PRACTICING ORGANIZATION DEVELOPMENT, THIRD EDITION

Building on its reputation as the most practical, comprehensive, useful, and clearly written handbook on organization development (OD), this new edition of Practicing Organization Development has been thoroughly revised updated to refl ect the most recent developments in the fi eld. With contributions from leading OD practitioners and scholars, the book includes a review of the core elements of OD that offers new information on a variety of topics such as leadership transformation and development, questions of inquiry, multi-level strategic change, global compact, positive states of organizing, and OD’s role in creating a structure of belonging.

Praise for the Third Edition of Practicing Organization Development“Nowadays a good roadmap is needed to navigate all the roads and this book does a great job of telling the reader of the variety of destinations that can be reached and how to reach them . . . .this book is as complete a compendium on what OD is and can be as is currently available.”

—Dr. Edgar H. Schein, Sloan Fellows Professor of Management Emeritus, MIT Sloan School of Management

PRACTICING ORGANIZATION DEVELOPMENT

W I L L I A M J . R O T H W E L L

J A C Q U E L I N E M . S T A V R O S

R O L A N D L . S U L L I V A N

A R I E L L E S U L L I V A NE D I T O R S

A G U I D E F O R L E A D I N G C H A N G E

T H I R D E D I T I O NP

RA

CT

ICIN

G O

RG

AN

IZA

TIO

N D

EV

EL

OP

ME

NT

A G

UID

E F

OR

LE

AD

ING

CH

AN

GE

RO

TH

WE

LL

• S

TA

VR

OS

• S

UL

LIV

AN

• S

UL

LIV

AN

Essential resources for training and HR professionalsEssential resources for training and HR professionals

Register at www.pfeiffer.com/go/practiceod

for more information on our publications,authors, and to receive special offers.

ORGANIZATION DEVELOPMENT

www.pfeiff er.comJoin Us atPfeiffer.com

William J. Rothwell is professor of human resource development of Learning and Performance Systems on the University Park campus of The Pennsylvania State Univer-sity. He is author and editor of more than 60 books, including the bestselling Mastering the Instructional Design Process from Pfeiffer.

Jacqueline M. Stavros is an associate professor for College of Management, Lawrence Technological University, where she teaches OD and change in graduate and doctorate programs. She is author and editor of more than 40 articles and books on Apprecia-tive Inquiry, Sustainability, and Thin Book of SOAR: Building Strengths-Based Strategy.

Roland L. Sullivan is founder of Sullivan Transformation Agents for more than 40 years he has guided change processes around the world in virtually every major industry. He is known for Whole System Transformation™.

Arielle Sullivan with a passion for change, studies Global Business at the University of Iowa.

T H E E D I T O R S

c01.indd 10c01.indd 10 8/27/09 4:19:59 PM8/27/09 4:19:59 PM

About This Book

Why is this topic important?Organization development (OD) is about planned change. As change has turned into the only constant, many managers and other people are pursuing change strategies with vigor. OD is a major strategy with a process for leading and managing change at the individual, group, intergroup, organizational, inter-organizational, and large sys-tems levels. This book is about what it takes to be an effective change manager, change leader, and OD practitioner.

What can you achieve with this book?Simply stated, this book provides everything you need to think through on how to function as a competent OD professional.

How is this book organized?The book is organized into fi ve parts. Part One consists of Chapters One through Seven and is entitled “Foundations.” It includes information on key terms and defi nitions, models, origins of OD, practitioner competencies, mindful leadership, and post- modern OD: Appreciative Inquiry. Part Two consists of Chapters Eight through Twelve and is entitled “OD Process to Guide Change.” This section covers marketing, pre-launch, launch, implementation, evaluation, and separation. Part Three consists of Chapters Thirteen through Eighteen and is entitled “Levels and Types of Change.” In it we discuss the issue of organization culture and interventions across various levels: individual, team, large systems, whole system, and inter-level. Part Four addresses “Special Issues in OD”: global OD, positive states of organizing, sustainability, organization design, mergers and acquisitions, values, ethics, human systems dynamics, technology, trans-formational learning journeys, strategic change and fi tness, HR-OD audits, Gestalt theory and approach, whole system transformation, and other issues. The book concludes with Part Five: “The Future of Organization Development,” with insights from our contributors, the movement toward dialogic OD, and the role of the OD practitioner. The book’s website offers a variety of supplementary information, including a self-assessment tool for OD competencies, reproducible slides, podcasts, articles to support chapters, syllabi, and resource lists.

ffirs.indd iffirs.indd i 8/27/09 11:23:16 AM8/27/09 11:23:16 AM

About PfeifferPfeiffer serves the professional development and hands-on resource needs of training and human resource practitioners and gives them products to do their jobs better. We deliver proven ideas and solutions from experts in HR development and HR manage-ment, and we offer effective and customizable tools to improve workplace perform-ance. From novice to seasoned professional, Pfeiffer is the source you can trust to make yourself and your organization more successful.

Essential Knowledge Pfeiffer produces insightful, practical, and comprehensive materials on topics that matter the most to training and HR

professionals. Our Essential Knowledge resources translate the expertise of seasoned professionals into practical, how-to guidance on critical workplace issues and prob-lems. These resources are supported by case studies, worksheets, and job aids and are frequently supplemented with CD-ROMs, websites, and other means of making the content easier to read, understand, and use.

Essential Tools Pfeiffer’s Essential Tools resources save time and expense by offering proven, ready-to-use materials—including exercises, activities,

games, instru ments, and assessments—for use during a training or team-learning event. These resources are frequently offered in looseleaf or CD-ROM format to facilitate copying and customization of the material. Pfeiffer also recognizes the remarkable power of new technologies in expanding the reach and effectiveness of training. While e-hype has often created whizbang solu-tions in search of a problem, we are dedicated to bringing convenience and enhance-ments to proven training solutions. All our e-tools comply with rigorous functionality standards. The most appropriate technology wrapped around essential content yields the perfect solution for today’s on-the-go trainers and human resource professionals.

w w w. p f e i f f e r . c o m Essential resources for training and HR professionals

ffirs.indd iiffirs.indd ii 8/27/09 11:23:17 AM8/27/09 11:23:17 AM

William J. Rothwell dedicates this book to his beloved wife Marcelina, his daughter Candy, his son Froilan, and his grandson Aden.

Jacqueline M. Stavros dedicates this book to her husband Paul, her children Ally and Adam, and her parents, students, and mentors David Cooperrider,

Dan Saint, Jane Seiling, and Jane Watkins, who unconditionally support and provide guidance.

Roland Sullivan dedicates this book to his brother, Thomas, and centric mentors: Dr. Sivananda of Rishikesh, Dr. Jack Gibb, Richard Beckhard, Dr. Bob

Tannenbaum, Ms. Kathleen Dannemiler, and Dr. David Cooperrider.

ffirs.indd iiiffirs.indd iii 8/27/09 11:23:18 AM8/27/09 11:23:18 AM

FREEPremium ContentP

This book includes premium content that can be accessed from our Web site when you register atwww.pfeiffer.com/go/practiceod using the password professional.

ffirs.indd ivffirs.indd iv 8/27/09 11:23:18 AM8/27/09 11:23:18 AM

∂ ∂

Practicing Organization Development

A Guide for Leading ChangeA Third Edition

Edited byWilliam J. Rothwell

Jacqueline M. StavrosRoland L. Sullivan

Arielle Sullivan

ffirs.indd vffirs.indd v 8/27/09 11:23:19 AM8/27/09 11:23:19 AM

Copyright © 2010 by John Wiley and Sons, Inc. All Rights Reserved.

Published by PfeifferAn Imprint of Wiley989 Market Street, San Francisco, CA 94103-1741www.pfeiffer.com

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifi cally disclaim any implied warranties of merchantability or fi tness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profi t or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Readers should be aware that Internet websites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read.

For additional copies/bulk purchases of this book in the U.S. please contact 800-274-4434.

Pfeiffer books and products are available through most bookstores.To contact Pfeiffer directly call our Customer Care Department within the U.S. at 800-274-4434, outside the U.S. at 317-572-3985, fax 317-572-4002,or visit www.pfeiffer.com.

Pfeiffer also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.

Library of Congress Cataloging-in-Publication Data Practicing organization development: a guide for leading change / edited by William J. Rothwell ... [et al.]. — 3rd ed. p. cm. Includes bibliographical references and index.Summary: “Completely revised, this new edition of the classic book offers contributions from experts in the fi eld (Warner Burke, Chris Worley, David Jamieson, Kim Cameron, Michael Beer, Edgar Schein, Gibb Dyer, and) and provides a road map through each episode of change facilitation. This updated edition features new chapters on positive change, leadership transformation, sustainability, and globalization. In addition, it includes exhibits, activities, instruments, and case studies, as well as an instructor’s guide and supplemental materials on accompanying Website. This resource is written for OD practitioners, consultants, and scholars”—Provided by publisher. ISBN 978-0-470-40544-4 (hardback) 1. Organizational change—Management. 2. Business consultants—Handbooks, manuals, etc. I. Rothwell, William J. HD58.8.P7 2010 658.4'063—dc22

2009027721

Acquiring Editor: Matthew Davis Editorial Assistant: Lindsay MortonDirector of Development: Kathleen Manufacturing Supervisor: Becky Morgan Dolan DaviesProduction Editor: Dawn KilgoreEditor: Rebecca Taff

Printed in the United States of AmericaPrinting 10 9 8 7 6 5 4 3 2 1

ffirs.indd viffirs.indd vi 8/27/09 11:23:19 AM8/27/09 11:23:19 AM

CONTENTS

List of Figures, Tables, and Exhibits xiAcknowledgments xvForeword xviiIntroduction 1

PART ONE: FOUNDATIONS 9

1. Organization Development and Change 11William J. Rothwell, Jacqueline M. Stavros, and Roland L. Sullivan

2. Change Process and Models 43William J. Rothwell and Roland L. Sullivan

3. On the Shoulders of Giants: The Origins of OD 71John J. Scherer and Billie T. Alban

4. Building Convergence Between Human Resource Management and OD 94William J. Rothwell

5. Competencies of OD Practitioners 107Christopher G. Worley, William J. Rothwell, and Roland L. Sullivan

6. Mindful Leadership Development: Assessing Self for Leading Change 136Jacqueline M. Stavros and Jane Galloway Seiling

vii

∂ ∂

ftoc.indd viiftoc.indd vii 8/27/09 11:24:22 AM8/27/09 11:24:22 AM

7. Appreciative Inquiry: OD in the Post-Modern Age 158Jane Magruder Watkins and Jacqueline M. Stavros

PART TWO: OD PROCESS TO GUIDE CHANGE 183

8. Entry: Marketing and Positioning OD 185Alan Weiss

9. Front-End Work: Effectively Engaging with the Client System 204David W. Jamieson

10. Launch: Assessment, Action Planning, and Implementation 234D.D. Warrick

11. Situational Evaluation 269Steven H. Cady, Julie Auger, and Marguerite Foxon

12. Closure: Freeing Up Energy to Move Forward 287Ann M. Van Eron and W. Warner Burke

PART THREE: LEVELS AND TYPES OF CHANGE 299

13. Taking Organization Culture Seriously 301Edgar Schein

14. Individual Development in OD: Human-Centric Interventions 312Udai Pareek, Lynnea Brinkerhoff, John J. Scherer, and Rick Flath

15. Team Building and the Four Cs of Team Performance 329W. Gibb Dyer and Jeffrey H. Dyer

16. Interventions in Large Systems 345Thomas G. Cummings and Ann E. Feyerherm

17. Whole System Change: What It Is and Why It Matters 363Emily Axelrod, Steven H. Cady, and Peggy Holman

18. SOAR: Linking Strategy and OD to Sustainable Performance 377Jacqueline M. Stavros and Daniel K. Saint

PART FOUR: SPECIAL ISSUES IN OD 395

19. Positive Organizational Change: What the Field of POS Offers to OD Practitioners 397David S. Bright and Kim Cameron

viii CONTENTS

ftoc.indd viiiftoc.indd viii 8/27/09 11:24:23 AM8/27/09 11:24:23 AM

20. Systemic SustainabilitySM: Moving Sustainabilityfrom Ideas to Action 411Mona A. Amodeo and C. Keith Cox

21. The Global OD Consultant 425Therese F. Yaeger, Peter F. Sorensen, Perla Rizalina M. Tayko,

and Eric Gaynor- Butterfi eld

22. Inclusion: The HOW for Organizational Breakthrough 436Judith H. Katz and Frederick A. Miller

23. Organization Design 446Amy Kates

24. The OD Role in Making Mergers and Acquisitions Work 457Mitchell Lee Marks and Philip H. Mirvis

25. Human Systems Dynamics: Competencies for aNew Organizational Practice 465Glenda H. Eoyang

26. Seeing and Infl uencing Self-Organization 476Kristine Quade and Royce Holladay

27. Values, Ethics, and Expanding the Practice of OD 492William Gellermann and Terri Egan

28. Technologies to Support Interactive and Connective OD in a Virtual World 502Richard G. Bush and S. Alan McCord

29. Transformational Learning Journeys: Seeing Is Believing 516Philip H. Mirvis

30. The Personhood of the OD Practitioner 527Saul Eisen

31. The Organizational Fitness Process: A System-Wide Alignment 535Michael Beer

32. Context Blindness: What We Don’t See Will Hurt Us 546Barry Oshry

33. Transforming the HR-OD Audit by Using Whole Systems 555T.V. Rao

34. Emergence: The Gestalt Approach to Change 561Herb Stevenson

CONTENTS ix

ftoc.indd ixftoc.indd ix 8/27/09 11:24:23 AM8/27/09 11:24:23 AM

x CONTENTS

35. Practicing Internal OD 568Alan Weiss

36. Estimating OD Success Rates at the National Level 577Robert T. Golembiewski

37. Four Risk Factors of the Unexamined Life: Be-Know-Do 588Peter Koestenbaum

38. Whole System Transformation: Becoming Dramatically Different 594Jennifer Todd, John Parker, and Arielle Sullivan

39. The Keys to Building a Transformative OD Practice: An Interview with Edie Seashore 608Gina Lavery and Tracey Wik

PART FIVE: THE FUTURE OF ORGANIZATION DEVELOPMENT 615

40. Dialogic OD: Turning Away from Diagnosis 617Gervase R. Bushe

41. Valuable Insights on OD from the Contributors 624D.D. Warrick

42. The Shifting Field of OD Practice 634Jane Magruder Watkins

Guest Essay: Soular Power 639Angé Wayne

About the Editors 642

About the Contributors 645

Subject Index 665

Name Index 677

ftoc.indd xftoc.indd x 8/27/09 11:24:24 AM8/27/09 11:24:24 AM

LIST OF FIGURES, TABLES, AND EXHIBITS

FiguresFigure 1.1. A Model of a SystemFigure 2.1. The Traditional Action Research ModelFigure 2.2. AI 4-D ModelFigure 2.3. A New View of the Action Research ModelFigure 2.4. Sullivan/Rothwell Change Process ModelFigure 2.5. Three Models of the Change ProcessFigure 3.1. Origins of OD Time-LineFigure 6.1. Key Attributes for Leading ChangeFigure 7.1. The Structure of AIFigure 7.2. AI 4-D ModelFigure 7.3. AI 5-D ModelFigure 8.1. Three Areas and Four Conditions for Value Figure 8.2. The “Gravity” Concept of Marketing OD ServicesFigure 8.3. Conceptual Agreement as the Key to Closing New BusinessFigure 10.1. The Planned Change ProcessFigure 11.1. The Paradox of Competing Demands in EvaluationFigure 11.2. Four Evaluation StrategiesFigure 11.3. A Situational Evaluation Model for Assessing InterventionsFigure 11.4. The Evaluation CycleFigure 14.1. The Four Quadrants—Arenas of DevelopmentFigure 14.2. From Me to WeFigure 14.3. Polarity Management Map

∂ ∂

xi

fbetw.indd xifbetw.indd xi 8/27/09 11:22:24 AM8/27/09 11:22:24 AM

xii LIST OF FIGURES, TABLES, AND EXHIBITS

Figure 14.4. Skill Level PyramidFigure 15.1. The Four Cs of Team PerformanceFigure 16.1. Model of a Large System OrganizationFigure 17.1. Acting from HabitFigure 17.2. Acting from CertaintyFigure 17.3. Acting from InquiryFigure 17.4. The Cycle of MasteryFigure 18.1. SOAR Framework and 5-I ApproachFigure 18.2. GLR SOAR Interview GuideFigure 18.3. SOAR MatrixFigure 18.4. Strengths, Opportunities, Aspirations, and ResultsFigure 19.1. Differences in States of Organization and the Dynamics

of ChangeFigure 20.1. Systemic Sustainability Change FrameworkFigure 22.1. KJCG Methodology for Transformation Figure 23.1. From Strategy to OrganizationFigure 23.2. The Star ModelFigure 23.3. The Organization Design ProcessFigure 26.1. Semi-Autonomous AgentsFigure 26.2. Interact in Interdependent WaysFigure 26.3. Forming System-Wide PatternsFigure 26.4. Patterns Reinforce Interactions of AgentsFigure 26.5. The Landscape DiagramFigure 26.6. Landscape ConstraintsFigure 30.1. A Model of Self-As-InstrumentFigure 30.2. The Johari WindowFigure 31.1. The Organizational Fitness ModelFigure 31.2. The Silent Killer SyndromeFigure 31.3. The Strategic Fitness Process (SFP)Figure 31.4. The Fishbowl: Building the Mandate for ChangeFigure 31.5. The Strategic Fitness Process: Iterative Advocacy and InquiryFigure 31.6. Examples of SFP Fundamental Changes Figure 32.1. Structure of the Organizational SimulationFigure 32.2. Dora as Top in a Context of Complexity and AccountabilityFigure 32.3. Dora as Bottom in a Context of VulnerabilityFigure 32.4. Dora in the Middle Tearing ContextFigure 32.5. Dora in the Customer Context of NeglectFigure 32.6. Sam Interacting with Top Living in a World of Complexity

and AccountabilityFigure 32.7. Sam Interacting with Bottom Living in a Context of

Vulnerability

fbetw.indd xiifbetw.indd xii 8/27/09 11:22:24 AM8/27/09 11:22:24 AM

LIST OF FIGURES, TABLES, AND EXHIBITS xiii

Figure 32.8. Sam Interacting with Middle Living in a Tearing ContextFigure 32.9. Sam Interacting with Customer Living in a Context of NeglectFigure 38.1. Whole System TransformationFigure 38.2. The Roles Consultants BalanceFigure 38.3. Six Bold Steps

TablesTable 5.1. Section-by-Section ResultsTable 5.2. Pooled-Item Analysis ResultsTable 5.3. Comparison of Competency ClustersTable 5.4. Comparison of Final Competencies with Other Competency

StudiesTable 6.1. Values ListingTable 6.2. Leadership Competencies to Effectively Lead ChangeTable 7.1. Paradigm 1: Traditional OD & Paradigm 2: Post Modern ODTable 7.2. Comparison of Action Research: OD and AI Assumptions

and ProcessesTable 11.1. Quantitative and Qualitative Evaluation ExamplesTable 14.1. Array of ID InterventionsTable 14.2. Checklist for Offering Feedback EffectivelyTable 18.1. Selected Examples of SOAR ApplicationsTable 18.2. Change in Relative PositionTable 20.1. Sample Activities in the Innovating and Integrating PhaseTable 26.1. CDE Identifi cation ExamplesTable 26.2. Shifting ConditionsTable 26.3. Summary of Common CDE InterventionsTable 29.1. Journey Design TemplateTable 34.1. Core Assumptions of Gestalt OD Theory for Individuals and

OrganizationsTable 36.1. Selective Features of Collections of Evaluations of OD

Applications, Through 1985Table 36.2. Geographic Loci of Mature OD Applications, in PercentTable 36.3. Success Rates, Public Versus Business Sector OD

Applications in Western Countries, Dominantly U.S.

ExhibitsExhibit 1.1. Characteristics of Likert’s Four Types of OrganizationsExhibit 2.1. The Critical Research ModelExhibit 2.2. Distinctions Between Organization Change and TransformationExhibit 8.1. The Rainmaker AttributesExhibit 10.1. Assessment, Action Planning, and Implementation Guidelines

fbetw.indd xiiifbetw.indd xiii 8/27/09 11:22:24 AM8/27/09 11:22:24 AM