 So, now, we look at the general model of the planned change process. General model of planned change process starts with entering and contracting whenever a internal or external consultant is involved in the change process, there has to be a formal and conscious entering and contracting process. No plan or implementation of the change should start without diagnosis that you can consider as a thumb rule. Never ever we should approach any change process without diagnosis. Even if organization says that we know what are the factors, we know these are the things to be changed, internal or external consultant has to do his or her own diagnosis as well. Because diagnosis gives things from different perspective and different people may end up collecting different data and different conclusions in the diagnosis process. If it is done internally, it may reach to a different type of conclusion. So, a person who is supposed to lead the change process or plan the change process must be involved directly in the diagnosis process. After the diagnosis process, we plan and implement the change process and then evaluation and the institutionalization of the change process required. You see a lot of feedback loops, actually this is not a strictly linear process. These steps can be overlapping and these steps, there can be a back and forth movement as well because each step can give feedback to the previous and the later step. What is your idea about diagnosis, where you have heard the term diagnosis in the medical field? So, generally we hear the term at diagnostic centers, we hear about diagnostic center, they do a lot of pathological, pathology test or based on the physiological indicators or sometime they do use microwaves or x-rays or sonography, that is how we hear the diagnosis. What is the aim of diagnosis in the medical science, to know how system is functioning. So, in that way diagnosis in the organization development is also the same, the objective is same to know how this system is functioning, but at this, but at the same time there is a difference between diagnosis the way it is understood in the medical science and the diagnosis the way it is understood in the organizational science and organization development. What is the difference? The difference is that in the medical science diagnosis is generally unidirectional in nature. Some symptoms are asked and then mostly the diagnostic report is created by an outsider based on objective data, whereas in the organization development diagnosis is a collaborative process, where data is created in a participative manner and the study is also done in a participative manner. How to reach to the conclusion is not only the job of the person who is doing diagnosis, how to reach to the conclusion, the conclusions are arrived with the joint understanding and the conversation of the client and the consultant. So, that that is the difference of diagnosis in the medical science and in the organization development. Diagnosis the way it is defined is a collaborative process as we just discussed, it is between organizational members and OD consultant. OD consultant may be insider or outsider to collect pertinent information. What is pertinent information? That also jointly decided by organizational members and OD consultant. Analysis that also is a joint process drawing the conclusion that is also a joint process and action planning and intervention that is also a joint projects. So, diagnosis is a collaborative process between organizational members and OD consultant to collect pertinent information, analyze it and draw conclusions for action planning and intervention. Many of you have worked in the software industry, you know there is a person who is responsible for coding and there is a person who is responsible for collecting the requirement or making the software architecture. In the organization development diagnose the person who is responsible for diagnosis can be compared to the person who does who collect the requirement and he is also a person who is a architect of the system. Because here in the diagnosis here in the OD process person who does the diagnosis is also responsible to make a broad framework for action planning and intervention. So, we can understand how important this skill is. There are some points for reflection. What is an organization? What metaphor comes to your mind and what is the limitation and potential of a metaphor? These questions what are the metaphors possible? So, someone said organization is an organism, living organism. Someone also said that organization are like living system. Can you think about some other metaphors? Organization is like a family, society. If we consider organization nobody thinks that all of you are engineer, but the strange is that nobody said that organization is a machine, is it not? Organization like a machine it is supposed to be a efficient machine why why do not we call it machine, but we call it more organism and family and society. Why machine metaphor is not appealing to you whereas, metaphor of organism and society came more easily to you. Because people are involved like machines are very predictive, people are not very predictive. So, that is the limitation of a metaphor. To a some extent organization can be compared with machine metaphor, but then there is a limitation of this metaphor. Metaphor is good to understand that there is a input, there is some process and there is some output, but the the whole predictability involved in the machine is not visible in organization because or any other place where human beings are involved. What is the limitation of metaphor of organism? Organism is one organism, but organism is not similar to society or not similar to family. So, the the kind of complexity which comes with biology within the organism increases many fold when the complexity reaches to social-interactional level, when the complexity and in society so, family in society are much more complex than organism because there is a there is much more interaction of the independent entities going on at the society and the family level. So, we can see, but still we can learn about organizations looking at these metaphors. If we understand the metaphor of a machine then we can look at the efficiency criteria better. If we understand organizations like organism then we can look at what are the life-giving forces, what are the nutrients for an organization. If we look at organization like a family then we look at what nurtures the relationships in the family and what is the relationship and what is the kind of relationship one person with other person should be in the organization and that can that understanding can be achieved when we look at organization with the metaphor of family and society. So, we can understand that the metaphors has a potential. Metaphors can define about any phenomena, but they cannot define it 100 percent and all metaphors have a potential and limitation. So, Gareth Morgan in his very famous book called Images of Organization talks about organization as machines, organization as organism, organizations as brain because organization is a system which constantly creates and process information from within and without. Organization as cultures, culture is shared values and beliefs, rituals, norms, heroes and it is reflected in certain artifacts. We see organization are also like culture which have shared norms, beliefs, they follow certain rituals and they use certain artifacts. Organization can also be understood as a political system. Like any human system organizations can have a powerful group and a powerless group, more powerful group and less powerful group, how they are influencing each other, what are their struggles, what is the nature of their interaction all that can be understood much better if we look at organization as a political system. We can also look at organization as a psychic prison, people adopt certain roles and they start living those roles in the organization and that is reflected in their behavior and the quality of the interaction. In an organization people just adopt certain roles, they start taking those roles as reality and those roles start defining their nature of interaction and from that perspective as well organization can be understood. Organization can also be understood as a flux on networks where there are so many networks in the form of so many interactional chains and those interactional chains forms the network and those network are the reality about the organization. So, we have to understand organization, we need to understand what are the value chains and what are the networks and what is the nature of that network operating there. So, it is a very very famous book, you can read that it talks about the power of metaphors for you know to understand any organization. The metaphor which we are using in this course is like some of you said organization as open system, any system will have certain input, it has a transformation process and output. So, organization as a open system has some inputs like information, energy and people, organizations the business is nothing, but transforming their input into social component or technological component which result in some goods services or ideas and all these three components keep giving feedback to each other. Let us look at what are the properties of a living system. First and foremost for a systems thinker everything is system, everything is part of a bigger system and made up of a smaller system. We learn it from the fundamental physics and the particle physics that every time physicists thought they have reached to fundamental particle instead of particle they actually found a system. First they thought that there is a there are electrons, there is nucleus, but when they looked at nucleus they found that nucleus is also made up of neutron and proton and neutron and proton are not isolated particles, they also form a system because neutron keep emitting positron, keep emitting pi plus meson and getting converted into proton and proton keep absorbing that meson and keep getting converted into neutron. And then there are so many fundamental particles quarks and proteanos and etcetera. In the nucleus and positrons outside of the nucleus which suggests that even at the subatomic level there is nothing like particle there is always a system. At the higher level atoms are part of a molecule, molecules are part of organisms, organisms are part of the society, society is part of a ecosystem and earth is only one ecosystem, sub ecosystem which is part of the much larger system. So, everything is made up of the smaller system it is a part of a bigger system. There is always a input transformation and output. So, what does that mean can we never understand any reality because if everything is connected to everything else that means we cannot study anything, but that is also not the case. Systems thinking and systems science suggest that though everything is connected to everything else there is a possibility of making some artificial boundaries. So, the great systems thinker Bateson says that boundaries are necessary, but they are not necessities that simply means if we have to understand the system we can draw a tentative boundary and look at the interaction of the certain variables within that boundary. And we can have a representative description about that system and based on that representative description we can understand the reality about the system and can think about what input and what change can be useful for that. In order to understand that what change are necessary we need to identify in a system what are the nodal points, what are the critical forces where by introducing some change a major change can be introduced within the system. So, that is the utility of having a boundary. So, understanding of the system requires identifying a boundary. Any living system is living system because it takes feedback. The taking, receiving and ability to respond to feedback one of the most important sign of a living system. Another characteristic of living system is equifinality. That means, reality the same final outcome can be achieved from different routes and different ways. We are talking about organizational change process. Organizational growth can happen in a competency building based approaches. Organization growth can happen also adopting more economic value creation based approaches. Organization change we have seen have happened are being created are being led by some autocratic leaders those changes are also being made by some democratic leaders. So, there is a range of possibilities of arriving to and achieving the achieving one final reality and those multiple ways can reach to the same final outcome that is the characteristic of equifinality and alignment. A system is good and healthy when it is components are aligned to each other. So, the key for effective diagnosis when we are using the systems perspective are that we need to know what to look for at each organizational level and we also need to recognize how the levels are affecting each other. And here level means organizational level, group level or department level and individual level. These are three different systems within the organization. They have a separate input process and output and all three affect each other. Let us look at how organization as a diagnosis system may look like. So, if we superimpose the systems model over organization what we see is input design component and output. In the input what is the input for organization? Input for organization is general environment where it is operating and industry structure. Now, if you look at if I keep looking at the industry structure if I do not look at the general environment I may lose out on many business opportunity. Because banks were not knowing many banks were not able to think that competition may not come from another bank competition may come from a telecommunication company. Walmart we discussed in the very first session Walmart entering into the distribution of the medicine is a threat to a organization which has core business in selling pharmaceuticals. Google started making phone systems it is certainly a threat and competition to the conventional telecommunication organizations. So, an organization need to look at the industry structure, but they also need to look at the general environment because competition can come from many unforeseen angles and fields. These inputs then form the design component. Technology simply means what are the means, how sophisticated are the ways of my converting inputs into output? How sophisticatedly we are doing it? Technology may not be the most advanced technology, but technology has to be more appropriate technology appropriate for my competence and for the strategy I am following. And the kind of value I am giving and customer is expecting strategy in a very simple way is a pathway to achieve long term objective. In the strategy course you must have studied there are three generic strategy cost leadership niche and differentiation. Strategy is strategy only if there is a choice if there is no choice there is no strategy and when there is a choice we know that all generic studies cannot be followed. If all the generic studies strategies cannot be followed by one organization we need to make the choices. What are the choices? What are the choice of achieving the long term objectives? What is the pathway I am adopting to achieve the long term objective that is a strategy? Structure means how task is divided is my organizational functional structure is the organization is of a divisional structure is the organization is of a matrix structure team based structure virtual structure boundary less structure what is the kind of structure is a structure helping organization to achieve its objective is a achieve its strategy that is the next question. We need to know that structure should help organization to achieve the strategic objective and technology should help structure to function well very sophisticated technology not helping the structure to work properly either there is a need to change we need to change the structure or to change the technology then comes how we measure the performance. Many many years ago organization performance measures for very financial in nature you look at ROI profitability market share and if you are doing well on these fronts you think that organization is doing well. But now we realize that there is a there are financial measurements and there are strategic health measurement. Strategic health measurements may involve employee morale value of the employer branding employee motivation customer centricity innovation creativity sophistication in the learning processes social climate in spiritual climate moral climate ethical climate all these constitute the measurement can constitute the measurement system. Organization financial health talks about the past but organization is strategic health which includes all these factors talks about the future that is that is why they are called leading indicators. So measurement should have a good component of the leading indicators as well and then we have to have HR system how we are measuring whether my people have the right skill mindset and capability and knowledge to deliver on based on which we are assessing the organization performance. If my organization if I am aiming to achieve organization performance in terms of the morale innovation profitability and efficiency then we need to know that HR measurement also should include we need to assess the people as well on their creativity on their efficiency on their product knowledge and the knowledge of the process. So all these factors have to be in sync with each other and the combined effect of five the interaction of these five factor is culture and culture is a overarching thing it is like water to a fish that is overarching thing of the physical as well as non-tangible forces in the organization and that leads to the output in the form of organizational effectiveness. So we need to ask do the design component fit with the input and are the design components internally consistent do they fit and mutually support each other. For any organizational diagnosis we need to look at these factors these factors are drawn from the basis of the systems approach and understanding of organization as a living system and we need to ask these questions about the alignment and appropriateness of the different components that is the starting point of a organizational development process. If we apply this logic to our first small case study which we started our discussion with we need to look at what is the input for this organization the input is changing industry requirement and expectation. What are the design component what is the strategy strategy probably is till now was focused more on cost arbitrage now they have to move up in the value chain we also need to look at is their design helping their helping the organization to serve their client better are their measurement system proper. If organization wants to achieve different kind of projects projects of the higher value higher complexity is it part of the assessment process of my delivery manager or my business leaders. If I want my people to be more strategic in nature we need to look at whether are we training people are we making people competent not only about the technology but preparing them to be the partner to their clients. So, that they not only talk about the technology but they can talk about the business with their client and for that they need to understand clients business and then only organization can hope that the people who are interacting with the client will be able to conceive and convince the customers to have projects which are of the more complex in nature which are more value adding and which are more long term. So, we need to look at these five factors in this organizational setting and then we can go about development process.