Organizational Development: The Chocolate of Leadership

What I Learned about the Missing Ingredient in Business Success

I’ll admit I’m kind of late to the importance of Organizational Development. For decades, I concentrated on leadership because I needed to lead organizations.

And I led many organizations, including Tompkins Ventures, my current “refirement” project, to great success. I learned a lot about leadership, enough to author several books. That includes my latest, Insightful Leadership: Surfing the Waves to Organizational Excellence.

Despite that history, I’ve learned in my later years that Organizational Development could have spurred even more profitable growth.

In fact, Organizational Development is as important as chocolate. Chocolate motivates people – especially me. And motivation is the key to getting people to operate the right way.

Because unlike light switches, you cannot turn people on and off. You have to motivate them.

Yes, as I’ve written before, I still sometimes wish people were more like light switches. But I’ve found that Organizational Development is the right discipline to increase organizational effectiveness. I’ve found better employee engagement, open communication, team building – everything you need to increase customer satisfaction.

The Venn Diagram of Chocolate, Light Switches and People

I really like chocolate. If I’m going to have dessert, I likely will have chocolate: cake, pie, brownies, pudding, ice cream with chocolate chips. In fact, if dessert doesn’t include chocolate, I often just say to the waiter “and chocolate.”

That’s how I now see Organizational Development fitting into the business world. Any project you can think of should come with a side of “and Organizational Development.” That goes for supply chain, logistics, digital enablement, procurement, capital, mergers, acquisitions, expansions – everything.

Why? Because people bring different motivations, experiences, emotions and perspectives. They don’t just flip on and off like light switches.

And that’s where Organizational Development provides the chocolate – the sweetener that makes leadership work. And that Venn diagram of chocolate, light switches and people could provide a powerful combination.

Every Project Comes With ‘… and Organizational Development’

Companies across the globe are kickstarting projects for automation and artificial intelligence. But no matter how automated or how reliant on artificial intelligence, all projects involve people. Period. And when you ignore Organizational Development, you risk failure.

To take one example from the world of supply chain, Harvard Business Review estimates that 55% to 75% of all ERP projects fail. A quick scan of other literature lists failure rates ranging from 50% to 99%, depending on project type.

Those odds are grim. That’s no way to run a successful business. The results? Business processes fail, organizational culture suffers and team members check out.

A side of “and Organizational Development” can help turn those odds in your favor. By properly supporting employees, you help them adapt, change, collaborate and succeed. Otherwise, you may have the right technology or process, but the lack of emotional intelligence will derail you.

When a Missing Shift Nearly Wrecked a Perfect System

Let me give you a story from my own experience. We built a warehouse solution for a famous person (can’t name her, but you’d know her). The system worked perfectly.

Six weeks later, not only had they not paid us, but they threatened to sue us. Why? Because the warehouse “didn’t work.”

When we flew down, we discovered they had canceled the second shift – the team responsible for replenishing pick locations. A warehouse without replenishment isn’t a warehouse; it’s chaos. Pickers were spending half their time hunting down cases in the back, dragging them forward and replenishing stock. Productivity dropped from 100% to 30%.

Technology wasn’t the problem. People were. This was a job for Organizational Development. The decision-makers didn’t understand what the second shift actually did, and that ignorance almost destroyed the system.

It took us four days to get the warehouse back in shape. But the real lesson? If we had integrated Organizational Development upfront – educating leadership, aligning shifts, clarifying responsibilities – the crisis never would have happened.

Problem solved. And no need for extra flights, extra work – and the worry we wouldn’t get paid.

Don’t Skip the Chocolate

So, here’s my conclusion: Organizational Development is the chocolate that makes leadership work. Organizational Development takes the unpredictability of people and creates alignment, motivation and results.

If you want projects to succeed, you need Organizational Development. Like adding chocolate to my desserts, every project should come with “and Organizational Development.”

At Tompkins Ventures, we’ve seen firsthand how Organizational Development transforms outcomes. It turns potential failure into sustainable success. It keeps leaders from treating people like light switches and equips organizations to solve problems and actually function.

Organizational Development is essential if you’re planning a merger, rolling out new technology, upgrading supply chains or expanding your business. So don’t skip the chocolate.

Ignore the diet advice. Instead, reach out and let’s discuss ways to avoid the pitfalls, reduce failure rates and sweeten your business outcomes. Bring that Venn Diagram of chocolate, light switches and leadership to fruition.

Because light switches may be easy to turn on and off. But people – with the right Organizational Development – can achieve extraordinary results.

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