Aligning market environment, people and technology

DSV SU/IbisSoft1

A framework for synchronizing human behavior, processes and support systems using a socio-

technical approach

Ilia Bider - DSV SU/IbisSoftStewart Kowalski - DSV SU

Pre-proceedings - http://bit.ly/1chB3pWSpringer proceedings –

http://link.springer.com/content/pdf/10.1007%2F978-3-662-43745-2_8.pdf

Aligning market environment, people and technology

Culture eats strategy for breakfastAttributed to Peter Drucker

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Goal

Present a heuristic framework for:

1. Discussing2. Analyzing3. Creating

alignment between Environment, People and Technology

Which is a set of rules that point out:

4. Whether there is the alignment5. Pinpoint where misalignment happens

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ExternalEnvironment

InternalEnvironment Goal: aligning environment,

people and technology

ExternalEnvironment

People

Processes

Technology:Business process

support - BPS systems

InternalEnvironment

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Plan – go from concrete to abstract levels

• Categorize (create models of):

1. External environment2. Internal environment

• People• Technology• Processes

• Create a set of rules that matches categories of things

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Categorizing External EnvironmentBackground

Categorization of IndustriesC. Perrow, "A Framework for the Comparative Analysis of Organizations,"

American Sociological Review, pp. 194–208, 1967

Uncertainty/Exceptions matrix

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Categorizing External EnvironmentMarket positions (MPs)

Lev

el o

f B

usi

ne

ss U

nce

rtai

nty

Level of Process Flexibility

Exploration

StandardizationOptimization

Freezing

Low Level of Uncertainty

High Level of Uncertainty

Rig

id P

roce

sses

w

ith f

ew e

xcep

tion

s

Fle

xibl

e pr

oces

ses

with

m

any

exc

eptio

ns

Control exit from adeclining market

Entering an emergent market

Functioning in a stable market

Growing withan existing market

4 13 2

Goal = survive

Goal = stabilizeGoal = be more profitablethan competitors

Goal = earn moneyas long as it lasts

Uncertainty/Exceptions matrix

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Categorizing Internal EnvironmentBackground

R. P. Bostrom and J. S Heinen, "MIS problems and failures: A socio-technical perspective," MIS Quarterly, vol. 1, no. 3, pp. 17-32, 1977.

Sociotechnical systems

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Categorizing Internal EnvironmentBackground: Adapting

Sociotechnical systems in process-oriented perspective

Tasks (completed in theframe of the process)

Technology(BPS)

Structure(process control structure)

People

Soc

ial

Tech

nica

l

Process

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Categorizing Internal EnvironmentFinal scheme

Sociotechnical systems: in process-oriented perspective

Tasks (completed in theframe of the process)

Technology(BPS)

Structure(process control structure)

People

Soc

ial

Tech

nica

l

Combination of Techniques in Use

ProcessCategory

Type of BusinessProcess Support

OrganizationalCulture

4

Methods

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Categorizing Internal EnvironmentCulture: Background

Seven Dimensions of Organizational Culture

S. P. Robbins and M. Coulter, Management, 12th ed.: Prentice Hall, 2014.

Techniques

ProcessCategory

Type of BPS

Culture

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Categorizing Internal EnvironmentCulture: 3 dimensions1. World view (substitutes aggressiveness):

competitive/cooperative the degree in which process participants consider internal environment as competitive vs. cooperative.

2. Resourcefulness (substitute innovation & risk taking): low/medium/high the degree to which the process participants are able and allowed to find and complete tasks by themselves rather than waiting instructions on what to do and how to do it.

3. Scope (substitute attention to detail): narrow, medium, wide the context that is taken into consideration by process participants while completing actions in the frame of process instances.

• Narrow – context of operation activity• Medium – context of process instance• Wide – context of the process type

Techniques

ProcessCategory

Type of BPS

Culture

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Categorizing Internal EnvironmentProcesses: BackgroundFour types of rules to control the process:

1. Obligations

2. Recommendations

3. Negative recommendation

4. Prohibitions

Based on deontic logic and:

I. Bider and A. Striy, "Controlling business process instance flexibility via rules of planning," IJBPIM , vol. 3, no. 1, pp. 15-25, 2008

Techniques

ProcessCategory

Type of BPS

Culture

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Categorizing Internal EnvironmentProcess categoriesFour categories of processes:

Techniques

ProcessCategory

Type of BPS

Culture

Process Rules category category

Loose1 Guiding2 Restrictive3 Strict4

Obligations Some Some Many Many Recommendations None Many Some None Negative recommendations None Many Some None Prohibitions Some Some Many Many 1 All that is not prohibited is allowed. Some obligation exists 2 Differs from Loose by presence of guidelines for most typical situations 3 Small room for actions that falls outside Obligation + Recommendation and not Prohibited. 4 All that is not covered by obligations is prohibited.

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Categorizing Internal EnvironmentCombination of techniquesThree types of techniques:

1. Follow instructions – work is completed according to predefined instructions.

2. Instance based decision making – decision making based on the information on the development of a particular process instancee.g., deciding on the course of action in a case, - tactical decision making.

3. Type-based decision making – decision making based on the situation in the whole work-system, e.g. prioritizing some process instances - strategic decision making.

and their combinations (ratio between techniques used):

<high, low, low>, <low, high, low>, <low, high, high>

Techniques

ProcessCategory

Type of BPS

Culture

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Categorizing Internal EnvironmentDimensions of BPSThree dimensions to characterize BPS

1. Structuredness of data

2. Orderliness of task flow

3. Information Logistics: Messaging (conveyor belt), Shared spaces (construction site)

Source: I. Bider, P. Johannesson, and R. Schmidt, "Experiences of Using Different Communication Styles in Business Process Support Systems with the Shared Spaces Architecture," in Proceedings of CAiSE 2011. Springer, LNCS, Vol. 6741, 2011, pp. 299-313.and their combinations

<high, low, messaging>, <low, high, Shared>, etc.

Techniques

ProcessCategory

Type of BPS

Culture

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Categorizing Internal EnvironmentDimensions of BPS: Examples• Using word processor + emails as BPS =

<Structuredness = low, Orderliness = low, Logistics = messaging>

• Using social software, such as a forum, or a wiki, as BPS =

<Structuredness = low, Orderliness = low, Logistics = shared space>

• A traditional workflow system with form support = <Structuredness = high, Order-liness = high, Logistics = messaging>

• A case management system =<Structuredness = medium, Orderliness = low, Logistics = shared space>

Techniques

ProcessCategory

Type of BPS

Culture

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Rules of alignment

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Rules of alignment between external and internal environments

M. McDonald, Marketing plans, How to Prepare Them : How to Use Them. Oxford: Butterworth-Heinemann, 1989

Process category MP

Loose Guiding Restrictive Strict

MP1: Exploration X MP2: Standardization X MP3: Optimization X MP4: Freezing X

ProcessRules category category

Loose1 Guiding2

Restrictive3

Strict4

Obligations Some Some Many ManyRecommendations None Many Some NoneNegative recommendations

None Many Some None

Prohibitions Some Some Many Many

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Rules of alignment between external and internal environments

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Rules of alignment between process categories and techniques Technique

s

ProcessCategory

Type of BPS

Culture


Loose1 Guiding2

Restrictive3

Strict4


None Many Some None


Process categories

Proportion of techniques used Follow

instructions1 Tactical (instance-

based) decision making2

Strategic (type-based) decision

making2 Loose Low High High Guiding Medium High Medium Restrictive High Medium Low Strict High Low Low Footnotes: 1 The number of rules that describe when, what, how and by whom tasks are to be completed

grows when going from the loose processes to the strict ones. Thus the proportion of tasks that requires “follow instructions” grows

2 The more rules that needs to be followed, the less needs for decision making.

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Rules of alignment between culture and techniques

Techniques

ProcessCategory

Type of BPS

Culture

Techniques

Values according to dimensions of organizational culture

World view Resourcefulness Scope Follow instructions - Low Narrow Tactical (instance-based) decision making

- Medium Medium

Strategic (type-based) decision making

- High Wide

1. World view: competitive/cooperative

2. Resourcefulness (ability to find and complete tasks on their own) low/medium/high

3. Scope (context that is taken into consideration)narrow, medium, wide

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Rules of alignment between culture and process categories

Techniques

ProcessCategory

Type of BPS

Culture

Process categories

Values according to dimensions of organizational culture World view Resourcefulness Scope

Loose Cooperative1 High Wide Guiding Cooperative1 Medium Medium Restrictive - Medium or Low Medium or Narrow Strict - Low Low 1 Loose and guiding processes have high to medium proportion of decision-making. The

latter leads to high probability of different decisions being made by different process participants. With lack of cooperation the decision will contradict each-other.


Loose1 Guiding2

Restrictive3

Strict4


None Many Some None


Techniques

ProcessCategory

Type of BPS

CultureTechniques

ProcessCategory

Type of BPS

Culture

+

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Rules of alignment between techniques and BPS

Techniques

ProcessCategory

Type of BPS

Culture

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Rules of alignment between process categories and BPS

Techniques

ProcessCategory

Type of BPS

Culture


Loose1 Guiding2

Restrictive3

Strict4


None Many Some None


Process Categories

Values according to dimensions of BPS Structuredness

of data Orderliness of

task flow Logistics

Loose Low Low Shared space Guiding Medium Medium or Low Shared space Restrictive High or Medium High or Medium Messaging or

Shared space Stringent High High Messaging

Techniques

ProcessCategory

Type of BPS

Culture

+Techniques

ProcessCategory

Type of BPS

Culture

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Rules of alignment between process categories and BPS

Techniques

ProcessCategory

Type of BPS

Culture


Loose1 Guiding2

Restrictive3

Strict4


None Many Some None


Examples

● Loose - social software, e.g. wiki or forums

● Guiding - case or adaptive case management system

● Restrictive - flexible, e.g. declarative, workflow with form support

● Strict - classical workflow with form support

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Rules of alignment between culture and BPS

Techniques

ProcessCategory

Type of BPS

Culture

Dimensions of organizational culture

Values according to dimensions of BPS Structuredness

of data Orderliness of

task flow Logistics

World view

Competitive High1 High1 Messaging2 Collaborative - - -

Resourcefulness

Low High3 High3 - Medium Medium Medium

High Low or medium4 Low or Medium4 Scope Narrow

- -

Messaging5 Medium Shared space6

High 1 The competitive organizational culture requires high level of structuredness/standardization

to “force” competing personality to contribute to the common goals. 2 Using shared spaces in competitive culture could be counterproductive, as competitive

personalities might be reluctant to sharing extra information between each other. 3 High structuredness is needed to compensate the low level of resourcefulness 4 High structuredness might set too many restrictions on a resourceful personality, which may

result in him/her using other means outside the BPS system employed, or doing the work formally with low quality, or quitting the job altogether……

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Rules of alignment: Summary

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Potential usefulness of the framework

1. Analysis of past successes and failures of an organization in general, or a particular organizational change completed or tried.

Example: introducing shared spaces in the competitive organizational culture (+ scope=narrow and/or resourcefulness = low.)

2. Analyzing risks connected to an organizational change, especially risks connected to the human factors.

Example: resourceful people leaving the organization when a restrictive or strict process is introduced

3. Devising measures to mitigating the risks involved in an specific organizational change

Examples:part time engagement of resourceful people in a restrictive or strict processchanging the culture to cooperative before or alongside introducing shared spaces

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Plans for the future: Validation

1. Analysis of historical data on companies which have changed their market positions, successfully and unsuccessfully, and attempt to extract information on their internal environments at different times. Another source of historical information that could be useful for our purpose is reports on successful and unsuccessful introductions of BPS systems. .

2. Looking for a case where the frame work could be applied for one of the intended uses:

• Analysis of past successes and failures of an organization

• Analyzing risks connected to an organizational change, especially risks connected to the human factors.

• Devising measures to mitigating the risks involved in an specific organizational change

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Thank you for your attention!

Q & A

Ilia Bider, DSV SU/IbisSoftEmail: [email protected]

[email protected]