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Wednesday, 30 November 2011

Friend or Foe?

If organisations in the current economic climate rely on Formal Planning, will they fail? If they choose to embrace more fluid approaches are they gambling on the existence? The question remains for UK's businesses, Formal Planning: Friend or Foe?

Having recently left University, I departed with the notion that Organisations DO NOT exist which was instilled into myself and classmates from a blunt but frank lecturer who will always live fondly in our memories. Furthermore, he delved into the fact that if so called 'organisations' employ formal planning methods, then they are actually preparing to fail, in comparison to the popular saying. If this is the case then what are the other options and what do we call our organisations??

'Organisations do not exist' Batten, J. 2010

Firstly, formal planning sets a rigid structure which doesn't allow for change in both objectives and time so therefore the only other logical methods includes either using Gantt charts or the slightly more flexible CPA or critical path analysis. What is this? The CPA is an algorithm for scheduling a set of objectives within a particular project and is becoming a trendier technique in the management of projects. 

The basic technique for using the CPA is to construct a model of the project which includes:
1. A list of all the activities required to complete the project
2. The duration it takes to complete each activity
3. The dependancies between the activities 

Using these values, CPA calculates the longest path of planned activities to the end of the project, and the earliest and latest that each activity can start and finish without extended the length of the project.

In light of this more fluid planning method, it must be noted that it is not going to fit within the structure of a typical hierarchal organisation, therefore a business must flatten the structure where departmentalisation is disregarded and a CAS or Complex Adaptive System is created. This will allow for social interaction to occur, which encourages social innovation and ultimately emergence which is the basis for any forward thinking business and will provide the fundamental grounds for a long and successful 'organisation'.