The Importance of Organisational Development

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The Importance of an Effective Organisational Development Strategy

What began as bartering between individuals has become a global trading network in which organisational development strategies determine individual success. How we conduct business has steadily evolved, first in response to changing consumer demands and, later, technological advances. Both of these elements still influence business performance, so a company must be sufficiently flexible if it aims to grow or at least retain its market share.

While the need to adapt to change is nothing new, the past few years have highlighted the dangers of failing to do so. For example, the pandemic spurred many companies to adopt remote working and begin trading online. Some entrepreneurs actually capitalised on the disruption to start 3D printing personal protective equipment and other items that were in short supply. In short, these companies survived or thrived because they formed an effective organisational development (OD) strategy.

Towards the end of the financial year, executives and managers generally meet to set business goals for the following year. However, their emphasis is too often on what they aim to achieve rather than how. They often overlook vital questions like “Do we have the necessary resources”? or fail to explore “what if” scenarios and make alternative plans. No one has a working crystal ball; the future is uncertain, so flexibility is crucial for effective planning.

What is Organisational Development?

The simplest definition of OD is any plan designed to improve an organisation’s capabilities by aligning its structure, people and strategies by applying metrics, rewards and revised management processes. Few organisations can optimise their development without professional guidance. The following are some of the areas on which support should focus:

Job profiling: To get the best from a team, each member must have the personality and skills necessary to perform their assigned tasks. Psychometric testing provides an objective means to identify those who possess these qualities and those who will benefit from an alternative assignment or relevant skills training.

Organisational design: If the current company structure is seen to be hindering service delivery, it will be vital to devise an alternative design to improve efficiency and extend its capabilities.

Performance management: For a company to achieve its objectives and grow, the efforts of managers and employees must be aligned. Job profiling, individual goal setting, recognition and reward systems will help achieve this.

Change management: While the future is unknown, it is a certainty that it will bring changes. Developing leaders and strategies to adapt and take advantage of change is the key to success and a vital aspect of organisational development.

Conflict management: Differences within a company are a fact of life but can impede its performance. Implementing strategies to help staff resolve conflict and learn from it can avoid wasting time, help maintain direction and prevent loss.

Other facets of developing a stronger organisation include safeguarding employees’ mental well-being from the effects of stress, surveys to evaluate current business strategies and planned interventions like selective coaching and training.

A Tailored Organisational Development Solution

Orgro fields a team of psychologists and problem solvers focusing on business and human behaviour. Many of South Africa’s business leaders have significantly improved their performance through their efforts. If you need help optimising your organisation’s achievements, please don’t hesitate to contact Orgro, the people development specialists.