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Organizational Development > Seven Stages of Organizational Development > Flashcards

Seven Stages of Organizational Development Flashcards

1
Q

Seven Stages of Organizational Development

A
  1. New Venture
  2. Expansion
  3. Professionalization
  4. Consolidation - Organizational Maturity
  5. Diversification
  6. Integration
  7. Decline and Revitalization
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2
Q

Two Independent Dimensions of Each Stage

A
  1. Size
  2. Infrastructure
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3
Q

First Four Stages by Revenue

A
  1. Venture
    • Product - Less than $1M
    • Service - Less than $0.3M
  2. Expansion
    • Product - $1M to $10M
    • Service - $0.3M to $3.3M
  3. Professionalization
    • Product - $10M to $100M
    • Service - $3.3M to $33M
  4. Consolidation
    • ​​Product - $100M to $500M
    • Service - $33M to $167M
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4
Q

Purpose of Venture Stage

A

Establish ‘Proof of Business Concept’ by identifying a viable market and product/service.

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5
Q

Two Tasks of Venture Stage

A
  1. Identify & Define a Market
  2. Develop Products & Services
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6
Q

Purpose of Expansion Stage

A

Scale Up: Acquire resources and develop systems to facilitate growth.

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7
Q

Two Tasks of Expansion Stage

A
  1. Acquire Resources
  2. Develop Operational Systems
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8
Q

Four Tasks of Professionalization Stage

A
  1. Formalize Planning (strategy, operations, scheduling, budgeting, contingency)
  2. Declare Organizational Roles, Responsibilities & Standards of Practice
  3. Create Management Development System (find them, grow them, & keep them)
  4. Create Performance Management System (Control - Budgeting, Goal Setting, Appraisal)
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9
Q

Nine Professionalization Results

A
  1. Profit - explicit planned goal
  2. Planning - formal and written; a way of life
  3. Organization - written role descriptions, clearly articulating responsibilities
  4. Performance Management - formal planned system of performance management with explicit objectives, goals, measurements, feedback, evaluation, and rewards
  5. Talent Development - planned to develop a pool of managers that will take the firm into the future
  6. Budgeting - focuses on standards and variances; used to guide performance
  7. Innovation - oriented towards continuous, incremental improvements & support of major innovation
  8. Leadership - Interactive, consultative, participative, & team-oriented
  9. Culture - explicitly managed as a source of sustainable competitive advantage
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10
Q

Two Tasks of Consolidation Stage

A
  1. Lead the Corporate Culture
    • Values
    • Beliefs
    • Norms
  2. Institutionalize the transformation from entrepreneurship to a professionally managed organization.
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11
Q

Strategy Definition

A

Declaration of where (which markets) we will compete and what we will focus our attention on to achieve best results

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12
Q

Strategic Planning Process - Seven Steps

A
  1. Environmental Scan
  2. Organizational Assessment
  3. Strategic Analysis and Resolution
  4. Strategic Plan
  5. Budget
  6. Implement Plan through breakthrough projects.
  7. Navigate Plan, through Dashboard, TMAP Meetings & Qtly Review

Quarterly Management Review

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13
Q

Step 1: Environmental Scan - Three Dimensions

A
  1. Market Analysis
  2. Competitive Analysis
  3. Trend Analysis
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14
Q

Six Market Analysis Dimensions

A
  1. Customers
  2. Customer Needs
  3. Customer Buying Habits
  4. Potential Different Market Segments
  5. Threats in Present and Potential Markets
  6. Opportunities in Present and Potential Markets
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15
Q

Market Niche Definition

A

A sufficient number of sustainable competitive advantages within to dominate a market segment

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16
Q

Four Competitive Analysis Factors

A
  1. Who are our Competitors?
  2. Strengths and Limitations of Each Competitor
  3. Customer Perceptions of Competitors
  4. Strategic Board - Competitors by 2 Dimensional Market Segmentation
17
Q

Competitive Advantage Definition

A

Feature or characteristic of an organization that creates a superior opportunity to compete in the marketplace

18
Q

Six Trend Analysis Dimensions

A
  1. Economic
  2. Social/Cultural
  3. Politcal
  4. Legal
  5. Environmental
  6. Technological
19
Q

Step 2: Organizational Assessment - Six Dimensions

A
  1. Culture
  2. Management Systems
  3. Operations Systems
  4. Resources
  5. Markets
  6. Products/Services
20
Q

Nine Management System Dimensions

A
  1. Results
  2. Performance Measurement Systems
  3. Performance Review Meetings
  4. Performance Appraisal
  5. Compensation
  6. Management Development System
  7. Planning System
  8. Organization Roles and Responsibilities
  9. Operations
21
Q

Step 3: Strategic Analysis - Seven Factors

A
  1. What business are we in?
  2. What are our competitive strengths and limitations?
  3. What is our true market niche?
  4. What do we want to become in two to three years?
  5. What are the key areas that will make us successful or unsuccessful in achieving this long-term mission?
  6. What is our strategy for competing in our chosen markets and for achieving our long-term mission?
  7. What goals shall we set to improve our competitive advantage and increase our organizational capabilities in each of these key areas?
22
Q

Strategic Analysis - Four Resolutions

A
  1. Business Definition
  2. Strategy
  3. Strategic Organizational Development Issues
  4. Market Niche
23
Q

Four Business Concept Factors

A
  1. Who are our present and potential customers?
  2. What are their needs?
  3. What do they do to acquire our products and services?
  4. What do they consider to be of value in our product or service?
24
Q

Long Term Vision - Grounding Criteria

A

The possibility of realizing the long term vision is grounded in data from the environmental scan and organizational assessment.

25
Q

Three Levels of Strategy

A
  1. Core Strategy - Overall concept of what the firm will do to compete
  2. Supporting Strategies - What the firm needs to do at each of the 6 organizational dimensions
  3. Operational Strategies - Goals, Objectives, Milestones, Action Steps the firm will take to implement its core strategy
26
Q

Step 4: Strategic Plan - Eight Dimensions

A
  1. Situational Analysis
  2. Business Definition
  3. Strategic Mission
  4. Core Strategy, Key Support Strategies, and Operational Strategies
  5. Key Result Areas
  6. Objectives
  7. Goals
  8. Action Plans
27
Q

Step 5: Budgeting - Two Tasks

A
  1. Translate Strategic Plan into Financial Terms
  2. Adjust Strategic Plan according to financial resources available
28
Q

Step 6: Strategy Deployment and Execution - Three Steps

A
  1. Rebuild from the ground up
  2. Create breakthrough project teams
  3. Implement 30, 60, & 90 Day Breakthrough Projects
29
Q

Step 7: Navigation - Four Pillars

A
  1. Strategic Dashboard
  2. TMAP Meetings & TMAP Reports
  3. Breakthrough Projects
  4. Qtly Reviews

Organizational Development (4 decks)

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