Strategy #8

Empowerment and Decentralization

• Decentralization – participation of people in making the decisions that matter to them.

Centralized Decentralized

Type of Decision-making System

Centralized Hierarchies

Loose Hierarchies

Democracies Markets

ExamplesTraditional

military organizations

Consulting firms,

Research universities

Political democracies,

corporate shareholder

meetings

Free markets. The Internet, Firm internal

markets

Causes of Decentralization

• Malone claims this is a current trend, that centralized hierarchical businesses are declining and decentralized organizations are on the rise

• Cost of communication• IT enabled economies of scale for

small businesses

Historical Advantages of Large Organizations (1800 – 1970)

• Economies of scale• Specialization of labor• Communication costs

Centralization for Business Organizations

• Coordination advantages of hierarchies circa 1900 – 1950

• Coordination advantages were enabled by communication and transportation infrastructure

• Coordination and uncertainty – the cost of physical buffers versus the cost of information

Benefits of Decentralization

• Benefits of decision-making autonomy for the organization – motivation, creativity, and flexibility which lead to economic benefit

• Freedom and individualization work satisfaction

Implementation of IT-Enabled Business Change

• Failure rate for IT implementation• Necessity of achieving business

change along with IT change• How often is resistance the problem?

Assessing Risk (Leadership)

• Leader commitment to the business case

• Leader understanding of the extent of work change

• Formal motivation and goal alignment• Leader formal power• Leader experience• Leader information power

Assessing Risk (Employee)

• Embrace with enthusiasm• Follow orders• Follow others• Wait and see• Resist• Sabotage

Assessing Risk (Project scope and urgency)

• Is the scope of the project wide?• Is the change scope deep and

severe?• Is there urgency? What is its effect?

Risk Mitigation

• Mitigation is often a problem because it often comes too late

• Failure to recognize that implementation has implications beyond the ‘technology’ can also result in failing to identify appropriate mitigation

Project Management Adjustment

• Authoritative– Big Bang– Top-down Coordination

• Participative– Guided Evolution– Improvisation

Success Factors for ERP Implementation

• Top management engagement• Project leaders are veterans, team

members are decision makers• Third parties fill gaps in expertise• Change management goes hand-in-

hand with project management• A satisficing mindset prevails

Understanding Implementation

• How should implementation be studied?– By studying implementation acceptance– By studying implementation resistance

• Most academic work in IS studies implementation acceptance

Definitions of Acceptance and Resistance

• Acceptance – the act of receiving IT use willingly (Saga and Zmud 1994).

• Resistance – action or intentional inaction that opposes or sidesteps the implementation of new information technology.

Resistance TacticsType of Resistance

Resistance Tactic

Description

Active Voice Individuals voice their concerns and opposition

Active Exit Individuals leave the organization unwilling to adapt to the new system

Active/Passive Sabotage Individuals make concerted efforts to ensure the failure of the system

Passive Footdragging Individuals restrict their work output

Passive Withdrawal Individuals withdraw their commitment and mental effort

Passive Workaround Individuals find ways of working around the system

Passive Grudging Acceptance

Individuals go along with the system, but with a grudge and continuing to look for a way out

Change in Resistance over Time

• As alternative forms of resistance are prohibited, different forms may be tried– Voice Work around Sabotage or Exit– Voice Work around Grudging acceptance.

• Resistance may be constructive and disappear if reasonable suggestions are heeded.

Passive Resistance

• How frequently do passive forms of resistance manifest?

• Problem of passive resistance when your study is aimed at understanding acceptance.

• Effectiveness of passive resistance.• Passive resistance and plausible

deniability.

Mandatory vs. Voluntary Usage

• Degree of acceptance makes sense for voluntary systems. Does resistance to voluntary systems make sense?

• For mandatory systems, how would grudging acceptance be classified?

SystemImplementation(From Acceptance Viewpoint)

Resistance Type

Active Passive

Success

Failure

Rebel (1)

Coup (4)

Mutiny (2)

Subversive (3)

Resistance Can Be Contagious

ILLUSORY SUCCESSILLUSORY SUCCESS