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Adaptive Organisations – Interweaving the Deliberate and Emergent
Abstract
Today’s business world is an increasingly complex, interconnected environment where organisations
conduct global business. It is characterised by rapid, unpredictable change resulting in turmoil that
impacts all levels of an organisation. Traditional deliberate strategies, based on cycles of stability and
predictability, are no longer relevant for today's business environments. Emergent strategies have
been advocated as the solution. However, the thesis of this research is that organisations need to
interweave the deliberate with the emergent. A review of research and industry literature suggests
large gaps exist in terms of strategies, processes, structures, and information systems that intrinsically,
fundamentally, and seamlessly interweave deliberate and emergent aspects to support adaptive
organisations. In this thesis we investigate and propose how interweaving of the deliberate and
emergent could be conceived and realised in terms of strategy, processes, organisational structures,
and information systems. The research is interdisciplinary in nature and spans management,
operations, and information systems.
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1. Background and Context
The volatility of today’s business environment acts a catalyst for the constant emergence of new
problems and market opportunities. For example, product lifecycles that used to be measured in terms
of years are now taking months if not weeks. This market instability, characterised by the ever
increasing rate of change, necessitates change in the way organisations conduct their business (Dale,
2007; Heinrich & Betts, 2003). Change in terms of the way business is conducted means there is a
corresponding change in business models and the business processes that support these models.
One way organisations can respond to the challenges of rapid change is to consider its impact at three
tiers of abstraction. First, macro level changes that impact an organisation and its strategic direction.
Second, macro and micro level changes that can affect the organisation's business processes (BP) and
organisational structure, or the way business is conducted. And third, changes to the Information
Systems (IS) that are required to implement and support the business processes and changing strategy.
Most organisations manage their strategy, business processes, the organisational structure, and their
information systems in a disparate way rather than adopting a cohesive approach. This lack of
cohesion can result in serious problems for the organisation if it is unable to respond and adapt to
rapidly changing business conditions. Commonly, technology is understood as an enabler to solve
problems, for example machines and software have been used to significantly increase efficiencies of
many organisational processes. In a predictable environment the traditional approach of defining
strategy, designing processes, and implementing software solutions is an appropriate response.
However, in a rapidly changing environment, organisations are under fierce pressure to adapt to the
environmental change.
2. Deliberate or Emergent or Adaptive?
There are many current frameworks that express the elements of strategy, business process,
organisational structure and information systems but most of these frameworks focus on an internal
alignment of those elements (for example, Kumaran et al 2007). The alignment is the cyclical
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monitoring and adjustment with a predetermined deliberate orientation. Even though there may be
some external sensing, the alignment cycle does not take this into account. The alignment is done in a
very deliberate way and therefore considered to be a deliberate approach in terms of the management
orientation.
The deliberate approach, as a certain orientation of management, is also recognised by Scheer (2007).
However, he suggests that an organisation may balance the deliberate approach with an emergent
approach to offset the dynamics occurring in its internal and external environment. He proposes a
model that illustrates the intensity of control versus connectivity between groups both internally and
externally. This model suggests that organisations with traditional, top down, hierarchical
management structures have high levels of intensity of control and low connectivity. These
organisations are inflexible and succeed in stable environments. They follow a deliberate approach.
While there are organisations at the bleeding edge that are very reactive and flexible, their levels of
connectivity are very high while the intensity of control is very low. These organisations follow an
emergent approach.
Scheer (2007) suggests that the best place to be is on the edge of chaos where organisations balance
flexibility and stability. This equates to a balance between the deliberate and emergent approach.
The edge of chaos equates to what is meant by the adaptive approach as defined in this research, the
deliberate-emergent approach.
3. The adaptive approach
There are two key dimensions to the following discussion of the literature. One is the elements of an
organisation and the other is the deliberate versus the emergent orientation of management. This
deliberate versus the emergent approach is applied to the four key elements of an organisation
proposed by Scott-Morton MIT90’s framework (1991): strategy, business processes, organisational
structures and technology (information systems). So the MIT90’s framework acts as an over arching
structure in the research. The second dimension used is the concept of deliberate and emergent
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introduced by Mintzberg (1994) and echoed in slightly different terms by Scheer (2007) with his ideas
on stability and flexibility. The structure of the discussions is organised against these two dimensions
(axes) as illustrated in Figure 1. Each of the four key elements of an organisation (Scott-Morton,
1991) is discussed in terms of deliberate, emergent and adaptive in the following sections.
[Figure 1 about here]
3.1 Strategy
The Oxford Dictionary defines strategy as a "plan designed to achieve a particular long-term aim"
(Pearsall, 2001). However, Mintzberg (1987) suggests that in a business context a strategy is more
than just a plan. He suggests that it is a 'pattern' that is found in a stream of actions, a market position,
and the organisation's perspective. Mintzberg and Walters (1985) introduced the idea of a strategy as
consisting of two elements: deliberate strategy and emergent strategy. This view is supported by
Ocasio and Joseph (2008) they defined strategy as "a framework, either implicit or explicit, that
guides the organisation's choice of action". They suggest this broad view of strategy is both "planned
and emergent, resulting from strategic design, the evolution of a pattern of decisions, or a combination
of the above".
3.2 Deliberate Strategy
A deliberate strategy is a strategy that is carefully planned and controlled by the organisation. The
traditional strategies are deliberate strategies. The reasons for this are that these strategies begin with
an idea, a plan is then developed, the plan is communicated, and some form of action(s) follows. The
purpose of what can be considered as a traditional strategy is to create and maintain a long term
definable position that results in competitive advantage within the market (Mintzberg & Waters,
1985; Eisenhardt & Brown, 1998). A seminal and definitive work on corporate strategy 'Competitive
Advantage' (Porter, 1980) discussed what is now known as Porter's Strategy Models. It could be
argued that Porter's work on competitive strategy focuses on deliberate strategies as his definition is
that a formal corporate strategy "provides a coherent model for all business units and ensures that all
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those involved in strategic planning and its implementation are following common goals" (Porter,
1980).
3.3 Emergent Strategy
Emergent strategies are those strategies that have developed as part of a "pattern in a stream of
actions" and are divorced from any preconceived plan (Mintzberg, 1987; Hamel & Prahalad, 2005).
This strategy is the ability of the organisation to be responsive to the environment in order to maintain
its competitive position. Bonnet and Yip (2009) refer to strategic agility, it is the ability an
organisation has to constantly, "sense, assess and react to market conditions". They suggest that in
today's turbulent markets strategic agility is necessary rather than the idea of sustainable competitive
advantage.
The foregoing discussion has discussed the key concepts of deliberate strategy and emergent strategy
in their pure form. A pure deliberate strategy is when the organisation proposes and then locks itself
into a course of action toward a future destination that it ultimately reaches. In contrast, the pure form
of an emergent strategy lacks intention but despite lack of intention there is "order and consistency
over time" (Mintzberg & Walters, 1985).
3.4 Adaptive Strategy
There are not many current strategies that are purely deliberate or purely emergent (Mintzberg, 1994).
A strategy that results in competitive advantage today may not result in competitive advantage
tomorrow as so much is happening at an ever increasing speed. "Competing on the edge" (Eisenhardt
& Brown, 1998) refers to a strategic approach that requires an organisational ability to change
constantly over time in response to a relentlessly changing environment. Reacting to the environment
is important but anticipating and even setting the pace of change is more so as time pacing is relevant
to strategy. In an adaptive (deliberate-emergent) strategy, time encompasses both the notion of
"stretching out the past" together with probing into the future in order to obtain a strategy that is both
deliberate and emerging (Eisenhardt & Brown, 1998).
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4. Business Processes
Given the rapidly changing demands of an organisation’s business environment and the many
challenges that this uncertainty brings, organisations are focusing on their business processes as a
means to deliver the specific results that are required to meet the environmental or organisation needs.
Given that business processes exist to serve the customer, it can therefore be perceived as a key to
sustainable competitive advantage. Keen (1997) supports this view and purports that there are four
main reasons for viewing BP improvement as a strategic imperative. First, organisations have the
propensity to be far more adaptable than previously thought. Second, the changing nature of change
requires organisations to balance and compete on the edge that lies between flexibility and stability.
Third, BP makes a major contribution to the development of organisation specific, dynamic
capabilities (competencies) and fourth, the significant effect of IT advances on the critically important
coordination and transaction costs.
4.1 Deliberate Business Processes
A number of methodologies and frameworks have been proposed by academics and consultants to
manage the transformation process of business process. However, most of these advocate a structured
deliberate approach that consumes a lot of time, money and effort to often produce only mediocre
gains (Billington & Davidson, 2008). For example, the Process Lifecycle (Rosemann, 2001) follows a
step wise approach from the initial identification of the current as-is process through to the
development of the improved to-be process that is then implemented. The cycle is completed by
monitoring and control of the new and improved implemented process. However, the sense and
respond adaption cycle, using the process lifecycle management approach, is a static approach
because it does not accommodate mid-cycle change. Therefore, the sense, respond and adapt aspect of
the life cycle orientation is limited by the very nature of the cycle itself.
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4.2 Emergent Business Processes
New processes are constantly emerging during the execution of daily business. The term used to
describe these new, evolving, knowledge-intensive business processes is emergent business processes
(EBP). Emergent business processes are organisational activity patterns described by Markus,
Majchrzak and Gasser (2002) as processes in which, "problem interpretations, deliberations with no
best structure or sequence, and actions unfold unpredictably". A defining characteristic of these
emergent business processes is that they cannot be predefined as their models are based on
accumulated experience and evolve from the execution of business events. (Marjanovic, 2005; Dale,
2007).
4.3 Adaptive Business Processes
A number of authors have used Jazz music improvisation a metaphor for the adaptive management of
business processes. Scheer (2007) explains that a good jazz group, made up of skilled musicians
(experts) who when playing together are constantly communicating in the same time and place. Each
playing is listening and responding to each other with particular emphasis on the soloist. Each player
responds to the soloist’s development of the melody. During an improvisation the soloist uses the
structure of the lead music lead sheet as a scaffold and within that scaffold creates new melodies on
the spot. Applying the jazz metaphor to the management of business processes, the jazz group's
process of improvisation is analogous to a source of constant emergent processes. While the scaffold
that the soloist uses determined by the music sheet is analogous to deliberate processes. Therefore, the
metaphor of jazz improvisation can be used to illustrate the management of adaptive processes.
5. Organisational Structures
An organisational structure exists for management and control purposes. It defines the work roles and
how activities are grouped together (Lasher, 2005). The way an organisation is structured has
implications for how strategy is translated throughout the organisation and ultimately how the
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organisation performs. Roberts (2004) posits that "certain strategies and organizational designs do fit
one another and the environment, and thus produce good performance, and others do not."
5.1 Deliberate Organisational Structures
Many organisations are structured as a functional organisation that supports a deliberate approach.
Bryan and Joyce (2007) argue that most organisations are designed for a past industrial age where
vertical integrated structures were designed for efficient operations. These vertically integrated
structures exhibit high levels of hierarchical authority and control and are more suited to a stable
environment.
Furthermore, Labovitz and Rosansky (1997) suggest that traditional, hierarchical organizational
structures are designed to break up managerial tasks into pieces: departments and divisions. This
segmentation makes it difficult to integrate the organisation's strategy, business processes and systems
into a cohesive working whole. The organisational structure actually becomes a barrier to change and
improved performance.
5.2 Emergent Organisational Structures
A virtual organisation structure is an emerging organisational form where employees interact with
each other almost completely using telecommunication systems. A virtual organisation structure
allows for high levels of connectivity both among the individuals members of the organisation and
with the environment. It is an extremely flexible structure that allows an organisation to be reactive
and innovative.
5.3 Adaptive Organisational Structures
Organisations with traditional top down hierarchical management structures have high levels of
intensity of control and low connectivity and thus are restricted to being very deliberate.
Organisations at the bleeding edge are very reactive, connectivity between parties and the external
environment is very high. Neither of these extreme positions is good (Eisenhardt & Brown, 1998;
8
Scheer, 2007). One extreme position is characterised by deliberate, deliberation and stability while the
other is characterised by chaos, flexibility and possibly innovation and even anarchy. A Matrix
organisational structure however supports both the emergent and deliberate management orientation.
The matrix structure consists of the horizontal management and control lines of a product orientated
structure combined with the vertical lines of a functional structure. Furthermore, the management
reporting lines are extremely flexible. Therefore, it can be argued that it is not a choice between being
stable or flexible it is about being stable and flexible. This research suggests that an organisation
develop the ability to be deliberate and emergent, stable and flexible and at the same time be an
adaptive organisation.
6. Information Systems
To effectively support an organisation's business processes, and in turn business strategy, an
integrated information systems (IS) infrastructure is absolutely essential. There are various
Information Systems that go towards supporting processes in an organisation. Scheer (1998) suggests
an integrated organisation IS infrastructure with five organisational levels. All the information
systems at each level are traditional application systems that monitor processes (not activities) at the
lowest level. Furthermore, Scheer's (1998) 'Integrated Information Systems' is a classic example of a
very deliberate, top down strategy approach. The organisation's strategy drives the analysis, control
and monitoring cycle, in which information from the monitoring processes at the bottom level is fed
back up and so on and so forth.
6.1 Deliberate Information Systems
Over the past twenty years organisations have implemented enterprise resource planning (ERP)
systems. These information systems are integrated organisation-wide systems and are a technological
response to the integrated information systems environment proposed by Scheer (1998). These ERP
systems have replaced the stand alone business information systems applications in many
organisations. These systems are predominantly based on a very deliberate approach to the
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management of the organisation's transaction and business processes requirements. They follow a
very rigid structure, for example the SAP R/3 ERP system, which has been implemented by many
organisations, is an example of a typical traditional ERP system. In one sense tradition ERP systems
are extremely flexible because they can be configured to suit many different enterprises across many
different industries. On the other hand once configured and implemented they are quite difficult to
change. This inflexibility means that once implemented the system cannot altered with ease in
response to a subsequent change in the enterprises strategy and/or business processes (Portougal &
Sundaram, 2006). Therefore, traditional SAP systems and the ways you implement the system is an
example of a very deliberate approach. The systems and the processes do not allow for emergent
phenomena to be easily supported.
While we have used traditional SAP architecture as an example, generally most traditional application
software have a very deliberate orientation and mainly support deliberate processes and deliberate
strategies. Most software platforms and solutions are quite deliberate, for example PeopleSoft
Enterprise Applications, JD Edwards OneWorld, and Baan IV Solution to name a few (Nah, 2002).
These systems do not support the emergent nor adaptive approach. It is only the more recent
architectures that are trying to support emergent and adaptive approaches in terms of procedural
responses (the way in which you implement the system) and technological responses. Moreover,
custom made applications for particular organisations and contexts are even more deliberate in their
orientation.
6.2 Emergent Information Systems
More and more one is seeing information systems that support a purely emergent approach. These
information systems possess what is termed in literature and industry as an Event Driven Architecture
(EDA). From a conceptual perspective the EDA components and sub-systems are totally decoupled
(not dependant on other software applications) and mostly asynchronous. They support event
processing in real time and thus support an emergent approach.
10
EDA are supported by a number of different vendor platforms such as IBM's (2006). This platform
supports a purely emergent approach because it does not come with any pre-defined services but
provides complete application functionality to create any services as and when required. The platform
supports the creation of primitive as well as composite services. If something changes the primitive
and/or composite services can either be changed or a new service (primitive or composite) can be
created from scratch. Unlike the SAP and Oracle platforms, the IBM platform does not come with a
core repository of predefined services to support processes. However, primitive and composite
services can be bought from a service provider such as SAP, Oracle or other external sources on an
as-needed basis. This makes the platform extremely flexible and reactive because services can either
be created from scratch or acquired and plugged in. Therefore, the IBM platform can be viewed
primarily as one that supports the modelling, design, management, and deployment of services and as
such designed well to react to emergent behaviour.
6.3 Adaptive Information Systems
The pathway to competitive differentiation according to SAP (2009) is through 'Business Network
Transformation' termed as BPM 2.0 and beyond. BPM 2.0 and beyond in SAP's opinion will be
achieved through flexibly enabling the business process lifecycle by leveraging components and sub-
systems such as Business Rules, Business Activity Monitoring and System to System (S2S) BPM.
These are all technologies whose express purpose is to support emergent behaviour.
However, SAP recognises that the EDA as a standalone architecture that supports the pure emergent
approach is not able to achieve the key business drivers for business transformation on its own. It also
recognises that an adaptive organisation also needs modelling, simulation, and analysis and a balance
between human tasks and S2S BPM total automation. In terms of adaptive systems, S2S BPM
automation is important because the more S2S there is potentially meaningful events emerge quicker
together with adaptation. At the same time, extreme levels of S2S may lead to lack of visibility about
when human intervention is required to prevent catastrophic events unfolding. Therefore, there ought
to be a balance among H2H (human2human), S2H, or H2S automation.
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In addition, SAP understands that the traditional enterprise architectures (ERP) that only support the
deliberate approach are obsolete. Therefore, SAP proposes an Enterprise Service Orientated
Architecture (ESOA) that comprises of EDA components/systems and Enterprise Modelling,
Simulation and Analysis, and Process collaboration capabilities components/sub-systems that support
the adaptive approach.
There are also hybrid systems architectures such as Oracle's that support EDA and consequently the
emergent approach. These information systems posses a whole host of components/sub-systems that
explicitly supports the EDA paradigm such as Business Activity Monitoring (BAM), Complex Event
Processing (CEP) and Business Rules Management (BRM). These architectures support Mintzberg's
vision of emergent strategies through the constant monitoring and analysis of meaningful events
(patterns of behaviour) within the organisation’s event cloud. In addition, many of these hybrid
information systems have support for the deliberate approach through explicit
modules/components/sub-systems to support Business Process Management (BPM). For example,
support for the deliberate (BPM) and the emergent (BAM) is well illustrated by Oracle's architecture.
6.4 Design Principles of Adaptive Information Systems
Generic frameworks proposed by industry heavy-weights such as Sun reiterate similar principles for
architectures to support adaptive information systems. They emphasise the need to have architectures
that are process driven, user centric, service oriented, and loosely coupled. And it is especially this
loosely coupled aspect that helps organisations in being emergent and reactive to what is happening.
This loose coupling enables one to rapidly decompose and recompose service chains to support
rapidly changing process requirements. User centricity emphasises the need for flexible user
interfaces that can be personalised, role-based, adaptable and adaptive, evolving as the users and user
needs change. Highly adaptable process flows enable the rapid composition of new flows as well as
the modification of existing flows. Such flows can be in the realm of transactions, decisions, and/or
collaborations. These four principles can be considered to be the cornerstones of adaptive
architectures.
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These principles are further reiterated by Van Praag (2007). However, Van Praag (2007) adds another
pillar to the adaptive organisation. He suggests that modern, distributed, real time enterprise
architectures will be powered by SOA as well as EDA patterns in combination as appropriate. He
goes onto suggest that the real time enterprise architecture will be a fusion of these different
approaches.
7. Organisation Adaption Model and Framework
This research suggests that organisations can be thought of in terms of Scott-Morton's MIT90's
Framework (1991) but they should also have the ability to formulate strategies that can be translated
into adaptive processes and adaptive structures. These adaptive processes and structures should be
inhabited by adaptive individuals in composite flexible roles and the four elements together supported
by systems and technologies that have inherent capabilities of adapting (Figure 2).
[Figure 2 about here]
Many models for organisational adaptation have been suggested but most of these models are either
management oriented or technology oriented. Bhattacharya et al.'s framework (2007) and Kumaran et
al. 's (2007) transformational approach are some of the few models for organisational adaptation that
interweave managerial concerns with technological responses in an integrated and holistic fashion.
Bhattacharya et al.'s (2007) framework differentiates four different models on different levels of
abstraction. The strategy level model is at the highest level of abstraction, where business objectives
are specified. These objectives drive the operational models. These models describe the structure of
organisational routines. In order to support organisational routines with information technology (IT),
solution composition models are designed that combine necessary information technology
functionality and the operational models. Solution composition models can be seen as an intermediate
layer between business and information technology; rather than having to deal with implementation
specifics, "solution architects" can operate on a more abstract level that simplifies the matching of
13
business requirements to IT. IT implementation models are closer to the implementation of the
software and are platform specific.
A synthesis of the above concepts and frameworks with respect to adaptation and strategy-driven
processes, organisational structures, and systems leads us to propose a model for organisational
adaptation (Figure 3). This model explicitly considers the transformation of strategy into business
processes and appropriate organisational structures. It considers the translation of these processes and
structures into potential solutions that compose and integrate components and services to deliver
effective and flexible implementations. Execution and monitoring of the implementation and
contextual events enables us to pro-actively manage the performance of the organisation through three
distinct mechanisms; corrective (single-loop learning), optimising (double-loop learning), and
aligning (double and triple-loop learning).
[Figure 3 about here]
8. Conclusion
The subject of organisational adaptation as a means to survive has been a research topic for academic
researchers over the past two decades. There is a good amount of published literature that supports
the theme of organisations being adaptive and responding to the changing environment. This
literature can be found in a number of different research domains within a number of topic areas and
culminates in a mature body of knowledge that supports the theme that organisations need to adapt to
survive. An adaptive organisation, in essence, has the ability to sense and respond to changes in the
environment ensuring its survival.
Recent interest in adaptive organisations is particularly apparent in the IS industry. Industry
practitioners are actively engaged in promoting and writing about information systems and
technologies that support adaptive organisation. However, it appears this interest is not supported to
the same degree in the academic arena. Furthermore, there is little understanding of how these
14
adaptive systems can be leveraged to support the development of an adaptive organisation by
supporting adaptive processes and organisational structures and adaptive strategies.
The literature review highlighted the fact that while there is reasonable amount of literature in the
area of adaptive strategy there is very sparse literature in the area of adaptive processes and adaptive
organisational structures. The literature review also highlighted the fact that there is significant
amount of momentum from system vendors in the area of adaptive systems. However, there is very
little research on how adaptive strategy can be supported by adaptive business processes and
organisation structures and how all these can be supported by adaptive systems.
Furthermore, there is even less research on how to translate adaptive strategy to adaptive process and
organisational structure to adaptive systems. And back from system to structure to process to strategy
in an interwoven, seamless fashion. By interweaving these components in a seamless way,
organisations can behave in very deliberate manner as well as in an emergent fashion and still be
partially directed by a deliberate approach towards strategy.
While we have some ideas about what is an adaptive organisation and we have proposed an incipient
model and framework to support our investigations, these need to be augmented in much greater
detail, validated, extended and refined.
15
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Figure 1 Overarc
1 ching Researrch Framewoork
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Figure 2Organis
2 sation Adaptiion Model
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Figure 3
Organisemergen
3
sation Adaptint
ion Framewoork: from con
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nception to rrealisation, interweaving
g the deliberaate and
