{"id":17730,"date":"2024-07-01T07:02:48","date_gmt":"2024-07-01T07:02:48","guid":{"rendered":"https:\/\/www.walkme.com\/blog\/?p=17730"},"modified":"2024-07-01T07:02:48","modified_gmt":"2024-07-01T07:02:48","slug":"organizational-development-vs-organizational-transformation","status":"publish","type":"post","link":"https:\/\/www.walkme.com\/blog\/organizational-development-vs-organizational-transformation\/","title":{"rendered":"Organizational Development vs. Organizational Transformation: What\u2019s the Difference?"},"content":{"rendered":"\n<p>Organizational development vs. organizational transformation \u2013 is there really a difference?&nbsp;<\/p>\n\n\n\n<p>And if there is a difference, does it matter?<\/p>\n\n\n\n<p>Below, we\u2019ll learn the answer to these questions and more, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The definitions of organizational development and transformation<\/li>\n\n\n\n<li>The key differences between the two concepts<\/li>\n\n\n\n<li>Whether that difference matters<\/li>\n\n\n\n<li>When to employ each approach<\/li>\n<\/ul>\n\n\n\n<p>And more.<\/p>\n\n\n\n<p>Let\u2019s start by examining these two concepts in detail.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Organizational Development vs. Organizational Transformation: The Key Differences<\/strong><\/h2>\n\n\n\n<p>To see the distinction between these two concepts, we\u2019ll look at some definitions.<\/p>\n\n\n\n<p>Organizational development is a formal business discipline dedicated to planning and executing organizational changes.<\/p>\n\n\n\n<p>Some definitions of organizational development include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201cOrganizational Development is the process of aligning human capital strategy with the mission, vision, values, and strategy of the organization,\u201d according to the <a href=\"https:\/\/www.gsb.stanford.edu\/alumni\/volunteering\/act\/service-areas\/organizational-development\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Stanford Business School<\/a>.<\/li>\n\n\n\n<li>\u201cOrganization development,\u201d says the <a href=\"https:\/\/www.odnetwork.org\/page\/WhatIsOD\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Organization Development Network<\/a>, is planned, organization-wide, managed from the top, aimed at increasing organization effectiveness and health, and executed through planned interventions in organizational processes.\u00a0<\/li>\n\n\n\n<li>\u201cOrganizational development (OD) is the process through which an organization improves its internal capacity to meet its current and possible future requirements,\u201d says HR SaaS platform <a href=\"https:\/\/www.keka.com\/organizational-development-hr\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Keka<\/a>.<\/li>\n<\/ul>\n\n\n\n<p>In short, organizational development \u2013 or organization development \u2013 has the same aims as change management.<\/p>\n\n\n\n<p>Both disciplines are designed to improve and enhance an organization\u2019s capabilities and effectiveness.<\/p>\n\n\n\n<p>\u201cOrganizational transformation,\u201d when used in business discussions, refers to organizational changes that are designed to transform the very nature of a business.<\/p>\n\n\n\n<p>Its aims can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Improved organizational performance<\/li>\n\n\n\n<li>Enhanced organizational capabilities<\/li>\n\n\n\n<li>Reinventing the organization\u2019s business model<\/li>\n\n\n\n<li>Overhauling processes, systems, and operations<\/li>\n<\/ul>\n\n\n\n<p>The key difference between \u201corganizational development\u201d and \u201corganizational transformation\u201d is that organizational development is a business discipline, while organizational transformation is a process.<\/p>\n\n\n\n<p>In other words:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Organizational development is, like <a href=\"https:\/\/www.walkme.com\/glossary\/change-management\/#:~:text=Change%20management%20is%20the%20coordinated,it%2C%20and%20ensuring%20its%20permanence.\" target=\"_blank\" rel=\"noreferrer noopener\">change management<\/a>, a business discipline devoted to strategic organizational change<\/li>\n\n\n\n<li>Organizational transformation is a set of organizational changes designed to transform a business from the ground up<\/li>\n<\/ul>\n\n\n\n<p>Organizational development professionals, therefore, manage organizational changes and transformations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Change Management vs. Organizational Development<\/strong><\/h2>\n\n\n\n<p>There are several fields devoted to managing and executing organizational transformation.<\/p>\n\n\n\n<p>These include disciplines such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Change management<\/li>\n\n\n\n<li>Organization development<\/li>\n\n\n\n<li>Organizational development<\/li>\n<\/ul>\n\n\n\n<p>There are differences in each field, but there is also a great deal of overlap.<\/p>\n\n\n\n<p>Kurt Lewin, for instance, is often cited as being the founding father of both change management and organization development.<\/p>\n\n\n\n<p>And, as mentioned, all fields share many of the same aims.<\/p>\n\n\n\n<p>However, over the years, different practitioners have adopted different approaches to change management and organization development.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img height=\"618\" width=\"1024\" decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/07\/Stanfords-approach-to-organizational-development-cited-above-follows-a-five-step-process__26682544.jpg?w=1024&#038;h=618&#038;crop=1\" alt=\"Stanford\u2019s approach to organizational development, cited above, follows a five-step process_\" class=\"wp-image-17733\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/07\/Stanfords-approach-to-organizational-development-cited-above-follows-a-five-step-process__26682544.jpg 1200w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/07\/Stanfords-approach-to-organizational-development-cited-above-follows-a-five-step-process__26682544.jpg?resize=300,181 300w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/07\/Stanfords-approach-to-organizational-development-cited-above-follows-a-five-step-process__26682544.jpg?resize=1024,618 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Stanford\u2019s approach to organizational development, cited above, follows a five-step process:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Audit the organization<\/li>\n\n\n\n<li>Design an organizational structure<\/li>\n\n\n\n<li>Define talent acquisition needs for leadership<\/li>\n\n\n\n<li>Design motivational levers to engage people at all levels<\/li>\n\n\n\n<li>Develop a market strategy for talent acquisition<\/li>\n<\/ul>\n\n\n\n<p>The consulting firm <a href=\"https:\/\/transforming.com\/about\/approach\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Transforming Solutions Inc.<\/a> follows a six-step \u201cprocess and <a href=\"https:\/\/www.walkme.com\/glossary\/digital-transformation\/\" target=\"_blank\" rel=\"noreferrer noopener\">organizational transformation<\/a> methodology\u201d:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Clarify project objectives and outcomes<\/li>\n\n\n\n<li>Define and understand the business context<\/li>\n\n\n\n<li>Validate and define current processes<\/li>\n\n\n\n<li>Analyze the processes<\/li>\n\n\n\n<li>Define improved processes<\/li>\n\n\n\n<li>Develop implementation plans and begin to implement recommendations<\/li>\n<\/ul>\n\n\n\n<p>Many frameworks that lie within the domain of change management, though, focus on change at the individual level.<\/p>\n\n\n\n<p>That is, they emphasize the need for motivating and engaging employees.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img height=\"592\" width=\"1024\" decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/07\/How-do-you-improve-organizational-behavior__17668254.jpg?w=1024&#038;h=592&#038;crop=1\" alt=\"Prosci\u2019s ADKAR change management model includes five employee-focused steps&quot;\" class=\"wp-image-17732\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/07\/How-do-you-improve-organizational-behavior__17668254.jpg 1200w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/07\/How-do-you-improve-organizational-behavior__17668254.jpg?resize=300,174 300w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/07\/How-do-you-improve-organizational-behavior__17668254.jpg?resize=1024,592 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Prosci\u2019s <a href=\"https:\/\/www.walkme.com\/blog\/adkar\/\">ADKAR<\/a> <a href=\"https:\/\/www.walkme.com\/blog\/3-change-management-models\/\" target=\"_blank\" rel=\"noreferrer noopener\">change management model<\/a> is one such model. It consists of five steps, all of which focus on employees:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Awareness of the need for change<\/li>\n\n\n\n<li>Desire to support the change<\/li>\n\n\n\n<li>Knowledge of how to change<\/li>\n\n\n\n<li>Ability to demonstrate skills and behavior<\/li>\n\n\n\n<li>Reinforcement to make the change stick<\/li>\n<\/ul>\n\n\n\n<p>Other <a href=\"https:\/\/change.walkme.com\/change-management-frameworks\/\" target=\"_blank\" rel=\"noreferrer noopener\">change frameworks<\/a>, such as John Kotter\u2019s 8-step model, also focus on motivating and enabling employees to change.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Organizational Transformation vs. Organizational Change<\/strong><\/h2>\n\n\n\n<p>In many cases, <a href=\"https:\/\/www.walkme.com\/blog\/5-types-of-organizational-change\/\" target=\"_blank\" rel=\"noreferrer noopener\">organizational change<\/a> and organizational transformation are used interchangeably.<\/p>\n\n\n\n<p>However, the key differences between these two terms can also be found in the key words: \u201ctransformation\u201d vs. \u201cchange.\u201d<\/p>\n\n\n\n<p>That is:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Organizational transformation implies deep, wide-spread organizational changes, usually designed to improve organizational effectiveness and performance<\/li>\n\n\n\n<li>Organizational change indicates some business change that affects the organization itself<\/li>\n<\/ul>\n\n\n\n<p>Organizational changes, therefore, can be small, extensive, or anywhere in between.<\/p>\n\n\n\n<p>A change that is too minor to impact the organization as a whole, however, would not be considered an organizational change.<\/p>\n\n\n\n<p>Changes that only occur within a department, for instance, would not affect the organization. Such changes would require limited management and would not be viewed as an organizational change.<\/p>\n\n\n\n<p>Some examples of organizational change would be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Strategic changes<\/li>\n\n\n\n<li><a href=\"https:\/\/www.walkme.com\/glossary\/digital-transformation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Digital transformation<\/a> and <a href=\"https:\/\/www.walkme.com\/product-adoption\/?t=21&amp;camp=change-blog\" target=\"_blank\" rel=\"noreferrer noopener\">digital product adoption<\/a><\/li>\n\n\n\n<li>Changes to the corporate culture<\/li>\n\n\n\n<li>Rebranding<\/li>\n<\/ul>\n\n\n\n<p>These changes would affect the entire organization to some extent. And they are large enough to require organizational change management, so they would be labeled \u201corganizational changes.\u201d<\/p>\n\n\n\n<p>Technically speaking, \u201corganizational transformations\u201d are transformative \u2013 they reshape the very nature of the organization.<\/p>\n\n\n\n<p>However, as mentioned, many business professionals use the terms interchangeably.&nbsp;<\/p>\n\n\n\n<p>It is useful to bear this in mind when researching the topic or engaging in discussions with change management professionals.<\/p>\n","protected":false},"excerpt":{"rendered":"Organizational development vs. organizational transformation \u2013 is there really a difference?&nbsp; And if there is a difference, does it matter?<span class=\"moretag\">&#8230;<\/span>","protected":false},"author":246,"featured_media":17731,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"mobile_image_id":0,"tablet_image_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[359],"tags":[],"class_list":["post-17730","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-change-management"],"acf":{"__coauthors":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Organizational Development vs Organizational Transformation<\/title>\n<meta name=\"description\" content=\"Organizational development vs. organizational transformation \u2013 is there really a difference? 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