Network Implementation Project in the State Sector in Scotland: The Influence of Social and Organizational Factors

Network Implementation Project in the State Sector in Scotland: The Influence of Social and Organizational Factors Ann McCready and Andrew Doswell

Idea Group Publishing

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g n i h s i l b u P p u o r G a e d I t h g i r y p o C g n i h lis b u P p u o r G a e d I t h g i r y p Co g EXECUTIVE SUMMARY n i h s i This case study, about the introduction of networked PCs in a local l b u government office in Perth, Scotland, focuses on the importance P of organizap tional and social factors during the implementation process. u othis case study is not a straightforr The implementation of the network in G a ward progression from one stage to the other, as may be inferred from the e d I t systems development life cycle “waterfall” model but a circular, stop-andh g i r start process ywith moves back to previous stages and is more like a “spiral” p approach of dynamic and unfolding processes. o C The case study highlights the links between technical and nontechnicalng i aspects of implementation and the complicated process of project s manageh i l and b ment in which a balance is continually being sought between technical u Preduce technical as nontechnical issues. But although social processesp may u well as social problems, not all problems can be solved by attention to social o r G factors. Organizational constraintsa may limit the success of the implementae d tion process, and there are also dangers in including users who, if their views I t h are disregarded, imay become disillusioned and adversely affect future g r y development of the network. p o C Network Implementation Project in the State Sector in Scotland: The Influence of Social and Organizational Factors Ann McCready and Andrew Doswell Glasgow Caledonian University, Scotland

Ann McCready, B.A. (Hons), Ph.D. Ann McCready has had a career largely in education. She began teaching in high school where she spent 4 years. In the 1970s She was employed a number of years in industry in Germany and Brussels, after which she returned to higher education in Scotland. She joined Glasgow Caledonian University, becoming a Senior Lecturer in 1997. Since the early 1990s she has researched the impact of information technology and networks on managers and presented papers and published on this topic. Her current project is a study of stress management programmes and their effectiveness. Andrew Doswell, BSc (Eng) Hons, MSc, PhD. Professor Doswell worked as a research engineer in the radar defence industry before moving into management services in first the private and then the public sector in England. Since the mid 1970s he has worked in universities in Ireland and Scotland, teaching, researching, writing articles and books, and consulting with a focus on personal computing in organisations and its effects on people. His current research is a project investigating knowledge and its use in Scottish business.

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NETWORK IMPLEMENTATION PROJECT

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The traditional implementation process is usually depicted as a logical step-by-step process, such as the system development life cycle waterfall model (Gordon and Gordon, 1999). This approach may not be an accurate representation of the implementation of computer networks which may be less structured and require a circular, reiterative approach (Greil, 1982), regressing perhaps to previous stages (Dawson, 1994), and characterized more as a spiral (Gordon and Gordon, 1999). Analysis of a number of methodologies for the implementation of computer systems suggests also that an understanding of the internal organizational environment and high involvement of the intended system users are required during the implementation of computer networks. Problems and solutions, it has been argued, cannot be definitively stated or solved. They are situationally and socially constructed, ill-defined and emerge during the implementation process. New approaches are therefore required for the design and development of organizational information systems (Gasson 1998). Project management may therefore require managers with flexibility and good technical and leadership skills. But project managers and their planning and control techniques have also been criticized because they often focus too much on IT costs and time targets, and assume that users will do whatever is necessary (Earl, 1992). There is evidence that a large majority of systems fail because of social rather than technical problems (KPMG, 1990). This view is supported by studies (Roberts and Barrar, 1992; Hirschheim et al., 1991; Beath, 1991) which indicate that the success of systems implementation is influenced by social factors. More emphasis should therefore be placed on organizational context (Doherty and King, 1998) which may change during implementation, affecting power and control relationships. The dominant groups may be challenged by other stakeholders who wish to advance their interests at critical stages (McLoughlin, 1999). There should also be more emphasis on users, who should be actively involved in the implementation process by contributing more about their requirements, and by participating in project teams, pilot groups and vendor presentations (Damodaran 1996). Involvement of users may, however, not cover all human issues, nor solve all problems (Hornby et al., 1992). The following case study was therefore carried out to investigate the planning, management and implementation of a computer network in a regional development agency in Perth, Scotland, and to assess the role of

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Table 1: Major Issues of Case Study

g n i h s i l b u P p u o r G a e d I t h g i r y p o C g n i h lis b u P p u organizational, political and social factors and their contribution to the oissues r G success of the implementation. The major included in the case study a e are shown in Table 1. Id t h g i r Background y p o C The Perth Development Agency is one of 13 local agencies reporting to the Agency Head Office in Edinburgh. The agencies are concerned with encouraging and developing business in Scotland. The agencies form a g n quango. i h s i Quangos, quasi-autonomous non-governmental organizations, are orl b u ganized and funded within the state sector, yet have considerable Pthus freeingday-to-day p independence. Quangos implement government policy, governu o r ment departments to look at broader issues of policy. Quangos are not G a accountable to Parliament,d and are thus outside direct democratic control. e I t Although government funded and staffed they do not function like the h g i r traditional y concept of government civil-servant organizations. p The Agency’s Head Office has an Information Directorate consisting of o C two main divisions. The Data Processing Division’s concern is the mainframe g n i h which provides the financial and accounting software used for project control s i l past this b and communications access to the outside world. In theu recent P failed partially division trialed a mainframe-based office system which p u because the trial group was badly selected r (the members were the Agency’s o G Directors who had little need to communicate with each other and who did not a e d consider it appropriate totuse a keyboard) and partially because the applicaI h tion itself was not very good. The other Division is the Office Systems g i r y Division p which developed from the central typing pool and used shared o C MAJOR ISSUES The planning, management and implementation of a network Organizational and social issues involved in implementation, in addition to the technical issues: Organizational culture Organizational conflict and power Organizational change Systems development

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resource minicomputers to provide localised word processing. This Division is now interested in developing a system of PCs linked in a local area network. Central government is enthusiastic about using IT solutions to improve service quality while reducing running costs by cutting staff numbers. The main business aims of the Perth Development Agency are to: 1 Address the decline in business in the region 2 Assist with the stabilisation of some businesses 3 Enhance the performance of businesses with real growth potential 4 Attract new business to the area 5 Maintain and improve the quality of the business environment 6 Ensure an adequate supply of land and buildings for business development

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g n i h lis b u The key business sectors with which the Perth Development P Agency are p u involved are tourism, food, and manufacturing. o r G a the Stage e Setting d I t a small office of 25 people in a three-floor and The Perth g Office, h i r basement turn-of-the-century house converted to office use, is headed by a y p o Regional Director who has overall responsibility. The Office is structured C g hierarchically into three divisions: Projects, Business Development, and n i h Property Divisions. In addition there are also Legal and Financial Divisions s i l b which support the operating divisions. Each division has a Division Manager u P and a number of professional staff who worku onp particular projects (Figure 1). o r G a e Figure 1: Organizationd Chart, Perth I t h g i r y Cop g n i h lis b u P p u o r G a e d I t h g i r y p Co

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The operating divisions work relatively independently of each other, reporting to the Regional Director. Within each Division there are weekly “update” meetings when everyone gets together to exchange information and bring others up-to-date with the project’s status.

g n i h s i l b u P p u o r G a e d I Case Description t h g i r y p Various central government changes, reflecting a desire to provide more o C

local accountability were being implemented. The Agency’s Head Office was to lose operational power to the regions whilst taking on an increased ‘enabling’ role. It was expected that these changes would increase local workload particularly in producing financial control and project reports. The Regional Director, recently appointed, is young, ambitious, enthusiastic, and competent and is determined to ensure the Region is successful. Although he has had little experience in using networks, he feels that IT has a significant part to play in the Region’s success. The current IT equipment in the Regional Office includes 13 standalone PCs. Nine of these are used solely for word processing, six of them being used by the Director’s Secretary and the Divisional Secretaries. Three terminals are used to access data from the mainframe in the Agency’s Head Office as well as external databases. The Regional Director thinks the current equipment is underutilized for a number of reasons: 1. Lack of knowledge and training 2. Mismatch of hardware and software 3. Lack of integration between PCs and other systems 4. Poor location of print facilities but he is also concerned about whether the current IT would be able to cope with the changes proposed and thinks that new IT would improve productivity and communication. He therefore requested action from the Agency’s Head Office which decided that a study should be carried out by the Office Systems Division. A feasibility study was carried out by an external consultant which in summary reported that a networked system would improve productivity and create a more effective working environment. This would be achieved by using the networked facilities to: • Put together reports from already existing material more easily, accurately, and attractively • Access and distribute information from the Agency’s Head Office more readily (enabling better access to timely management information concerning projects and budgets)

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• Provide more convenient communications to clients, the Agency’s Head Office, and external databases • Provide better internal communications (A particular current concern was the haphazard way in which incoming telephone messages were being handled by anyone who happened to be available—written messages were being left on desks and getting mislaid)

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Overall a 20% productivity gain over five years was projected. This it was calculated, using the current number of managers and professional staff employed, would be equivalent to £68,561 in Figure 2: Proposed Configuration the first year and £95,986 in the second year. The time saved would be spent on improving client communications and initiating and developing more new business projects. To achieve these gains it was recognised that jobs would need redefining (there would be a need for someone to take on a system manager/administrator role, and for a receptionist to handle incoming telephone calls), that staffing levels would be frozen (the Regional Director stated that he would need two extra staff if a network were not installed), and there would be a need for staff training.

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The Head of the Office Systems Division realised that the equipment released from Perth could be reused at another regional office providing an upgraded facility there at essentially “no cost”. The Perth Office could be connected to the Agency’s Head Office at no cost (as central government would pay) and this would also allow remote management of the Perth system. The proposed design is shown in Figure 2. Senior managers in the Agency’s Head Office agreed to the proposal. Responsibility for the project was given to the Office Systems Division who contracted the operational management of the project to Mhairi Macleod, an IT consultant who had previously provided the Agency’s Head Office with good office systems training. Although a recent entrant into consultancy, Mhairi had been involved in introducing a network into the local university and had drive, enthusiasm, and good interpersonal skills. Mhairi was determined to make a success of her business, although her knowledge of IT systems was based largely on her few years’ experience and assistance from contacts she had developed. Tenders were invited and three possible suppliers chosen. The Head of the Office Systems Division, the Regional Director and Mhairi Macleod agreed that staff should have a major role in selecting who would supply the equipment. The Head of the Office Systems Division, Martin Peddie, was confident that the supplier CSS would be chosen. CSS had worked with the Office Systems Division for some years and had provided good service. Using CSS would reduce possible problems of incompatibility and would take advantage of CSS’s knowledge of how the Agency worked. However, after the presentations the staff did not select CSS but unanimously chose one of the other suppliers who had had no previous dealings with the Agency and who did not have a local office. After discussions between the Head of the Office Systems Division, the Regional Director and Mhairi Macleod the staff choice was overruled. Mhairi was delegated to inform the staff of this decision and at an open meeting she told all the staff in the Perth Development Agency that their choice had been overruled. Mhairi assured them that they would be allowed to choose which software was to be used. The meeting was quite tense and some staff felt that the whole selection process was a sham and a waste of their time and they anticipated that the software selection would go the same way as the hardware selection. Mhairi assured them it would not. In the following two weeks, demonstrations were given to staff of word processing, database, spreadsheet and graphics software. After the demonstrations, staff chose an office suite which was not in use at the Agency’s Head

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Office and of which the Office Systems Division had no previous experience. Martin Peddie, Head of the Office Systems Division, Ralph Stansfield, Regional Director, and Mhairi Macleod met again to discuss the choice about which the Office Systems Division had some particular reservations regarding the file compatibility of the office suite with other applications in the Perth Development Agency. Mhairi urged that because staff had been overruled in the choice of hardware, it was necessary to agree to purchase the software they had chosen. This was eventually agreed. Mhairi initiated project implementation meetings. The people included are shown in Figure 3. The schedule of meetings and their major points were as follows:

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g n i h lis January: Project Group Meeting 1 b u The Head of the Office Systems Division, a blunt and egotistical man, P p u outlined the goals of the project, the main one of which was to provide o r G a e d I t h rig of Project Group Figure 3: y Membership p Co g n i h s i l b u P p u o r G a e d I t h g i r y Cop g n i h lis b u P p u o r G a e d I t h g i r y p Co

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information at regional level in a usable way. Data ownership would, as far as possible, be with the Perth Office. He emphasized the need for tight budget control and stated that he would be wanting monthly progress reports from Mhairi Macleod. It was important, he stressed, that everyone was committed to the system and they all would demonstrate this by their actions in the next few months. Action: Mhairi provided a schedule of meetings and staff training needs. The schedule outlined the plans for establishing a training room in the Perth Office, a large part of the basement area equipped with five PCs and training facilities such as whiteboard and projector, installation of PCs for training, development of course material, and the allocation of resources to staff. An agreed action plan was drawn up with targets and the dates by which they had to be achieved. It was recognised that there was the possibility of some delay because cabling could only begin once builders had completed some internal reconstruction in the building which, as it was about 100 years old, could prove problematic. Thick stone walls and wooden ceilings would have to be drilled and cut through and, as well as consuming time, this would also create noise and debris.

g n i h s i l b u P p u o r G a e d I t h g i r y p o C g n i h lis b u P p u o r G a e d I t h g i r y p Co February: Project Group Meeting 2 Reported: Most of the initial targets had been achieved but delivery ofg n i h the equipment had only just begun because payment to CSS had been delayed. lis he had b Martin Peddie, the Head of the Office Systems Divisionu announced P now left the Agency Head Office to join a consulting firm. His first job with p u o the consulting firm was to act as Head ofrthe Office Systems Division until GStrategy! the Agency had decided its Information a e d was rescheduled and final date agreed for the Action: DeliverytofIPCs h installation ofrthe gcabling. i y p Project Group Meeting 3 CoMarch: g n Reported: A second file server was needed temporarily while software i h is some was being installed, and since the cabling was behind schedule, l b u discussion took place as to whether Byte should also have responsibility for P p installing the second server. ueventually to let Byte have o r Action: Mhairi, the Project Leader, decided Gserver. The number and location of a the responsibility of installing the second e d I t peripherals were agreed. h rigDirector, Ralph Stansfield, did not attend this or subse(The Regional y p quent o Cmeetings and attendance by CSS and Byte representatives became

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patchy. Privately Martin Peddie, Head of Office Systems Division, told Mhairi that he doubted whether the identified benefits would be achieved. He also intimated that now the system had achieved the go-ahead he did not expect the Regional Director to be particularly interested in using it himself.)

g n i h s i l b u P p March: Project Group Meeting 4rou Gproblem arose concerning incompatibilReported: A serious technical a e ity between the operating system on the minicomputer and the PC operating d I t system. ghwas disagreement between CSS and Byte as to who was i r Action: There y op CSS argued that the fault was not with the operating system Cresponsible. g n i software on the minicomputer, but with how it had been installed by Byte. h lis when However, the representative from Byte, who had not been at the meeting b u the incompatibility problem Pdiscussed, argued p u was that o Figure 4: New Configuration r the specification from G itCSSwaswhich a e had been faulty. d I t Another meeting involving h g i r Martin Peddie, Mhairi y p o Macleod, CSS, and Byte C g was arranged. n i h s i l b April: Project Group u P 5 upMeeting o Reported: The technir G a cal problem was to be overe d I come by eliminating the t h g mini computer and switchi r y ing to a full client/server Cop g network architecture. This n i h would require an additional s i l b server and network operatu P ing software. (At this time p u o client/server PC networks r G were starting to grow in chala e d I lenging the dominance of t h g mainframes and minis and i r y the original mini based deCop sign was nearly a year old).

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Some time had to be spent explaining the need for these changes and their effect on users to Adam Tait, the user representative. “Clever guy”, said the Byte representative after the meeting, “but doesn’t understand IT.” The mini and terminals were now redundant and no use could be found for the mini. The new configuration was as shown in Figure 4. The proposed arrangement had been tested at the Agency’s Head Office and had worked. Mhairi suggested that to encourage system use, a receptionist should be appointed immediately to take on the telephone messaging activity and so show staff some immediate benefits from the network. Action: Proposals were agreed (with restricted mainframe access to Agency Head Office accounts for Regional Director and System Administrator only). Because of the delays and changes, Mhairi arranged a meeting with all staff, first to explain what was happening and second to rekindle their enthusiasm which had been dipping because of delays in installation and various minor difficulties in getting the software working properly. The introduction of the messaging system was announced.

g n i h s i l b u P p u o r G a e d I t h g i r y p o C g n i h lis b u P p u o r G a e d I t h g i r y p Co May: Project Group Meeting 6 g Reported: Adam Tait reported that there were difficulties in getting n i h access to the Agency’s Head Office. Attendance of staff at ithe training s l b sessions was patchy partly because of pressure of work but also because u P delays in hardware and software installation meant that staff were not able to p u o return from training to their desks and start using the software they had been r G trained in. eonaaccess problems, and the training schedule d Action: Byte was t toIwork h was to be revised. g i r y p o C June: Project Group Meeting 7 (final meeting) g n Access to the Agency’s Head Office was still not working properly. i h is Access had been achieved for the Regional Director and System Administral b u tor but multiple access had not been achieved. One other problem which had P p arisen was that one manager refused to share his diary/calendar he did owhatuhe was doing.because r not want his junior members of staff toG know Because of a server and other pieces of equipment, the extra space needed for thed additional e I t taken over much of the training area as additional the Regional Directorh had g i r the training schedule had been revised and extended, office space.y Although p staff attendance Co was still patchy. Several staff had left and been replaced by

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new staff most of whom needed training so that there was an even greater need for training unless staff were going to be left to learn from the practice of their colleagues. Action: Martin Peddie, Head of the Office Systems Division, to talk to the manager about his diary/calendar and to investigate the access problems. No way forward was identified for dealing with the training difficulties. Mhairi Macleod, the Project Leader, arranged a final meeting with the staff in the Perth Office to bring them up-to-date with the last stages of the implementation process. Mhairi assured them of further assistance if necessary. In order to maintain commitment to the network some of the secretaries were asked to take the responsibility of keeping up to date with developments in specific software packages. A number of the secretaries volunteered to do this. Use of the network had been monitored throughout by Mhairi using selfreporting questionnaires. Not all staff responded and the response rate fell partly because some staff left for new jobs. For example the System Administrator had left for a better paid job using the skills she had acquired. Neither the Regional Director nor a majority of the professionals used the network communications facility frequently. One manager relied on his secretary using the system and printing items out for him. Communications with clients had not increased and internal face-to-face communications had fallen. Staff in the ‘operational’ divisions reported that their electronic communication was limited almost exclusively to the members of their own division. Staff in the support divisions preferred to talk face-to-face to the people on whose projects they were working. Several of the comments indicated that some of the problems encountered could be overcome if staff had better knowledge of how to use the hardware and software which they might achieve by attending the training sessions. Others had identified ways in which they could work much better. Secretaries felt they were losing contact with their team members because with the introduction of the central messaging system they were handling far fewer messages and, as some team members were producing their own documents, the secretaries did not necessarily know what was happening in projects. There was also disappointment that access to systems at the Agency’s Head Office was still weak and that the quality of the central information service was poor. Finally, some people felt that important pieces of software, for example project control software, needed to be installed if the system were to be any real use to them. But most people felt that access to, and processing and distribution of information was better and

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a 5% fall in nonproductive activity was reported although it was felt that the ‘secretarial’ content of their work had increased. The total number of staff remained at 25 although some jobs changed.

g n i h s i l b u P p u o r FUTURE DEVELOPMENTS G a e d I t hgovernment initiatives aimed at integrating and Further central g i r y p o harmonising C local economic development means that the Regional Office will be merged with the central government’s local Skills Agency. The Skills Agency uses a completely different computer system and has an entirelyg n i different, bureaucratic, organizational culture. The Regional Office will have h s i l new office to accommodate both sets of staff while a new office is found.b The u will use an extended version of the Regional OfficeP network and the Skills p u Agency’s computer system (just recently completed) will be scrapped. o r G a e DISCUSSION dPOINTS AND QUESTIONS I t h As with many real-life situations this case study reflects a complex g i r y messy situation (see Checkland and Holwell, 1998) raising a wide variety of p o questions C about social, technical, and managerial factors including: project management; power, control, and individual personality; IT development and implementation; and strategic management. g n i h s i l b u P ACKNOWLEDGMENT p u of Jim Galloway in the o We acknowledge, with thanks, therassistance completion of this case study. a G e d I t h REFERENCES g i r y Beath Cp M (1991), Supporting the Information Technology Champion, MIS o CQuarterly, September 1991 g n i Callahan R E, and Fleenor C P (1987) There are ways to Overcome Resistance h lis to Computers, The Office, October b u P and Information Checkland P and Holwell S (1998), Information, Systems p u Systems, Wiley o r G Damodaran L (1996), User involvement the systems design process - a a andinInformation e practical guide for users,Id Behaviour Technology, 15(6), t h November/December rig y p Co

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Dawson P (1994) Organizational Change: A Processual Perspective, Paul Chapman Doherty N F and King M (1998), The Consideration of Organizational Issues during the Systems Development Process: an Empirical Analysis, Behaviour and Information Technology, 17(1), 41-51 Earl M (1992), Putting IT in its place: a polemic for the nineties, Journal of Information Technology, Vol 7, pp 1800-108 Gasson S (1998), A Social Action Model of Situated Information Systems Design, Proceedings of IFIP working groups 8.2 and 8.6 joint working conference on information systems: current issues and future changes, Helsinki, Finland, December 10 -13, 307-326 Gordon J R, Gordon S R (1999), Information systems, Dryden Press, Forth Worth Greil M J (1982), A Model for Implementation of an Electronic Administrative System within an Office Environment, PhD Dissertation, University Microfilms International Hirschheim R, Klein H K, and Newman M (1991), Information Systems Development as Social Action: Theoretical Perspective and Practice, OMEGA, 19(6). Hornby P, Clegg C, Robson J, MacLaren C, Richardson S and O’Brien P (1992), Human and Organizational Issues in Information Systems Development, in Behaviour and Information Technology,11(3),160-174 KPMG Peat Marwick (1990), Runaway Computer Systems, KPMG Peat Marwick, London McLoughlin I (1999), Creative Technological Change, Routledge Roberts H J and Barrar P R N (1992), MRPII Implementation: Key Factors for Success, Computer Integrated Manufacturing Systems, 5(1), February

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