Organizational Development

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RUNNING HEAD: Organizational Development

The Importance of Organizational Development

BUS 370: Organizational Development

Instructor: Ryan Goulding

September 5th, 2012

RUNNING HEAD: Organizational Development

John F. Kennedy was quoted as saying “Change is the law of life, and those who look only to the past or present are certain to miss the future.” The world is in a constant state of motion. No one should expect things to always stay the same. Organizations require technologies and human resources in order to operate. A business needs to operate by learning from the past and planning for the future. Since, the economic collapse of 2008, the idea that any company is ‘too big to fail’ has been thrown out the proverbial ‘business window’. Business is now practiced in a global market and technologies have made the world a smaller place. “Managers and their organizations must anticipate the future and become proactive players.” (Brown, D.R., 2011, part 1.) Consider companies like Blockbuster Video. The demise of Blockbuster proves that leadership did not look to the future. This company considered itself to be the standard. Where is Blockbuster now? Instead of being an industry leader, it is trying to regain its footing in a marketplace it once dominated. Why? Blockbuster failed to take its competitors seriously. It did not consider technology surpassing the company’s own perception of practicing business. “In 2002 (Blockbuster) had 8,000 stores and a market value of $3 billion. Today, movie-by-mail Netflix is worth nearly three times that much. And Blockbuster is broke.” (Gandell, S., 2010, paragraph 19.) Successful companies are looking to the future as they learn from the past and present. Organizations that are successful will operate without ego, effectively communicate throughout the organization, and constantly reinvent themselves. Organizations need to be in constant development in order to move forward with any success. In this paper, I intend to define the importance of organizational development as it relates to my own company’s recent sale to a new group of owners. I intend to define organizational development as it relates to organizational trust, a strong practitioner-client relationship, the imperative nature of the diagnostic phase, effective communication between ownership and employees, and the importance of strategy as it relates to a successful transfer of ownership and culture to an organization.

Organizations need to know when organizational development is necessary. I am a Managing Partner in the restaurant business. I currently have about 50 employees that I am responsible for. Recently, the restaurant I am running was sold to a South African group of owners. The owners actually bought two restaurants from the local restaurant group I was working for. After studying the Charlotte market and other markets throughout this great country of ours, the South African owners decided that RUNNING HEAD: Organizational Development

Charlotte, NC would give them the best opportunity to grow a restaurant chain. The owners currently have over 150 restaurants in South Africa and this is their first venture into the United States.

Once the sale became final, the owners began to evaluate all the current systems and business practices of the restaurants. The new owners began to re-develop the organization by defining its existing and future organizational identity. The owners sat down with staff and management to get an understanding of what the restaurants meant to each staff member. “The identity will provide an advantage if it is well aligned with the organizational strategy and well suited to the market niche, because identities tend to be socially complex and path dependent, and therefore difficult to imitate.” (Salgado, S.R., 2003, page 65.) The owners became the practitioners of change by purchasing the restaurants.

After the sale became...
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