What Is Organization Development? Definition & Examples

What Is Organization Development?

Organization development (OD) focuses on improving a company's capabilities by aligning strategy, structure, people, rewards, metrics, and management processes. It's a science-backed, interdisciplinary field rooted in psychology, social sciences, and human resource management. OD centers on culture, innovation, adult education, change management, organizational behavior, and research design.

Organization development is an ongoing, systematic, long-range process of driving organizational effectiveness, solving problems, and improving organizational performance. OD is one of the capabilities identified in the Talent Development Capability Model®.

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Summary

Difference between OD and human resources (HR): OD is a science-backed effort focused on improving an organization's capacity by aligning multiple processes and is related to, but distinct from, human resources management.
Five phases of OD strategy: entry, diagnosis, feedback, solution, and evaluation
Organization development initiatives: human processes, techno-structural, HR management, and strategic
Skills for an OD practitioner: data collection and analysis, project management, management, emotional intelligence, business acumen, communication, collaboration, and facilitation
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What Is the Difference Between OD and Human Resources (HR)?

Many OD interventions relate to human resource management and talent management. HR initiatives tend to focus on people practices. Meanwhile, organization development zooms out to consider multiple inputs across the depth of the organization. OD is more holistic and strategic, whereas HR departments are systematic.

As with talent development, OD functions are sometimes under the HR umbrella. Organization development may track employees' career paths and professional development through performance reviews.

Many HR departments use performance management systems and are data-driven. OD uses both subjective and objective measures for customer satisfaction.

The 5 Phases of Organization Development (OD)

"Organization Development Strategy" "Entry, Diagnosis, Feedback, Solution, and Evaluation"

TD professionals should integrate OD skills with the growing number of L&D, performance improvement, and talent management solutions focused on increasing organizational effectiveness. OD practitioners use a structured process to design and implement organization development strategies in these five phases.

Entry – the initial contact between consultant and client. They present, explore, and identify the problem, opportunities, or situation facing an organization. The goal is to create a contract or project plan that establishes mutual expectations about project scope. There should be initial agreements on the use of resources.
Diagnosis (assessment) – the fact-finding phase. This is a collaborative data-gathering process between organizational stakeholders and the consultant. During this phase, we gather, analyze, and review relevant information about the problem.
Feedback – the return of analyzed information to the client or client system. OD professionals will explore the information to ensure understanding, clarity, and accuracy, and review preliminary agreements on scope and resource requirements. This phase typically creates an action plan that outlines the future change solutions and establishes indicators.
Solution – the design, development, and implementation of the steps meant to correct the problems and enhance organizational performance. Solutions may include a communication plan, a role-and-responsibility matrix, or an
employee training and development
curriculum. Also common are implementation plans, risk management plans, evaluation plans, and change management plans.
Evaluation – the continuous process of collecting formative and summative data. The data helps determine whether an initiative is meeting the intended goals and achieving defined success indicators. Outputs generally include an evaluation report with recommendations for continuous improvement.

Common Organization Development Initiatives

Organization Development Initiatives. "Human Process, Techno-Structural Initiatives, Strategic, and Human Resource Management"

Typically, organizations categorize development initiatives such as:

Human process initiatives include team building, group process approaches, organizational culture, and coaching.
Techno-structural initiatives, or organizational restructuring. Common examples include mergers and acquisitions, flexible work design, and downsizing. Many organizations also prioritize business process engineering, total quality management, quality of work life, Six Sigma, and Agile models.
Human resource management initiatives that include employee engagement, employee experience, performance management, employee development, succession planning, coaching and mentoring, career development, and diversity awareness.
Strategic initiatives include organization transformation, company culture change, leadership development, and attraction and retention initiatives.

Most initiatives have elements of each category and operate on a day-to-day basis. TD professionals should align any OD solution to specific strategic objectives. If your workplace culture is feeling negative or stagnant, it may be time for a culture change.

Examples of the most common OD initiatives:

Culture Change: Align values, behaviors, and workplace norms with business goals. These efforts may involve defining organizational values, improving employee engagement, strengthening inclusion, or fostering a more innovative and collaborative environment.
Change Management: Help employees adapt to changes such as mergers, acquisitions, restructuring, technology implementations, or strategic shifts. These efforts focus on communication, stakeholder engagement, and adoption.
Leadership Development: Focus on building leadership capabilities at all levels. Programs may include leadership training, coaching, succession planning, executive development, and assessments to prepare leaders for current and future challenges.
Team Development: Organizations frequently invest in improving team effectiveness through team-building activities, conflict resolution, communication workshops, and interventions that strengthen collaboration and trust.
Employee Engagement: Use surveys, focus groups, and action-planning processes to identify engagement challenges and create initiatives that improve employee satisfaction, retention, and performance.
Talent Management and Succession Planning: These initiatives focus on identifying high-potential employees, developing critical talent pipelines, and preparing future leaders to ensure organizational continuity.

Other initiatives may focus on organizational restructuring, performance management improvements, diversity and inclusion initiatives, strategic planning, process improvement projects, and workforce capability development.

Skills for OD practitioners

The Talent Development Body of Knowledge says that an OD professional should have skills in change management, project management, strategic planning, data collection and analysis, emotional intelligence, business acumen, communication, collaboration, and facilitation. These skills will help OD practitioners design solutions efficiently and be knowledgeable in business advisory.

An OD practitioner needs to comprehend what an organization requires, develop solutions, and ensure the business thrives. OD practitioners create an alignment of strategy, structure, people, rewards, metrics, and management processes. They focus on impact, engagement, productivity, and performance.

OD professionals are adept at designing and implementing employee engagement strategies and smoothing communication between employees and work groups. They specialize in expressing and codifying talent and leadership principles, values, and competencies that guide the company's culture.

OD practitioners apply these skills in different ways throughout the change process:

Use data collection skills to gather information that identifies areas for improvement.
Project management skills ensure efficient and effective implementation of interventions.
Management skills are crucial for leading and guiding teams through change.
Emotional intelligence helps in understanding and managing emotions in oneself and others during the change process.
Business acumen is necessary for understanding the company's goals and objectives.
Communication and collaboration skills are vital for working with stakeholders and moderating dialogue.
Facilitation skills are important for guiding discussions and workshops to achieve desired outcomes.

OD professional job descriptions may include recruitment skills, employee and management skills, and creative thinking skills.

Frequently Asked Questions About Organization Development

What is organization development?

Organization development (OD) is the improvement of a company's capability through the alignment of strategy, structure, people, rewards, metrics, and management processes. It is an ongoing process of driving organizational effectiveness, solving problems, and improving performance.

How is organization development different from HR?

While organization development and human resource development often work together, HR initiatives tend to focus on people practices, whereas organization development zooms out to consider multiple inputs across the depth of the organization. OD is more holistic and strategic, whereas HR departments are systematic.

What are the phases of organization development?

The five phases of organization development are Entry (the initial contact between consultant and client), Diagnosis (assessment), Feedback (recommendations for improvement), Solution (implementation of projects), and Evaluation (monitoring the success of solutions).

What are common organization development initiatives?

Organization development initiatives can be broken down into four categories: human process, techno-structural, strategic, and human resource management. OD initiatives are planned efforts to improve organizational effectiveness, performance, culture, and employee experience. Common examples include culture change initiatives, leadership development programs, change management efforts, team development, and employee engagement strategies.

Why does organization development matter?

Organization development helps organizations improve performance, adapt to change, and achieve strategic goals. By strengthening culture, leadership, processes, and employee engagement, OD initiatives create more effective and resilient workplaces. Effective organization development can increase productivity, improve collaboration, support innovation, and help organizations attract, develop, and retain talent.

Related ATD Resources

ATD offers a wide range of professional development opportunities, including workshops, webinars, conferences, and certification programs specifically tailored to the needs of OD professionals. These resources can help practitioners stay up to date on the latest trends and best practices in organization development.

Additionally, ATD provides access to research and publications that help practitioners deepen their understanding of organizational dynamics. Using research improves their ability to drive positive changes within their organizations.

When OD practitioners work with ATD, they also get opportunities to connect and collaborate with other professionals in the industry. Becoming a successful OD practitioner includes furthering your knowledge and skills. Check out a wide range of ATD education courses to get started. For access to more resources, practical tools and templates, research, and insights, become an ATD member. Learn more.

For more information, explore these resources:

Organization Development & Culture Topic Page

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What Is Organization Development?