A model for strategy and organizational development interventions.

ABSTRACT

What is the appropriate relationship between Strategy and OD? This paper will attempt to address the above issue by first examining the basic concepts of strategy; formulation, implementation, and evaluation. Following this, a well used and respected OD model reflecting human process, human resource management, technology and structure, and strategic issues is summarized. Finally, this paper re-examines a new model and resulting matrix previously developed by the authors, which can then be used to examine the relationship between Strategy and OD interventions.

1. INTRODUCTION

What is the appropriate relationship between Strategy and OD? This was an interesting unanswered question of the 20 century and is a question for the 21th century that must be answered. Some logical Follow-up questions are: When is OD intervention appropriate during the strategy formulation, implementation, and evaluation processes? What types of interventions could or should be employed?

This paper will attempt to address the above issues by first examining the basic concepts of strategy and creating a template for conducting the strategic management process. Following this, a well used and respected OD model will be summarized. Finally, a model will be created relating Strategy and OD interventions.

2. STRATEGIC DEFINITION

Thompson and Strickland (2003) have argued that a definition of strategy is management's game plan for strengthening the organization's position, pleasing customers, and achieving performance targets. Strategy is concerned with the long term, although the definition of the long term may vary considerably depending upon the nature of the industry (Steiner, G., 1969). Some industries, such as finance, banking, computers, and software development, may consider six months in the future to be the extent of the planning horizon while others, such as education or pharmaceuticals, may look on ten years or longer as the long term. Strategy is directly related to the idea of what customers and markets are chosen, what objectives are set, and how the firm actually competes. In a military sense, strategy is getting the troops to the battlefield, while tactics is the fighting of the actual battle. A model similar in many respects to the model developed in the following pages can be found in each of the current strategy textbooks in use at business schools and colleges (see Hill and Jones, 2004; Thompson and Strickland, 2003; Hunger and Wheelen, 2002; Johnson and Scholes, 1997; and Grant, 1992). In fact, the foundation for the model developed in this paper can found in many of these texts.

3. MISSION

The concept of mission and vision is a good place to begin a discussion of strategy. While some argue these two items are different with vision being a more sweeping and generalist look at the future and mission as being more specific and concerned with the present, others feel the two terms are closer in meaning. The two are assumed to be synonymous in this discussion for ease of understanding. What business the organization is in and should be in is the general concern of mission. The questions of who, what and where and their answers compose the definition of Mission (Abel, 1985). The customer groups that are being served represent the "who". The customer needs that are being met are the "what". Lastly, the methodologies used and the functions performed to meet customers needs provide the "how". For example, an organization may choose preteen-aged girls between the ages of ten and thirteen as its potential customers or market segment. The major need being satisfied is the desire for inexpensive jewelry. The predominant technology used is traditional retailing, with a delivery method of a small cart located inside a mall. The business the organization is involved in is fad retailing.

4. OBJECTIVES: FINANCIAL AND STRATEGIC

Closely related to mission is the establishment of financial and strategic objectives. Financial objectives are concerned with items like ROI, RONA, EPS, and Credit ratings. Strategic objectives revolve around concepts such as market share, market rank, quality, customer satisfaction, and international presence to name a few. Both financial and strategic objectives must be specific rather than general in nature. They require a timetable for completion and need to be measurable. Finally, they should be challenging in nature, but not so difficult to accomplish that they discourage rather than encourage. A financial objective related to the previous jewelry example could be stated, as a return on investment of 10% is required during the next calendar year to continue to rent the space in the mall. An example of a strategic objective would be to acquire a 25% market share of the female preteens in the geographic area also by the end of the next calendar year. The important point is that both types of objectives are critically important to the organization and must relate to the stated mission. Objectives exist to drive the organization towards the fulfillment of its mission. They are standards for performance that should be equaled or surpassed.

5. DESIGNING A STRATEGY

Michael Porter has argued there are only three basic approaches of competitive strategy (1996, 1985, and 1980). The first is the low cost producer strategy. If a product or service can be produced at a cost cheaper than one from a competitor, then the organization will have a competitive advantage that would be difficult to overcome. An example would be Southwest Airlines approach to strategy. They have used the same type of aircraft, quick turnaround gate time, flexible work scheduling, etc. to gain a tremendous cost advantage over most of their competitors. Porter's second type of strategy involves product and/or service differentiation. Provide a product or service that is different from the competitor's and provides some additional benefit that creates perceived value in the mind of the customer. Again, Southwest Airlines have changed the nature of competing in the airlines industry by moving away from the emphasis on hub and spoke scheduling that the major competitors use. Southwest offers the customer something different with flight scheduled directly between points A and B without the necessity of connecting via a congested hub location. The final strategy focuses on market segmentation where firms concentrate on specific market niches and out-compete the rival firms. Southwest with their point-to-point scheduling have been able to fly to cities and/or airports that have often been neglected by the major airlines. Midway airport in Chicago is a relevant example. From the above examples it can be seen that these strategies can be combined to create other competitive strategies. For example, a best-cost provider strategy is a combination of low-cost and differentiation. Focusing can be combined with either low-cost or with differentiation. Probably, the strongest strategy and the one the most difficult to craft is one composed of the combination of all three. Very few firms have been successful in creating this type of combination strategy. Two examples in addition to Southwest Airlines are the Wal-Mart organization and Dell computers. The key idea is a specific strategy must be chosen by the organization in order to try to compete successfully. This strategy must also be closely related to the organization's mission and objectives.

6. INDUSTRY ANALYSIS

Understanding the industry the organization competes in is also of critical importance (Porter, 1996, 1985, and 1980). When looking at an industry, an important start point is the answering of seven diagnostic questions (from Thompson and Strickland, 2003).

1. The industry's dominant economic characteristics are? (Such as market size and growth rate, number of customers, degree of vertical integration, and scope of competitive rivalry to name a few.)

2. The competitive forces are at work in the industry: what are they and how strong are they? This is the use of Porter's Five Forces Model of Competition. The power of the buyers, power of the suppliers, the existence of substitute products, the ease of entry, and the actual extent of rivalry among the competing firms in the focal industry are used to determine the degree of competition within the industry.

3. Driving forces are factors causing the industry's competitive structure and business environment to change? Some of the most common are changes in the long-term industry growth rate, changes in who buys the product and how they use it, product innovation, technological change, entry or exit of major firms, increasing globalization, and changes in costs and efficiencies. While quite a few factors may be affecting the focal industry at any one period of time, the key to the analysis is to find the two or, at most, three causing the industry to change the most. The computer industry was changed forever when the personal computer was purchased in large quantities not by business, the initial target market, but by the consumer who used it for word processing, playing games, and simple spreadsheet analysis.

4. Companies in the strongest and weakest positions. This step is used to begin a comparison of the major players in the industry. One technique that can be used for analysis is the concept of group mapping. Two non-correlated variables, such as distribution methods and product image are used for the x and y-axis. The firms in the industry are plotted on this two variable graph/map. The companies that fall closely together on the map are considered to be within the same strategic grouping and major competitors with each other. Firms having no close neighbors on the map may have no serious rivals. Spaces on the map without any firms marked may be potentially open market niches. The point behind using a series of strategic maps with different variables is to find out which of the competitors is favorably positioned to compete against the focal firm and which is unfavorable positioned and therefore not a major threat.

5. Rivals key strategic moves is a step that focuses on each of a company's major competitors. A series of diagnostic questions directly related to the each rival is asked. Is the nature of competition local, regional, national, or global? What is the rival's strategic intent, market share objective, competitive position/situation, strategic posture, and competitive strategy? The final question asks why this firm should be watched.

6. Key industry success factors? These factors can run the gamut from having a well-known brand name (Coke) to owning a patent to having a low-cost production facility to having the best trained sales force in the business. The point is once the key factors for success are identified, the focal organization will have to craft its strategy based on which of the success factors it has or can acquire in a reasonable time for a reasonable allocation of resources. The organization with the greater number of the key success factors in hand should have an advantage in formulating a strategy and, hopefully, in implementing one.

7. This final series of questions asks why this industry is attractive or unattractive to current players and possible future players. It also asks what specific problems and/or issues the industry faces in the near future. Finally, the profit outlook for the industry is discussed. Appropriate competitive strategies can vary considerably when analyzing industries that vary from extremely profitable to those that have low profitability.

The information necessary to begin to create an appropriate strategy for the organization should derive from the answers to these seven questions. An analysis of the focal company's situation is the next step in the strategy formulation process.

7. COMPANY SITUATION ANALYSIS

The company analysis is also based upon a series of diagnostic questions. (Thompson and Strickland, 2003)

1. Is the present strategy a low cost producer strategy, a differentiation strategy, a focusing strategy, or a combination strategy? (Porter, 1980, 1985, 1996) For many organizations, no consistent strategy may be found. In others, an ineffective strategy may still be in use. Is the present strategy working? This question can be answered by analyzing both strategic and financial indicators for the past three to five years. If the numbers and/or the trends are moving in the wrong direction, there is strong indication the strategy is not working.

2. An important step requires an analysis of the company's strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal to the organization and the opportunities and threats are external.

3. What are the costs and pricing structure of the organization? Costs and prices are not necessarily related (Hanna, N. and H. R. Dodge, 1995) and as a result, too often managers base price on cost without regard to the economics of the market. The concept of value chain is significant and consists of the activities, functions, and business processes that must be performed to create and deliver the product or service to the customer. It is along this value chain that cost inefficiencies can be identified and reduced or removed. A good diagnostic question is to ask where along the value chain is the organization less cost efficient than its strongest competitor. How can the organization improve is the follow-up question. An example in the area of production to reduce or even improve our cost status may be to manufacture our own product parts rather than to buy parts and then assemble the product.

4. The strength of the company's competitive position can be analyzed by comparing it to its major competitors on the key success factors determined during the industry analysis. Each factor is weighted according to its importance. A forced choice scale of 1 to 5 points or some other reasonable range is employed. The resulting scores on each key success factor as well as for the total can be used to see how the organization stacks up against its rivals.

5. Questions relating to the specific problems/issues that the organization faces are also important. Some problems, i.e. an economic downturn resulting in lost sales, may be common to all the players in the industry while others, i.e. a production bottleneck, may be unique to a specific company. In any case these problems and/or issues are important places to look for challenges in crafting a strategy for the future.

8. NINE STEP MODEL OF STRATEGY FORMULATION AND IMPLEMENTATION

The following series of steps are designed to determine the major strategic issue facing the organization, develop a strategy to create a sustainable competitive advantage, implement the strategy, and then evaluate it as to its successfulness.

9. STRATEGY FORMULATION

Steps:

Steps one through five are summarized as basic decision theory.

1. A Strategic Issue statement consists of one to two sentences. Strategic issues can be significant problems or market opportunities available to the organization. For example, if the strategist determines a problem exists and the problem is one of targeting too small of a market segment, then the statement would be written that the problem is just that, the organization has targeted too small of a market segment to support itself. On the other hand, if the strategist determines a market opportunity is being missed, the strategic issue statement could be posited, for example, as a market opportunity available by targeting a new segment of young girls between the ages of 10 and 15 living within the geographic region. The statement must be specific because the rest of the analysis requires such precision to build upon. It is also important to state problems and not symptoms. For example, losing sales or increased costs are not problems but symptoms in the strategic sense. The problem is what is causing the lost sales or the increased costs.

2. An explanation of the Strategic Issue statement can be written in one or two paragraphs. This explains why the particular problem exists and what is causing it. In the case of an opportunity, an explanation of why this is an opportunity is important to state. Previously conducted industry and company analysis of a careful nature should provide the specific problems and/or opportunities that either plague the firm or exist for it to exploit. These should be found in the sections discussing specific problems and/or issues the industry and/or the firm are encountering. In addition, the core competencies identified through SWOT analysis should be listed as they pertain to solving the problem or developing the market opportunity.

3. Reasonable alternatives (solutions if a problem statement, market opportunities if an opportunity statement) with advantages and disadvantages listed for each one should be created. The concept of requiring multiple problem solutions or market opportunities is to force the strategist to stretch the analysis. If only one problem solution is required, it may not be the desired solution but, rather, the easiest to observe or implement. Requiring a greater number should reduce this type of error. The same logic holds true with requiring multiple market opportunities. The exercise may bring to the forefront better opportunities.

4. The best alternative should be chosen and written down.

5. An explanation in detail as to the rational of the choice acts as a check on its validity. Restating the advantages is not explaining. A series of questions must be answered to support why this is the best choice,. How is it better than the other two alternatives? In what ways does the choice lead to accomplishing the organization's mission and major strategic and financial objectives? Finally, what Porter-based strategy is used to accomplish the above? Is the choice a low-cost, differentiation, or focus strategy, or some combination? If the specific choice cannot be related to a specific strategy, it is probably not very useful and will be difficult to implement successfully.

10. STRATEGY IMPLEMENTATION

6. One strategic model suggests eight managerial components must be covered during implementation of strategy. (Thompson and Strickland, 2003)

a. The building of a capable organization by selecting the right people and creating the necessary positions for them, having in place the core competencies upon which the implementation will be based, and creating the correct structure to support the strategy. The concept that strategy must precede structure is from Chandler's seminal work Strategy and Structure (1962).

b. Designing a three-year pro forma budget reflecting the specific implementation.

c. Writing detailed policies and procedures supporting the strategy chosen.

d. Installing appropriate systems supporting the strategy. Examples include information systems, clerical support, accounting, and inventory control systems.

e. Designing reward systems complementing the designated strategy.

f. Finding and installing a system of best practices based upon benchmarking those organizations performing the key task in the best manner.

g. Preparing the old culture to reflect the values and beliefs of the organization in light of the specific strategy and implementation chosen. In some instances, a new culture significantly different from the old may emerge.

h. Providing leadership in a manner supporting the strategy chosen.

11. STRATEGY EVALUATION

7. How is it known that the strategy will work? Standards, both strategic and financial are provided for a multiple year pro forma used to evaluate the strategic choice and the quality of the implementation.

8. Monitoring the progress of the implementation can be assisted by the construction of a multiyear pro-forma time line incorporating the fourteen points from steps 6 and 7 above.

9. The nature of the firm's competitive advantage, its sustainability, and special issues and/or problems resulting from the implementation should be highlighted. Examples of competitive advantages are the ability to design a superior product or service, operate at a lower cost, having a well known and respected brand name, or providing better customer service. Having a more convenient geographic location, owning a patent, and providing the customers more value for their money also are potential competitive advantages. Generally, a robust competitive advantage contains a combination of many advantages.

Is the competitive advantage sustainable for multiple years? The length of time depends upon the nature of the firm's industry. Sustainability is more than just the accumulation of the aspects of a competitive advantage although they can and often do add to the sustainability. It is the uniqueness of the combination that makes it difficult if not impossible for a competitor to copy the strategy and create a comparable competitive advantage. It may be as simple as having employees who are "nice" people deal with the customers or as complex as a combination of geographic location, a quality, differentiated product, market share dominance, patent protection, and cost leadership.

All strategic choices and implementations by there very nature create new opportunities and problems. For example, entering a new market segment could create the problem of dealing with a new set of competitors.

It is important to realize improper management style and/or poor communications are always a problem with firms in trouble. Generally, they are not acceptable as problem statements. This is also true of the statement that there are open market niches available for the firm to exploit. This is so general as to be meaningless. In addition, the analysis must be careful of symptoms and generalizations. Hire a consulting firm, advertise more or differently, cut prices, do more of the same, or do nothing, etc. are not strategic solutions or opportunities by themselves. The analyst must look for the major problem which when corrected will make a significant difference in direction of the firm or prevent a major market opportunity from being missed. Finally, the analyst must try to present arguments in a logical and precise style.

12. ORGANIZATIONAL DEVELOPMENT INTERVENTIONS

There are four groups of interrelated issues that are possible targets for OD interventions (Cummings and Worley, 2001).

1. Human process issues dealing with the social process occurring among organizational members.

2. Human resource issues concerned with the attraction and retention of qualified employees.

3. Technology and structure issues regarding how the organization divides and coordinates the work within the firm.

4. Strategic issues revolving around the markets, products, and environments with which organizations must deal.

Traditional OD argues that there are three levels within the organization for interventions. These are the individual, group, and organization. Although various types of interventions are more prevalent at one of the levels, it does not preclude them from being appropriate at other levels. The following discussion is from Cummings and Worley (2001).

Individual level

Human process issues: T-groups and third party interventions.

Human resource issues: Goal setting, performance appraisal, reward systems, career planning and development, work-force diversity, and employee wellness.

Techno-structural issues: Work design and high-involvement organizations interventions.

Group level:

Human process issues: Process consulting and third party interventions, team building, confrontation meetings, inter-group relations, and the managerial grid.

Human resource issues: Goal setting, performance appraisal, reward systems, and work-force diversity.

Techno-structural issues: Reengineering, parallel structures, high-involvement organizations, TQM, and work design are important interventions.

Strategic interventions: Open systems planning, self-designing organizations, and organizational learning.

Organization level

Human process issues: Organizational confrontation meetings, inter-group relations, large-group interventions, and managerial grid development.

Human resource issues: Reward systems.

Techno-structural issues: Structural design, downsizing, reengineering, parallel structures, high-involvement organizations, and TQM.

Strategic issues: Open systems planning, integrated strategic change, trans-organizational development, Mergers and Acquisitions, culture change, self-designing organizations, and organizational learning.

Organizational development interventions are appropriate at more than one level within the organization. The idea that the reader should only look at strategic issues and the matching interventions to discover relationships between strategy and OD is inappropriate. From looking at the strategy formulation and implementation process, it can be seen that not only are individual and group levels important because individuals and groups participate in the strategy process, but human process issues, human resource issues, and techno-structural issues are also important in the strategy process because these type of issues affect formulation, implementation, and evaluation of strategy. The basic Strategy-OD Intervention model is illustrated below in Table 1.

13. STRATEGIC ANALYSIS AND OD INTERVENTIONS

This section discusses the strategy process and OD interventions that could be employed during each of its stages.

14. STRATEGY FORMULATION

Mission, Strategic and Financial Objectives

Creation of the organization's mission, strategic and financial objectives is often a group process. Intervention techniques, such as goal setting, team building, process consulting and open systems planning can help the top management team decide these crucial issues.

15. INDUSTRY AND COMPANY ANALYSES

Researchers, individual or a small group, synthesize information into a format usable to the organization. Goal setting, team building and process consulting are possible interventions. Third-party interventions may be necessary for dysfunctional teams.

16. CHOICE

In addition to the individual and group OD interventions such as goal setting and team building, organizational interventions of open systems planning, inter-group relations, and large-group interventions could be used. An organizational confrontation meeting could assist in moving the company forward if the specific strategic choice is controversial within the organization. The Table 2 indicates the hypothesized relationships.

17. STRATEGY IMPLEMENTATION

Thompson and Strickland argue that the actual implementation has eight sub-points (2003). Some possible interventions are listed below.

a. Building the organization: Structural design, downsizing, reengineering, career planning and development, managing work force diversity, and work design interventions.

b. Budgeting: Team building and goal setting.

c. Policies and procedures creation: Goal setting, performance appraisal, reward systems, career planning and development, work-force diversity, and employee wellness.

d. Best practices built upon benchmarking: Work design interventions and TQM.

e. Support systems: various human process and human resource interventions.

f. Reward systems: Goal setting, performance appraisals, and reward system design.

g. A revised organizational culture: Cultural change interventions.

h. Leadership: Goal setting, team building, managerial grid development, reward systems, and the concept of self-designing organizations.

The Table 3 indicates the hypothesized relationships.

18. STRATEGY EVALUATION

The evaluation of the implementation via the use of strategic and financial standards or objectives can benefit from the use of various Human Process and Human Resource Management OD interventions. Table 4 indicates the hypothesized relationships.

For illustrative purposes, Table 5 suggests that it will take the organization two quarters to write and implement policies and procedures. Financial objectives will be evaluated every quarter, while strategic objectives will be evaluated every other quarter.

The final step the discussion of the competitive advantage and how it will be sustainable is what the strategy process is all about. OD interventions such as organizational learning, open systems planning, integrated strategic change, trans-organizational development, cultural change, and self-designing organizations are important in the creation of a sustainable competitive advantage. These hypothesized relationships also appear in Table 4.

This paper illustrates that there are robust relationships between strategy and OD. Specific individual, group, and organizational OD interventions can be appropriate at any and all of the stages in the strategy formulation and implementation process. It would appear that the question asked at the beginning of this paper, "What is the appropriate relationship between strategy and OD?" has been answered in a preliminary manner. Further research is necessary to refine the analysis. Other OD interventions that seem at first glance not to be appropriate for a specific step in the strategy process may prove to be beneficial. Hypotheses need to be created and tested to expand the robustness of the model. A following paper will look at the relationships between strategy and OD in international settings.

The next step is the establishment of a time line as illustrated by the chart in Table 5.

REFERENCES

Abel, D., Defining the Business: The Starting Point of Strategic Planning; Prentice-Hall, Englewood Cliffs, N.J., 1980

Chandler, A., Strategy and Structure, MIT Press, Cambridge, Mass, 1962

Cummings, T. and C. Worley, Organization Development and Change, 7th Edition, South-western Publishing, Cincinnati, Ohio, 2001

Grant, R., Contemporary Strategy Analysis, Blackwell, Cambridge, Mass. 1992.

Hanna, N. and H. R. Dodge, Pricing Policies and Procedures, London, MacMillan Press, 1995.

Hill, C. and G. Jones, Strategic Management Theory, 6th. Edition, Houghton Mifflin Company, Boston, 2004

Hunger J. and T. Wheelen, Strategic Management, 5th Edition, Addison Wesley, Reading, Mass. 1996

Johnson, G. and K. Scholes, Exploring Corporate Strategy, 4th Edition, Prentice Hall, London, 1997

Porter, M., Competitive Strategy, Free Press, New York, 1980

Porter, M., Competitive Advantage, Free Press, New York, 1985

Porter, M., "What is Strategy?" Harvard Business Review, 74, #6, Nov-Dec. 1996

Steiner, G. Top Management Planning, MacMillian, London, UK, 1969

Thompson, A. and Strickland, A., Strategic Management: Concepts and Cases, 13th Edition, Irwin 2003

Ralph Haug, Roosevelt University, Schaumburg, Illinois, USA

Alan Krabbenhoft, Roosevelt University, Schaumburg, Illinois, USA

Dr. Ralph Haug earned his Ph.D. in Organizational Studies and Strategic Management at the University of Wisconsin--Milwaukee in 1990. In May 2004 he was named the "Chicago" Professor of Strategic Management and Researcher of the year. Dr. Haug was the first Director of Roosevelt University's EMBA program. His scholarly research is in strategic management formulation and implementation, boards of directors, and Scandinavian organizations.

Dr. Alan G. Krabbenhoft earned his Ph.D. in Economics at Wayne State University in 1997. He is Associate Dean at the Walter E. Heller College of Business Administration. Dr. Krabbenhoft is the author of several journal articles, papers, book chapters, and manuscripts. Most recently, he co-authored with Steve Tippins and Ralph Haug the Economic Impact of the 2002 Breeders Cup World Thoroughbred Championships at Arlington Park.

TABLE 1. OD AND STRATEGIC MANAGEMENT RELATIONSHIPS: BASIC MODEL

                                 STRATEGIC MANAGEMENT PROCESS

                        Strategy
                      Formulation
                      (3 Levels of        Strategy         Strategy
                      Analysis & 5     Implementation     Evaluation
                         Steps)          (8 Steps)        (6 Steps)

OD Interventions

Human Process
(8 Types)

Techno-structural
(7 Types)

Human Resource
Management
(6 Types)

Strategic
(7 Types)

TABLE 2. HYPOTHESIZED OD AND STRATEGY FORMULATION RELATIONSHIPS

                                  STRATEGY FORMULATION

                           Mission,
                         Strategic &
                          Financial
                          Objectives      Industry        Company
                           Analysis       Analysis       Analysis

OD Interventions

Human Process

T-Groups

Process Consultation          X               X              X

3rd Part intervention                         X              X

Team Building                 X               X              X

Organizational
Confrontation

Inter-group Relations

Large Group
Interventions

Grid OD

Techno-structural

Structural Design

Downsizing

Reengineering

Parallel Structures

High Involvement
Organizations

TQM

Work Design

Human Resource
Management

Goal Setting                  X               X              X

Performance
Appraisal

Reward Systems

Career Planning and
Development

Managing Workforce
Diversity

Employee Wellness

Strategic

Open System                   X
Planning

Integrated Strategic
Change

Trans-organizational
Development

M&A Integration

Culture Change

Self-Design
Organization

Organizational
Learning Knowledge
Management

                        Problem/Issue    Alternative    Choice and
                        Identification    Creation     Justification

                          [Choice--       [Choice--      [Choice--
                         Steps #1 &2]     Step #3]     Steps #4 & 5]

OD Interventions

Human Process

T-Groups

Process Consultation          X               X

3rd Part intervention         X               X

Team Building                 X               X              X

Organizational                                               X
Confrontation

Inter-group Relations                                        X

Large Group                                                  X
Interventions

Grid OD

Techno-structural

Structural Design

Downsizing

Reengineering

Parallel Structures

High Involvement
Organizations

TQM

Work Design

Human Resource
Management

Goal Setting                  X               X              X

Performance
Appraisal

Reward Systems

Career Planning and
Development

Managing Workforce
Diversity

Employee Wellness

Strategic

Open System                   X               X              X
Planning

Integrated Strategic
Change

Trans-organizational
Development

M&A Integration

Culture Change

Self-Design
Organization

Organizational
Learning Knowledge
Management

TABLE 3. HYPOTHESIZED OD AND STRATEGY IMPLEMENTATION RELATIONSHIPS

                                    STRATEGY IMPLEMENTATION

                          Org.
                       Structure/
                      Key People &                            Best
                       Positions/                           Practices
                          Core                 Policies &    Bench-
                      Competencies    Budge    Procedure     marking

OD Interventions

Human Process

T-Groups

Process Consult.

3rd Party Inter.

Team Building                           X

Org.
Confrontation

Inter-group Rel.

L. Group Inter.

Grid OD

Techno-structural

Structural Design          X

Downsizing                 X

Re-Engineering             X

Parallel Structures

Hi Involve. Org.

TQM                                                             X

Work Design                X                                    X

H R Management

Goal Setting                            X          X

Perf. Appraisal

Reward Systems

Career                     X                       X
Plan/bevel.

Managing                   X
Wrkforce Diversity

Employee
Wellness

Strategic

Open System
Planning

Int. Strat. Change

Trans-org. Devel.

M&A Integration

Culture Change

Self-Design
Organization

Org. Learning
Knowledge Mgmt

                                                              Org.
                        Support      Reward    Leadership   Cultural
                         System      Systems     Styles      Changes

OD Interventions

Human Process

T-Groups

Process Consult.           X

3rd Party Inter.           X

Team Building              X

Org.
Confrontation

Inter-group Rel.           X

L. Group Inter.

Grid OD                    X                                    X

Techno-structural

Structural Design

Downsizing

Re-Engineering

Parallel Structures

Hi Involve. Org.

TQM

Work Design

H R Management

Goal Setting               X            X          X

Perf. Appraisal            X            X

Reward Systems             X            X          X

Career                                             X
Plan/bevel.

Managing                   X
Wrkforce Diversity

Employee
Wellness

Strategic

Open System
Planning

Int. Strat. Change

Trans-org. Devel.

M&A Integration

Culture Change                                     X            X

Self-Design                                        X            X
Organization

Org. Learning                                                   X
Knowledge Mgmt

TABLE 4. HYPOTHESIZED OD AND STRATEGY EVALUATION RELATIONSHIPS

                                         STRATEGY EVALUATION

                            Strategic &
                             Financial                   Competitive
                             Standards       Timeline     Advantage

OD Intervention

Human Process

T-Groups

Process Consultation             X

3rd Party Intervention           X

Team Building                    X

Organizational
Confrontation

Inter-group Relations            X

Large Group                      X
Interventions

Grid OD

Techno-structural

Structural Design                                             X

Downsizing

Reengineering

Parallel Structures

High Involvement                                              X
Organizations

TQM

Work Design

Human Resource Mgmt.

Goal Setting                     X

Performance Appraisal

Reward Systems

Career Planning and                                           X
Development

Managing Workforce
Diversity

Employee Wellness

Strategic

Open System Planning                                          X

Integrated Strategic                                          X
Change

Trans-organizational                                          X
Development

M&A Integration                                               X

Culture Change                                                X

Self-Design Organization                                      X

Organizational Learning                                       X
Knowledge Management

                           Sustainability    Special
                           of Competitive   Issues and
                             Advantage       Problems

OD Intervention

Human Process

T-Groups

Process Consultation

3rd Party Intervention

Team Building

Organizational
Confrontation

Inter-group Relations

Large Group
Interventions

Grid OD

Techno-structural

Structural Design                X

Downsizing

Reengineering

Parallel Structures

High Involvement                 X
Organizations

TQM

Work Design

Human Resource Mgmt.

Goal Setting

Performance Appraisal

Reward Systems

Career Planning and              X
Development

Managing Workforce
Diversity

Employee Wellness

Strategic

Open System Planning             X

Integrated Strategic             X
Change

Trans-organizational             X
Development

M&A Integration                  X

Culture Change                   X

Self-Design Organization         X

Organizational Learning          X
Knowledge Management

TABLE 5. STRATEGIC MANAGEMENT TIMELINE

                         YEAR 1                  YEAR 2

                  Q1    Q2    Q3    Q4    Q1    Q2    Q3    Q4

Strategic
Processes

Building and      X     X
Organization

Budget            X                       X

Policies and      X     X
Procedures

Benchmarking      X     X
Best Practices

Design Support    X     X
Systems

Design Reward     X     X
Systems

Old and New                   X     X     X     X     X     X
Culture

Leadership        X     X     X     X     X     X     X     X
Practices

Financial
Objectives

Sales Growth      X     X     X     X     X     X     X     X

                  X     X     X     X     X     X     X     X

Return on         X     X     X     X     X     X     X     X
Sales

Strategic
Objectives

Increase          X           X           X           X
pounds of
production

Increase          X           X           X           X
capacity usage

Increase          X           X           X           X
market share

                         YEAR 3

                  Q1    Q2    Q3    Q4

Strategic
Processes

Building and
Organization

Budget            X

Policies and
Procedures

Benchmarking
Best Practices

Design Support
Systems

Design Reward
Systems

Old and New       X     X     X     X
Culture

Leadership        X     X     X     X
Practices

Financial
Objectives

Sales Growth      X     X     X     X

                  X     X     X     X

Return on         X     X     X     X
Sales

Strategic
Objectives

Increase          X           X
pounds of
production

Increase          X           X
capacity usage

Increase          X           X
market share

Note: Parts of this model have appeared in Global and International
Organization Development, 3rd Ed., Sorensen, P. et al., Stipes
Publishing, Champaign, Illinois, 2001