Organizational development is one crucial practice for firms to pursue to help ensure future success. Generally, organizational development refers to the use of internal resources to improve workplace productivity and efficiency. An effective organization can increase employee morale, simplify the problem-solving process and build a stable company structure. However, organizational development strategies can also be costly and time-consuming to implement. Most large firms choose to outsource the solution of crucial organizational problems to experienced consultants, which brings us to the concept of “organizational consulting.”
What Organizational Consulting Can Offer
Organizational consulting specializes in addressing an executive board’s internal concerns, including developing a firm’s abilities in strategic planning, project management, change leadership and process improvement. Organizational consultants are able to identify areas that CEOs often ignore, but that need improvement, and provide a strategic implementation plan for organizational growth.
1. Identifying Problems
One main part of a consultant’s job is to observe and analyze organizational structure and process. Consultants are able to narrow the broad process down to specific practices, developing a method to solve any defects. For instance, after determining daily work efficiency and employee engagement, consultants find out that employee focus significantly decreases due to nearby construction noise. They then suggest that company managers negotiate with the construction company to change the time their work is done. Consultants often find small areas that CEOs overlook, but that are essential to improving employee efficiency. Without consultants, senior-level leaders would need to spend much more time sending out employee surveys, etc., to find key bottlenecks.
2. Recognizing Growth Opportunities
Besides digging into details of the organizational process, organizational consultants are also good at combining the perspectives of different departments and delivering an overall growth plan for firms. For example, they can combine a company’s sales performance/customer feedback with its financial status, along with the direction of marketing, to calculate a growth rate of their client base.
3. Boosting Innovation
Last, but not least, organizational consulting can boost innovation. Since consultants observe and analyze the organization’s development from various perspectives, they can create more innovative and precise methods and processes. They usually offer insight that managers and CEOs do not see. Innovation may lead the company in a new direction, or open up a new revenue stream.
3 Key Steps in Organizational Consulting
How can consultants solve such difficult puzzles with limited information about the firm? We will detail three key strategies used in organizational consulting.
1. Establish a Long-Term Vision
Many managers and company leaders make the same mistake: only focusing on short-term situations and not having a long-term vision for the company. For instance, HR directors may be busy dealing with employees’ daily complaints, but do not think about eliminating the cause of the complaints. Establishing a long-term vision, along with core values, helps the CEO to shape the overall direction of the company.
2. Make and Implement Decisions Quickly
Industries are fast-paced and competitive. Thinking and acting quickly become the most essential factors in leading the way. Consultants first evaluate the effectiveness of a company’s decision-making process, and then use agile methods to help companies implement decisions much faster than their competitors.
3. Create Metrics to Measure Success
It is necessary to know where a company stands during the organizational development process in order to adjust related strategies. Metrics are the most useful tools to measure a company’s stage in organizational development. Clear key performance indicators (KPIs) are the most frequently used metrics, because numbers can be easily seen and analyzed. Typical KPIs used include the rate of customer satisfaction, supply chain performance and so on.
Implementing organizational development plans can be costly and time-consuming. Click here to contact a CoreAxis specialist to help you identify your company’s long-term aspirations and develop key strategies to achieve them.