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Key Benefits of Organizational Development

The dictionary defines organizational development simply as “the process of making a large company or organization more effective”. The crux of this statement is correct, but we need to delve in deeper to understand the entire concept of Organizational Development as a behavioral science, making us able to implement the same on an individual or an organization level.

Organizational development (OD) simply explained is the process of the systematic planning and implementation of projects and actions in an organization in order to work more efficiently towards its vision.

For example, if a company has abundant capital and resources to get the work done, but lacks sufficient manpower, one way of implementing organizational development would be to identify and implement best approaches to talent attraction and retention. If this same company has manpower, but they aren’t as efficient because of certain hindrances, one form of organizational development initiative would be to understand the reasons of non-performance (For instance; lack of clear direction, ineffective organizational processes, inadequate resources, inappropriate leadership styles, faulty organizational structure, lack of team work or credible strategy to name a few) and implement initiative to remove those. Timely identification of real reasons behind non-performance provides great ideas for improvement. These ideas are also called change themes. These change themes are converted into actionable projects. Internal task force under guidance to OD consultants and Top Leaders implements these projects. The strategically aligned Organizational Development Initiatives hence take organizations on a faster, yet sustained and profitable growth trajectory.

The need for organizational development in today’s cutthroat, competitive world is acute and perpetual. With small businesses and start-ups mushrooming in response to positive economic environment OD is the best answer for optimizing use of resources to produce faster and better business results.

Implementing Organization Development Interventions have some tangible and intangible benefits.

  • Boosts quality of employee outcome – Good organizational development involves understanding that employees can make or break the company. If not taken care of, an employee’s overall satisfaction with their job can plummet, forcing them to look for better opportunities (that are available in plenty). Boosting the morale of employees through various means such as team building, creativity workshops, employee engagement initiatives, progressive HR policies, work-life balance assistance will be well directed if these are implemented as parts of strategically aligned Organization Development Plan.
  • Perpetually improving organization – Effective organizational development encourages organizations to adopt new approaches, models, processes that make them efficient, which in turn help them stay up-to-date with the latest trends in their industry. This leads to creating a culture of continuous improvement, and quality orientation across organization.
  • Enhanced quality of products/services – OD boosts, the quality of overall output from the company (product, services, governance, stakeholder relationships etc.). An employee’s satisfaction is directly proportional to their quality of work, meaningful existence at workplace, and the subsequent satisfaction of his immediate stakeholders. It’s a win-win for everyone.
  • Enhanced Competitive Edge- Organization Development helps companies in staying connected with external realities, understand the demands created by the dynamic external environment, design and implement strategies to grab opportunities, mitigate risks and stay competitive in the market.
  • Increased profit – Organization Development creates rippling effect on the organization by removing roadblocks to success, establishing long-term direction, enhancing strategically important competencies and building enabling processes. The happy and productive work culture created as a result of successful OD initiatives culminates into better business outcome (better brand image, high revenues and profits, better growth opportunities, enhanced sustainability).

These are just a few benefits of Organization Development however the possibilities are endless. To know and work on these possibilities for the success of YOUR business, connect with us. We are a group of qualified and experienced experts who are passionate about helping organizations grow profitably and sustainably.  Contact us to discuss your vision, mission, strategic challenges and opportunities.

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