Morrison also mentions in his article that in the Business
Transformation industry, there is frequently debate about which comes
first in the transformation process, Organization Design or OD
(Organization Development). The analogy stated by Naomi Stanford in
Morrison's article paints a very clear picture of the difference between
Design and Development.
"Organizational design
consulting begins with determining what the purpose of the car you are
about to design is, for example, is it to cross the desert?" Is the goal
to win a Formula One race? Is it going to a party with two adults and
three children? Then designing and delivering a vehicle suitable for
that purpose.
Organizational development is about keeping that
vehicle in the condition required to achieve the goal, such as using the
proper fuel, having it serviced on a regular basis, teaching the driver
how to drive it to maximise its performance, and so on."
To put
organisational design and development into simple business terms, the
first step is determining what the business's purpose and function are:
this is the Organization Design part. The following step is to decide
how to keep the purpose and function: this is the OD, or Organization
Development, part.
Now that we know the distinction, how do we
distinguish between the two when referring to either? The solutions are
straightforward. Organization Development (OD) and Organization Design
(OrgDesign) are both critical components of a holistic approach to
business transformation.
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