(LEC 3) Technology Change

Week 3: Technology Change

Course Overview

  • Instructor: Dr. Matthew Davis

  • Institution: Leeds University Business School

Socio-Technical Systems Thinking

  • Definition: An approach that emphasizes the interrelationships between social and technical factors in organizations.

  • Components:

    • Principles

    • Tools

    • Methods

    • Frameworks

  • Applications & Problems:

    • Human Error

    • Accident Analysis

    • Crowd Management

    • Workspace Design

    • Environmental Behavior

    • Organizational Resilience

    • Information Sharing

    • Technology Change Consulting

    • Approaches

    • Case Studies

    • Scenarios Planning

Understanding Technology

  • No universally accepted definition:

    • Machine Technology (Scott, 2009): Physical aspects such as machines, equipment, processes involved in transforming inputs to outputs.

    • Knowledge Technology (Scott, 2009): Actual methods and systems involved in the transformation of information and carrying out organizational work.

Theories of Technology

  • Technological Determinism:

    • Key Contributors: Woodward (1958, 1965).

  • Processual/Political Perspectives:

    • Key Contributors: Child (1972), Pettigrew (1973).

  • Socio-Technical Systems Theory:

    • Key Contributors: Trist & Bamforth (1951), Cherns (1976, 1987), Clegg (2000), Mumford (2006).

  • Labour Process Theory:

    • Key Contributors: Braverman (1974), Ritzer (1993).

  • Social Shaping/Constructionist Perspectives:

    • Key Contributors: Bijker et al. (1987), Grint & Woolgar (1992), Orlikowski (2000).

  • Reference: See Scott (2009) for an overview of these theories.

Socio-Technical Systems Theory (SST)

  • Critical Design Focus:

    • Emphasizes optimizing both technical and social factors.

    • Acknowledges that changes in one part of a system affect other parts, requiring a holistic approach.

    • Involves diverse stakeholders (e.g., end-users, managers, HR experts) to enhance design and implementation success.

SST Principles

  • Design is Systemic: A system includes interrelated factors to optimize social and technical concerns.

  • Centrality of Values and Mindsets: These influence design and operation of systems.

  • Dependent Design Choices: Design decisions are interconnected and multidimensional.

  • Stakeholder Needs: Must accommodate needs of all relevant stakeholders.

  • Socially Shaped Design: Influenced by social norms and trends.

  • No ‘One Best Way’: Optimal design is context-dependent.

Clegg’s Meta Principles

  1. Core Process Integration: Avoid artificial separation of core processes; facilitate complete process management.

  2. Task Allocation: Clear/systematic allocation of tasks between humans and machines.

  3. System Congruence: Maintain consistency among all system parts and with existing practices.

  4. Simplicity in Design: Strive for simplicity, visibility of problems, and ease of use.

  5. Problem Control at Source: Enable local problem-solving by end-users.

  6. Flexible Task Means: Avoid over-specification, allowing users to adapt processes.

Clegg’s Content Principles

  • Design practice as a socio-technical system involving complex social and technical sub-systems.

  • Ownership of systems by those who will use, manage, and support them.

  • Continuous performance evaluation against organizational goals.

  • Multidisciplinary education for effective design practices.

  • Necessary resource investment for successful design implementation.

Allocation of Function

  • Defined as: "the allocation of functions or tasks between humans and machines in a system" (Clegg, 2000, p.238).

  • Traditionally examined through:

    • Micro-ergonomics: Tasks/process analysis from cognitive and organizational psychology perspectives (military focus).

    • Function Allocation Techniques:

    • Function Allocation by Substitution: Assigning tasks based on capabilities.

    • Left-over Approach: Automation of tasks, leaving residuals for humans.

    • Complementary Approach: Emphasizing dynamic task allocation and design considerations.

  • The call for a shift from micro-level analysis to a macro-ergonomics viewpoint is advocated (Challenger, Clegg, & Shepherd, 2013).

Technology Change in Practice

  • Critical Observation by Robert Solow (1987): "You can see the computer age everywhere, except in productivity statistics."

  • Failure Rates of Digital Transformations: Studies indicate that 70% to 95% of digital transformations fail, averaging at 87.5% (Wade & Shan, 2020).

  • Statistical Distribution of IT System Success:

    • 40% complete failures

    • 40% partial successes

    • 20% complete successes

Best Predictors of Subsequent Productivity

  • Factors:

    • Empowerment

    • Training and education

    • Teamwork

    • Performance

    • Systems thinking

    • Need

    • Ownership and continuity

  • Others: Project management, leadership involvement, behavioral factors, resistance to change, decision-making, and a systems viewpoint.

Importance of Need Assessments

  • Crucial questions for IT systems:

    • Is the new system crucial for business needs?

    • Is the investment the best utilization of resources?

    • Does it further business goals and enhance service delivery?

Systems View in Technology Change

  • Emphasizes the interconnected nature of IT systems affecting all aspects of the business, including processes and work practices.

  • No one discipline can fully com-prehend the entire system.

Project Management Insights

  • Projects should be owned and led by senior end-users, with multiprofessional teams focusing on user service delivery.

Senior Management Awareness

  • Senior managers must rethink their understanding of change management and IT roles, enabling them to effectuate changes.

Practical Issues with Socio-Technical Systems Thinking

  • Challenges exist concerning user participation in design processes.

Case Study: National Programme for Information Technology (NPfIT)

  • Established: October 2002 as a 10-year programme aimed at spending £6.2 billion while facing estimated costs of £12.4 billion.

  • Vision: A patient-centered NHS utilizing new information technologies for effective healthcare delivery.

NPfIT Technologies Employed

  • Electronic NHS Care Records

  • Choose and Book service for patient appointments

  • Electronic Transmission of Prescriptions (ETP)

  • National Network for IT infrastructure

  • NHS email and directory service

  • PACS for digital images

  • QMAS for GP feedback on patient care

  • Healthspace for personal health records

  • NHS.uk for public access to information

NPfIT Unsuccessful Outcomes

  • Announced in September 2011 that NPfIT was not meeting its objectives and began decommissioning efforts citing ineffectiveness.

NPfIT’s Potential Benefits & Drawbacks

  • Benefits: Clear scope management, initial speed in implementation, use of project manager skills, and focus on IT contributions.

  • Drawbacks: Lack of clear need questioned; concerns about the technology-led approach without adequate user involvement.

Conclusion

  • Emphasizes the need for mixed theories on tech change, highlighting allocation of functions and the necessity for social-technical systems approaches to optimize productivity and effectiveness.

  • Advocates for end-user involvement to enhance system effectiveness and address issues within organizational change.

Socio-Technical Systems Theory (SST) was developed and refined by several key contributors, most notably Trist & Bamforth (1951), Cherns (1976, 1987), Clegg (2000), and Mumford (2006).

Breakdown of Socio-Technical Systems Theory

SST is an approach that emphasizes the balance and interrelationship between social factors (human behavior, organization, and needs) and technical factors (machines, software, and processes). Its primary goal is the joint optimization of both systems rather than prioritizing one over the other.

1. Core Principles of SST

  • Systemic Design: A system is composed of interrelated parts; optimizing social and technical concerns together is essential for success.

  • Centering Values and Mindsets: Design and operation are influenced by the underlying values of those involved.

  • Stakeholder Needs: Successful systems must accommodate the needs of all relevant stakeholders, including end-users and managers.

  • No 'One Best Way': Optimal design is context-dependent; there is no universal solution for every organization.

2. Clegg's Meta Principles

These principles guide how the system's processes should be integrated and managed:

  • Core Process Integration: Avoid separating core processes; ensure complete management flow.

  • Task Allocation: Systematic division of tasks between humans and machines.

  • System Congruence: All parts of the system must remain consistent with existing practices.

  • Simplicity & Problem Control: Design should be simple and allow users to solve problems locally (at the source).

  • Flexibility: Avoid over-specification to allow users to adapt processes as needed.

3. Clegg's Content Principles

These focus on the implementation and sustainability of the system:

  • Ownership: The system must be owned by those who use and support it.

  • Multidisciplinary Education: Effective design requires diverse expertise and education.

  • Resource Investment: Successful implementation requires necessary financial and human resources.

  • Continuous Evaluation: Performance must be regularly measured against organizational goals.

4. Allocation of Function

This involves determining which tasks are performed by humans and which by machines. It has evolved from Micro-ergonomics (cognitive/task analysis) to Macro-ergonomics, emphasizing dynamic, complementary task allocation where humans and machines support each other effectively.