Note: This is the 2nd in the series on O.D. - "Why is it important?" Previous installments of all blogs can be found on this page.
Why is Organizational Development Important?
95% of businesses and organizations in the U.S. are operating far below their capabilities -- most are running between 40% – 60% of what they could be.
Why is that?
The Gallup Corporation has actually quantified it. They have polled American workplaces every two years since 2000 and they have found that 70% of the American workforce is neither emotionally engaged nor working in a job that taps their full potential. Wow! That is a sad statistic and even sadder; that percentage has remained flat since 2000.
What are the Symptoms of Low Performance?
1. Low morale
2. Lack of Enthusiasm
3. Low productivity
4. Increased conflict
5. High turnover
6. High Levels of Absenteeism
What are the Costs of Low Performance?
- Replacing an employee can cost the company up to five times as much as the worker’s annual salary.
- High-performing workers don’t typically stay at companies when they’re not happy, which causes these organizations to lose very skilled individuals.
- Managers spend a great deal of time resolving employee grievances instead of getting work done.
- Unsatisfied employees don’t want to come to work, cutting company productivity and profitability.
- Employees lacking motivation to excel at their job aren’t productive and bring others down around them.
What is the Answer?
The secret sauce is applying Organizational Development with a focus on significant change and improvement, possibly even with your current resources. I look at it this way - you are already paying for staff and resources, so why not optimize what you already have?
Here is what I know.
If you want your organization to be successful, first, you need a bold strategy. A bold strategy also needs the culture aligned with it. The way to create that culture is through a system and process called Organizational Development.
Aligning culture to strategy means change, which will create tension. Don't relieve the tension by lowering aspirations or backing off strategy. Manage the tension by providing the opportunity for change through O.D. systems and processes. Alternatively; if you are simply unable to use current resources, get the right people on the bus who will embrace the tension as creative and/or competitive.
Thank you again, to my advance readers; Mike Ware, Scott Boie, and Richard Reardon. Per always, your input for making things clear is a huge help.
Next week: How can Organizational Development work for you in your situation?