Masterthesis
Organisation & Strategy
The Strategic Decision Making Process:
An applied qualitative analysis
in an SME and Local Government.
Roxanna Noordhoorn
Roermond, Januari 2011
Masterthesis
Organisation & Strategy
The Strategic Decision Making Process:
An applied qualitative analysis
in an SME and Local Government.
Master thesis of the department of Organization & Strategy, Tilburg School of Economics
and Management, Tilburg University
Name:
Roxanna Tatiana Soraya Noordhoorn
ANR:
752634
Company name:
Arc Nederland
Supervisors:
Drs. M. Rothengatter
Drs. S.H.J. van den Hoogen
Faculty:
Organisation & Strategy
Educational program:
Master Strategic Management
Date of defense:
12 January 2012
Number of words:
14 705
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Management Summary
In this study the strategic decision making processes within a Small- and Medium Enterprise
(Further: SME) and local government are researched. These organisations belong to the
clientele of ‘Arc Mens & Organisatie’ (further: Arc), a consulting company which guides and
supports their customers through strategic decisions. By the order of Arc the, following
problem statement is researched in this study: Where are opportunities for ‘Arc Mens &
Organisatie’ which are related to their services concerning the formation and support of the
strategic decision making process within SME’s and local governments? To answer the
problem statement a literature review and semi- structured interviews are conducted.
The literature review of this study gives insight in the broad concept of strategic decision
making. The decision and the decision making process can be typified by the literature from
Cray et al. (1988, 1991) which describes three types of decision making processes which
can occur in an organisation. These types are based on the extent at which certain
characteristics occur. This theory is applied to decision making processes in an SME and
local government to determine which kind of decision making process occurs.
The literature of Mintzberg et al. (1976) states that the decision making process consist of
three different phases such as the identification, development, and selection phase. This
study is used to identify in which phases of the decision making process Arc is involved by
providing their services.
This study is twofold because empirical data are gathered in an SME and local government.
The data are gathered using semi- structured interviews with both the participants of the
decisions making process in the SME and local government, and the process leaders who
are the consultants of Arc.
The SME, in which empirical data are gathered, is called Ars which is a traditional printing
company. The entrepreneurs of Ars started a new company which is specialized in
personalized printing products. Within Ars five different strategic decisions are studied. Arc
guides and supports entrepreneurs and employees of SME’s during strategic decision
making processes using different methods such as ‘Resultaatgericht Ondernemen’ (further:
RGO) and ‘Strategisch Innoveren’ (further: SI). With the method of RGO Arc increases the
possibilities of the entrepreneur through several sessions. During these sessions the
strengths, weaknesses, opportunities and threats of the company are mapped.
The local government in which one decision making process, the core activities discussion, is
studied is the local government of Meerssen.
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The aim of this study is to provide recommendations to Arc to improve their services
concerning the strategic decision making process based on the findings of the empirical data.
Within the SME it is recommended to Arc to manage the expectations of their customers to
avoid dissatisfaction. On behalf of the smooth moving flow of the decision process Arc
should involve all the decision making authorities and the people who have major influence
on the decision making of the authorities.
In the decision making process in the local government it is important for Arc to involve all
the internal parties of the decision making process in the identification phase to avoid
interrupts in later phases of the process. To prevent that the municipal council does not make
a decision in the selection phase, it is recommended to Arc to create commitment by the civil
servants so they provide the correct information, create a wide time frame in which decisions
have to be made and take into consideration the organisational culture as a major influencing
factor by incorporating this in their working method.
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Foreword
I have written this thesis as final piece of the Master study Strategic Management. I have had
the opportunity to do this study by the order of the consulting company Arc Nederland and
combine this with an internship in which I had the chance to follow the decision making
processes within Ars and the local government of Meerssen.
Due to the short of focus on the thesis at some points in time and the highly practical
character of this study the timeframe in which this study is done is lengthen. I have
experienced that just because of the practicality of this study it was very tough to find
literature. I have also practice that writing a master thesis is a learning process which passes
with trial and error.
I want to utilize this opportunity to thank the ones who have supported me while writing this
thesis. First of all I want to thank my Master Thesis supervisor Drs. M. Röthengatter for her
guidance through this process and her supervision. I also want to thank my second
supervisor Drs. S.H.J. van den Hoogen.
I want express my gratitude to all the employees of Arc for the instructive and pleasant
internship. In particular I want to thank my supervisor Kees van den Hombergh for his
support and helpfulness and Marc Breugelmans for his confidence and the opportunities he
gave me to participate in the core activities discussion.
I also want to thank everybody at Ars Grafisch and the local government of Meerssen for
their hospitality and willingness to participate in this study.
I hope that you, the reader, will enjoy reading this study.
Kind regards,
Roxanna Noordhoorn
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Table of contents
Chapter 1
Introduction ..................................................................................................... 8
1.1 Problem Indication ..........................................................................................................8
1.2 Problem Statement .........................................................................................................9
1.3 Research Questions .......................................................................................................9
1.4 Research Design ..........................................................................................................10
1.5 Structure of the thesis .................................................................................................. 10
Chapter 2
‘Arc Mens & Organisatie’ ............................................................................. 11
2.1 ‘Arc Nederland’ .............................................................................................................11
2.2 ‘Arc Mens en Organisatie’ ............................................................................................ 12
2.2.1 The origin of ‘Arc Mens & Organisatie’ .................................................................. 12
2.2.2 Methodologies used by Arc ................................................................................... 12
2.2.3 Future ....................................................................................................................13
Chapter 3
Structure in the strategic decision making process ................................. 14
3.1 Typologies of strategic decision making processes and strategic decisions ................ 14
3.1.1 Characteristics of strategic decision making process ............................................ 15
3.1.2 Characteristics of strategic decisions .................................................................... 15
3.1.3 Vortex- sporadic mode .......................................................................................... 16
3.1.4 Tractable- fluid mode ............................................................................................. 17
3.1.5 Familiar- constricted mode .................................................................................... 17
3.2 Phases in the strategic decision making process ......................................................... 19
3.3 Conclusion ....................................................................................................................22
Chapter 4
Methodology ................................................................................................. 23
4.1 Research design ..........................................................................................................23
4.2 Data collection ..............................................................................................................24
4.3 Data processing ...........................................................................................................26
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Chapter 5 Results ................................................................................................................. 27
5.1 Decision making process in an SME; Ars Grafisch ...................................................... 27
5.1.1 A chain of decisions............................................................................................... 27
5.1.2 More influencing factors ........................................................................................ 31
5.1.3 The role of Arc .......................................................................................................32
5.2 Strategic decision making process in a local government; Meerssen .......................... 33
5.2.1 Identification phase................................................................................................ 33
5.2.2 Development and selection phase ........................................................................ 34
5.2.3 More influencing factors ........................................................................................ 36
5.2.4 The role of Arc .......................................................................................................37
5.3 Conclusion ....................................................................................................................38
5.3.1 SME .......................................................................................................................38
5.3.2 Local Government ................................................................................................. 39
Chapter 6 Conclusion .......................................................................................................... 41
6.1 Conclusion and managerial implications ...................................................................... 41
6.1.1 SME .......................................................................................................................41
6.1.2 Local Government ................................................................................................. 43
6.2 Limitations and implications for further research .......................................................... 45
Reference List....................................................................................................................... 46
Appendices........................................................................................................................... 49
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Chapter 1 Introduction
This introduction chapter provides more general information about the subject of this study
which is strategic decision making and it presents general and specific information about the
company for which this study is of special interest. After this introduction the problem
statement and the research questions are presented. Subsequently, the research design
presents the methods which are used to gather the correct information to answer the
theoretical research questions.
1.1
Problem Indication
This paragraph outlines the definition of the concept strategic decision making and short
introduces
the
company
Arc
for
which
this
study
is
of
special
interest.
Starting with the introduction of the strategic decision making processes it can be said that
every organisation is faced with this process, in which decisions differ per organisation.
Strategic decisions are important to organisations, because decision making drives the
routes to achieve the organisations goals (Schweiger et. al. 1989). Strategic decisions are
defined in literature as ‘committing substantial resources, setting precedents, and creating
waves of lesser decisions (Mintzberg et al., 1976); as substantial, unusual and all pervading
(Hickson et al, 1986)’; and as ill-structured, non-routine and complex (Schwenk,1988).
Because of these specific characteristics many profit and public organisations enable
professionals which can guide them towards making a correct decision. Such professionals
work at Arc.
Arc mainly provides services in the field of the formation and support of strategic decision
making processes in SME’s and local governments. Arc has the ambition to enlarge both
types of businesses in the near future therefore they are interested to know whether the
services and support they currently provide in relation to the formation of the strategic
decision making process within SME’s and local governments should be designed differently
in the future. This is the starting point of this study which is of relevance for both academic
and practical point of view.
This study has academic relevance because according to Papdakis et al. (1998) our
knowledge of strategic decision making processes is limited. In recent years both scholars
and executives have shown much interest in the area of strategic decision making (Elbanna,
2006). This study gives an overview of the formation of the strategic decision making
process. This is of academic relevance because some theoretical models are tested on
practical examples, which can lead to the recommendation to adjust or improve the models
so they can be used more efficiently in practice in the future.
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Besides the academic relevance, this study has a major practical relevance because it has
special importance for Arc. This study provides more general knowledge about strategic
decision making processes, which should contribute to a more targeted approach of potential
customers. Based on the results of this study Arc may decide whether to modify their current
services. If Arc is well posted in the subject then opportunities can be seen which might lead
to an advantage above their competitors.
1.2 Problem Statement
The problem statement is the central question which is answered in this study. The problem
statement is derived from the problem indication.
Where are opportunities for ‘Arc Mens & Organisatie’ which are related to their services
concerning the formation and support of the strategic decision making process within SME’s
and local governments?
1.3 Research Questions
The research questions which are answered in this study will help to come to a sufficient
answer on the problem statement. The research questions are divided in theoretical and
empirical questions.
Theoretical questions:
1. What are characteristics of strategic decision making processes?
2. Of what phases does the strategic decision making process consist?
Empirical questions:
3. Which characteristics of the strategic decision making process are typical for SME’s
and which for local governments?
4. In which phase(s) of the decision making process is ‘Arc Mens & Organisatie’ actively
involved?
Based on the findings of these research questions recommendations will be provided. These
recommendations should help Arc optimally manage the services and support they offer to
customers.
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1.4 Research Design
The main purposes of this study are to contribute to the general and specific knowledge of
Arc in the field of strategic decision making processes in SME’s and local governments and
to give more insight in the opportunities in which they have to extent their services in the
future. A few characteristics about this study are described.
This study is deductive in nature because it gives more insight in the possible manners in
which the strategic decision making process can be arranged. A current problem in the work
setting is solved which makes this study an applied research (Sekeran, 2003). The timeframe
of this study is about 9 months from April 2011 until December 2011. However, the data
which answers the problem statement and the research questions are gathered within one
point in time, which make this a cross sectional study (Sekaran, 2003). Two kinds of data are
gathered in this study to know primary and secondary data. The research design of the
primary data is provided in the fourth chapter of this report. Here, more attention is paid to
the research design of secondary data.
Search for secondary data through literature study is the first step in this study. These data
are gathered to answer the theoretical research questions. The secondary data are found in
articles from renowned journals. These journals are achieved using the information system of
Tilburg University and by making use of sciencedirect.com. The data in these databases are
free available for students of Tilburg University. To find relevant articles in the databases the
following search terms are used: strategic decision making, strategic decision making
process, decision making. The secondary data are gathered to find out which information
about the strategic decision making processes is provided already from past researches.
Furthermore, these data form the basis whereupon the interview questions are based.
1.5 Structure of the thesis
This study consists of six chapters. In the first chapter the purpose and the context of this
study became clearer. Chapter 2 gives more background information about Arc. In the third
chapter the theoretical research questions are answered using secondary data which are
found in articles from renowned journals. The fourth chapter describes the research
methodology for the empirical data. This is followed by the chapter which provides the results
of these data, chapter 5. The answers to the empirical research questions are also described
in this chapter. The sixth, and last, chapter will answer the problem statement and provides
limitations of this study and recommendations for future research.
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Chapter 2 ‘Arc Mens & Organisatie’
This chapter presents more information about Arc (‘Arc Mens & Organisatie’) which is part of
‘Arc Nederland’. The first paragraph gives more insight in the origin and the current
organisation structure of ‘Arc Nederland’. The second paragraph focuses on Arc, the
emergence and goals of this relative young organisation and the reason for their interest in
this study.
2.1 ‘Arc Nederland’
The origins of ‘Arc Nederland’ are in 1994, as a result of the collaboration of two
entrepreneurs. It started as an organisation which provided communication services. After
two years one of the entrepreneurs, Marc Breugelmans, has decided to continue the
business independently, because he had different thoughts about running the business and
future perspectives.
Over the years Marc Breugelmans also has been seeing opportunities in other branches
which resulted in an organisation which nowadays consist of three departments and about
thirteen employees. It can be said that the departments are complementary to each other
because they have their own specialization and it is possible for them to appeal for another
department’s specialism. The three departments and their specialism can be described as
follow:
‘Arc Mens & Organisatie’ (Arc People & Organisation)
This department is specialized in giving advice and support
on everything that has to do with strategy to organisations in
all sorts of branches using a wide range of methodologies.
‘Arc Communicatie strategie’ (Arc communication strategy)
The
professionals
in
this
department
mainly
solve
communication problems and guide customers through a wide
range of communication questions, this in consultation with
the customer.
‘Nettt interactieve media’ (Nettt interactive media)
This full service and media consultancy provides the following
services:
advice,
management,
webdesign,
narrowcasting
webdevelopment,
and
search
content
engine
optimalisation.
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2.2 ‘Arc Mens en Organisatie’
This paragraph provides more information about Arc’s history and background information
about the owners. Further in this chapter work methodologies and ambitions of the
department are described.
2.2.1 The origin of ‘Arc Mens & Organisatie’
Arc is collaboration between the entrepreneurs Marc Breugelmans and Kees van den
Hombergh. Both entrepreneurs owned an organisation before they decided to bundle their
strengths. Marc Breugelmans was the founder and owner of communication consultancy
company ‘Arc Nederland’ and co-owner of ‘Nettt interactieve media’. Kees van den
Hombergh was the founder and owner of consultancy company ‘Mankind Mens &
Organisatie’. Mr. Breugelmans is mainly specialized in giving advice about communication
and business administration problems and Mr. van den Hombergh primarily occupy in
advising SME’s to be innovative and bring back entrepreneurs in their own strength. Mr.
Breugelmans and Mr. Van den Hombergh both saw opportunities in bundling their strengths
and cooperate in a private company. This new company brings their individual organisations
to a higher level by having the opportunity to offer a complete package of services to their
customers to help them with their strategic, innovation and communication problems.
2.2.2 Methodologies used by Arc
‘Resultaatgericht Ondernemen (RGO)’ (Result- Oriented Business):
This methodology adjusts the strategy of the organisation to the motivations of the
entrepreneur and to determine how employees can contribute to the end goal. Only certified
consultants by Syntense 1 may use this methodology. Syntense designed and developed this
methodology specially to increase the innovative ability of entrepreneurs. Mr. Van den
Hombergh is a certified consultant and uses this method to provide entrepreneurs of
strategic advice.
The first step in the RGO process is to check if the customer is suitable to participate in the
process by using a standardized form which is filled in by the consultant following an
interview with the entrepreneur about the strategic issue and the background of the
company. This is done to create appropriate expectation and to increase the chances of
success. If the check shows the organisation is qualified, than the process really begins. The
process consists of five meetings which last four hours each.
1
Syntense is a foundation which is founded by the Ministery of Economic affairs and is engaged in educational
and activation activities aimed at innovation in SME’s.
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The meetings are spread over 4 months. During the meetings detailed information about the
entrepreneurs’ motivation to shape the organization’s course are brought to surface and is
made transparent. RGO is a method which mirrors the entrepreneurs’ choices. However, the
entrepreneur remains responsible for making choices.
‘Strategisch Innoveren’ (SI) (Strategic Innovation):
This method is mainly based to fit the internal and external organisation and make treats and
opportunities which the organisation can face transparent. These possible outcomes are
mapped using a SWOT- analysis. The purpose of this methodology is to increase the
innovation capacity of SME’s. The method is developed by UNU-MERIT which is a research
institute of Maastricht University. This method provides two meetings with the entrepreneur
and the employees. In advance of the first meeting the entrepreneur and the employees
have to fill in a questionnaire so the advisor can make preparations if necessary. In the group
sessions the employees and the entrepreneur individually suggest which strengths,
weaknesses, opportunities and treats the organisation face. The individual answers are
discussed in the group. The information from the questionnaires and the group sessions are
analyzed by the consultants. Based on the analysis the consultants write an advice report.
This report contains minimally the SWOT- matrix and analysis from this matrix.
Arc also gives advice and supports local governments in making strategic decisions. Arc
does not work with standardized methods because providing strategic advice and support to
local governments is a relatively new kind of business for them.
2.2.3 Future
Currently Arc consists of two employees who are the entrepreneurs Marc Breugelmans and
Kees van den Hombergh. Arc’s ambition is to grow in both employees and turn over. They
want to achieve this by providing their services to more SME’s and local governments.
SME’s can be guided and supported through strategic decisions using the RGO or SI
method. The ambition is to build an intensive relationship with the owners in order that they
ask Arc to provide their services on a regular basis. The advice and support in the field of
strategic decisions in the local government are mainly about providing insight into the
choices to determine the core business (kerntakendiscussie). The ambition is also to support
other local governments in this intensive process.
In the near future, acquiring new comprehensive projects should ensure that the three
departments within 'Arc Nederland' intensively cooperate with each other in order that a
synergetic effect is created because the departments have been sharing their knowledge.
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Chapter 3 Structure in the strategic decision making process
Strategic decisions are described in literature as ‘committing substantial resources, setting
precedents, and creating waves of lesser decisions (Mintzberg et al., 1976); as substantial,
unusual and all pervading (Hickson et al., 1986)’; and as ill-structured, non-routine and
complex (Schwenk,1988). Better understanding how strategic decisions emerge in
organisations will contribute to the way in which these decisions can be influenced and
controlled. This chapter provides more structure in the complex and comprehensive
phenomenon of strategic decision making processes by giving insight in different types of
strategic decisions and strategic decision making processes. The decision making process is
also divided in the different phases to structure this complex topic. The main purpose of this
chapter is to answer two theoretical research questions, which are:
‘What are characteristics of strategic decision making processes?’ and
‘Of what phases does the strategic decision making process consist?’
The fist research question is answered in the first paragraph therefore the typology
developed by Cray et al. (1988; 1991) is used. The researchers use different characteristics
of the decision making process to distinguish three different types of strategic decisions
linked to three decision making processes. Based on the extent in which the characteristics
occur Cray et al. (1988, 1991) developed a typology. This typology is used in this study to
identify which type of strategic decision making process and decision occurs in an SME and
local government.
The second paragraph answers the second research question. This questions will be
answered using the phases in the strategic decision making process which are developed by
Mintzberg et al. (1976). These phases also provide more insight in the characteristics which
influence the strategic decision making process. Additionally, the phases delineate to which
extent Arc, the consultancy firm, participate and influence in advising and supporting in the
strategic decision making processes of their customers.
3.1
Typologies of strategic decision making processes and strategic
decisions
In this paragraph characteristics of the strategic decision making process and strategic
decisions are revealed. Based on the extent of occurrence of these characteristics Cray et al.
(1988; 1991) developed a typology where they distinguished three types of decision making
processes. The characteristics and typologies will be explained in detail in the following
paragraphs.
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3.1.1 Characteristics of strategic decision making process
Cray et al. (1988; 1991) have done two studies to develop a typology of decision making
processes and to explain why these types of processes occur. In their first study Cray et al.
(1988) used different variables to distinguish three types of strategic decision making
processes which are named sporadic, fluid and constricted. The variables which are used by
Cray et al. (1988) are named scrutiny, interaction, flow, duration and centrality. Scrutiny1
concerns sources which provide the information or views from inside and outside the
organisation. This information and these views are used to outline the decision-question. The
interaction2 characteristic is related to the amount of discussion about the topic between the
players in the decision making process. This characteristic is also related to the number of
committees which arise in the strategic decision making process. The flow3 of the process
refers to the amount and duration of disruptions and the reason for delays in the decision
process. The duration4 of the process depends on the time it takes to finish the decision
making process named process time. The centrality5 of the process is about the level at
which implementation was authorized. The extent to which the characteristics occur
determines the differences between the three types of decision making processes.
Consequently, all the characteristics appear in a decision making process but the extent to
which they appear differ per type of strategic decision making process. Based on this
principle the three typologies of strategic decision making processes are distinguished.
3.1.2 Characteristics of strategic decisions
In the second study Cray et al. (1991) add a dimension to their typology about strategic
decision making processes. In explaining why decisions are made in one way rather than
another they use two characteristics which are complexity and politicality. Complexity6 is a
very broad concept concerning the frequency with which similar matters return, the
consequences of the decisions, and the number and diversity of interests in the decision.
Politicality7 is related to the balance between internal and external influence on the decision
making in an organisation and the balance between different interest groups. These
characteristics may occur in a higher or in a lesser extent which determines the type of
decision which are named, vortex, tractable or familiar decision.
Cray et al. linked the types of strategic decision making processes to the types of decisions.
According to Rowe (1989) the researchers argue that particular combinations of problems
and interest throw up particular processes – sporadic, fluid and constricted- which can be
linked with three kinds of decisions – vortex, tractable and familiar- to form the three ‘ideal
type’ modes of decision making.
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These ideal type modes of decision making are described through a detailed explanation of
the typologies of the decision making process and the types of decision in the following
paragraphs.
3.1.3 Vortex- sporadic mode
A vortex-sporadic mode exists of a sporadic type of decision making process and a vortex
matter of decision. In this paragraph is first explained what a sporadic process is, followed by
the characteristics of the vortex decision type.
The sporadic process can be characterized as an informal, spasmodic and protracted
process which contains of many interrupts and recycles (Schwenk, 1995). The information1
in this process is gathered by invoking a great number of sources such as internal units and
specialist and also external organisations and agencies. Because of the different views and
interests of the sources involved it may be that the different players involved in the decision
making process argue over the interpretation of data. This could be one reason which
causes the decision process time4 in this type of processes tends to take longer than in
other types of processes. Besides, this process type encounters a larger number of more
serious delays3 (Cray et al., 1991). This could also be caused by the informal way of
interaction2 between the decision makers which means there could be a great amount of
discussion. The informal way of interaction is reflected in the informal setting in which it
occurs. In a sporadic process the scope of negotiation2 is wider, which means that the
decision is researched with dissent remaining, such as voting (Cray et al., 1988). As
mentioned earlier, the players in the decision game are able to retreat and delay3 the game,
however eventually they must leave through the narrow passage of the upper level
authorization5. This means the decision requires authorization by the highest executive in
the organisation.
A sporadic process is most likely to occur when management is faced with a serious or
weighty decision which involves a diversity of contending interests, a vortex decision. This
type of decision is characterized being both highly complex6 and political7. A vortex type of
decision tends to pull a large variety of different groups into the decision arena in energetic
activity around a central issue. Because of the great importance of this decision it is likely to
be intervened by outside groups which have their own interests to pursue. The different
groups involved in this type of decision and the importance of making this decision causes
the high complexity. The weighty and controversial decision draws in many players who
make the decision politically volatile (Hitt et al., 2001).
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A vortex decision with its diverse opposing interests leads to a sporadic process which is
intermittent, interrupted and drawn out (Cray et al., 1991).
3.1.4 Tractable- fluid mode
The tractable-fluid mode exists of a tractable type of decision making process and a fluid
matter of decision, what these types mean is described in this paragraph. First will be
explained what a fluid process is followed by the characteristics of the tractable decision
type. The tractable-fluid mode can be seen as the opposite of the vortex-sporadic mode.
The fluid process is characterized as steadily paced, formally channelled, and speedy
(Schwenk, 1995). Compared to the sporadic process, in a fluid process are a fewer number
of sources involved which provide information1 about the decision which have to be made.
The fewer number of sources which are involved in this process could be the cause of the
homogeneous nature of the information which is crucial to make a decision. The decision
makers interact2 in a formal way which means there is a predominant amount of committees
involved such as boards, executives, sales committee and working parties (Cray et al.,
1991). This formal way of interacting may cause the scope of negotiation2 in this type of
process is considerably smaller compared to the sporadic type of process. The smaller
scope of negotiation means that the players in a fluid decision making process should earlier
comply with the decision than in a sporadic type of decision making process. Also because
the smaller scope of negotiation this type of process is characterized by fewer and less
important delays3, therefore this process expires much smoother and quicker (Cray et al.,
1988). The fluid type of process requires authorization5 by the highest executive within the
organisation which means the CEO of the organisation has to make the final decision or the
permission of this person is needed. Compared to vortex decisions, tractable decisions are
characterized being less complex6 with little or no political7 involvement.
These decisions seem to be rarer and less serious compared to the vortex decisions. The
balanced group of interests involved in this type of decision results in a smoothly moving
process which passes in a relatively short time with less delays and impediments. According
to Rowe (1989) fluid decision making processes are triggered by tractable matters, and these
may be precursive in that they set precedents for later decisions.
3.1.5 Familiar- constricted mode
In this paragraph a familiar- constricted mode is described. This mode exists of a constricted
type of decision making process and a familiar matter of decision.
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In depth information about these concepts is provided in this paragraph. First, the
characteristics of a constricted process provided are followed by the explanation of a familiar
type of decision.
The constricted process is narrowly channelled; it is moderately restricted in terms of the
effort made to obtain information and in terms of the number of organisational members who
participate in the decision (Schwenk, 1995). The constricted process appeals a great number
of sources to gain information1. However, little extra effort is made to gather less accessible
data which means that the provided information is accessible and unambiguous (Gray et al.,
1991). The players in this type of process mainly interact2 in an informal way, however usual
procedures are rather used than patterns of interaction. This means the company’s
processes and procedures are first followed in making decisions. If these standardized tools
do not solve the problem then the players in the decision making process will interact in an
informal setting (at the coffee machine or during lunch). Unlike the sporadic process the
scope of negotiation2 is little in the constricted process. Following standardized tools and
the little scope of negotiation might be arise from the focus which is around the single
decision maker who has a fair amount of authority, commonly the CEO (Gray et al., 1988).
This person is the one who makes decisions in the organisation and takes the lead in
implementing these decisions. However, the authorization5 of the decision which is made in
a constricted process are mainly in lower levels of the organisation.
This means decisions are made by managers and employees. That might be the
consequences of the characteristics of the decision. To wit, familiar decisions are
characterized being not complex6 at all and less political7 compared to vortex decisions.
According to Cray et al. (1991) these types of decisions have relatively few implications for
later decisions, limited consequences, and those who are interested tend to be from within
the organisation itself, which make the complexity of the decision at a low level. The decision
should be made quickly without much interrupts and delays. Although these kinds of
decisions are strategic, they hold few surprises for those involved and are unlikely to be
contentious (Cray et al., 1991).
Concluding, the decision making process can be characterized using seven characteristics
which are scrutiny, interaction, flow, duration, centrality, complexity and politicality. However,
the extents at which these characteristics occur determine which mode- vortex sporadic,
tractable fluid, familiar constricted - is relevant in a certain strategic decision making process.
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3.2 Phases in the strategic decision making process
Researchers have recognized that the strategic decision making process consists of different
phases (Zeleney, 1982, Svenson, 1992, Hickson et al., 1986). Mintzberg et al. (1976) are
one of the first which succeeded in bringing more structure into the strategic decision making
by identifying different phases and corresponding routines. The researchers admit the model
includes interrupts and ‘recycles’ by which decision makers may return to earlier phases if
necessary.
The first phase in the decision making process is the identification phase which comprises
two routines; decision recognition and diagnose routine. The decision recognition routine8
is the beginning of the action; this is way a decision has to be made. In addition Schwenk
(1995) states that in the decision recognition routine opportunities, problems, and crises are
recognized and evoke decisional activity.
Important in the diagnose routine9 is the information relevant to opportunities, problems,
and crises is collected and problems are more clearly identified this routine (Schwenk, 1995).
In this routine is determined what people and which information is required in the strategic
decision making process.
The second phase in the decision making process is called the development phase and can
be described in terms of two basic routines which are search and design. According to
Mintzberg et al. (1976) this is the heart of the decision making process which involves a set
of activities that leads to the development of one or more solutions to a problem. The
search routine10 is suggested to find readymade solutions; organisational decision makers
go through a number of activities to generate alternative solutions to problems (Schwenk,
1995). Decision makers may scan organizations’ memory (memory search), they wait for
alternatives (passive search), or they may seek for alternatives directly (active search)
(Mintzberg et al., 1976). The design routine11 is used to develop custom- made solutions.
This can be established by modify ready-made solutions to fit the particular problem or
design new solutions (Schwenk, 1995). Due to the time consuming process of selecting only
one alternative from the amount of ready-made solutions and because organizations do not
want to spend more resources on one alternative; only a single alternative is typically
designed by organizations (Vermeulen & Curşeu, 2008).
The third, and last, phase in the decision making process is the selection phase consists of
three sequential routines. The screen routine12 is activated when the search routine
identifies more alternatives than can be intensively evaluated. Alternatives are quickly
scanned and the most obviously infeasible are eliminated (Schwenk, 1995).
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In this routine decision makers use earlier selected information (Mazzolini, 1981). In the
Evaluation-choice routine13 a choice is made for the most feasible alternative. This routine
emerges when an alternative is chosen either through a process of analysis and judgment or
a process of bargaining among decision makers (Schwenk, 1995). The authorization
routine14 appears when the individual who makes the decision does not have the authority to
commit the organisation to a course of action, the decision must move up the organisational
hierarchy until it reaches a level at which the necessary authority rides (Schwenk,1995). The
final decision has to be approved by the top management (Mazzolini, 1981). Besides these
phases and routines Mintzberg et al. (1976) developed three sets of routines which support
the three central phases.
The first supporting routine is the decision control routine15 which guide the decision
process itself. According to Rajagopalan et al. (1993) the decision specific factors are based
on several variables such as the impetus for the decision, the urgency associated with the
decision, the degree of outcome uncertainty, and the extent of resource commitment. Also
Papadakis et al. (1998) recognize the dominant role of decision specific characteristics within
the decision making process.
The second supporting routine is the communication routine16 which provides the input and
output information necessary to maintain decision making.
The third routine is the political routine17 which enables the decision maker to work his way
to a solution in an environment of influencing and sometimes hostile, forces. Brouthers et al.
(1998) have a similar view on politicality however they call these influencing factors ‘Power’
and ‘Politics’. Power refers to the interaction between the top management and the other
members of the organisation. Politics is the observable, but often covert, actions by which
executives enhance their power to influence a decision (Allen et al., 1979). Rajagopalan et
al. (1993) recognizes the political phenomenon in the strategic decision making process, they
refer to this as the internal power structure. Mintzberg et al. (1976) state that because of the
dynamic factors, environmental forces, delays and speedups affected by the decision maker,
and feedback delays, comprehension cycles and failure cycles, which are largely inherent in
the decision process itself the delineation of steps in almost any strategic decision process
shows that there is not a steady, undisturbed process from one routine in the other.
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The model developed by Mintzberg et al. (1976) is used further in this study to determine in
which phases Arc influences their customers’ decision making processes. Knowing the
position and role which Arc plays in the process will help identify which factors might be
taken into account in the formation of the decision making process.
Concluding, the decision making process exists of three phases which are identification,
development and selection phase.
These phases, for their part, consist of at least two
routines. This model structures the decision making process in general.
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3.3 Conclusion
Cray et al. (1988; 1991) developed a typology based on seven characteristics of the decision
making process which are named scrutiny, interaction, flow, duration, authority, complexity
and politicality. The extent to which these characteristics occur during the decision making
process determine whether the process can be typified being a vortex- sporadic, tractablefluid or a familiar- constricted type of decision and decision making process.
The vortex- sporadic type consists of a decision which is characterized as being very
complex with a huge amount of politicality. The decision making process is characterized by
having players in the process who appeal to different sources of information, interact in an
informal way and the time it takes to make a decision is relatively long because of the delays
and interrupts during the process.
Contrary, to this there is the tractable- fluid type which consists of a decision which is
characterized as less complex with no political involvement. The decision making process is
characterized by the interaction between the players in the process is more structured
because of their formal way of interaction and the lesser scope of negotiation cause less
delays and interrupts.
The last type which Cray et al. (1988; 1991) have developed is the familiar- constricted type.
This type consists of a decision which is not complex at all with less political involvement
compared to the vortex- sporadic type. The process is characterized as having a great
number of sources to gain information with players who mainly interact in an informal way
with a little scope of negotiation.
Besides the characteristics which are developed by Cray et al. (1988;1991) to identify the
characteristics of the decision making process, the model developed by Mintzberg et al.
(1976) is used to divide the decision making process in different phases. The model
developed by Mintzberg et al. (1976) is a simplified overview of the real decision making
situation. The model identifies three different phases in the strategic decision making process
which are identification, development and selection phase. These phases, on their turn
consist of different routines which have their own characteristics. The typology of Cray et al.
(1988; 1991) and the model developed by Mintzberg et al. (1976) are fundamental models
which form the basis of this study.
The empirical data, which are gathered in this study should clarify what sorts of decision and
decision making process occur in an SME and local government, in which phases of the
process the consultants of Arc play an active role and if the type of decision making process
differs per phase in the process.
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Chapter 4 Methodology
In succession to the theoretical framework, this chapter focuses on the empirical research
design. More insight is given in the methods which are used to gather empirical data in this
study and this chapter clarifies the choices which are made regarding the collection of these
data.
4.1 Research design
This study is descriptive in nature. The goal of this study is to identify the relevant aspects of
the strategic decision making process within an SME and local government for Arc.
Descriptive studies are undertaken when the characteristics or the phenomena to be tapped
in a situation are known to exist, and one wants to describe them better by offering a profile
of the characteristics (Sekeran, 2003). Essential in this study is delineating important
characteristics which are associated with the strategic decision making process, which make
this a correlation study. A correlational study is conducted in the natural environment wherein
strategic decisions are made with minimum interface by the researcher to stimulate the
normal flow of work (Sekeran, 2003). This study is cross sectional because the primary and
secondary data are gathered one point in time, spread over a period of weeks. The research
design of the secondary data is already described in chapter 1. The primary data in this
research are collected in order to answer the empirical research questions:
‘Which characteristics of the strategic decision making process are typical for SME’s and
which for local governments?’ and
‘In which phase(s) is ‘Arc Mens & Organisatie’ actively involved?
Empirical data are primary in nature because these data are especially collected for the
purpose of this study (Sekaran, 2003). The primary data which are gathered in this study are
qualitative, which means these data are mainly expressed in words, while quantitative date
mainly focuses on numbers (Saunders et al., 2009).
Using qualitative data has different advantages above using quantitative data. Qualitative
data provide a holistic view of the phenomena under investigation (Bogdan & Taylor, 1975);
give a detailed representation why people act in certain ways and what their feelings and
thoughts are about these actions. Qualitative data give the ability to interact with people in
their own language and their own terms so the interviewee feels comfortable and is
encouraged to give some explanation on their answers. This can open relevant topic areas
which initially were not considered. Qualitative data can be obtained through many sources,
prime among them being interviews, observations, project tests, case studies and document
and archival data (Sekaran, 2003).
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4.2 Data collection
In this study qualitative data are obtained by interviewing two groups of respondents.
The first group respondents are the process leaders of the decision making process within
the SME and the local government. These respondents are experienced consultants. Kees
van den Hombergh and Steffen de Lange are specialized in guiding and supporting
entrepreneurs in SME’s. These consultants are interviewed to share their perspective on the
strategic decision making processes in SME’s. The process leader who is an expert in the
field of strategic decision making in local governments is Marc Breugelmans. He provides
information about the strategic decision making process in the local government. It is
assumed that these consultants share their experience and vision about the strategic
decision making process in order to answer the empirical research questions in this study.
Because of bounded rationality and selective perception of human beings not only the points
of view of these consultants are considered in this study.
A second group of interviewees is specially added to this study to make the result more
reliable. This second group of interviewees consist of participants in the decision making
process in an SME and local government. The interviewees in this group are all introduced to
participate in this study by Arc. The interviewees should provide more information about their
personal experiences about the strategic decision making process. To get a comprehensible
view of the decision making process in an SME Mr. Martens and Mr. van Schijndel are
interviewed. Both interviewees are entrepreneurs and the owners of ‘Ars Grafisch’, which is a
traditional printing office. Because of the high competitive market and the decreasing
revenues they are forced to make some strategic decisions. Arc used both the
methodologies SI and RGO to advice Ars.
To determine what type of decision and decision making process occurs and which role Arc
plays in the strategic decision making process in the local government, interviews are done
with different people of the governmental organization. Within the government there are
different groups of interest involved in making strategic decisions. Three main interest groups
are the board which consist of Mayor and Aldermen, the municipal council and the members
of the governmental organization. Representatives of these three groups are interviewed for
this study. The interviewees are selected in consultation with Arc. Table 1 displays an
overview of all the interviewees in this study sorted by organization and group.
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Group 1; Leader of the
Group 2; Participants in the
decision making process
strategic decision making process
SME,
Kees van den Hombergh
Thomas Martens (joint owner)
Ars Grafisch B.V.
Steffen de Lange
Loek van Schijndel (joint owner)
Local government,
Marc Breugelmans
Giel Dolmans (alderman)
Gemeente
Paul Janssen (member of the
Meerssen
municipal council)
Jacques Eurlings (secretary)
Jack Willems (registrar)
Maxime Niesten (board advisor)
Table 1: Interviewees; people who are interviewed in this study to obtain empirical data.
All the interviewees provide information about the decision making process from their own
perspective. The content of the interviews per group will differ because the interviews of
group 1 are more focused on which role Arc provides advice and support. The interviews in
the second group more focuses on how the organization handle the decision making process
internally.
In both groups the empirical data are achieved using semi- structured interviews, which are
characterized by having open- ended questions. Semi- structured interviews have
advantages above structured interviews for both the interviewee and the interviewer. The
advantages for the interviewee are: that he is free to give a comprehensive answer and; the
interviewees have the freedom to explore general views or opinions in more detail (Saunders
et al., 2009). The additional information might be desirable to clarify the complex concept of
strategic decision making. Advantages for the interviewer are: that she has the opportunity to
ask additional questions to shed light on the interviewee’s story; and that it is possible to ask
questions alongside the pre-determined list (Saunders et al., 2009; Sekeran, 2003). Another
advantage of this method for the interviewer is that she has a guideline to ensure the correct
variables are measured (Saunders et al., 2009). In other words, this method is a tool to
ensure the dialogue does not derive to far from the strategic decision making topic. The
interviews are conducted face-to-face in doing so the observable behavior such as to the
interviewees’ body language and other non verbal cues are taken into account (Sekaran,
2003). Geographical limitations which might occur doing face-to-face interviews are not the
case in this study because the interviews are not done nationally or internationally but the
interviews are done within organizations which are located at a maximum of 30 minutes’
drive (Sekeran, 2003).
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4.3 Data processing
The interview is done in the interviewee’s office to make him more comfortable to speak. All
the interviews are audio-recorded to be sure the information is used precisely and correctly.
Using this method will prevent the bias that information is imprecise and incorrect (Sekeran,
2003). However, recorded interviews might bias the respondents’ answer because they know
that their voices are being recorded, and their anonymity is not preserved at full (Sekaran,
2003). The interviewees have met the interviewer during their decision making processes as
an intern at Arc, therefore it is assumed that they feel comfortable to give the correct
information which is needed for this study.
The recordings help transcribing the interview as a written document. The transcript is written
in Dutch because the interviews are also in Dutch since both the interviewee and the
interviewer are native Dutch speakers. For both of them it will be more comfortable to talk in
their mother language. The next step is to analyze the data by grouping, summarizing and
restructuring them using an excel spreadsheet. It is faster and easier to analyze the
interviews with the excel- program instead of using a special program for analyzing the
interviews because the researcher is familiar with the use of excel and the overview should
be held relatively easy because of the acceptable amount of interviews.
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Chapter 5 Results
This chapter provides the results of the interviews which are done to collect empirical data for
this study. The empirical research questions are answered in this chapter. The questions are:
Which characteristics of the strategic decision making process are typical for SME’s and
which for local governments? And In which phase(s) of the decision making process is ‘Arc
Mens & Organisatie’ actively involved?
This chapter is divided in two paragraphs. The first paragraph describes the characteristics
which occur in the strategic decision process of an SME and describes the role which Arc
plays in this process. The second paragraph focuses on the decision making process in a
local government and the role Arc plays in this process.
5.1 Decision making process in an SME; Ars Grafisch
Ars is the company in which empirical data are collected. Ars is a printing office which is
founded sixty years ago. In 2008 Mr. Martens and Mr. van Schijndel took over the company,
by a management buyout, which can be seen as the start of a chain of strategic decisions.
The different strategic decision making processes which have occurred since the acquisition
of Ars, are described on the basis of the data which are gathered using semi- structured
interviews with the process leaders and the owners of the company.
5.1.1 A chain of decisions
Different strategic decision making processes within the SME are chronologically described
in this paragraph. The processes are structured by using the phases which are developed by
Mintzberg et al. (1976). Each process is typified using the characteristics which are
distinguished by Cray et al. (1988, 1991). In total, there are described five strategic decision
making processes in this paragraph. The two decision making processes in which Arc has
provided their services are described in more detail because herein Arc’s added value is
proposed.
The first major strategic decision which Mr. Martens and Mr. Van Schijndel have made is the
acquisition of Ars in 2008. The reason to start this decision making process was the
decision of the former owners to sell Ars. At that time Mr. Martens and Mr. Van Schijndel
both were employees and the intended owners of the company. This is the start of the
identification phase within this process.
Mr. Martens and Mr. Van Schijndel do not give any information about searching or
developing solutions. Therefore in this process the identification phase directly passes into
the selection phase which means the development phase skips- in- planning.
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In the selection phase where they analyse the option whether or not to take over Ars Mr.
Martens and Mr. Van Schijndel reflect their decision with each other. According to Mr.
Martens and Mr. Van Schijndel this is the only sources of information which is used. The
duration of this decision process has taken a few hours. The frequency of making such
decisions is rare and the consequences are diffuse which cause the degree of complexity to
be high. On the other hand the degree of politicality is low because mainly people within the
organisation are involved in the process. Another characteristic of low politicality is that the
decision makers have no divergent issues in relation to each other. The high extent of
complexity and the low extent of politicality refers to a tractable- fluid decision making
process. However, the speed in which the decision is made supposes the decision making
process to be more constricted in nature.
Together with the decision to take over Ars Mr. Martens and Mr. Van Schijndel also decide to
look for new innovative market opportunities; a new business because the returns of the
traditional business were decreasing. Mr. van Schijndel said: “We decided to look for
innovative products and new markets when we took over the company. We said to each
other: “that’s where we see future in, not in the traditional offset that will at least decrease.”
This is the reason to start the identification phase in this strategic process.
In the development phase Mr. Martens and Mr. Van Schijndel use a variety of sources of
information to find new innovative markets. Mr. Martens said: “We talked to as many people
as possible to have a wide orientation of the possibilities. Those people could be customers
or other companies which have information about changing markets and innovation.”
In the selection phase Mr. Martens and Mr. Van Schijndel judge and analyze the different
options and decide to invite Mr. Veenendaal to give a presentation to Ars’s complete work
force. Mr. Martens said about this decision: “We had done a session whereby Mr.
Veenendaal, who is specialized in digital practices, presented new techniques in the field to
explain internally what sorts of changes are going to happen in the near future in the market.
This was done to give employees a better picture of the future.”
Making the decision to start in a new business is to a highly extent complex because the
decision is rare and the diffusion of consequence is high. However, the number and diversity
of interest is little because only Mr. Martens and Mr. Van Schijndel are actively involved in
making this decision. The decision is internally focused and the interests are balanced which
refers to a low extent of politicality.
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These characteristics imply a fluid- tractable decision making process. However, the flow of
the process indicates a sporadic type of decision making process. The delays and interrupts
which mainly occur in the development phase are caused by the entrepreneurs who could
not find the right business to go in by which the duration of the decision making process
takes a relatively long time.
The next important strategic decision is the start of a new company by acquiring the web
shop: Personal Gifts. The reason for this decision has been the presentation of Mr.
Veenendaal and the successful cooperation with him in a previous project for chocolate
manufacturer Milka which is the start of the identification phase.
Likewise the takeover of Ars, Mr. Martens and Mr. Van Schijndel in this case do not give any
information about searching or developing solutions by which it seems the identification
phase directly passes in to the selection phase which means the development phase has
been skipped.
In the selection phase Mr. Martens and Mr. van Schijndel decide to take over Personal
Gives and cooperate with Mr. Veenendaal. Personal Gives becomes a part of the company
Personal Media Production (Further: PMP). This means that the three, Mr. Veenendaal, Mr.
Martens and Mr. Van Schijndel, are the owners of PMP and together have the authority to
make decisions in favour of the company. Because PMP and Ars are separate organisations
Mr. Veenendaal does not have the authority to make decisions regarding Ars.
The high extent of complexity is comparable to the decision making process of the
acquisition of Ars. The frequency with which similar matters recur is low and the
consequences of the decision are defused. Additionally, in this process the number and
diversity of interest is increased with the advent of Mr. Veenendaal. This also causes the
higher degree of politicality because the interests of the people who are involved in this
process can be divergent. The flow of the process is steady paced and the duration of the
process is relatively short which are characteristics of a tractable- fluid decision making
process.
At this moment Mr. Martens and Mr. van Schijndel have acquired two companies and Arc
approached them to do SI sessions. Arc approached Ars to do SI because the sessions were
already paid through a provincial subsidy. The reason to start the SI sessions for Mr. Martens
and Mr. van Schijndel is that the orders for personalized products do not increase and there
is a lack of knowhow how to launch the personalized products on the market. This is the
start of the identification phase.
In this phase Arc did an intake interview with Mr. Martens and Mr. van Schijndel to diagnose
the problem and discuss which people participate in the sessions. Based on this interview
| 29 |
three goals of the process are defined; intelligibility about the strategy which has to lead to
increasing returns, confirm if the proposed direction is accurate, grant employees to think
along about the direction and the vision of the entrepreneurs (Strategisch Innoveren, Ars
grafisch, Roermond).
In the development phase Arc use two methods to gather information. The first method is
the use of standardized questionnaires and the second method are two sessions with Mr.
Martens and Mr. van Schijndel and five employees. In these two sessions the participants
put in their thoughts, based on their knowledge and experience, about the strengths and
weaknesses of the company and the opportunities and threats of the companies’
environment. This process continues in the selection phase. During the sessions the
different solutions are screened and all the participants, both the directors and the
employees, make together a selection of appropriate solutions. Mr. Martens said about these
sessions: “together and individually we set goals and that is the guide that we still use.” Arc
makes the analysis of the information which is gathered in the whole process and bundle
these in a report together with their advice and a plan of action. Arc’s role ends here because
it is Ars's responsibility to decide whether to use the information and to implement the
implications which Arc has provided in the report.
The extent of complexity to make a decision is high because the frequency with which such
decision recurs is low, the consequences can be diffuse and the number and diversity of
interest in the decision is high because the involvement of the different employees. Despite
the involvement of the employees by which the amount of interests are increased, the extent
of politicality is relative low because Mr. Martens and Mr. van Schijndel are the only decision
making authorities and their interests are more or less the same.
In this process Arc plays a role in all three phases the identification, development and
selection phase. The added value which Arc has in this process is the structuring of the
process and analyzing the results which are described in an advice report.
After this process wherein the SI method is used Ars decided to continue their reconnoitring
expedition using the RGO method. Mr. Martens said about this: “we had the choice to do the
one method or the other and at a single moment we decided to do both.” This is the start of
the identification phase. Normally, Arc has an intake interview in this phase but in this case
Arc is already familiar with Ars and therefore skipped the intake interview. At this time Ars
want Arc’s help to implement their already made strategic decisions for PMP. Mr.
Veenendaal as the third owner of PMP is again not involved in the RGO sessions. In the
development phase Arc mainly reflects the decisions which are made in the past and
decisions which have to be made in the future. The method consists of about six sessions.
During the first three sessions only the directors of the company are involved. In the last
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sessions the employees are involved, who are two sales employees in these case. In the
sessions Arc uses the knowledge and the motives of the participants as main sources of
information which can lead to more homogeneous information.
In the selection phase the participants who are involved in the sessions are responsible to
pick up the implications and advise which are presented by the consultant during the
sessions. Arc does not write a report with their findings and analysis. It depends on the
intelligence, willingness and opportunity of the participants what advice they actually execute
whereby Arc does not have direct influence on.
The complexity of making decisions in this process is not that high. Although the decisions
which have to be made are rare, the diffusion of the consequence is low because the
decisions are relatively easy to reverse. The number and the diversity of interests are
relatively low because in this process besides Mr. Martens, Mr. van Schijndel and two
salesmen are involved. The high extent of complexity and the relative low extent of politcality
typifies a tractable- fluid decision making process.
In this decision making process Arc uses the RGO method by which they mainly play a role
in the identification and development phase. In contradiction with the SI method Arc does not
play a role in the selection phase when they use of the method of RGO. The added value of
Arc in this process is mainly confronting and reflecting the entrepreneurs with the decisions
they have made in the past and the decisions they should make in the near future.
5.1.2 More influencing factors
There are some factors which influence all the decision making processes which are
described earlier. These factors should taken into account because they rise opportunities for
Arc.
The first one is the financial crisis which started in 2008, the year that Mr. Martens and Mr.
van Schijndel took over the company. The financial crisis has had major impact on the
printing- industry which results of the increased need to innovate. Mr. Martens said about
this: “the financial crisis has quickened the process of finding innovations”. This means that
the need to look for another business is increased because of the financial crisis which is an
opportunity for Arc. Mr. van Schijndel on the other hand said: “the financial crisis sometimes
throws us a step backwards”. This means that the amount of resources is decreased
because of the financial crisis which is a disadvantage for Arc.
So the opinions about the positive and negative pressure of the crisis are different.
Another factor of influence is the contact between Mr. Martens and Mr. van Schijndel and
former directors which they have on a regular basis. Mr. van Schijndel said: “On a regular
basis we meet with the former directors. When we took over the company we said we would
appreciate to organize these kinds of meetings.
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It is very pleasant to meet with them because they have knowledge about the printing
market. It is a very complex market and difficult to talk about it with outsiders”.
5.1.3 The role of Arc
Mr. Martens and Mr. van Schijndel said about RGO in a retrospective view: “With RGO we
reflected who we are. Because of the sessions we have made choices and set goals.
However, the RGO sessions did not give us new points of view but it was a confirmation of
the things we already knew.” And “Both the SI and RGO sessions did not change the way of
thinking about making decisions. I think it has been a confirmation that we are acting in the
right direction.” The quotes of the entrepreneurs implicate that they expected to get new
points of view because of the session.
According to the process leaders, Mr. van den Hombergh and Mr. de Lange, advisors can
have different roles depending on the task they provide. An advisor can add knowledge
about a certain expertise this is for example the case with accounts. It can be the case that
the advisors analyse the data and give their advice which is done with the method of SI. If
the entrepreneur knows everything the advisor functions as a sounding board. The fourth
type advisor wants to increase the opportunities of the entrepreneur which is done in the
RGO method.
About the RGO method Mr. van den Hombergh said: “The entrepreneur is responsible for
possible solutions. I help entrepreneurs by giving them insight in the reason why they made
some decisions.” Mr. de Lange adds to this: “RGO is a tool which Arc can use to actually
implement strategic decisions based on strategic orientation.” These quotes suggest that the
added value of the RGO advisor is to reflect why decisions are made and review of these
decisions contribute to the company’s direction. Arc is not involved in the decision making
itself but guides the process as an independent party. This means also that making the
actual decision is the responsibility of the decision making authorities of the SME.
Based on these findings, the entrepreneurs expected other outcomes from the sessions with
Arc. The definitions of the methods which are given by the process leaders indicate that the
methods meet other needs than the needs of the entrepreneurs.
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5.2 Strategic decision making process in a local government; Meerssen
This paragraph describes the strategic decision making process of the core activity
discussion (kerntakendiscussie) within the local government of Meerssen. Different from the
previous paragraph wherein various decision making processes are described this paragraph
focuses only the process of the core activity discussion as Arc is mainly interested in this
specific process within local governments. The whole process is described on the basis of
the data which are gathered in the semi- structured interviews with the process leader and
the various participants of the process. The progression of the process is described using the
decision making phases developed by Mintzberg et al. (1976).
5.2.1 Identification phase
The motivation to start a core activity discussion can have different reasons which vary from
worldwide developments that mainly play a role at the background to local developments
which play a more prominent role. The core activity discussion which is a reorientation of the
activities is brought up in local governments because of the financial cuts at the national and
provincial level. Besides, civilians ask for a more flexible and transparent approach from
governmental organisations. So both the supply and demand are changed which cause a
tension at a local level that is why a reorientation is important.
The municipal council consists of a coalition and an opposition group. In this particular case
the coalition groups supported the initiative to do the core activities discussion with the
guidance of an external advisor. The opposition group on the other hand does not support
this initiative. The coalition group forms the majority and has the authority to decide whether
or not to start a core activity discussion. They instruct the board which consist of mayor and
alderman to execute the core activity discussion. Frequently the coalition of municipal council
prescribes in the administrative agreement (bestuursakkoord) to bring up the core activities
of the local government into discussion.
At this point in the process the board which consists of mayor and alderman looked for an
external advisor to help them execute the core activity discussion. In first instance an
external advisor which has much experience in the field of core activity discussions is
approached. However, the board which consists of mayor and alderman asked for a second
opinion. Arc has designed a method of working wherein they describe their thoughts about
the content of a core activity discussion. Because of their vision and their readiness for battle
Arc has acquired the assignment.
The decision to start a core activity discussion does not recur frequently, does not have
diffuse consequences and the diversity of interests are relatively high since there are two
contrasting parties involved in the municipal council which are the coalition and opposition
group.
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The decision is mainly internally and externally balanced because the municipal council and
the board which consist of mayor and alderman are involved as an internal party. The
external party consist of the people in the community who indirectly influence the decisions of
the municipal council. This balance suggests a high extent of politicality. The high extent of
both complexity and politicality refer to a vortex type of decision making. In this phase all the
actions are taken on the basis of procedures and rules. There is little scope of negotiation
between the coalition and opposition groups because the coalition has the majority in the
council. These characteristics suggest a constricted decision making process.
5.2.2 Development and selection phase
Development phase
In the development phase Arc guides the whole process of the core activities discussion and
divides the process in four rounds. Arc develops these four rounds to provide the municipal
council of the correct information to make a deliberated decision at the end of the process.
The four rounds differ from each other because they have their own goal, different sources of
information, different interest groups which are involved and different methods of working
which are used. There are also some ever-recurring elements in the four rounds. The first of
them is the desk research which is done. A variety of information sources is used such as
internal documents, reports from national and provincial governmental institutions, and
documents from other local governments in the Netherlands. In every round the selection
phase is equally organized.
The first round
In the first round the future vision (toekomstvisie) which is an official document made by civil
servants in 2009 is reviewed which means that the document is geared to the current
societal developments. In this round Arc takes individual interviews with the mayor and the
four aldermen, the political groups of the municipal council, the senior civil servants, and
external stakeholders. Additionally, a meeting is organized for the community which is visit by
over 120 people.
The second round
The goal of the second round is to define the responsibilities of the local government. Three
scenarios are discussed in different meetings with the board which consist of mayor and
alderman, municipal council and civil servants to define the responsibilities of the local
government.
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The third round
In the third round five meetings is organized to discuss the scenarios with the community. At
the end of this round in the result document a description is given about the future state of
mind of the local government based on the information which is gathered in the rounds so
far.
The fourth round
In the fourth round, the attitude of the future organization which is described in the result
document of round three has to be applied to the different tasks of the local government. In
this round the civil servants are involved to make an overview of the consequences of a
decision. Based on the insights which are provided by such an overview the municipal
council should give their preference for a specific direction.
In contrast with the previous three rounds the flow of the fourth round is characterized with
delays. In the development phase these delays are caused by the obscurity with the civil
servants about the format of the overview and to which extent the consequences should be
described. The information for this overview which the civil servants provided is insufficient
which also have consequents for the flow of the fourth round in the selection phase.
The extent of complexity and politicality are both high which means that in this phase the
decision which has to be made can be typified as being a vortex decision. The decision is
complex because the frequency with which similar matters recur is low, the consequences of
this decision can be diffuse and the number of diversity in interest is enormous high. The
high extent of politicality is reflected in the balance between internal and external influence
on the decision. There are many different interest groups involved in this process.
The rounds have to be distinguished to typify which kind of process occurs. The first, second
and third round can be characterized being a smoothly moving process wherein decision are
taken more quickly. These characteristics refer to a fluid decision making process. The fourth
round on the other hand can be characterized as having more serious delays and the
interaction between the participants is more informally which refers to a sporadic kind of
process.
Selection phase
At the end of every round the same procedure occurs. If Arc has gathered all the relevant
information then they judge and analyze these data and bundle these in a report called result
document (resultaatdocument). The result document is offered to the municipal council and
during a meeting the members of the council have the opportunity to give their thoughts
about the document and add or remove information on their own behalf.
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After this meeting Arc judges whether or not to incorporate the comments and make a final
version of the document. This final version is also offered to the municipal council whereupon
they can decide whether or not to accept the result document which means that they agree
with the content of the report and it examines if the provided information is sufficient. In the
first three rounds this process steadily progresses. However, the differences in interests
between the various political parties in the municipal council cause for turmoil, especially
when it comes to accept the result document. The opposition parties for example did not
accept the result document in the first, second and third round but notify the document which
is part of the political game.
In the fourth and last round, the municipal council as a whole not accept the result document
by which the process is delayed. This fourth round was planned to end in September 2011,
although the municipal council decided not to accept the fourth result document but they
applied for an extension in time. The reason for this extension was the short time frame and
the lack of understand ability about the completion of the tasks because the result document
does not give enough insight in the consequences of the different decisions. The input of the
civil servants in the development phase should have had contribute to these insights. Based
on the lack of insights in the different consequences the municipal council decided to extent
the decision making process to further develop the factsheets which give an elaborated
overview of task and the consequences of the decisions in more detail.
Comparable to the development phase this phase can be typified being a vortex kind of
decision mainly because the extent of complexity and politicality is extremely high especially
in the fourth round. The only managing body which is authorized to make decisions is the
municipal council. The task of the board which consists of mayor and alderman is to prepare
the core activities to give insight in the consequences of choices which the municipal council
can make. The board which consists of mayor and alderman on their turn put out some of
their task under contract to Arc and put out some to the civil servants. The processes in the
first, second and third round expired prosperously and the decisions to accept the result
documents are taken more quickly which refer to a fluid type of process. Also in this phase
there are interrupts and delays in the fourth round by which the process takes a long time.
The different political groups which form the coalition have to be unanimous about which
activities are core activities of the local government.
5.2.3 More influencing factors
There are some other factors which influence the decision making process of the core
activity discussion in the local government of Meerssen.
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The first factor which is not mentioned before is the organizational culture of the local
government. Mr. Breugelmans said: “the organizational culture has a high degree of
influence on the decision making process. The organizational culture in the local government
of Meerssen can be determined as: there is fear for punishment, the organization act
reactive, the people behave conservative and resigned”. The organizational culture reflects in
both the administrative organization as well in the civil service.
Another factor is history. In this small government where many people know each other is a
history which affects the way things happen. The factor history has for example impact on
the relation between the coalition and opposition groups. Mr. Janssen said: “the opposition
groups where processing their election damage”.
The people of the community have both direct and indirect influence on the core activity
discussion is another factor which Arc has to take into account. Directly because they are
asked to participate in this process for example in the meetings of phase one and three. The
people in the community also have indirect influence because they are represented by the
members of the municipal council. The members of the municipal council are chosen by the
people in the community and represent the interest of their voters.
5.2.4 The role of Arc
The role which Arc plays in the decision making process of the core activities discussion in
the local government of Meerssen is described differently by the process leader and the
participant within the process. However, the participant in the process all state being satisfied
about the role which Arc played in the core activities discussion.
Process leader Marc Breugelmans said about Arc´s role: “In the first place Arc has been an
orchestrator in the decision making process. We shape the process and give it content and
we arranged and supported the process.” The different participants who are interviewed say
that they appreciated the presence of Arc in the decision making process of the core activity
discussion because they think they could not have achieve this result without their help.
Therefore different reasons are mentioned. The first one is ‘strange eyes that force’ which
means that someone from outside the organisation can get through established order of
things. Arc is seen as an expert in the field of guiding core activities discussions which
increases the faithfulness of the participants in relation to Arc.
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5.3 Conclusion
Based on the empirical data which are gathered in this study the results are presented in this
chapter. There are different decisions described which have occurred in the SME named Ars
to identify which characteristics can typify the decision making process within this company.
The role which Arc plays in this process is also described. In the decision making process of
the local government only one decision is described that of the core activity discussion.
Where in the process Arc plays a role and which role they play is studied in the chapter.
5.3.1 SME
In the SME different kind of decisions are analyzed. All the decision making processes can
be typified as being tractable- fluid processes. The tractable type of decisions refers to the
relative high extent of complexity and the low extent of politicality.
The high extent of complexity comes from the low frequency with which similar decisions
recur and the diffuse consequences of the decision which have to be made. Despite this, the
number and diversity of interest within the particular case of Ars are relatively low.
The extent of politicality is comparatively low because the interests of Mr. Martens and Mr.
van Schijndel do not differ much from each other. The decision making process is typified
being fluid because the process moved smoothly and decision are taken quickly. The highest
executive is authorized to make decisions which means that in SME’s for the most part the
entrepreneur makes the decisions.
The decision making processes within the SME are generally typified being tractable- fluid.
However, this typification can have some characteristics of other types of processes. The
decision making process has some constricted characteristics when decisions are made
quickly and the information gathering is minimalized resulting in passing over the
development phase. The decision making process has sporadic characteristics when the
processes expires delays and interrupts by which the process takes a relative long time.
The involvement of Arc in the decision making process of Ars depends on the kind of method
which is used. With SI Arc is involved in the identification, development and selection phase.
With the method of SI the advising role of Arc focuses mainly on analyzing data an provide
advise based on the analysis. In the RGO method the involvement of Arc is different because
their involvement is only in the identification phase. The role which Arc plays when they use
this method is the advisor which wants to increase the opportunities of the entrepreneur. The
added value of Arc with this method is mainly reflecting the decisions which are made in the
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past and which have to be made in the future. According to the entrepreneurs the added
value of Arc is mainly that they confirm Ars is acting in the right direction but do not give new
points of view about going into a new business and implementing the product. In advising
and supporting entrepreneurs Arc always takes an independent position by which the
decision making stays the entrepreneurs’ responsibility.
5.3.2 Local Government
The decision making process in the local government can be divided in three phases. In
each phase other groups of interest are involved. The identification and the selection phase
are dominated by internal groups which influence the decision making process like the
municipal council and the board which consist of the mayor and alderman. In the
development phase both internal and external groups are involved. Examples of external
groups are the people of the community, entrepreneurs which are active in the community
and representatives of sport clubs.
The characteristics which occur in the process can differ per phase.
The identification phase can be characterized as a vortex decision with high extent of
complexity and politicality. Despite the decision to start a core activity discussion is rare, this
decision has diffuse consequences and diversity of interest is high.
The high extent of politicality is the balance between the interest of the different groups within
the municipal council- the coalition and opposition parties which do not agree whether or not
to do a core activity discussion with the help of an external advisor.
The constricted type of process is reflected in the actions which are taken on the basis of
procedures and rules, the little scope of negotiation between the coalition and opposition
groups because the coalition has the majority in the council.
The sporadic- vortex decision making process in the development and selection phase is
also characterized by both high extents of complexity and politicality. A vortex decision is
characterized having a high extent of complexity and politicality.
High complexity is reflected in the decisions which not recur frequently, the diffuse
consequences of the decision and the number and diversity of interest involved.
The high extent of politicatlity is reflected in the unbalanced relations between all the internal
and external parties involved.
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The development and selection phase are divided in different rounds. The first three rounds
have characteristics of a fluid process mainly because of the steady flow of the process. The
fourth round on the other hand has many interrupts and delays which are characteristics for a
sporadic kind of process.
In the decision making process of the core activity discussion Arc is involved in all the
phases of the process. In the development phase Arc offered a method of working. In the
development phase Arc is responsible for searching the sufficient background information
which forms the input for the meetings in a particular round. Arc also guided the meetings
and analyzed and reported all the information from these meetings.
According to the participants of the process Arc’s added value in the process are their extent
of expertise and the fact that they stand outside the established organization. Arc can be
characterized being independent because they are not associated with a political party and
have no connections with groups of interests.
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Chapter 6 Conclusion
The last chapter of this study answers the problem statement which is: Where are
opportunities for ‘Arc Mens & Organisatie’ which are related to their services concerning the
formation and support of the strategic decision making process within SME’s and local
governments? This question is answered based on the findings from literature study and the
empirical data which are gathered in an SME and local government. Together with the
managerial implications the answer on the problem statement is provided in the first
paragraph. In the second paragraph the limitations of this study are described alongside
some implications for further research.
6.1 Conclusion and managerial implications
This study is twofold; the strategic decision making processes for an SME and local
government are studied. The opportunities for Arc are different in both situations because the
type of decision making process and the role which Arc plays in the process are dissimilar.
The findings which are translated to recommendations of the five different strategic decision
making processes in the SME are described in the first subparagraph. The second
subparagraph describes the opportunities for the strategic decision making process of the
core activities discussion in the local government.
6.1.1 SME
On the basis of a literature study and empirical data, different opportunities for Arc in the
decision making process in an SME are described in more detail.
In the decision making processes wherein Mr. Martens and Mr. van Schijndel acquire a
company the identification phase directly passes into the selection phase which means the
development phase has been skipped. This is supported in the theory of Mintzberg et al.
(1976) which describes that the most basic decision processes involve simply recognition of
a given solution and then the evaluation and choices of it. However, the decision making
processes of the acquisition are characterized as being complex which indicates that the
decisions are not basic. Normally in acquisitions, the buyers have contact with organizations
which give them insights in the opportunities they have. For example a bank gives advice
about loans and accountants can give advice about the companies’ solvability and liquidity.
Based on the findings, we are not sure if this stage has been skipped or just not been
recognised as a distinct face by the acquirers.
The entrepreneurs suggest that they are not completely satisfied with the consulting
practices of Arc. To avoid that clients will be left with a negative impression concerning Arc’s
consulting practises we recommend to Arc to manage expectations of their clients.
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During an intake interview Arc should discover the customer needs and determine which of
their services best respond to these needs. Mainly, Arc takes an intake interview but
apparently they do not always succeed in discovering the customer needs. Therefore we
recommend to Arc to revise the questions of the current intake interview in order to pay more
attention to reveal the customer needs.
In the case of Ars when the customer wants new insights, the methods of SI and RGO could
be less applicable because the only source of information which is used is the knowledge of
the entrepreneurs and the employees who participate in the sessions. When the customer
wants new points of view we recommend to Arc to respond to these needs by providing other
sources of information for example by doing literature and/ or empirical research.
In managing the expectations of their clients doing an evaluation interview is at least as
important for Arc. In this interview Arc can emphasize their added value by pinpointing the
successes which are achieved because of the sessions. Concurrently, we recommend to Arc
to use this interview to pinpoint the bottleneck with which the customer struggles and
respond to this by providing their services in order to achieve a new assignment. Doing such
an evaluation interview might be especially important when the RGO method is used,
because herein Arc is not involved in the selection phase by which the added value of Arc
can become vague.
Another recommendation we want to make to Arc is to involve all the decision making
authorities in the interviews and the sessions. The advantage of involving all these
authorities in the intake interview is that Arc gets a complete view about the needs of the
customer by which they can provide the right services. The advantage of the involvement in
the evaluation interview is that all the authorities are aware of the Arc’s added value which
could contribute to the decision to give Arc a follow- up order; this is a missed opportunity in
the case of Ars.
The involvement of all the decision making authorities during the sessions should contribute
to a smooth moving decision making process. In the case of Ars one decision making
authority is not involved at the request of Mr. Martens and Mr. Van Schijdel. In this case, not
involving this decision making authority did not caused interrupts or delays but, it is feasible
that in other situations a decision making authority could cause interrupts and delays
because this person has other ideas than the ideas which are developed during the
sessions.
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In order to achieve a smoothly moving process we recommend to Arc to involve people who
have very strong influence on the decision making authorities in the sessions. In the case of
Ars those people are the former owners of the company but within other companies these
people also could be family members.
6.1.2 Local government
Based on the findings of this study, recommendations for Arc about the decision making
process in the local government are described in this paragraph.
In the fourth round of the development phase the civil servants cause an interrupt. We
believe that civil servants cause interrupts in later phases when they are not involved in the
identification phase of the process since Mintzberg et al. (1976) state that interrupts from
within the organization occur in the identification phase. Therefore we recommend to Arc to
involve this internal party in the identification phase by which the resistance of the civil
servants might be prevented because they have concertation about their role in the process.
It might be important for Arc to create commitment by all the internal parties of the
government by which the process moves smoothly and a decision is made in the end.
Therefore it also might be essential that both the coalition and opposition group support the
core activity discussion and that both have an interest in successfully accomplish the
process.
In the last phase of the process the municipal council do not make a decision which causes a
delay. The reasons that they do not make a decision are the following; the information which
is provided by the civil servants in the previous phase is insufficient, the time frame in which
decisions have to be made is to short and the organisational culture.
To prevent the short time frame we recommend to Arc to plan more time for the process of
the core activity discussion at least six months and take into account holidays.
The organisational culture is reflected in the pre-existing values and believes of employees
who are likely to affect the strategic orientation and the setting of long term objectives
(Hynes, 2009). The organizational culture of the local government in Meerssen is determined
as: the people in the organization are afraid for punishment, have a reactive state of mind
and behave conservative and resigned. These characteristics do not contribute to quickwittedness which might be needed to make strategic decisions.
Because the organisational culture has much influence on the acting of the participants and
the flow of the decision making process we recommend to Arc to not underestimate this
influencing factor and to incorporate this in their working method.
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Based on the findings of this study we cannot state that the typification of the organisational
culture of the government of Meerssen is a reflection of the organisational culture in all the
local governments in the Netherlands. Organisational culture is not described as an
influencing factor in the literature of Mintzberg et al. (1976) and Cray et al. (1988, 1991). Both
models might be improved by incorporating this factor.
Changes on an international and national level might be the reasons for local governments to
develop or review their strategy and their responsibilities. This is an opportunity for Arc since
they can guide local governments through this process. Regularly, the municipal council
announces in the administrative agreement that they are going to discuss their core
activities. This might be an opportunity for Arc to recruit more core activity discussions in
local governments in the Netherlands. Additionally, we recommend to Arc to keep investing
in their network by visiting the politicians-day (bestuurdersdag) to increase their brand
awareness. We expect that the network is important in acquiring new assignments because
the reputation of Arc is known by which the confidence in Arc is high.
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6.2 Limitations and implications for further research
This
study
contains
some
limitations
and
implications
for
further
research.
This study defines strategic decisions as complex but the literature of Cray et al. (1988,
1991) which is used also incorporates a typification of a decision which is not complex at all,
the familiar decision. This is done to give a comprehensive overview of the literature. The
familiar decision is linked to the constricted type of decision making process in the literature
but in this study a type of decision might have characteristics of other processes through
which it is not linked. Further research could investigate the relationship between the types of
decisions and the types of decision making processes and improve the typification which is
made by Cray et al. (1988, 1991).
The empirical data in this study are gathered in one SME and local government which are a
solid reflection of comparable companies in Arc’s clientele and potential customers.
Unfortunately, the empirical data are not generalizable for all the SME’s and local
governments in the Netherlands, therefore further research should be done. This study could
form the basis for future research in the field of strategic decision making processes within
SME’s and local governments. The future research should incomplete different types of
SME’s and local governments which also have different sizes to get a more general
overview.
This study is done in a relative short time frame in which empirical data are gathered through
semi- structured interviews with the key people who are involved in the decision making
processes of Ars and the local government of Meerssen. Involving this relative small group
can cause a limited point of view about these decision making processes. However, the
interviews in this study are done with people who have experienced the decision making
process from different perspectives to get a wide perspective of the process.
Arc could have special interest in a thoroughly study about Arc’s added value in the decision
making processes of different organizations to identify strengths which could be appoint to
acquire new assignments. Finally, It also could be useful to study companies which are not in
the clientele of Arc to identify how these organisations go along with the strategic decision
making process.
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www.arcnederland.nl
www.ars-grafisch.nl
www.meerssen.nl
www.personalmedia.nl
www.samenmeerssen.nl
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Bestuursakkoord, Gemeente Meerssen 2010-2014: Meerssen een slagvaardige, samenwerkende en
aantrekkelijke gemeente, (2010).
Breugelmans, M., & Hombergh, van den, K., (2011). Resultaatdocument 3.0: Zicht op kerntaken: van
scenario naar kerntaken.
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toekomstvisie nader beschouwd.
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scenario's: op zoek naar een nieuwe rol.
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Appendices
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Appendix I: Organisational Chart Arc Nederland
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Appendix II: Interview questions
1. Welke strategische keuze is gemaakt? (15)
2. Wat was de aanleiding voor het maken van de strategische keuze? (8)
3. Hoe vaak komt het voor dat een dergelijk besluit genomen wordt? (6)
4. Welke consequenties heeft het wel dan niet nemen van een besluit? (6)
5. Welke mensen/partijen zijn er betrokken in het besluitvormingsproces? (9)
6. Hoeveel verschillende belangen spelen een rol bij het nemen van de beslissing? (6)
7. Hoe verhouden de verschillende belangen zich tot elkaar? (7)
8. Hoe wordt er binnen de organisatie overleg gepleegd om te komen tot een beslissing? (2)
9. Welke informatie is gebruikt in het proces? (9)
10. Op welke informatiebronnen binnen en buiten de organisatie is een beroep gedaan? (1)
11. Van welke interne en externe informatie is gebruik gemaakt? (16)
12.Welke oplossingen zijn er gevonden? (10)
13. Hoe is de meest geschikte oplossing gekozen? (12)
14. Hoe is er tot een passende oplossing voor het probleem gekomen? (11)
15. Wie heeft er besloten welke oplossing het meest geschikt zou zijn? (13)
16. Wie is er bevoegd om beslissingen te nemen? (14)
17. Waarmee/ met wie houdt de beslisser rekening bij het nemen van een besluit? (17)
18. Hoe lang heeft het proces geduurd totdat er een besluit is genomen? (4)
19. Welke obstakels hebben ervoor gezorgd dat het proces langer heeft geduurd dan verwacht? (3)
20. Waar in de organisatie (op welk niveau) vindt de uitvoering van het besluit plaats? (5)
| 51 |
Appendix III: Result Table SME
Procesbegeleiders
Scrutiny
Wij hebben Ars benaderd om een SItraject te doen.
Het strategische besluit hebben de
ondernemers al gemaakt en is de
aanleiding geweest om RGO te doen.
Participanten
Praten met zoveel mogelijk partijen om ons zo
breed mogelijk te oriënteren. (klanten, andere
bedrijven, branche)
Afname van de offset, potentieel in de digitale
markt.
Interaction
Informeel overleg met Loek.
Flow
Loek en ik hebben dezelfde ideeën over de
richting.
Duration
De resultaten die ik boek bij de
ondernemer zijn vaak maanden en in
sommige gevallen zelfs na jaren
zichtbaar.
Indentification phase
Centrality
Complexity
De komst van de crisis en de veranderende markt.
Ik weet niet of het complex is. Het
besluit om te gaan digitaliseren was al
genomen.
Intern is er zeker geen spraken van tegengestelde
belangen.
Politicality
Scrutiny
Development phase
De ondernemers hadden al
geinvesteerd.
Werknemers worden bij het proces
betrokken.
Training over nieuwe media
Drive van de ondernemer moet terug
komen in missie, visie, strategie en
dergelijke.
SI en RGO en ook een verkooptraining.
Binnen de methodiek van RGO alleen
de ondernemer en later in het proces
voor de bijstelling de medewerkers.
We hadden niet de keuze uit een aantal innovaties.
Bij SI ga ik samen met de ondernemer
en de werknemers aan de slag waarbij
ik een klimaat creeer waarbij de
werknemers net zo veel inbreng
hebben als de ondernemer om invloed
uit te oefenen. Ik ga op een basale
eenvoudige manier vragen stellen om
te zoeken naar de sterktes en zwaktes
van het bedrijf en de kansen en
bedreigingen.
De overname van Personal Gifts heeft veel kennis
en andere capabilities gebracht. Een keuze
gamaakt uit een onderbuik gevoel.
De ondernemers hebben hun koers
uitgezet aan de hand van hun
drijfveren. De koers heroriënteren we
o.b.v. de drijfveren.
Om het idee handen en voeten te geven is ook een
beroep gedaan op de kennis van reclamebureaus
De verkopers hadden hun eigen gebied.
Huub en Martin de oud-directeuren zijn nog altijd
sparringspartners.
| 52 |
Vragen stellen. Wat moet je doen?
Waartoe moet je in staat zijn? Wat
moet je ontwikkelen om dat te laten
lopen?
De ondernemer neemt een
vertrouweling in de hand. Het
personeel voelt aan wat er speelt.
We proberen heel open te zijn maar er is een
verschil tussen de chefs en het
productiepersoneel. Naar de chefs zijn we heel
open.
Vaak is de interactie heel informeel.
Het in een nieuwe business gaan is gegroeid.
Interaction
Regelmatig chef- overleg.
De recessie gooit ons af en toe een beetje terug.
Het ICT gebeuren aan de voorkant bij de boekjes is
toch moeilijker als wat we hadden gedacht.
Het duurt langer als dat we hadden gehoopt. Soms
is het (productie) procesmatig wat moeilijker dan
we hadden gedacht.
Flow
Klanten moeten langer denken over het besteden
van hun geld. Het binnen halen van een opdracht
kan daardoor langer duren.
Duration
De leiders zijn meestal de
machthebbers.
Centrality
Iedereen is bij het proces betrokken. Enkele zijn
betrokken bij het meedenken andere meer
betrokken bij de uitvoering.
Alle medewerkers krijgen wel meer
beslissingsbevoegdheid over hun eigen producten.
Het hele bedrijf is ermee bezig.
Complexity
Het is ook een persoonlijk
ontwikkelingsproces. De ondernemer is
de onderneming.
De nieuwe business is een heel andere markt en
heeft heel andere klanten dan de traditionele
business.
De implementatie bleek het probleem.
Ik ben binnen gehaald omdat de
besluitvorming die loopt gefrustreerd
wordt.
Politicality
De belangen zijn vaak verwant met de
rol die iemand speelt. Dit kan de rol zijn
vanuit de functiegedachte. Maar dat
kan ook de rol zijn vanuit
aandeelhouder, vanuit kennis. Één
persoon kan zelf meerdere belangen
hebben. Als een ondernemer een
besluit moet nemen spelen die
belangen/ rollen samen.
Met de overname van Personal Gifts is er een
externe partner betrokken geraakt.
| 53 |
Scrutiny
Het besluit wordt vaak genomen vanuit
emotie. Emotie, drijfveren,
onderbuikgevoel dat soort dingen.
Interaction
Flow
Duration
De beslissing wordt vaak in stilte
genomen. Dat kan een minuut zijn, een
fractie van een seconde zelfs.
We zijn nu al bijna twee jaar bezig.
Het hele proces duur t vanaf de overname van Ars,
dat was 1 januari 2008.
Twee jaar geleden is er begonnen met het Milka
project.
Centrality
De ondernemer is verantwoordelijk
voor het nemen van het besluit. De
ondernemer moet ervoor zorgen dat
het gebeurd.
Binnen het bedrijf zijn heel veel medewerkers
betrokken bij het proces.
Selection phase
Bij kleinere bedrijven doet iedereen me.
Bij bedrijven die meerdere werknemers
in dienst hebben is er een MT.
RGO gaat opzoek naar de potentie van
de ondernemer.
Complexity
Politicality
Wij hebben geen enkele invloed gehad
Het besluit om een nieuw business in te gaan was
op de strategische besluitvorming. Deze
al gemaakt. SI en RGO hebben geholpen de
is wel altijd het middelpunt van gesprek
beslissing handen en voeten te geven.
geweest.
Tijdens het proces van RGO hebben
verschillende strategische besluiten zich De drukkerij- business liep nog altijd goed dus wat
voorgedaan. Die verschillende besluiten dat betreft was er geen noodzaak om een nieuwe
zijn strategisch omdat ze bijdragen aan business in te gaan.
de koers.
Aanvullend
Op het moment van de overname van Ars was al
besloten om een nieuwe business in te gaan.
De aanschaf van de nieuwe digitale printer is een
strategische keuze geweest.
De laatste vierenhalf jaar was een groeipad waarbij
ook toevalligheden voorbij zijn gekomen.
Het zijn deelprocesssen wat elkaar opvolgen met
als doelhet digitale steeds verder te laten groeien
om het verlies in offset op te vangen.
Het was heel urgent destijds de beslissing te
maken en bleek achteraf nog urgenter omdat de
omzetten veel harder om laag gingen.
| 54 |
Appendix IV: Result table local government
Procesbegeleider
Participanten
Ze hebben ons gevraagd om een soort second
opinion te geven van hoe kijken wij tegen de
kerntakendiscussie aan. Op basis van de
presentatie hebben we een offerte mogen
maken en een projectvoorstel mogen
uitwerken.
Dat heeft heel veel vaders en moeders. Dat varieert
van heel veel kleine dingetjes van de lokale politiek tot
hele grote dingen die in de wereld gebeuren.
Fase 1: Herijken van de toekomstvisie.
Een aantal politici heeft het gevoel gekregen van we
moeten op een of andere manier transparanter en
kritischer werken.
Fase 2: Rol van de overheid.
Groeiende kloof tussen kiezer en politicus.
Fase 3: Rol van de burger.
Globalisering, de wereld die een dorp worden gezocht.
Fase 4: Invullen van het keuzetraject van de
taken.
Regionaal meer samenwerking.
Bezuinigingen
Wij hebben dan ook in het bestuursakkoord gezegd
dat we een heel andere verhouding moeten krijgen
van de burger en de overheid omdat het gewoon niet
meer te behappen is.
Scrutiny
Het rond krijgen van de begroting vraagt ook om
veranderingen.
De tijd waarin we leven en de middelen die we
beschikbaar hebben matchen niet met elkaar.
Vanuit de financiële positie die we bekleden maar ook
vanuit het besef dat we anders zijn gaan denken over
de rol van de overheid.
Aanleidingen: Bestuursakkoord. Decentralisatie.
Een kerntakendiscussie zou jaarlijks terug moeten
komen.
Arc is met een voorstel gekomen en dat is vervolgens
overgenomen door het college en de raad.
Arc voert het proces dan uit onder toezicht van het
college maar doet dit in opdracht van de raad.
Indentification phase
Interaction
Arc heeft voornamelijk contact met het college
van B&W om het dan van zaken omtrent het
proces af te stemmen.
Interactie tussen de raad en het college van B&W: de
burgemeester had de kerntaken in zijn portefeuille.
Dat kwam niet vooruit toen hebben we vanuit de
politiek wat meer druk op gezet en toen zijn ze binnen
het college tot de conclusie gekomen dat ze hulp van
buitenaf nodig hadden.
De burger speelt geen rol in de
kerntakendiscussie die hebben we wel
betrokken maar veel meer om te gaan kijken
we moeten die burger ook in een andere
modus krijgen, in een andere rol.
Binnen de raad was de coalitie vóór het voeren van de
kerntakendiscussie maar de oppositie tegen het
voeren van de kerntakendiscussie en daarbij het
benaderen van een extern bureau.
De kerntakendiscussie hebben we opgehangen aan de
burgemeester maar hij is geen politiek gearrangeerd
figuur de wethouders wel dus ligt de
verantwoordelijkheid voor de kerntaken ook daar. We
hebben een partner gezocht om het proces zodanig te
organiseren dat het niet te politiek wordt.
| 55 |
Al vrij vroeg in het proces zijn we afgehaakt bij BMC en
bij Arc terecht gekomen.
Het college is de procesbegeleider. Ze moeten zorgen
dat het proces van de kerntakendiscussie loopt. De
politiek opererende mensen, de wethouders, die
moeten zorgen dat aan de voorkant het proces
ingevuld wordt inhoudelijk met hun achterban en
fracties.
Binnen het college zie je de relatie tussen
burgemeester en wethouders. Vervolgens zie je ook de
relatie tussen college en raad.
Flow
We zijn nog met een ander bureau in zee geweest
puur om het voor te bereiden, voorbereiden van het
bestek.
Duration
Centrality
Complexity
Uiteindelijk is de raad de opdrachtgever aan
het college. Het college huurt Arc in. De
besluiten die genomen moeten worden in dit
traject hebben met name invloed op de
ambtelijke organisatie.
De raad heeft de opdracht gelegd bij het college. In
ons geval was het al neergelegd in het
bestuursakkoord. De raad heeft dat geaccordeerd en
daaruit vloeit de opdracht om het op te pakken. Er is
een voorstel gedaan aan de raad om een aantal
bureaus uit te nodigen om in gesprek te gaan met de
gemeente.
De keuzes zijn heel moeilijk omdat elke keuze
ook gevolgen heeft in maatschappelijk verband
en eigenlijk zitten daar ook kiezers van die
mensen die die keuze moeten maken. Elke
fout die ze maken kan hun kiezers kosten
denken ze.
De keuzes raken de gemeenschapszin.
Het gaat om de stemmen daarom is het een politiek
proces.
Politicality
De burgemeester heeft van meet af aan gezegd: de
keuzes zijn politieke keuzes dus die moeten gemaakt
worden door het college en de raad.
Fase 1: Deskresearch, gesprekken met
stakeholders, raadsfracties, bijeenkomst met
burgers.
Wij hebben alle informatie verkregen via Arc. Ook via
de burgeravonden.
We zijn met de ambtenaren begonnen en daarna zijn
we de kernen in gegaan.
Het ambtelijk apparaat is faciliterend en uitvoerend
betrokken. Zij zorgen ook voor de ratio.
Development phase
Scrutiny
We hebben één keer een steunfractie bij elkaar
Fase 2: Bijeenkomsten met de raad, het college
geroepen dat heeft ons gesterkt in het idee dat we ook
en de medewerkers.
goed naar die burgers moeten luisteren.
Informatie komt van beleidsstukken intern (klapper,
toekomstvisie 2020) en van buitenaf (enquêtes,
burgeravonden)
Eenieder is betrokken die een rol speelt in onze
gemeenschap, in onze dagelijkse gang van zaken.
| 56 |
Interaction
Fase 3: Deskresearch, burgeravonden.
Informatie: voorbereidingen zijn gemaakt in
documentenstudie en analyse daarvan. We weten dat
er ontwikkelingen op rijksniveau zijn die op termijn
voelbaar zouden zijn in onze begroting. (VNG,
provincie)
Fase 4: Ambtelijke organisatie.
In fase 4 gaat het om de concrete invulling.
Fase 1: Gesprekken en bijeenkomst
georganiseerd op een datum. Vrij formeel.
Ik zou zeggen dat alle partijen betrokken zijn. We zijn
uitgegaan van de coalitie. In de raad zijn ze steeds
bezig met elkaars stemmen afsnoepen.
Fase 2: Formeel.
De ambtenaren, die ook niet een direct belang hebben
tot zaken veranderen.
Fase 3: Formeel.
Burgers, de burger geeft de indruk nog meer
gepamperd te willen worden.
Fase 4: Formeel.
Het is een krap proces.
Fase 4: er is te weinig tijd. Er komen te veel dingen
langs waar je beslissingen over moet nemen en we
moeten in de coalitie beter afstemmen hoe we erin
staan.
Fase 4: Men miste de verdieping.
Het is moeilijk om in Fase 4 die concrete invulling te
maken.
Het tijdsschema konden de meeste mensen niet
bijbenen. Haastige spoed is zelden goed. Het college
was het onderling niet met elkaar eens.
Belangen die van elkaar verschillen.
Flow
Kennis en kunde raadsleden, onderlinge verhoudingen,
loef afsteken, vertrouwen, politieke lef. Deze factoren
bepalen voor een groot deel de succesvolheid van het
proces.
Verwachtingen van de raad en college wie van de twee
de verantwoordelijk is voor de voorstellen. Rol van de
oppositie. Vertrouwen tussen de fracties. Vertrouwen
tussen de wethouders.
In het begin was het allemaal geen probleem toen liep
het allemaal wel omdat het vrij abstract en theoretisch
was.
Duration
Centrality
Complexity
Fase 1: Periode van weken.
Fase 4: De coalitiefracties zitten niet op één lijn. Arc is
zoekende. Te krap tijdsplan.
Fase 2: Periode van weken.
Fase 3: Periode van weken.
Fase 4: Periode van maanden.
Fase 1:
Fase 2:
Fase 3:
Fase 4:
De wethouders moeten de richting aangeven.
Het belang van de ambtenaar is dat hij zijn
baan wil houden. Het proces gaat hun zelf aan
en als ze zich te betrokken voelen kan het ook
ten kosten gaan van hun eigen baan.
Je overziet niet alle consequenties die bij een
beslissing horen.
Fase 4:
Financiele, communicatieve, organisatorische
consequenties.
Je kunt eigenlijk niet zeggen dat er bij een
kerntakendiscussie bepaalde partijen betrokken zijn
want in de uitwerking ervan zijn nog zoveel meer
mensen en partijen betrokken.
De complexiteit komt voort uit het feit dat het gaat om
mensenwerk.
| 57 |
De complexiteit is terug te herleiden naar wie doet er
mee in het proces en welke belangen heeft diegene.
Elk raadslid, fractie, coalitie, oppositie, ambtelijk
apparaat, burger en vereniging heeft zijn belang.
Het heeft er alles mee te maken in hoeverre politici
leidend willen zijn in delen van de samenleving of in
hoeverre ze zich laten leiden door delen van de
samenleving.
Raadsleden komen uit een bepaalde sector voort. Die
komen niet voort uit het algemeen belang. Die zijn
door de achterban gekozen en die hebben zaken te
realiseren. Dit bevorderd niet de integrale afweging.
Bij de ambtelijke organisatie is niet altijd de
bestuurlijke sensitiviteit aanwezig. De drive ontbreekt
vaak om intensief mee te doen dat heeft echter voor
een deel ook te maken met de capacitaire belasting.
Op een verfrissende manier kijken naar de taken die je
zelf uitvoert ontbreekt hier.
De burger zit een beetje vastgeroest in een bepaald
patroon zoals dat in de jaren is gegaan.
Het is een politiek proces.
Politiek bemoeilijkt het maken van keuzes.
Politiek is een factor welke van invloed is en waar je
rekening mee moet houden gedurende het proces.
Politicality
Complexiteit wordt mede ingegeven door de politieke
samenstelling.
Scrutiny
Interaction
Flow
Duration
De gemeenteraad is verantwoordelijk voor het
maken van keuzes.
Het besluit wordt genomen in de gemeenteraad en die
geven dan de opdracht aan het college om het uit te
voeren en dan komen ook de ambtenaren om de hoek
kijken.
Centrality
Selection phase
De raad heeft de beslissing genomen om de
kerntakendiscussie aan te gaan en de raad beslist ook
wat er uiteindelijk uit komt.
Binnen de gemeente is het eigenlijk altijd zo dat de
raad het hoogste besluitvormende orgaan is. De raad
is uiteindelijk het bestuursorgaan wat de kaders stelt
en een opdracht meegeeft aan het college.
Waarbij zoveel verschillende belangen gemoeid zijn is
dat heel complex.
Complexity
Politicality
De rol van Arc
Arc is in eerste plaats proces arrangeur
geweest. We hebben het proces uitgewerkt.
We hebben het proces vorm en inhoud
gegeven. Het proces georganiseerd en
begeleid.
We hadden dit proces niet zelf kunnen doen want dan
verpolitiseer je het proces al vanaf het begin.
We hebben iedere keer getoetst of de
informatie die voortkomt voldoende is om de
volgende stap te zetten.
Dan fungeer je als bureau natuurlijk als
bliksemafleider. Als de club die de klappen op vangt
voor het geval er echt heftige discussies gaan komen.
Objectief niet in de zin dat ze geen partij zijn maar ook
deskundiger zijn dan wij. Wethouders zijn ook niet
opgeleid als strategische beslissing nemers.
| 58 |
Het bureau beschikt over ontzettend veel informatie
vanuit haar eigen expertise en deskundigheid.
Van buitenaf dwingt meer. Het is een proces waar je af
en toe tegen de schenen trapt en tegen de muur
aanloopt. Het beste is dat iemand dat doet die later de
deur achter zich dicht doet en verder gaat naar een
andere klus.
Vreemde ogen dwingen. Voeren het proces uit. Zijn
procesondersteuner, adviseur. Leveren de
werkvormen en voor een deel ook de inhoudelijke
hulp. Klankborden kritisch en ondersteunen.
Vorm geven van het proces.
Overige
opmerkingen
De cultuur binnen de gemeentelijke organisatie
heeft in grote mate invloed op het
besluitvormingsproces. Die cultuur wordt
gekenmerkt door: angst, afrekencultuur,
organisatie is reactief, mensen zijn behoudend
en gelaten.
De geschiedenis van de oppositie speelt een
belangrijke rol op hun houding: die waren nog aan het
verwerken dat ze een zware verkiezingsnederlaag
hadden geleden en dus niet aan de bak kwamen.
In het proces hebben we arbitrair ook keuzes
voor hun gemaakt. Bijvoorbeeld de lijst met
vijfendertig kerntaken.
Als ik niet oppas dan hebben we straks geen resultaat.
Naar mate het proces vordert zie je dat het college
meer inhoudelijke bemoeienis is geweest.
| 59 |

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