10. Analysis of the case study results and change management
10.4 Summary: decision for growth and change
10.4.1 Challenges of growing firms
SMEs capable of growth and development are of great importance to the national economy and to employment (Hyötyläinen et al., 2005; Simons and Hyötyläinen, 2009; Hyötyläinen, 2009, 2011, 116–131; Snider et al., 2009). Growth-oriented companies are required to have the will and the ability to develop. Development is the product of numerous intertwined strategic tweaks, management model evolu- tion and changes in operating practices (cf. McGahan, 2004).
Growth-oriented SMEs seek operating strategies and steering solutions with which to attain their goals. In this, they encounter many difficulties and unexpected situations (Kuitunen et al., 2003; Hyötyläinen, 2009; Cragg et al., 2011). Because of this, many things that seem clear and feasible in strategic decision-making start
10. Analysis of the case study results and change management
to look very different once they are translated into concrete operations, as the steering groups in the cases stated (Gottschalk, 1999; Shiau et al., 2009). Pro- gressing along the development paths outlined in the development models con- stantly brings up new strategic requirements and needs for specifying operating practices. This implies that when an organisation implements a strategy, its vari- ous functions bring up new innovations and suggestions that have to do with strat- egy, organisation, and operating practices, and that require the attention of and new decisions from the management (cf. Mintzberg, 1994; Child, 1997; Doherty et al., 2010).
Company-specific development projects and the analysis of their results demonstrate that companies are obliged to balance many factors in revising their operations management practices and in aiming to implement information systems to support those practices (Esteves, 2009; Bhatt et al., 2010). The organisational context model presented here covers the essential points while also describing the field of development in the companies discussed. We have the strategic goals and change motives on the one hand, and the operations management model and its development goals on the other. This is not enough, however. It is equally im- portant to address issues of organisation and the division of duties and procedures related to operating practices (Hong and Kim, 2002; Doherty et al., 2003, 2006).
The case studies specified this angle.
Operations basics are fundamental factors in this process, and operations are based on the characteristics of the operating environment (Baumard, 1999; Ar- gyris, 2000; Chin, 2001). Customer needs and the way the company interprets them are governing factors in all operations and development. Nevertheless, anal- ysis shows that the demands of the operating environment are not directly trans- lated into company goals. The company has to set change goals for itself and to examine how to attain its change and development goals (Hyötyläinen et al., 2005;
Bhatt et al., 2010). Goals are transformed into different shapes in the various development models, as changes in the operating environment are taken into account along with the company’s capabilities and development resources.
10.4.2 Importance of implementation
The importance of the development and implementation organisation was clearly shown in the case studies. Change goals cannot be attained without conscious organisation and resourcing of change and development activities (Clark and Starkey, 1988; Edmondson and Moingeon, 1999; Henriksen et al., 2004). On the whole, companies seem to proceed quite methodically in their change and devel- opment efforts, so that the various groups in the organisation take a leading role in the orientation and implementation of development measures as the change and development efforts progress in the development and implementation organisa- tion. However, it was also clear that strategically significant issues requiring man- agement input may unexpectedly emerge at most stages in the process and in most development models.
It is essential to obtain sufficient information and knowledge in order to be able to progress in change and development efforts and to make successful decisions (Blackler, 1993; Metaxiotis, 2009; Choi and Lee, 2011). Information acquisition and analyses have to be carried out as required in the course of the change and development work. Information acquisition methods and development process maintenance methods are required, as confirmed in the case studies. Here, an outside party is crucial. In the case studies, the researchers oriented and led the development process and also contributed to method creation and application, and to analyses.
Analysis of the results of the case studies profiled the importance of the various development models and development paths in change and development aiming at improving operations management and implementing new information systems (cf. Bagchi et al., 2003; Federici, 2009). Discussion of the development models revealed how the models and development paths differ from one another, which factors they share, and which points recur in different forms in the models. The results of the case studies also show that it is not always clear to companies where the focus lies in change and development in each development model. The analysis resulted in the outlining of four development models: the strategy and management model, the requirements model, the implementation model, and the development model. These were examined through a number of dimensions. The development models and their development paths can help similar companies in their change and development efforts in the future.
10.4.3 Management practices
The case studies and the analysis of their results highlight the importance of steer- ing and operating processes in change and development (cf. Spathis and Con- stantinides, 2003). Steering process changes are featured in all development models. The requirements for specifying and changing steering processes are different at different stages. Similarly, changes in operating processes appear in a number of guises. Changes in both steering processes and operating processes reflect changes in goals and operating models, which in turn are directly governed by new interpretations of the demands of the operating environment, and the company’s change and development goals.
New meeting practices were established at the companies. This can be seen as being closely connected with the organisation changes undertaken. There were needs for several different types of meetings, demonstrating the need for infor- mation exchange and discussion between functions and personnel groups. This could be construed as an information system, with both informal and formal forms of co-operation being highly relevant (Isaacs, 1999; Hyötyläinen, 2000, 57–64; Lin et al., 2012).
In the case studies, change and development efforts were aimed at specific is- sues that required solutions. In the case studies, measures and development actions were undertaken to solve problems. A development model emerged high-
10. Analysis of the case study results and change management
lighting the issue of organising development efforts and creating suitable proce- dures. This issue can be framed as a question of a development system reflecting the logic and operating model on which the company’s development efforts are based. In that case, development will be focused not on troubleshooting individual problems, but on the development system (see Alasoini et al., 2005).
10.4.4 Competence development
Competence development measures are also closely linked to change and devel- opment, as the case studies showed (Feeney and Wilcocks, 1999; Sher and Lee, 2004; Cragg et al., 2011). Competence development focuses on training, commu- nication, and further training needs. Investments were also made, although most of the investments could be considered to be ‘human capital investments’ aimed at developing operations and operating practices. Considered as a whole, all devel- opment measures are such investments in the case studies (cf. DiBella et al., 1996; Fujimoto, 1998; Hyötyläinen, 1998; Doherty et al., 2010). All competence development, organisational and procedural improvements, operations manage- ment development and establishment of collaboration procedures generate unique expertise in the company. This enhances the company’s emerging development system and its competence base, which researchers emphasised in the case studies for steering groups.
Capital bound up in competence, operating models, and a development system may prove to be a crucial competitiveness factor for the company. The company can then explore its strategic operating model in depth, build up new kinds of organisation, and successfully introduce new technology, thereby acquiring further competitive advantages (Davis and Hikmet, 2008; Metaxiotis, 2009; Wick- ramasighe and Weliwitigoda, 2011). This model also enables relatively rapid adap- tation in situations of change and provides capacity for utilising emerging opportu- nities. This is important, because the operating environment is changing all the time, and changes may happen within the company itself – such as organisational changes or ownership changes, examples of which were seen in the case studies (cf. Chun and Montealegre, 2007).