Organizational Development

Organic development – that appears to be like someone planting vegetables. But it also seems to be healthy and many people are willing to pay a premium for items produced naturally. Actually, there are resemblances between organic farming and organic company development. Both methods are based on using what is already happening without including needless outside impacts.
In the case of company development, the phrase “natural” or “organic” represents the process of increasing the company using the current company resources. Growth most often happens from improving client base or improving sales to current clients and those are approved methods of development. Using organic or current resources to fund the development allows control over the development direction and schedule. However, organic development means allocating resources to the development direction thereby restricting resources available for other business uses.
Managers must take several aspects into account when selecting organic development techniques. The two most frequent techniques are:
• Realigning business costs to allow for necessary facilities, development resources or employment to provide development, or
• Restructuring current financial debt to allow for required income for funding the facilities or development resources required for development.
Either of these techniques needs control to take an in-depth look at the current and estimated finances, the sources required to acquire the development, the objectives of the strategic plan (you do have one, right?), the patience for rate of change, and the need for the expected development. While development may be suitable, it is not always recommended so know why you are picking a development technique at this time in your business’s life.
Organic development can be more slowly but provides less risk as the financial debt ratio is not increased as it often is with inorganic development (mergers and acquisitions).

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