Systems for Sustainable Organizations: Emergent Strategies, Interactive Controls and Semi-formal Information†

Abstract

New-form organizations are likely to organize more explicitly around processes than traditional-form organizations that emphasize functional hierarchy. Developing process-based strategic responses quickly using diffuse sets of resources is likely to play an increasingly important role in sustaining new organizational forms. Three ideas introduce alternative perspectives on strategy formulation, management control and information systems design that may be useful in understanding organizational performance in this area. They focus on: (1) emergent strategies, (2) interactive management controls, and (3) semi-formal systems. In combination these three perspectives describe relationships between strategy, organizational design and systems support that suggest mechanisms for improving the sustainability of new organizational forms. To some degree distributed organizational structures such as networked organizations and quasi-organizational forms such as alliances, partnerships and joint ventures represent attempts to solve a paradox of competitive agility. This paradox suggests that in the context of rapidly changing, increasingly global markets, organizations need to be flexible (so they can respond quickly to competitive threats) yet remain stable (so they can learn and grow based on their strengths). If this is the case, what systems and tools are available that encourage a productive balance between flexibility and stability? This paper uses the experience of regional management teams at a large consumer goods company to suggest how interactive controls and semi-formal information systems combine to increase the agility of a distributed organization that can employ emergent strategies. Evidence illustrates some of the mechanisms by which (a) faster response times deliver organizational flexibility while (b) semi-formal analytics add the stability of knowledge and guidance shared across organizational sites. Examples discuss the use of information within management teams, discussion behaviour within management meetings, and organizational performance in response to crisis events. In this context the paper analyses the characteristics of new-form systems that could be used to sustain new-form organizations While the development of process-oriented semi-formal systems is just beginning, the potential for linking such technology with newly developed approaches to management control appears to have important implications for the practice and performance of management in new-form organizations. In particular, interactive controls and semi-formal information appear to offer leverage as mechanisms for organizational adjustment during times when organizations must exploit emergent strategies