Geraldi, JG; (2008) Reconciling order and chaos in multi-project firms: Empirical studies on CoPS producers. Doctoral thesis , University of Siegen.

Abstract

Purpose: One of the key challenges faced by companies in the present (and in the past) is to cope with the coexistence of contradictory demands: uncertainties treated as cer-tainties, mass customisation, regional globalisation, flexible efficiency, creative reliable solutions, etc. The goal of the study was to understand how companies reconcile one of these coexistences – that between order and chaos. Approach and Methodology: The research was focused on multi-project firms in gen-eral and CoPS producers in particular. It followed three phases: Exploratory Phase (liter-ature review and interviews), Conceptualisation Phase (abductive elaboration of the Conceptual Model based on field and longitudinal studies in a CoPS producer), and Vali-dation Phase (deductive validation of the model through a multi-case study conducted with seven CoPS producers). Conceptual Model explored the ability of organisational units to reconcile order and chaos through the fit between complexities faced by the project portfolio (complexities of faith and fact) and the flexibility of the organisational structure. A framework formed by the juxtaposition of these concepts distinguished four organisational archetypes: the cre-ative-reflective and mechanic-structured (in fit); chaotification of order and bureaucratisa-tion of chaos (in misfit). The position of organisational units and the framework itself were dynamic. The necessary core competences of the company (reliability, technological in-novation and interaction) to deal with different complexities were identified. Findings: Multi-project firms inexorably deal with contradictory demands amongst pro-ject phases, organisational units, inside of organisational units and between environment and organisation. Successful companies create “chaotic” structures to deal with “or-dered” external demands. Companies in “chaotic” environments tend to create their own “order”. As external inflexibilities were more respected, these companies are more likely to succeed if the internal order is accepted as an “Act of God”. Consequently, the ability to reconcile order and chaos is relevant and lies on the balance of forces leading to mis-fits, and, in the case of mis-balance, chaotification of order is preferable to bureaucratisa-tion of chaos, as towards bureaucratisation of chaos tends to impact results more nega-tively than that towards chaotification of order. Due to the dynamic of business, “order” may lead to bureaucratisation of chaos, and consequently, has to be questioned, or muddled through in certain situations. Project Conclave, Fit Chain Management and Fac-titious Positions are possible approaches to respond to this dynamic. “Interaction core competence” is advantageous to keep reconciling order and chaos. Practical Implications and Tools: Project Conclave: team that cannot be dissolved until the achievement of its objective; this can be used to link or transform chaos into order. Fit Chain Management: Organisational units influence each other. One relevant pattern was that organisational units moved towards a higher bureaucratisation of chaos in order to compensate for the chaotification of order of others. The analysis of these mutual-dependences may assist companies to reconcile order and chaos. Creation of Factitious Position: Employees produce an image that they are in a different place than they in real-ity are, and consequently increase the acceptance of their position. This was used to at-tend to unrealistic demands of the client, or overcome barriers to the execution of some-thing unique, etc. However, this behaviour may also undermine genuine changes.

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