AIM Newsletter - Fall 2004

WHAT’S NEXT? TRANSFORMATION,
INNOVATION AND NEXT GENERATION OD:
FROM AGENT OF CHANGE TO AGENT OF CONNECTION
Yael S. Zofi, President and CEO, and Keren R. Hillman, Consultant
AIM Strategies®, Applied Innovative Management®

Session Overview: The session draws on the experience of AIM Strategies^®, in their quest to define the future role of the OD Consultant. It will address the changing nature of our field, as participants review the OD Generations Chart (Past and Present Theories, Practices and Applications), engage in an experiential exercise to delve into forecasting, “What’s Next”, and, finally, consider OD from the perspective of 2024. Session format will include an interactive dialogue and group discussion to explore how we facilitate innovation and connection in the rapid world of tomorrow. After looking into research around the changing nature of the global business environment, organizational leaders and the role of OD, participants will explore the transformation of the OD consultant – from Agent of Change to Agent of Innovation and Connection!

Introduction: Recent world events have underscored the importance of adaptability. The OD discipline is uniquely equipped to deal with the challenge of helping organizations function in an environment characterized by constant transformation. While access to and transfer of knowledge is instantaneous, it is the OD professional who enables the social life of this knowledge.

What? - The Challenge
The world is increasingly complex and uncertain, as ‘more, better, faster’ has become a common refrain. The future is arriving more quickly than anyone would have predicted, sending tremors throughout organizational life. Here are some selected trends that are changing the world, as we know it.

Globalization – an unstoppable force

Globalization in this Information Age is seen as the most progressive global movement since the Industrial Revolution. The Internet has enabled this "Global Village" to be truly "connected" 24/7, with technology and ideas spreading at an unprecedented pace.
The political reality of the global market is the explosion of capitalism and a free market economy. In the last 10 years the growth of capitalism has created three billion new capitalists due to changes in the Russian Republics, China, India and large parts of Africa.

Security Alert! - safety is now an issue in the workplace.

In the post 9/11 world people are looking to their government and employers to provide a safer work environment.

The well being of the environment is no longer taken for granted.

Global environmental concerns range from local pollution to global warming.

The shortage of water is probably going to be the most serious resource problem that the world will face in twenty years. Today, over 80 countries experience water shortages of some type. Will we see wars over water instead of wars over oil?

Biogenetics cannot be ignored - it threatens to forever genetically alter the human species and expand our life expectancies. Such technologies as Traneugenics, using animals for human organ banks and genetic screening that identifies potential predisposition to certain illnesses, will create longer life expectancies. World demographics show dramatic shifts.

The world population is changing. In the 1950’s a third of humankind lived in the developed world. Now less than 25% do. By 2024 less then one fifth will.

The developed world is growing older, with a slowing population growth. Throughout the developed world, the number of people over 65 will rise 60% by the year 2025.

By 2050, the white population of the US may not be a majority. Hispanics are expected to make up 25% of the population, Asians 10% and African-Americans 16%.

The dominance of technology.

A new generation of airplanes are projected to reduce flying times by at least 25%.

With computers that recognize human speech and software programs that convert text from one language to another, we are not far from simultaneous audible language translation.

Information technology will create “Pervasive Knowledge Network”: anytime anyplace access to voice or video communication, Internet or network computer access and entertainment. By the year 2015, 50% of employees will perform their jobs at least partially from remote locations by telecommuting.

As virtual reality (VR) techniques improve, ultimately the individual will the physical presence of others if the simulation experience is real enough. Less and less dependence on physical needs comes with increasing technology.

By the year 2050, sophisticated robots that have sensory input will make decisions, have the ability to learn and be mobile, will become commercially available. Current State: Developed and Developing World

It is common to hear people refer to our ‘shrinking’ world as a ‘global neighborhood’. However, it is equally true that there are vast differences across national boundaries in how people live and work as can be seen by comparing and contrasting characteristics of the ‘developed’ and ‘developing’ worlds as per the following chart:

Developed World – nations that have achieved a higher degree of industrialization and tend to enjoy the higher standard of living, which wealth and technology make possible.

Not externally dependent – can manufacture locally if choose to do so

Substantial dependence on knowledge and information

Generally, no special treatments around trading agreements and commitments

The workforce is shrinking; the number of people over 65 will rise 60% by 2025

Higher level of productivity

Higher level of job satisfaction

2% economic growth in the 21C

Trying to minimize environmental pollution.

Low tolerance of disorder anti-social or unconventional behavior. Therefore, greater acceptance of authority

Developing World - nations have not achieved a significant degree of industrialization relative to their populations and tend to have a lower standard of living.

External dependence – primarily export to the developed world

Substantial dependence on agricultural production

Special treatment - World Trade Organization (WTO) agreements give developing countries special rights. For example, longer time periods for implementing commitments and measures to increase trading opportunities

Workforce is growing; over the next 10 years, urban population will increase by 90%

Lower levels of productivity

Lower levels of job satisfaction

4-7% economic growth in the 21C

Developing world awash in terrifying environmental dangers

Enormous domestic problems of governance, ethnic tension, corruption, and labor unrest

So What? - The Impact: The world continues to evolve into a free market environment, eventually resulting in one big market, with all of us acting as players in that market. As these dramatic shifts occur in the global landscape, organizations will find themselves functioning in one interlocking system, sharing resources, labor markets and consumers. In addition, ongoing improvements in technology will further decrease boundaries. Already, one can sit anywhere and communicate instantly anytime and anyplace in the world. Imagine having a plasma screen (connected to the phone or computer) facilitating virtual meetings with global colleagues.

Think of our world as a system comprised of inputs and outputs across boundaries, constantly interacting with each other in a dynamic process that stimulates (or yields) value. With this perspective, thinking locally is no longer an option. One can also think of an organization as a system comprised of interacting elements (people, business functions, etc.) that acquires inputs (raw materials, knowledge) from its environment and transforms them into marketable outputs (products / services), which are discharged into the external environment. Therefore, the world can be depicted as an organization. The following visual illustrates this concept:

Globalization has impacted our current business environment and will continue to do so. With outsourcing and offshoring, many manufacturers have migrated production to facilities in the developing world, just as service providers have done likewise with their customer support function. These developments have brought new job opportunities to the developing world, where labor cost is low, and at the same time will lead to redeployment of labor and reduced costs in the developed world – benefiting both parties. Increasingly, Americans (and their counterparts in other developed nations) are afraid, as they perceive their own job functions becoming marginalized. However, some argue that these trends will not mean fewer jobs in the developed world, but rather that many jobs will be created that involve innovation and strategic management where the knowledge is centered.

Welcome to The 21^st Century (21C)

A typical 21C organization will be boundaryless, its reach extending into different countries and cultures, all connected through a complex web of technology. A typical 21C employee will be nimble, able to function in non-linear ways as noted below:

Characteristics of the 21C Organization

Global/Multi-national
Virtual
Creative web
Customized (environment, society, its employees and clients)
Values based
Dehumanized
Flat
Flexible
Diverse
Innovative
Technical oriented
Supports the desire for work-life balance
Characteristics of 21C Employees

Multi-lingual
Effective communicators
Proactive
Mission oriented
Adaptable to change
Values based
Individualistic
Team-oriented
Flexible
Diverse
More creative
Technical oriented
Searching for work-life balance

Now What? – The Result … Innovation
The dramatic shifts in the global economic landscape are forcing organizations and people to become significantly more innovative. As legendary GE chairman Jack Welch said in many different ways, the only sustainable competitive advantage is to innovate and change faster than the fastest competitors – just as a race car driver who goes the fastest is the most talented driver in the fastest vehicle. (Organization 21C, page 1 / J. Welch and J.A. Byrne, Jack: Straight from the Guts, New York: Warner Books, 2001) Extending Jack Welch’s metaphor, as an organization travels along the road of competition, its leader must successfully juggle many factors.

1. Characteristics of the NEW 21C Leader: Leadership propels organizations along these roads of hairpin turns and blind curves that extend further and further out from core business. Being a global leader is no longer an option – it’s a requirement for maintaining a strong and secure place in the market. The role of the 21C leader will be to encourage – and practice - innovation as a lynchpin of competitive advantage. Guiding organizations to achieve effectiveness will require leaders with new characteristics. Those who are going to be the innovators are going to be the leaders. This may be a paradigm shift and requires new leadership roles.

We believe that successful 21C leaders will exhibit a combination of these six leadership roles - Vista-Leader, Innova-Leader, Adapta-Leader, Collabo-Leader, Communi-Leader and Edu-Leader – as described on the following page:

NEW 21C Leader:

Vista Leader - (Futurist)

Visionary - anticipates the future organizational challenges
Envisions organizational / team direction – vision from the top
Inspires others to action
Foresees, anticipates the landscape of the future
Provides direction; manages forward
Has the courage to be true to his/her own values
RESULT: Improves organizational effectiveness

Innova Leader – (Innovative)

Always operates from innovation – it’s a frame of mind
Produces competitive advantage through productive creativity
Creates chaos to get to better ideas
Forms protected ‘hot houses’ (temporary conceptualization monopolies) to ensure competitive advantage
Shapes the organizational culture / structure / processes and benefits to support innovation
Consistently reinvents him/herself
RESULT: Encourages innovation, creative thinking and imagination

Adapta-Leader (Responsive)

Multi-dimensional, capable of looking forward, backwards, and sideways
Presides over endings and beginnings
Manages (dual) opposite forces
Monitors paradoxes (not controls them) to create organizational tension and respond
Is fast and flexible
RESULT: Responds to organizational challenges and sustains the organization Collabo-Leader – (Relating)
Is a great people manager - relates to people and find out what is going on in the organization
Manages diversity and cross-cultural differences
Facilitates teamwork –From “Me to We”
Creates alliances, partnerships, group efforts, associations, cooperations
Maintains and builds collaborative relationships
RESULT: Enhances collaboration and creates a community

Communi-Leader – (Sharing)

Opens up channels of communication
From information gathering to information sharing
Creates the dialogue – coaches the conversation
Technology doesn’t replace the need for human interaction – the medium might change but conversation content remains
RESULT: Enhances internal communication Edu-Leader – (Development)
Develops people, teaching, learning, training, skills, career paths
Provides guidance - guide/training, facilitates growth
Manages talent
Gives/receives feedback
Enables cross training
RESULT: Talent transfer

2. Characteristics of the NEW 21C Consultant:
We believe that in the next twenty years the role of the OD consultant will change from Agent of Change to Agent of Connection, as organizations that survived the early years of 21C will have undergone fundamental changes and overcome the ongoing pressures of global competition. While leaders have always faced organizational challenges, never has a broader understanding of the World as an Organization been more essential and the role of the leader as the Agent of Innovation as critical. The next generation OD needs to focus on innovation and connection in the workplace. As technology fragments human connections, OD must focus on re-humanizing them. Therefore, the future OD consultant will BE the Connection. We will further explore this concept at the session in Puerto Rico.