Organizational development is the utilization of organization resources as a means to improve overall productivity and efficiency. It is also utilized as a method of solving problems within an organization. In basic terms, organizational development identifies areas in which a business’ operations need alteration to optimize efficiency, productivity, and profitability.
The process of organizational development focuses on a number of areas of enterprise operation, providing analysis and recommendations for change. Oftentimes, this analysis must occur simultaneously in all of these areas for optimal and most meaningful results. These include:
- work process
- product innovation
- employee development
Organizational development is a vital tool in planning and managing enterprise or business growth and expansion, according to the San Francisco Chronicle. The process of growth analysis is utilized to ascertain the rate at which a business can grow and expand in a healthy manner. These determinations result in the alteration of an enterprise’s business plan coupled with recommendations about how company resources need to be redirected. These recommendations include all resources, from financial to personnel.
Another area in which organizational development is crucial is in the arena of analyzing work processes within a business for accuracy and efficiency. The end result of these types of efforts is the implementation of certain quality control standards. These standards are derived from a detailed report prepared during the org development undertaking. Recommendations can include everything from eliminating certain processes to combining others.
Org development is also a necessary element of product innovation. Product innovation necessarily requires the sharp analysis of various kinds of information. Through this type of development endeavor, each element of a proposed product innovation can be carefully, thoughtfully analyzed. A variety of components are brought together in the process of org development and product innovation:
- competitive analysis
- technology development
- consumer preferences
- target market research
- manufacturing capabilities analysis
- patents and trademarks
A coordinated analysis of these elements through a comprehensive org development process best ensures innovations prove not only internally desired but appealing to the marketplace at large as well.
Employee development can also benefit significantly through the utilization of org development practices. At the heart of this effort is increased communication as a means of encouraging employees to bring about the desired change.
The need for employee development arises from the fact that a particular industry or market is in a state of nearly constant change. As a result, the skillsets of employees need to evolve in order to satisfy these industry and market demands. Org development allows for the achievement of these adaptations through training, ongoing learning, skills enhancement, as well as work process improvements.
The need for this type of organized evaluation of a business enterprise is significant. There is now a growing number of professionals who have the knowledge, training, and expertise to undertake a program of organizational development for a business.