Organizational Development (OD) is necessary when an organization recognizes that a problem exists that affects the mission or health of the organization and that change is desired. OD can also be undertaken when leadership has a vision of a better way and wants to improve the organization. An organization does not always have to be in trouble to implement organizational development activities.

The Organizational Development process begins with careful organization-wide assessment and analysis of the present circumstance and the future requirements. This assessment can be conducted in many ways including documentation review, organizational sensing, focus groups, interviewing, or surveying. The assessment could be conducted by outside experts or by members of the organization. After the situation is assessed, defined, and understood, the next step is to plan an intervention. The type of change desired would determine the nature of the intervention. Interventions could include training and development, team interventions, such as team building for management or employees, the establishment of change teams, structural interventions, or individual intervention. Once the intervention is planned, it is implemented.

During and after the implementation of the intervention, relevant data is gathered. The data gathered would be determined by the change goals. For example, if the intervention were training and development for individual employees or work groups, the data to be gathered would measure changes in knowledge and competencies. This data is used to determine the effectiveness of the intervention. It is reported to the organization’s decision-makers. The decision-makers determine if the intervention met its goals.