The Cost of Doing Nothing versus OD Results

Effective Organization Development (OD) is not a needless expense, nor is it a luxury. It is part of a sound strategy to meet or exceed business performance expectations. The cost of staying stuck at or near your current performance is much higher than an investment in OD. To that point, this partial list of our results speaks for itself:

Peach Bottom Atomic Power Station and PECO Nuclear following NRC shutdown (1987-2001): From worst to first by most industry standards, such as SALP and INPO ratings.

Addy Magnesium Plant (1993): “Business Week” in June 1993 edition reported on the plant’s 72% gain in productivity.

Jamalco (1999-2011): Worst on cash curve amongst Alcoa bauxite refineries, 1999, tied for best on cash curve, 2005. Reduction of $38 million in annual operating costs. Only refinery in Jamaica to stay at full production throughout the Great Recession starting in 2008.

Sherwin Alumina (2007-present): Only US bauxite refinery to stay in production throughout the Great Recession starting in 2008.

Grottoes TIPI (2005): Estimated annual savings of between $500,000 to $1 million dollars, despite turnover of Plant Manger and Production Manager soon after TIPI.

AFP Commercial TIPI (2004): 4 1/2 % increase in mature market. 40 to 42 1/2 million increase.

Alcoa AEP Oracle Implementation (2003): Change Management services for first BU to Go-Live.

Alcoa CSI (1999): Successfully completed 6 key R & D projects after no projects being completed the previous two years. Alcoa CSI Oracle Implementation (2002-2006): Received recognition as the benchmark change management plan on the EBS project. During a four year phased implementation, took 18 manufacturing plants live on Oracle. The plants were throughout North America, Mexico, Costa Rica, Spain, Hungary, and Germany. CSI missed no shipments over the four year time span due to the implementations. The previous BU to go live had 50% on time delivery for a year.

CST Industries (2010): Increased spare parts on time shipping from 46% to continuously over 90%. CST Leveraged the increase to capture a greater market share from 9 million in 2010 to 12 million plus in 2011 and expect to reach 15 million in 2012.

The Asian Development Bank (2009): Increased pace of recruitment, reached targets numbers, announced service standards and implemented a system for obtaining client feedback which shows positive results.

Whole System Culture Changes (1999-2002): Created and executed a whole systems culture change in Crawfordsville, Indiana East and North Plant, and Olive Branch, Mississippi and the Technology Building. Components were Leadership development, work team improvement, cross group meetings, key conflicts resolved, goal alignment, leadership transition through group process, and project planning sessions. Each plants achieved records in all key manufacturing indexes.

Bohai Expansion TIPI (2004): Exceeded target of reducing project costs by multi- million dollar figure.

Tempcraft TIPI (2006): Here are the Goal/Actual performance 1st quarter post TIPI –
Revenue $10 million/yr / 64% On-Time Delivery 95% / 84% TRR 0.0 / 0.0 Contribution Margin 40% / 20% Net Hours 5% / 1%

Baden TIPI (1997): $5,500,000 reduction in annual operating costs.

Massena West Smelter TIPI (both in 2001): nearly 3 million in annual operating costs and Massena East Smelter TIPI: $6,300,000.

Warrick TIPI (2001): The Roll Coats Unit of the Finishing Department at was confronted with both an opportunity and a dilemma. The opportunity was to increase production by 2,000,000 pounds per month (a market demand that was being subcontracted outside the plant). The dilemma was that the union management climate was such that there had been no collaborative problem-solving work for 18 months. The three-day process, involving 60 people (40 hourly) was held in late October 2000 with the goal of achieving the 2,000,000 increase per month goal by March 2001. Results: The goal was nearly reached by January, 2001 leading to a predicted $4,000.000 gain for the year plus additional revenue for the plant because of the central role of the Roll Coats Unit. Intangible Results: The union made a decision to participate in cooperative work throughout the rest of the plant.

About crosbyod

Crosby & Associates OD is a catalyst for high performance & morale. Our methods are a unique blend grounded in research and decades of experience. In the spirit of Kurt Lewin, the founder of OD, as we partner with you in the present we transfer our methods to you so you are independent in the future. Learn more at
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