Briefing | How HR can use organisational development to boost skills development

Organisational development explained   

Organisational development uses a systematic approach to drive business performance. It looks at elements such as organisational culture, capability, values and relationships. It takes a systems approach to understand these elements and how they influence behaviour and performance. 

Many different definitions of OD exist, but they all share common features. OD can be defined from a people professional perspective as "a planned and systematic approach to enabling sustained organisational performance through the involvement of its people". 

Types of OD approaches and methods 

A common approach is strategic workforce planning, which involves forecasting future workforce needs based on the organisation’s strategic objectives and anticipated changes in the external environment.  

By identifying the skills and capabilities required to achieve these objectives, organisations can proactively address gaps in their workforce. For instance, if an organisation aims to expand into new markets, it might identify a need for employees with skills in international sales or cross-cultural communication. Strategic workforce planning enables organisations to future-proof their workforce by anticipating long-term needs. 

Creating skill alignment frameworks is another powerful method used in OD. These frameworks establish clear connections between individual and team capabilities and the organisation’s overall goals. For example, in a customer-focused organisation, a skill alignment framework might outline how frontline employees' interpersonal skills directly contribute to achieving customer satisfaction targets. By providing this clarity, employees gain a stronger understanding of how their roles support broader organisational success.  

Using workforce analytics is also a vital component of OD. Workforce analytics involves collecting and analysing data about employees’ skills, performance, and training needs. For instance, analytics might reveal that a high-performing department is experiencing a shortage of a critical skill, such as advanced data analysis. With this information, organisations can direct their training budgets and development initiatives to the areas that will yield the greatest impact.

How OD can create a culture of learning and skills development 

OD also plays a key role in encouraging a workplace culture that values ongoing learning and adaptability. Two effective approaches include: 

• Communities of practice: Creating opportunities for employees to exchange knowledge, insights, and expertise across teams enhances collaboration and supports knowledge-sharing.
• Reflection practices: Encouraging teams and individuals to spend time reviewing lessons learned allows for the continuous application of new insights, driving both personal and organisational growth. 

How can HR practitioners implement effective OD approaches? 

For HR practitioners new to organisation development, the key is to start with small, manageable actions. These initial steps can build confidence while delivering noticeable results. 

• Start small: Focus on simple actions such as mapping workflows or improving communication and feedback channels.
• Use HR’s role as a connector: Take advantage of HR’s position at the centre of the organisation to bring teams together and share insights.
• Ask the right questions: Use reflective questions such as, ‘What’s working well?’ or ‘What challenges might arise from this approach?’ to spark problem-solving discussions.
• Access resources: Take advantage of books, frameworks, and tools from trusted organisations like the CIPD to deepen your understanding of OD.
• Facilitate collaboration: Use tools like Liberating Structures to encourage teams to work together and share knowledge effectively.
• Act on feedback: When employees provide feedback, especially about learning and development, ensure this is translated into meaningful action plans.
• Engage key stakeholders: Identify the right people to be involved in decisions related to productivity and skills to ensure alignment and shared accountability.
• Understand the organisation: Build knowledge about how your organisation creates value, how its parts interconnect, and its operational cycles. This understanding enables HR practitioners to identify opportunities to contribute more effectively.

About the author

Garin Rouch is an organisation development and design consultant with experience supporting global organisations. Chair of the CIPD London OD&D Group, and CIPD Change and Transformation Group he designs events advancing the HR profession.