Organizational flexibility: The seven hypothesized factors of success in e-business environments

Professor Paul PhillipsDirector of Kent Business SchoolUniversity of KentEngland, UK

p.a.phillips@kent.ac.uk

• Introduction• E-procurement objectives• E-organisational dimensions• Hypothesized model• Findings• Narrative study• Observations

Agenda

Suppliers Organisation Customers

Changing business relationships

Source: Phillips (2003)

E - Organisational dimensions

Areas of Strategic RenewalAn Ongoing Strategic Renewal Process

Knowledge Alignment

E-organisational dimensions

Organisational structure

AlliancesPeople and

Culture

Governance Quality

Leadership

Evolution to e-organisation takes place along seven key dimensions

Hypothesised Model

Factors:

•Structure•Leadership•People and Culture•Coherence•Knowledge•Alliances•Agility & Decision Making

InnovationOrganisational Effectiveness

Flexibility/Agility

Section 1: Organisational Structures

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DEMAND BASEDFLEXIBILITY

STRATEGICARCHITECTURE

PROCESSORIENTATION

MANAGINGRELATIONSHIPS

Importance to E-business SuccessExtent addressed by organisation

Section 2: Leadership

Importance to E-business SuccessExtent addressed by organisation

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LEADERSHIPEMPOWERMENT &IDEA SYNTHESIS

LEADERSHIPACCOUNTABILITY

LEADERSHIPADVOCACY

TRANSFORMATIONCHAMPION

Section 3: People & Culture

Importance to E-business SuccessExtent addressed by organisation

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INVOLVEMENT &COMMITMENT

RESPECT & TRUST

LEARNING &RENEWAL

RAPID CUSTOMERRESPONSIVENESS

REWARD

Section 4: Coherence

Importance to E-business SuccessExtent addressed by organisation

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COMMONCENTRALISED

SERVICES

DECENTRALISEDDIFFERENTIATED

SERVICES

STANDARDISATION &INTEROPERABILITY

INTEGRATEDINFORMATION

INFRASTRUCTURE

BSC MEASUREMENTAND PERFORMANCE

EVALUATION

Section 5: Knowledge

Importance to E-business SuccessExtent addressed by organisation

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KNOWLEDGE SHARING

KNOWLEDGE ACCESSIBILITY

KNOWLEDGE EXCHANGEMEETINGS

KNOWLEDGE FOCUS

KNOWLEDGE DEVELOPMENTAPPLICATIONS

Section 6: Alliances

Importance to E-business SuccessExtent addressed by organisation

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COMPLEXITY &RISK

ALLIANCEPERFORMANCEEXPECTATIONS

ALLIANCERESPECT & TRUST

Section 7: Agility & Decision Making

Importance to E-business SuccessExtent addressed by organisation

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AGILITY &DECISION EDGE

MARKET SPACEAWARENESS:

PROJECTMANAGEMENT

TEMPO/RELIABILITYTRADE OFF

MATCHING ANDSPEED & RISK

INTENTREALISATION

• Narratives was used as the main method of eliciting participants' mental constructs and cognitive representations during the scenario planning workshop.

Narrative study

Organisation is 'structure' driven

Implications • Processes are over proceduralised, rigidly

contained and thus limited by structure.

• Processes are inefficient and not actively managed; they 'flow' from structure and are bound also by the limitations inherent to technology….

• ……, if that knowledge was available to more people, you could reduce the number of decision makers. It’s back to structure and process because you've got that structure the process will be like that' ….

Structure is nonetheless necessary for reliability

Implications• The issue is more about how it is used

and whether it dictates or is harnessed by process.

• Structure facilitates effective performance under pressure.

• Structure can be flexibly used within a process model.

Technology is currently not synchronised

Implications• There are communication and co-

ordination barriers. • To achieve a 'synchrony of effects', there

needs to be synchronious 'live' communication and information flow

• Need to be able to harness all of its assets at any one point in time, simultaneously.

Rely too much on technology at the expense

of processImplications • The key issue is this: process comes first. • Processes should be designed to aid

effective performance, while having enough structure to provide stability, reliability and security.

• Any structure that is put in place must be supported by technology, but should not be determined by it…

• 'IT should be regarded as no more than an artefact so whatever you do should be socially constructed around that artefact'. 'if we focus on process…in fact the investment in the process may mean that the technology will cost less'.

Rely too much on technology at the expense of process

Implications• Vision is circumscribed by technology and

is to this extent dictated by it. • The organisational vision needs to be

partially uncoupled from the 'digital' form that it has been cast in. Network technologies do not necessarily mean networked organising.

• Technology should not be the driver.

Culture must be consistent with the process

Implications • More attention is required to the 'people' side

of the process than the technological side of the process, otherwise new IT systems will be not embedded or optimally harnessed by users.

• 'In the organisational environment, if you put in place a lot of process and technology without looking after the mindset of the employee, the culture, the organisation will collapse'.

Structure, process and technology

Implications• all need to be “strategically”

uncoupled; all should be iteratively and dynamically interrelated within a process framework.

• "let's not have an idea about structure until we need to".

More distribution of information and trust

Implications

• There needs to be more sharing of information and trust within the decision making process, less 'stove piping‘.

• By information is meant knowledge about the situation and of intent and decision making practices.

• Social and cultural issue

Thank youp.a.phillips@kent.ac.uk