Over the past two decades, management consultants and academics at business schools have increasingly stressed what they view as the rapidly increasing levels of complexity and uncertainty in the environment that all organisations have to respond to and many have labelled these conditions ‘ hyper-competition’ or ‘high velocity competition’. To deal with these conditions, consultants and academics have called for organisations to become ‘agile organisations’. The ‘agile organisation’ is also described as ‘the entrepreneurial organisation’ and ‘the resilient organisation’ and the hallmarks of this kind of organisation are its high speed of response to change and its focus on the customer which calls for customized rather than standardised offerings. The notion of the agile organisation therefore originates in the discipline of strategic management with its concern for competitive advantage; in manufacturing production systems such as Total Quality Management, Just in Time, Lean and six sigma with their concern for high quality, customized batch manufacturing; and also in Agile Software development and its concern for teams and partnerships with customers. In short, the concept of agile processes was initially primarily concerned with product manufacturing and software development and from these areas it has come to be simply applied to all other organisations including both private and public sector service providers, without much reflection on whether this is appropriate or not. So when did these developments occur and how widespread are they?
A quick search of Google Scholar reveals that over the decade ending in 1993 there were 56 journal papers which referred to the agile organisation at some point and over the same period some 14 referred to hyper-competition while no papers referred to the resilient organisation but over 20,000 used the term ‘complexity’. Over the rest of that decade the number referring to agile organisations rose to 442 and the number referring to hyper-competition rose to 416 while 43 referred to the resilient organisation and there were some 19,000 references to complexity. Over the first decade of this century, there were nearly 5,000 referrals to the agile organisation, about 3,500 to hyper-competition, 385 to the resilient organisation and some 40,000 to complexity. Interest in agile and resilient organisations facing hyper-competition, uncertainty and complexity is, therefore, very recent and even now not all that widespread. Despite recognizing complexity and uncertainty, however, the prescription is overwhelmingly for managers to design organisations that can successfully deal with the supposedly ‘new’ conditions. There is very little radical reflection on what the recognition of uncertainty and complexity, which has always characterized the conditions which members of organisations have to act into, means for the possibility of designing organisation in the first place. There is very little inquiry into how members of organisations have always dealt with uncertainty and complexity. This is, perhaps, not a surprising observation when one takes account of the strength of management and leadership thought collectives and the thought styles that they perpetuate. This post reviews notions of organisational agility and resilience as responses to rapidly rising complexity and uncertainty. Continue reading