Bottom-Line Organization Development book cover

Bottom-Line Organization Development

Implementing and Evaluating Strategic Change for Lasting Value

Organization development practitioners have, for over half a century, engaged with organizations to help them grow and thrive. The artful application of Organization Development (OD) has helped business leaders articulate vision, rethink business processes, create more fluid organization structures and better utilize people's talents. While business leaders and OD practitioners intuitively believe that OD provides valuable results, rigorous measurement of the value delivered has long eluded many OD practitioners.'Bottom-Line Organization Development' provides powerful tools to capture and measure the financial return on investment (ROI) of OD projects to the business. Given the increasing competition for budget and resources within organizations and the requirements of demonstrating tangible results, the need for such OD measurement tools is very high. But in addition to proving the value of OD projects, integrating evaluation into the change management process itself can actually increase the value of the change initiative because it opens up new ways of capturing and increasing the value of change initiatives. In other words, there is an ROI to ROI. Merrill Anderson calls this new way of approaching OD "strategic change valuation." The book explains the five steps in the OD value process - diagnosis, design, deployment, evaluation and reflection. In addition, three case studies take readers through the process of applying bottom-line OD to three types of popular strategic change initiatives: executive coaching, organization capability, and knowledge management. Readers will gain a holistic perspective of how to make the seemingly intangible benefits of these initiatives tangible.

Audience
Human Resource Professionals, HR Directors, HRD specialists, organization development consultants, students in MBA, OD, and HRD programs.

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Published: August 2003

Imprint: Butterworth Heinemann

ISBN: 978-0-7506-7485-0

Reviews

  • "...a timely and helpful compendium of insights and tools for assessing OD interventions. It moves quickly beyond rhetoric for measurement to tools and techniques for doing so. OD and HR professionals engaged in any change initiative will be well served to learn and apply these ideas. General Managers who depend on rigorous assessment for investment decisions should require this book." - Dave Ulrich, Professor of Business, University of Michigan "...addresses the question on the minds of managers everywhere. The evaluation of organization change is one of the least researched and most important topics in OD. In 'Bottom-Line OD,' Merrill Anderson makes an important contribution to organization change and development by providing a straightforward process, useful tools, and clear demonstration of the linkage between change and business results." - Chris Worley, Director, MSOD Program, Pepperdine University "This book presents what the European business community has been looking for: making human capital measurable and manageable. Dr. Anderson's thinking has caught the attention of many European business leaders about how best to measure the soft side of business -- which is increasingly important to be competitive." - Stephan H. Oberli, President, SHO Coaching and Consulting, Liestal, Switzerland "Organization leaders who have in the past wondered if they got real value from change initiatives now have a proven approach to get bottom-line value from change initiatives." - Jeanenne LaMarsh, LaMarsh & Associates, Inc. "Employing the techniques and approach described in this book, we have made a compelling business case for key learning initiatives. This in turn has resulted in increased support and funding. We also have learned to approach initiatives with more discipline and build measurement right into the design." - David Vance, President, Caterpillar University

Contents

  • Table of Contents AcknowledgementsForewordPrefaceIntroduction1 Introduction to Bottom-Line OD Flavor of the Month Approaches to Change Bottom-Line OD: Breaking the Mold How This Book is Organized Maximizing Value With Bottom-Line ODSection One: Strategic Change Valuation2 Strategic Change Valuation: The Five-Phase Process Phase 1: Diagnosis Phase 2: Design Phase 3: Development Phase 4: Deployment Phase 5: Reflection 3 Diagnose Performance Gaps to Achieve Business Goals Building the Client - Consultant Relationship Linking Performance Improvement to Achieving Business Goals Developing a Winning Business Case4 Design the Solution to Achieve Strategic Change Objectives Organizing a Change Coalition Designing the Strategic Initiative Writing the Statement of Work5 Develop a Change Plan With Evaluation ObjectivesChange Management and Evaluation: Opening Doors to Understanding Elements of an Effective Change Plan Elements of an Effective Evaluation Plan Isolating the Effects of the Initiative The Focus of Evaluation: Judgment, Not Numbers6 Deploy the Strategic Change Initiative and Evaluate Progress Value-Based Deployment: Integrating Evaluation and Change Mastering the Mechanics of Evaluation Maximizing the Value of Pilots 7 Reflect upon the Business Impact Utilizing Post-Initiative Evaluations Separating Hard From Soft Data Converting Benefits to Monetary Value Qualifying the Monetary Benefits Tabulating the Costs of the Initiative Calculating the Return on Investment Leveraging Strategic InsightsSection Two: Special Issues8 Forecasting ROI The Business Context of Forecasting ROI for Strategic Change Requirements for Forecasting The Timing of ROI Forecasts Phase 1 Forecast: Should We Invest in the Change Initiative? Phase 3 Forecast: Should We Proceed With Full Deployment? Case Study: Forecasting ROI at Braxton Bulldozers What Happens if the ROI Forecast is Negative? Benefits of the ROI Forecast9 Tricks of the Trade: Using Surveys to Collect ROI Data Why is Survey Research Essential For ROI Analysis? What are the Limitations of Survey Research For ROI Analysis?What is the Fastest, Easiest Way to Use Surveys to Isolate the Effects of the Initiative?How Can Response Rates Be Increased?What are the Essential Elements of ROI Questionnaire Construction?10 ROI on the Fly: Evaluating an Initiative After Its Deployed What To Do When Your CEO Asks: What Have You Done For Me Lately? Case Study: Conducting a Post-Program Analysis at Power Systems, NA Frequently Asked QuestionsSection Three: Case Studies in the Evaluation of Strategic Change 11 Executive Coaching: The ROI of Building Leadership One Executive at a Time Introduction Data Collection Procedures Profile of the Respondents and Initiation of Coaching Level 1: Initial Reaction of the Clients to Their Coaching Level 2: What Clients Learned From Coaching Level 3: How Clients Applied What They Learned Level 4: The Business Impact of Coaching Level 5: Return on Investment Summary of Intangible Benefits Recommendations for Leveraging Coaching Conclusion12 Organization Capability: The ROI of Aligning an Organization to Strategy Introduction Diagnosis and Design: The Change Process Begins Development: Aligning the Organization to Strategy Deployment: Transformational Change at Logistics Services Reflection: Evaluating the ROI of Strategic Change13 Knowledge Management: The ROI of Continuously Leveraging Knowledge Overview Diagnosis: Understanding the Need for Knowledge Management Deployment and Evaluation Reflection and Improvement OpportunitiesConclusion14 Preparing the Partners to Dance: How Leaders and Change Practitioners Work Together to Create Strategic Value Earning a Seat at the Table The Values of Bottom-Line ODFurther ReadingList of Tables and FiguresIndexAbout the Author

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