the bottom line. Advice that is offered in the context of the business’s challenges and that is customized to address specific issues is more trustwor- thy. Using the language of the organization and drawing from current examples and stories makes the internal practitioner’s advice more valuable. For many clients, the inside knowledge of the business and the organization is the pri- mary asset an internal practitioner brings, an advantage over even a well-known external consultant. An external OD practitioner may know the industry; an internal practitioner knows this business. Establishes Credibility. The credibility an internal consultant establishes over time by doing good work and holding high ethical standards can be easily destroyed. Since internal practitioners have only one organizational client, they have more investment in the consulting than the external practitioner, who can always move on to the next client. Internal practitioners can find themselves in a dilemma when faced with demands from senior executives to share confiden- tial information or when asked for an opinion of another manager’s performance. 35_962384 ch27.qxd 2/3/05 12:20 AM Page 635 The threats of a senior executive can put the job on the line, but if the internal practitioner gives in, the individual might as well leave the organization because trust and credibility with other internal clients are undermined and potentially destroyed. Thus, it is important for internal practitioners to have agreements about confidentiality, anonymity, and the boundaries of interventions, as well as strong commitments to ethical practice. Internal practitioners know that to be most effective they must be ever-ready to lose their jobs. This requires emotional fortitude and personal and financial preparedness to take the risks. Maintains Detachment. The two dimensions of this competency comprise a delicate balancing act for the internal OD practitioner. On the one hand, main- taining interpersonal relationships allows the internal practitioner to be accepted within the organization in order to be able to provide effective service. On the other hand, the internal faces the challenge of remaining somewhat detached and maintaining an arms-length relationship with clients in order to maintain objectivity and neutrality. This stance allows the internal practitioner to effec- tively serve all parts of the organization. The internal practitioner cannot afford to be viewed as taking sides or as conforming to commonly held views. This tension between the need to be accepted and the need to remain detached can be far more stressful for the internal practitioner than for the external practi- tioner, whose independence is taken for granted. The independence of an inter- nal practitioner can also be a two-edged sword when managers are selecting consultants to do OD work. Even though the internal OD practitioner may have worked to maintain detachment and offer balanced perspectives within the orga- nization, it may not be sufficient compared to the perceived independence and neutrality of an external OD practitioner. Markets the Value of OD. There may be others within the organization whose services appear to be similar to those offered by an internal OD practitioner. Change management services and various consultations may be offered by numerous colleagues, for example, facilitators, financial management staff, inter- nal auditors, trainers, human resource staff, quality management staff, project management staff, IT staff, and others. All of these may work with groups within the organization to effect improvements and change. This potentially large group of competing associates requires the internal practitioner to distin- guish OD offerings from other services. Beyond building good relationships internally, the internal practitioner has to build and maintain a niche in the orga- nization. One important niche that an internal practitioner frequently fills is that of offering systems thinking and methods for aligning all organizational efforts in support of key business strategies or organizational goals. 636 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION 35_962384 ch27.qxd 2/3/05 12:20 AM Page 636 These five competencies compare favorably with other research conducted by Sullivan and Olson (2003), in which the following competencies were noted by internal OD practitioners as being most critical to their success: • Serving as the internal consultant to the top team where one can facili- tate the system-wide enterprise change as well as the decision making of the top team; • Being at the business decision table at key levels and junctures in the organization; • Knowing and understanding the business; • Having a system orientation; • Being politically savvy and the ability to be aware of power dynamics; and • Developing open, trusting relationships with internal clients. The first two competencies noted by Sullivan and Olson seem to relate to positioning within the organization and would suggest that the internal OD practitioner must know how to gain power in the organization. A seat near the power center is almost always immediately accorded to external OD practition- ers, but internal practitioners must earn such seats. The last four competencies correspond to some of the competencies identified in the research by the authors of this chapter. In summary, some research has shown that, while the OD competencies required of OD practitioners employed by an organization or hired as a con- tractor by an organization might appear to be similar, the ways in which an internal practitioner consults within the organization require competencies dif- ferent from those required by an external OD practitioner within the same organization. WORKING WITH EXTERNAL OD PRACTITIONERS Whether the internal OD practitioner sits at the executive table and enjoys a productive business partner relationship with senior leaders as a trusted asso- ciate or is located within the middle of the organization reporting to a vice pres- ident or director of HR handling less systemic OD projects, it would be hard to have an entire career inside organizations without working with external OD practitioners. Externals are hired for a variety of reasons. The organization may lack a specific capability. Leaders may want a fresh eye on the organization or choose to supplement a limited OD staff. Some leaders may hire an external so PRACTICING INTERNAL OD 637 35_962384 ch27.qxd 2/3/05 12:20 AM Page 637 that there is less risk for the internal; it may also be easier for someone from the outside to challenge the status quo. Table 27.3 shows the advantages and challenges of the internal OD practitioner. Each of the challenges noted for the internal practitioner can be viewed as an opportunity for the external practi- tioner. For example, knowledge of the business is very helpful to senior leaders, but if breadth of experience is needed, an external may be an option. Knowing the cultural pitfalls can be critical, but the external, as an outsider, can some- times more easily confront situations in the organization that have to be addressed. An external practitioner may be exactly what the organization needs. As much as internal OD practitioners can contribute to the ongoing success after an intervention from an external practitioner, it is at times helpful to have an external practitioner who has a certain freedom to act because he or she will, eventually, leave the organization. There are a number of considerations for internals working with externals. It is important for internal practitioners to know why the external practitioner is being hired because it can be perceived as both opportunity and threat. The hiring of an external practitioner can be an opportunity for collaboration and 638 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION Table 27.3. Advantages and Challenges of the Internal OD Practitioner Advantages Challenges Presence At hand when needed— May seem to be too familiar immediate expertise Context Know the business strategy; May lack experience and broad organization; culture; and people knowledge from different organi- zations Cost Cost-effective where change Can be viewed as overhead work is extensive Objectivity Loyalty to the organization with Objectivity can be questioned; a vested interest in outcome lacks neutral, outsider perspective Credibility Credibility based on being a Perceived as lacking expertise due personally known quantity to being part of the organization Access Speaks language of the May not be able to confront, organization; knows culture give feedback, or take risks with senior management Sustainability Can provide support and May become too engaged with follow up long term the solution 35_962384 ch27.qxd 2/3/05 12:20 AM Page 638 the exchange of knowledge from within and outside the organization. Externals can bring a deeper focus and broader experience, and it can be a time of rich learning for the internal. In the best-case scenario, the expected roles and mis- sion of both internal and external practitioners are clearly identified at the begin- ning of a change effort. Senior leaders, ideally advised by the internal OD practitioner, can clearly articulate the needs for both internal and external prac- titioners and participate in setting these clear expectations. In less sanguine sce- narios, contracting with externals can seem a threat to the internal practitioner if these questions are not answered: Why are they being brought in? What con- tributions are they expected to make? If they are going to be in the organiza- tion, how can they be best used? Much like internal OD practitioners, all external practitioners are not alike. Solo external contractors may have been internal practitioners in the past, so may understand the potential of the internal role and be more willing to nego- tiate the relationship. In other cases, external practitioners can dismiss or dis- regard the efforts of internal practitioners or bring an entire approach to a change effort that has no place for an internal practitioner. Consulting firms are often in this category. Even if employees of the firm have in the past been inter- nal practitioners, consulting firms often develop their own approaches that do not provide for participation by internal practitioners or even value their per- spectives. In either case, internal practitioners may be asked to manage the con- tract with an external practitioner. They should take an active role to provide senior leaders with proposals for the relationship between the internal and the external practitioner, to be clear about the competencies that exist in the inter- nal function, and be prepared to assist the external practitioner to understand organizational realities as both seek to contribute to the effectiveness of the client system (Scott, 2000). A CAREER IN INTERNAL OD? Even though “consultants” are often thought of as independent business peo- ple, it is possible to have an entire career as an internal OD practitioner inside one or more organizations. In addition to having the competencies, managing the advantages and challenges, and serving in various roles, the internal must consider the type of career desired within the organization. Will the role be an “expert” consultant or a “process” consultant or both? The answer will depend on the weight given to the following factors: the strengths and individual char- acteristics of the internal practitioner, the needs of the organization, the rela- tionship between the practitioner and the organization, and the characteristics of the organization (Scott, 2000). PRACTICING INTERNAL OD 639 35_962384 ch27.qxd 2/3/05 12:20 AM Page 639 There are many rewards from working inside an organization. Internal OD prac- titioners can see change become established and performance improve over time, be satisfied with the role they played, and experience the trust when new client leaders ask for help. They can gain personal satisfaction from the development of long-term relationships, having a sense of belonging and comfort as a member of a community in which they know the people and the rules, and receive the recog- nition as skilled professionals contributing to the organization. At the same time, all is not charisma and glamor. There is a lot of hard work in the life of an internal practitioner. For example, the internal OD practitioner who has just been hired is not likely to be working closely with the senior leaders within the next week. Rep- utations must be earned, competencies must be shown, and trust must be estab- lished. The role can be rewarding, not because the internal practitioner always has the sterling answer, but because it is possible to be successful and deliver improve- ments in spite of the organizational system that may be arrayed against OD efforts. Success as an internal is not just about competence; it is also about how the inter- nal practitioner fits into the system. If the system is structurally flawed, the internal must work to be creative and demonstrate a skill set before it is even possible to begin to have influence. Internal OD practitioners are like other employees in the organization: They have a job and a manager or supervisor of some kind. There may be opportu- nities to rise in the organization from being an entry-level practitioner through senior advisor to mentor of other internal practitioners. Whether or not the OD function has sufficient depth to have this type of career path, almost all suc- cessful internal practitioners wrestle with a different type of question—whether to continue in the practice of OD within the organization or to accept a man- agement role. Because effective internal OD practitioners are often engaged in bringing about desired changes and improvements to the organization, their services are frequently appreciated by senior leaders. They may be viewed as “good management material.” If the internal OD practitioner takes a manage- ment job within OD, it will mean that less time is spent on the practice of OD because some time will be reallocated to guiding the OD staff and performing required administrative tasks. If the internal practitioner accepts an operational management job, however, this means the certain end of being an OD practi- tioner, at least in that organization. The internal practitioner can then become a senior or mid-level organizational leader with a deep appreciation of the role and contribution of internal OD practitioners, using that to drive organizational effectiveness. An internal OD practitioner is part of the OD profession and gains insights into methods and approaches from that community of practice. But internal practitioners may feel more affinity for their organization than they do for the profession because that is the system in which they live day to day. 640 PRACTICING ORGANIZATION DEVELOPMENT, 2ND EDITION 35_962384 ch27.qxd 2/3/05 12:20 AM Page 640 . engage- ment with the organization. Internals, however, must know how to maneuver within the organization and abide by all the organization s norms, protocols, cus- toms, and formal and informal. impor- tant for the internal to understand the organizational culture. The internal prac- titioner, however, gathers this information piece by piece, often over extended periods. This deep organizational. clients, peers, and others in the organization are collaborative, healthy, and team based. Seeks balanced, win-win part- nerships. Emphasizes follow-up and good customer ser- vice. Humble, caring, compassionate,