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Organisational Design and Development Conference Gallagher Estates, Midrand Goodnews Cadogan 2014-04-10

OD is DEAD in South Africa, So Is Transformational Leadership

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I was in Midrand today, amongst many Organisation Design & Development Practitioners. This is what I shared with them. http://www.intelligencetransferc.co.za/conferences/3rd-annual-organisational-design-development/

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Page 1: OD is DEAD in South Africa, So Is Transformational Leadership

Organisational Design and Development Conference

Gallagher Estates, Midrand

Goodnews Cadogan

2014-04-10

Page 2: OD is DEAD in South Africa, So Is Transformational Leadership

Is ODD dead?- The expanded view of the present moment • The Past • The Present • The Future

Page 3: OD is DEAD in South Africa, So Is Transformational Leadership

A Very Short Presentation

• The Invitation

• The History of OD and Strategy Consulting

• The History of Apartheid in South Africa

• The latest EE Report

• The 3%-6% & Open HR Cultures

• Getting ODD into the Boardroom

• Message to All

Page 4: OD is DEAD in South Africa, So Is Transformational Leadership

The Invitation

Page 5: OD is DEAD in South Africa, So Is Transformational Leadership

Is ODD dead? The expanded view of the present moment

Page 6: OD is DEAD in South Africa, So Is Transformational Leadership

Short Answer: Y E S

Page 7: OD is DEAD in South Africa, So Is Transformational Leadership

The History of OD & Strategy Consulting

• Simple Planning Department

• Evolved over time, responding to rising complexity

• OD: joined with strategic thinking capability at the hip – Processes, systems & structures

– Across the breadth, along the depth

• Became terminal circa ‘97

• Dead by 2000, onwards

Page 8: OD is DEAD in South Africa, So Is Transformational Leadership

The History of Apartheid in South

Africa • From early European Settlement

• To orchestrated system of economic exclusion • The Bantustans • Business Support • Sanctions • New Political Order • Same Old Economic System

– Largely racist shareholders, agents (Boards and Executives)

• Exclusion of ODD capacity from the Boardroom

Page 9: OD is DEAD in South Africa, So Is Transformational Leadership

The latest EE Report

Government through CEE • Less than 20% (19.8%) of top

management positions are occupied by black Africans. (20.3%:2009)

• Whites at 62.7%, Indians at 8.3%, Coloureds at 5.1% and Foreigners at 4.1%

• EEP: Blacks at 75%, Whites at 10.8% • 79.4% top positions held by men,

only 1.5% held by with disabilities. • Professionally qualified 40.2% are

White and 38.4% Black, Indian and Coloured at 9,4% each, 2.4% FNs

• Women at 43.1% and men at 56.9%

Solidarity • White male representation tumbled

from 78% in 2001, to 54.5% in 2009 • Senior Management drop in White

males, from 69.5% to 46.3% between 2001 and 2009

• At professional and middle-management level, White men had dropped from 52.8% to 27.4% since 2001.

• At the technically skilled, academically qualified and junior management levels the decrease since 2001 was from 21.9% to 15%.

• "From these statistics it is clear that white men's position has deteriorated dramatically in the past 10 years," said Hermann.

Page 10: OD is DEAD in South Africa, So Is Transformational Leadership

The 3%-6% & Open HR Cultures

• No Macro Economic Growth Without Micro

• Competitiveness of SA depends on aggressive HC development

• As long as we have a tale of two cities, we cannot unite

• It is about the culture!

Page 11: OD is DEAD in South Africa, So Is Transformational Leadership

207 Companies in 22 Industries Highly successful companies actively focus on the needs of

employees and customers as well as shareholders.

They expect leadership and good human capital practice from people at all levels – high HR cultures.

They produced these dramatically different results over 11 years compared to companies with low HR cultures.

Low HR Cultures

High HR Cultures

Performance Metric

166% Revenue Growth 682%

36% Employment Growth 282%

74% Stock Price Growth 901%

1% Net Income Growth 756%

Leadership & Competitiveness John Kotter & James Heskett - Harvard University

Page 12: OD is DEAD in South Africa, So Is Transformational Leadership

Getting ODD Into the Boardroom

• Some will say, YES, it is

• I say it is an afterthought

• Retrofitted

• Chief of ODD as a peer amongst the top executives.

Page 13: OD is DEAD in South Africa, So Is Transformational Leadership

Message to all

• Young People: Immerse yourselves, acquire depth of skills and competencies.

• ODD Practitioners: Embed yourselves in business. • Executives: Change your belief system, it sucks. • Board Members: Educate the shareholders on

inclusivity/ROI link. • Government: Engage fully with owners of Capital,

Enforcement is a blunt instrument, of last resort. • Unions: Adopt and inclusive view, come into the

present.

Page 14: OD is DEAD in South Africa, So Is Transformational Leadership

Thanking You http://www.villageofleaders.co.za