The Third Management Reset, Sustainable Effectiveness, and the Future of OD
July 9-13, 2012
A management reset is taking place that cannot be described by the usual calls for improvement in leadership or strategy, or by the latest twist on how to “engage” your employees. The reset taking place is of such a magnitude that it has happened only twice in the 20th century. The first reset occurred in the beginning of that century when exploding consumer demand and mass production technology combined to form the traditional command and control organization. It was a match made in heaven and drove tremendous amounts of economic growth. The second management reset – no less powerful than the first but not as pervasive - occurred during the 1950’s and 60’s. In the context of a more educated workforce and developments in workplace democracy, Douglas McGregor’s Theory Y suggested that people were not just a factor of production or mindless dolts needing more authoritarian control. In high involvement organizations, people were a source of enormous creativity and productivity.
Organization development (OD) was a primary reason for the success of the second reset. Through processes of socio-technical systems work design, survey feedback and action research, team building, and other technologies of empowerment, OD mattered. OD was a cohesive and formidable voice for unleashing human potential. Today, however, there is great concern over OD’s role and relevance. OD has not adapted – it continues to focus on the interpersonal and organizational processes that it has already conquered. OD is not applying the principles of behavioral science to the larger set of issues associated with organization design. It is time for a change.We believe a third management reset is happening that presents a great opportunity to re-establish OD’s place in management science.
The purpose of this course is to describe the nature and characteristics of this third management reset and the role OD can play in its emergence. Whereas the first reset produced the command and control organization and the second reset produced the high involvement organization, the third management reset will produce the sustainable management organization. If OD as a field is focused, it can shape the way organizations achieve sustainable effectiveness – economic performance, social justice and cultural diversity, and ecological health.
A brief history of organizations – the third management reset
The glory days of OD during the second reset
Defining the “new normal”
Agility is just the beginning
What is sustainable effectiveness?
The Four Ways: The way value is created
The Four Ways: The way work is organized
Structures with surface area, transparency, and flexibility
Sustainable work systems
The Four Ways: The way talent is treated
The Four Ways: The way behavior is guided
The transformation to sustainable management
The future of OD