Organizational Development: A Manual for Managers and ... - FPDL

ensure that these competences remain exclusive to maintain a strong competitive position. Then,
the organization must also re-evaluate capabilities, which it previously changed, look to the market
for new opportunities, and so on. This is the cycle of organizational development in accordance
with environmental conditions. Management has done a good job when the organization has all the
features that enable it to be successful and fit with the marketplace.
Sale
Market
research
Capabilities analysis
Development and delivery of product
Client information
Segment identification
Mission formulation
and declaration
Forming and maintaining
specific competencies
Development of organization
Production
Creating and
developing
product
Organizing or
re-organizing of activity
Picture 23. Two loops of the ‘match to the market’
Both cycles are shown in Picture 23. Of course, the picture is simplified. Still, it illustrates basic
ideas about building an organization from the outside, and about the non-stop development of
products and the organization itself. Since the product and organization must fit with the external
environment (which is a bit more broad than fitting with the market), and this external environment
is continuously changing, the product and organization must also continuously change. These two
loops represent two key functions of management – to create a product that is the best possible
solution for the client, and to create an organization that is the best possible producer of this
product.
The product is not an end in itself any longer - like it used to be for many producers. Whatever
commodity or service an organization produces – it is just one of several possible ways to meet
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