Aligning market environment, people and technology
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A framework for synchronizing human
behavior, processes and support systems
using a socio-technical approach
Ilia Bider - DSV SU/IbisSoft
Stewart Kowalski - DSV SU
Pre-proceedings - http://bit.ly/1chB3pW
Springer 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 breakfast
Attributed to Peter Drucker
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Goal
Present a heuristic framework for:
1. Discussing
2. Analyzing
3. Creating
alignment between Environment, People and Technology
Which is a set of rules that point out:
1. Whether there is the alignment
2. Pinpoint where misalignment happens
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Plan – go from concrete to abstract
levels
• Categorize (create models of):
1. External environment
2. Internal environment
• People
• Technology
• Processes
• Create a set of rules that matches categories
of things
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Categorizing External Environment
Background
Categorization of Industries
C. 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 Environment
Market positions (MPs)LevelofBusinessUncertainty
Level of Process Flexibility
Exploration
StandardizationOptimization
Freezing
Low Level of Uncertainty
High Level of Uncertainty
RigidProcesses
withfewexceptions
Flexibleprocesseswith
manyexceptions
Control exit from a
declining market
Entering an
emergent market
Functioning in a
stable market
Growing with
an existing market
4 1
3 2
Goal = survive
Goal = stabilizeGoal = be more profitable
than competitors
Goal = earn money
as long as it lasts
Uncertainty/Exceptions matrix
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Categorizing Internal Environment
Background
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 Environment
Background: Adapting
Sociotechnical systems in process-oriented perspective
Tasks (completed in the
frame of the process)
Technology
(BPS)
Structure
(process control structure)
People
Social
Technical
Process
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Categorizing Internal Environment
Final scheme
Sociotechnical systems: in process-oriented perspective
Tasks (completed in the
frame of the process)
Technology
(BPS)
Structure
(process control structure)
People
Social
Technical
Combination of
Techniques in Use
Process
Category
Type of Business
Process Support
Organizational
Culture
4
Methods
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Categorizing Internal Environment
Culture: Background
Seven Dimensions of Organizational Culture
S. P. Robbins and M. Coulter, Management, 12th ed.: Prentice Hall, 2014.
Techniques
Process
Category
Type of BPS
Culture
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Categorizing Internal Environment
Culture: 3 dimensions
1. 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
Process
Category
Type of BPS
Culture
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Categorizing Internal Environment
Processes: Background
Four 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
Process
Category
Type of BPS
Culture
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Categorizing Internal Environment
Process categories
Four categories of processes:
Techniques
Process
Category
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 Environment
Combination of techniques
Three 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
Process
Category
Type of BPS
Culture
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Categorizing Internal Environment
Dimensions of BPS
Three 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
Process
Category
Type of BPS
Culture
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Categorizing Internal Environment
Dimensions 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
Process
Category
Type of BPS
Culture
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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
Process
Rules category
category
Loose1 Guiding2 Restrictive
3
Strict4
Obligations Some Some Many Many
Recommendations None Many Some None
Negative
recommendations
None Many Some None
Prohibitions Some Some Many Many
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Rules of alignment between process
categories and techniques Techniques
Process
Category
Type of BPS
Culture
Process
Rules category
category
Loose1 Guiding2 Restrictive
3
Strict4
Obligations Some Some Many Many
Recommendations None Many Some None
Negative
recommendations
None Many Some None
Prohibitions Some Some Many Many
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
Process
Category
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
Process
Category
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.
Process
Rules category
category
Loose1 Guiding2 Restrictive
3
Strict4
Obligations Some Some Many Many
Recommendations None Many Some None
Negative
recommendations
None Many Some None
Prohibitions Some Some Many Many
Techniques
Process
Category
Type of BPS
CultureTechniques
Process
Category
Type of BPS
Culture
+
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Rules of alignment between
techniques and BPS Techniques
Process
Category
Type of BPS
Culture
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Rules of alignment between process
categories and BPS Techniques
Process
Category
Type of BPS
Culture
Process
Rules category
category
Loose1 Guiding2 Restrictive
3
Strict4
Obligations Some Some Many Many
Recommendations None Many Some None
Negative
recommendations
None Many Some None
Prohibitions Some Some Many Many
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
Process
Category
Type of BPS
Culture
+
Techniques
Process
Category
Type of BPS
Culture
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Rules of alignment between process
categories and BPS Techniques
Process
Category
Type of BPS
Culture
Process
Rules category
category
Loose1 Guiding2 Restrictive
3
Strict4
Obligations Some Some Many Many
Recommendations None Many Some None
Negative
recommendations
None Many Some None
Prohibitions Some Some Many Many
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
Process
Category
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 - - -
Resourcef
ulness
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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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 process
changing 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/IbisSoft
Email: ilia@dsv.su.se
ilia@ibissoft.se
