Difference Between Organization Design and Development

In Morrison's article, he also mentions that in the Business Transformation industry, there is frequently debate over whether Organization Design or OD comes first in the transformation process (Organization Development). The analogy presented by Naomi Stanford in Morrison's article illustrates the distinction between Design and Development very clearly.

"Organizational design consulting involves determining the purpose of the automobile you are about to design, for instance, is it to cross the desert? Is the objective to win a Formula 1 race? Is it for the purpose of transporting two adults and three children to a party? Then, designing and delivering a vehicle that is suited to this function.

"Organisation development is about keeping the vehicle in the condition required to achieve its purpose, such as using the correct fuel, having it serviced regularly, teaching the driver how to drive it to maximise its performance, etc.

To explain organisational design and development in the simplest business terms, the first step is to determine the organization's purpose and function; this is the Organization Design component. The following step is to determine how to maintain the purpose and function; this is the Organization Development (OD) portion.

Now that we understand the distinction, how can we distinguish between the two when making reference to either? Simple solutions exist. Organization Development (OD) and Organization Design (OrgDesign) are both essential components of a holistic approach to business transformation.

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