What is Organizational Development?

Organizational development concerns the implementation of changing actions in companies. The goal of these activities is to make optimal use of employees and have them work together. These involve adapting the corporate culture, models for cooperation between different departments, and the structure of the workforce as a whole. Therefore, here you will learn what organizational development is, what methods exist, what tasks arise within organizational development and what processes it includes.

Systemic organizational development serves the purpose of securing the success of the company in the long term. This is done by further developing the cultural and structural prerequisites of the work organization in such a way that all opportunities and risks of the economic environment are adequately taken into account. Specifically, organizational development involves changing the behavior and attitudes of employees, which should support the cultural transformation of a company and strengthen it in the long term.

Organizational design and the continuous development of the organizational structure also contribute to positively influencing the framework conditions. This in turn then has the desired effect on employee behavior. To achieve its goals, organizational development uses various packages of measures such as surveys, facilitated workshops, actions to promote team cohesion, the implementation of new rules, rituals and ways of working, and employee information campaigns.

Organizational development is a response to current challenges that affect the company from outside. These include changing competitive conditions as well as innovative technologies and new customer needs. Challenges within the company, such as motivational deficits, ineffective collaboration and lack of innovation, can also be addressed in a structured manner with the help of organizational development.

One of the goals of organizational development is to make the company more competitive and efficient in the long term. Particular attention is paid to the requirements of the employees as the company’s key performers.

In addition, strategic organizational development improves the efficiency of the entire company. This leads to increased efficiency and profitability. Even seemingly small-scale measures such as the establishment of a more efficient meeting structure and culture can bring about measurable progress. This in turn contributes to better business performance.

Higher Flexibility
The transformation of our economic world through the four Ds – demographic change, digitalization, de-carbonization, and de-globalization – all require organizations to be highly adaptable.

Improvement of Product and Service Quality
The quality of products and services can be improved if the interaction of the employees and departments integrated in the product development and service provision process is optimally set up. A permanently applied performance management helps with the implementation.

Increase Innovative Strength
Continuous employee development increases the knowledge base of staff and thus lays the foundation for product innovation.

Increase Customer Satisfaction
Long-term organizational development has a positive impact on the well-being of employees and at the same time increases product quality. This in turn results in better products and committed employees creating a winning image for the company.

Increase Employee Satisfaction
Organizational development helps to ensure that all employees pull together, silos are broken down and the workforce as a whole works less against each other. Accordingly, these changes and adequate training measures promote employee motivation.

Improve Cost Efficiency
By consistently aligning all projects, initiatives and investments with the strategic goals set by Organization Development, bad investments are minimized. Existing resources can also be used optimally.

Increase Profitability
A well thought-out organizational development is able to increase the company’s profit through better productivity and higher creativity, decreasing expenses as well as low employee turnover.

HR Strategy Workshop
Modern HR accompanies companies during changes. At the same time, HR supports the management in developing a coordinated HR policy in line with the company’s strategy. In this context, HR strategy workshops serve to develop a human resources strategy that is in line with the company’s vision.

Future Search Method
The Future Search Method is a group method. It is designed to drive strategy development and generate ideas and solutions for future challenges. By integrating employees from different hierarchical levels and professional profiles, a comprehensive and sustainable future concept is developed.

SWOT Analysis
The SWOT analysis as a method of organizational development uncovers the strengths, weaknesses, potentials and threats of the company. The resulting insights are the basis for the actual organizational development.

Kurt Lewin and the 3-Phase Model
Kurt Lewin is considered one of the pioneers of organizational development. His 3-phase model provides a fundamental approach to managing change in organizations. It consists of the phases Unfreezing, Changing, and Refreezing. In the first phase, the need for change is recognized and the organization is prepared for it. In the second phase, the actual changes take place. This may involve introducing new structures, processes, or behaviors. In the third phase, the change is stabilized and integrated into daily operations to ensure sustainability. To this day, Lewin’s model remains a cornerstone of many change management approaches.

In a dynamic and constantly evolving business environment, agile organizational development is becoming increasingly important. Agility in this context means that structures, processes, and strategies are continuously reviewed and flexibly adjusted to respond quickly to new market demands, technological developments, or internal challenges.

Iterative Changes
In contrast to traditional organizational development approaches, which often rely on lengthy planning cycles, the agile method focuses on continuous and iterative adjustments. Organizations work in short cycles, called “sprints”, to achieve quick results, evaluate them, and then determine the next steps. This approach allows for early feedback response and minimizes risks.

Employee-Centered and Inclusive
Agile organizational development promotes a culture of open communication and active employee involvement. Flat hierarchies and strong employee participation in the decision-making process ensure that changes are embedded at all levels of the organization. This not only strengthens workforce engagement but also enhances acceptance of change initiatives.

Flexibility and Adaptibility
Agile approaches enable organizations to respond flexibly and quickly to both external and internal changes. This is especially valuable in times of uncertainty and constant market fluctuations. By focusing on adaptibility, the organization remains resilient and capable, even in disruptive environments.

Technological Support
Modern tools for data visualization and analysis play a central role in agile organizational development. They help guide changes an measure the impact of adjustments in real-time. This enables quick, informed decision-making and continuous process optimization.

The most common organizational development tasks are:

An organizational developer plays a key role in successfully implementing change processes within a company. Acting as a consultant, facilitator, and driver of change, they support employees and leaders at all levels throughout the transformation. The responsibilities of an organizational developer include:

1. Analysis of the Current Situation: The organizational developer conducts comprehensive analyses to understand the organization’s status quo and identify relevant starting points for development.
2. Facilitation of Workshops: In facilitated workshops with employees and leaders, solutions are developed to overcome challenges and design new structures.
3. Change Facilitation: The organizational developer supports the organization throughout the entire implementation phase and ensures that changes are sustainably anchored within the company.
4. Coaching and Training: Targeted coaching for leaders and employees ensures that new behaviors are practiced and further developed.

A skilled organizational developer combines analytical thinking, strong communication skills, and empathy. They ensure that change processes are not driven solely from the top down, but that all stakeholders are actively involved, significantly increasing both acceptance and the effectiveness of the initiatives.

Ingentis org.manager visualizes the current state, for example, in the form of key figures on the age structure of the workforce, diversity, inclusion, open positions, spans of control, budgets or flight risk. With the help of the simulation function, changes can then first be tested and evaluated. This allows you to design the target state before your plans are translated into reality. In other words, you create a data basis so that the transformation processes become a success. Two examples make it clear: