aligning market environment, people and technology
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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
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
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.
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
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
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
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
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
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]