Introduction to Organisational Due Diligence (ODD)
Organisational Due Diligence (ODD) is an analytical method that ensures a company’s internal structure and culture are aligned with its external reality. The analysis examines both internal workflows and external market conditions to create a complete picture of how the organisation operates.
The goal is to ensure that the company’s internal design not only functions effectively on its own, but also supports the organisation’s strategic goals in an ever-changing world.
How ODD Creates Organisational Coherence
Organisational Due Diligence (ODD) connects strategy, structure and culture to ensure that the organisation operates as a coherent whole. Through a systematic analysis of both internal reality and external market conditions, ODD identifies how well the organisation’s design supports its strategic goals.
This approach makes it possible to see:
Whether the organisation is in balance with its environment
Where structural weaknesses or inefficiencies may exist
What internal adjustments are needed to strengthen performance and alignment
When an organisation’s internal setup does not reflect the demands of its surroundings, it often results in inefficiency, low engagement and lack of strategic direction. ODD helps prevent this by ensuring that internal efforts are based on a clear understanding of real conditions rather than theoretical assumptions.
The result is a balanced, adaptable organisation that can respond effectively to both internal challenges and external changes, creating a solid foundation for growth, stability and innovation.
What Does the ODD Model Measure?
What Does the ODD Model Measure?
Organisational Due Diligence (ODD) evaluates how well the organisation’s internal setup matches the external reality it operates in. The model looks at both the environment outside the organisation and the structures, teams and people within it. This creates a complete picture of how the organisation functions and where adjustments are needed.
1. External Perspective: Understanding the Environment
The ODD model begins by assessing how the organisation navigates its surroundings. This is described as the organisation’s degree of turbulence, which reflects how predictable or unpredictable the external environment is.
The analysis includes factors such as:
• Globalisation: The extent to which international players and trade terms influence operations
• Digitalisation: How technology shapes the business model and pace of innovation
• Competitive landscape: The intensity of competition and market entry barriers
• Predictability: The stability or volatility of the market
• Speed of change: How rapidly customer needs, technology and regulations evolve
To illustrate how organisations adapt to different conditions, the model identifies four dominant organisational cultures:
• Structural culture (Bureaucratic): Stability, hierarchy and process efficiency
• Purpose culture (Mission): Strategic focus and a clear sense of direction
• Community culture (Clan): Collaboration, trust and shared learning
• Adaptive culture: Innovation, flexibility and readiness for change
2. Internal Perspective: Strategic Alignment
On the strategic level, ODD examines five design components that determine whether the organisation’s internal structure supports its external demands:
• Strategy: Clarity of goals and ability to execute effectively
• Structure: Hierarchies, roles and responsibilities that enable delivery on the strategy
• Work processes: Efficiency and adaptability to external changes
• Technology: The digital maturity that supports operations and innovation
• People and culture: Engagement, values and psychological contracts that reinforce the overall direction
3. Internal Perspective: The Tactical Team Level
The tactical level focuses on how strategic intentions are translated into daily practice within teams and departments. It examines collaboration, communication and group dynamics to ensure that the tactical level supports both strategy and external requirements.
The analysis covers:
• Group purpose and goals: Alignment between team objectives, strategy and external context
• Team structure and roles: Clarity of responsibilities and contribution
• Interaction and communication: How information flows and collaboration happens
• Group work processes: Efficiency and adaptability in daily operations
• Team culture and norms: Shared behaviours that shape teamwork and performance
4. Internal Perspective: The Individual Level
At the individual level, ODD explores how each employee experiences their work, role and development. It identifies whether people feel motivated, capable and aligned with the organisation’s overall purpose.
The analysis focuses on:
• Individual goals and expectations: Clarity of purpose and connection to team and organisational goals
• Job design and role: Level of autonomy and clarity in responsibilities
• Competences and skills: Opportunities for learning and development
• Motivation and engagement: How the organisation supports energy and drive
• Work environment and relationships: Quality of interactions and sense of wellbeing
1. External Perspective: Understanding the Environment
The ODD model begins by assessing how the organisation navigates its surroundings. This is described as the organisation’s degree of turbulence, which reflects how predictable or unpredictable the external environment is.
The analysis includes factors such as:
• Globalisation: The extent to which international players and trade terms influence operations
• Digitalisation: How technology shapes the business model and pace of innovation
• Competitive landscape: The intensity of competition and market entry barriers
• Predictability: The stability or volatility of the market
• Speed of change: How rapidly customer needs, technology and regulations evolve
To illustrate how organisations adapt to different conditions, the model identifies four dominant organisational cultures:
• Structural culture (Bureaucratic): Stability, hierarchy and process efficiency
• Purpose culture (Mission): Strategic focus and a clear sense of direction
• Community culture (Clan): Collaboration, trust and shared learning
• Adaptive culture: Innovation, flexibility and readiness for change
2. Internal Perspective: Strategic Alignment
On the strategic level, ODD examines five design components that determine whether the organisation’s internal structure supports its external demands:
• Strategy: Clarity of goals and ability to execute effectively
• Structure: Hierarchies, roles and responsibilities that enable delivery on the strategy
• Work processes: Efficiency and adaptability to external changes
• Technology: The digital maturity that supports operations and innovation
• People and culture: Engagement, values and psychological contracts that reinforce the overall direction
3. Internal Perspective: The Tactical Team Level
The tactical level focuses on how strategic intentions are translated into daily practice within teams and departments. It examines collaboration, communication and group dynamics to ensure that the tactical level supports both strategy and external requirements.
The analysis covers:
• Group purpose and goals: Alignment between team objectives, strategy and external context
• Team structure and roles: Clarity of responsibilities and contribution
• Interaction and communication: How information flows and collaboration happens
• Group work processes: Efficiency and adaptability in daily operations
• Team culture and norms: Shared behaviours that shape teamwork and performance
4. Internal Perspective: The Individual Level
At the individual level, ODD explores how each employee experiences their work, role and development. It identifies whether people feel motivated, capable and aligned with the organisation’s overall purpose.
The analysis focuses on:
• Individual goals and expectations: Clarity of purpose and connection to team and organisational goals
• Job design and role: Level of autonomy and clarity in responsibilities
• Competences and skills: Opportunities for learning and development
• Motivation and engagement: How the organisation supports energy and drive
• Work environment and relationships: Quality of interactions and sense of wellbeing
1. External Perspective: Understanding the Environment
The ODD model begins by assessing how the organisation navigates its surroundings. This is described as the organisation’s degree of turbulence, which reflects how predictable or unpredictable the external environment is.
The analysis includes factors such as:
• Globalisation: The extent to which international players and trade terms influence operations
• Digitalisation: How technology shapes the business model and pace of innovation
• Competitive landscape: The intensity of competition and market entry barriers
• Predictability: The stability or volatility of the market
• Speed of change: How rapidly customer needs, technology and regulations evolve
To illustrate how organisations adapt to different conditions, the model identifies four dominant organisational cultures:
• Structural culture (Bureaucratic): Stability, hierarchy and process efficiency
• Purpose culture (Mission): Strategic focus and a clear sense of direction
• Community culture (Clan): Collaboration, trust and shared learning
• Adaptive culture: Innovation, flexibility and readiness for change
2. Internal Perspective: Strategic Alignment
On the strategic level, ODD examines five design components that determine whether the organisation’s internal structure supports its external demands:
• Strategy: Clarity of goals and ability to execute effectively
• Structure: Hierarchies, roles and responsibilities that enable delivery on the strategy
• Work processes: Efficiency and adaptability to external changes
• Technology: The digital maturity that supports operations and innovation
• People and culture: Engagement, values and psychological contracts that reinforce the overall direction
3. Internal Perspective: The Tactical Team Level
The tactical level focuses on how strategic intentions are translated into daily practice within teams and departments. It examines collaboration, communication and group dynamics to ensure that the tactical level supports both strategy and external requirements.
The analysis covers:
• Group purpose and goals: Alignment between team objectives, strategy and external context
• Team structure and roles: Clarity of responsibilities and contribution
• Interaction and communication: How information flows and collaboration happens
• Group work processes: Efficiency and adaptability in daily operations
• Team culture and norms: Shared behaviours that shape teamwork and performance
4. Internal Perspective: The Individual Level
At the individual level, ODD explores how each employee experiences their work, role and development. It identifies whether people feel motivated, capable and aligned with the organisation’s overall purpose.
The analysis focuses on:
• Individual goals and expectations: Clarity of purpose and connection to team and organisational goals
• Job design and role: Level of autonomy and clarity in responsibilities
• Competences and skills: Opportunities for learning and development
• Motivation and engagement: How the organisation supports energy and drive
• Work environment and relationships: Quality of interactions and sense of wellbeing
The Psychological Contract: Balancing Expectations Between Organisation and Employee
The Psychological Contract: Balancing Expectations Between Organisation and Employee
A central part of the ODD model is the psychological contract; the unwritten expectations and obligations that shape the relationship between the organisation and its employees.
This contract reflects what employees believe the organisation promises them in terms of development opportunities, stability, flexibility and recognition, and what the organisation expects in return, such as commitment, loyalty and performance.
The ODD analysis assesses whether these expectations are in balance with the organisation’s actual structure and culture. For example, a company operating in a highly turbulent environment may require flexibility and self-management from employees. If employees instead expect predictability and well-defined career paths, an imbalance can occur. When this psychological contract is broken, it often results in lower motivation, higher turnover and reduced engagement.
By mapping these dynamics, ODD provides a clear picture of how the organisation can adjust its internal design, leadership and communication to strengthen satisfaction, engagement and retention.
Through this understanding, ODD ensures coherence across strategic, tactical and individual levels, creating an organisation that is both balanced and adaptable; capable of meeting internal goals while responding effectively to external demands.
