Repeated economic crises and steadily increasing

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1 The impact of technology on organizational performance Yves-C. Gagnon and Jocelyne Dragon Improvement in productivity is due not only to technology, but also to how it s integrated into the organization. Repeated economic crises and steadily increasing competition, brought about in particular by the globalization of markets, are forcing an unprecedented rationalization of resources. Improved productivity has thus become a concern of all organizations, both public and private. At the same time, technology is developing with blinding speed and is becoming the principal instrument for meeting this concern. 1 This explains why many municipalities are investing large amounts of money in implementing information systems. However, the advantages offered by technologies, especially in terms of enhancing productivity, depend upon how these technologies are integrated into an organization. Many municipal officials realize that their systems departments do not have the necessary resources to meet the demands made on them. More and more time is required to complete projects and the work piles up. Yves-C. Gagnon is a full professor at the École nationale d administration publique. He has a PhD in Management from the École des hautes études commerciales in Montreal, an MBA in Organizational Information Systems from Laval University and an MSc in Industrial Relations from the University of Montreal. Dr. Gagnon teaches and conducts research in technology management, human resource management and labour relations. He also has some twenty years experience as a manager with organizations in the public and parapublic sectors. Moreover, these officials often find that technological, organizational and human resource development processes are not proceeding at the same pace within their organization, which makes them hesitant about adding new systems. 2 Is the penetration of technologies really helping to improve the performance of municipalities? To answer this question, the extent to which information systems are incorporated into the culture and operations of municipal governments must be examined. The concrete action system model developed by Gagnon and Landry and refined by Dragon outlines a strategy for investigating technological changes that affect unionized work places. 3 As the authors note, This road map, here called the concrete action system, tries to identify and characterize the principal actors involved in the activity of implementing systems, and then to establish the relationships among these actors. 4 The concept of a concrete action system is based on the fact that an organization is a social system whose dynamics are grounded in the behaviour of groups of actors who develop particular strategies in a set of relationships Jocelyne Dragon is the assistant director of administration and facilities with the recreation and community development department of the City of Saint-Laurent and is also a member of the management committee for the City s information highway project. She has a Master s degree in Public Administration. Optimum, The Journal of Public Sector Management Vol. 28, No. 1 (19-31) 19

2 that are subject to the constraints of the environment. 5 Organizations contain individuals and groups who differ in their training and functions and have objectives that do not always coincide. Obviously, relationships differ according to context and are not spelled out in a formal structure such as an organization chart. In such a context, systems development provides the opportunity and the place for potential conflicts between interests, aspirations and values that involve something other than just technology. 6 Figure 1 illustrates the concrete action system, showing the principal actors and how they relate to each other when organizational information systems are adopted (i.e., the acquisition, successful implementation and use of a technology by an organization). 7 The users/decision makers are senior managers who partially or completely control resources and influence the development of information systems. The users/managers are those who, on behalf of the users/decision makers, supervise the implementation and operation of systems in collaboration with the designers. It is at their level that the collective agreement FIGURE 1 Concrete action system Users/Decision makers Central labour organization Other collective agreements Other sites Union representative Users/Managers/ Designers Users/Managers Collective agreement Local union Other systems Other sites Designers Users/ Operators System Clients 20 Optimum, The Journal of Public Sector Management Vol. 28, No. 1

3 is negotiated and interpreted, particularly with respect to the clauses concerning technological change. The users/managers/designers run the systems department and are often the architects of the organization s information technology policies, which are ratified by the users/decision makers. The users/managers/ designers are responsible for the design and technical management of information systems. The designers are the experts who design systems in collaboration with the users/managers and clients. They are, if not the only ones responsible for making systems operational, at least in charge of the work. The users/operators produce inputs or receive raw outputs from the systems, which are thought out in terms of the clients. They are indispensable for the day-to-day operation of the systems, but do not have any direct power to change them. The local union is located at the interface between the users/operators and the users/managers. The aim of the local union is to defend the immediate interests of its members, the users/operators. The central labour organization is responsible for the overall long-term strategy, which provides a framework for and supports the actions of the local union. The clients (users/decision makers, users/managers, etc.) are those whom the systems help directly in the performance of their duties. The process To study a contemporary pragmatic phenomenon, it is essential to be familiar with the experience of the actors and the context in which that experience takes place. We have selected the case of an anonymous City administration. 8 We first analyzed many internal documents of this municipal government. These documents describe the City, the history of its administrative development and its strategic plan, technology strategy, systems department and the information systems it has adopted. Then, using a semistructured scheme, we carried out exhaustive interviews with a random sample of 20 permanent employees who had at least five years of experience with the municipality and had taken part in implementing information systems. Each category of actor was represented in the sample (two users/decision makers, three users/managers, three users/managers/designers, two designers, two clients, six users/operators and two officials of the local union). The respondents worked at seven different hierarchical levels in seven different municipal departments (administration, finance, human resources, systems, municipal court, engineering and fire prevention). Apart from the designers, none of the respondents had taken courses in information technology as part of his or her basic training; however, some had taken professional development courses within the organization or, in certain cases, outside it. The City and its technological development The city whose government we selected had approximately 70,000 inhabitants and was typical, with residential, industrial and commercial functions. Its administrative structure comprised an executive level and twelve departments, which were grouped into three different modules: quality of the environment (industrial and business development, technical planning, engineering and environment); quality of life (recreation and community development, communications, public works and fire prevention); and administration (finance, systems, human resources and purchasing). For 1995, the City s total budget was $150 million, of which 24.7 percent was used to pay salaries and 0.19 percent ($305,600) to acquire information technologies. The budget of the systems department was $1.5 million. The systems department was the administrative unit responsible for systematizing and computerizing activities for all the municipal departments. In concrete terms, this department developed budgets and investment strategies concerning information technologies for all of the City s administrative units. It also administered the organization s data and was responsible for the development of information systems. Finally, it ensured that users had the required information technology tools, that they knew how to use them properly and that the systems met their needs. All activities of the systems department had to meet the following objectives: improvement of the quality and efficiency of Optimum, The Journal of Public Sector Management Vol. 28, No. 1 21

4 the services provided internally and externally; increased productivity; reduction of operating costs; and enhancement of the quality of information. The City s technological development started with the introduction of information systems between 1965 and 1972, and involved automating a large number of manual activities that were already well established (payroll, tax collection, etc.). The information systems were useful for finance and the central computer was then used as an advanced form of accounting machine. From 1972 to 1984, a number of other departments wanted to take advantage of computer resources and competition ensued as requests for new technology accumulated. Since the design of information systems was expensive and rationalization was therefore necessary, in 1983 management established a master plan for information systems. This plan recognized that managers were wholly responsible for running information systems. In particular, the plan noted: Managers are the people who, through their day-to-day activities, are capable of managing these information systems; in other words, they see to it that existing systems are maintained in an acceptable operational condition and control the development of new information systems. The plan also emphasized that this responsibility must be exercised through close cooperation between the user departments and the systems department. The master plan set the objective of diversifying the potential users of information technology, a new direction, since finance was then the principal user. It also emphasized the importance of continuing to invest money to maintain the proper operation of existing information systems and to ensure the development of new systems. Finally, the plan also advocated the creation of an information systems development plan. This three-year plan was to be revised annually when the budget was being prepared. Each department head was to present and defend his or her needs in relation to the resources allocated to information systems. The systems department would then analyze all requests and in collaboration with senior management, adjust the plan accordingly. When the master plan came into force, 43 new information systems were added to the central computer and 225 new office automation applications were implemented. The introduction of the systems was gradual, although their level of penetration differed within the City s 12 administrative units. The technological plan thus extended to the organization as a whole. Over the previous 11 years, information systems represented an average annual expenditure of 1.3 percent of the City s total budget, of which 0.29 percent was for hardware and software, and 1.01 percent was the budget of the systems department. During this period, supervisory staff of this department was reduced by 66.6 percent, while the unionized workforce remained the same. What amounted to a change in position titles became necessary due to the introduction of microcomputer technology and an increase in the amount and diversity of technological equipment. In 1984, the technological architecture changed from a central computer with ten terminals to a hybrid system of 266 work stations. This technological development and access to microcomputers brought a whole new dimension to information technology. A transition was made from centralized to decentralized management of information systems and the user became increasingly important. Microcomputer technology suddenly became a major strategic issue. A steadily increasing number of employees were using computer technology to perform their work. Throughout the organization, the percentage of information technology users increased from 1.9 percent in 1984 to percent in This rapid change had an impact in a number of areas: information systems, the organization of work, jobs, tasks, recruitment and training needs. In short, over a decade, the organization experienced complete technological change; consequently, it had to learn to manage the change and its repercussions in all units of the organization. The perceptions of the actors It is important to present the most important perceptions of each group involved in the concrete action system. These data enabled us to analyze the extent to which technology has contributed to the City s performance. Each group indicated how it perceived its role, the roles of the other groups, and the dynamics between them. Their assessment of the advantages associated with the use of organizational information systems follow. 22 Optimum, The Journal of Public Sector Management Vol. 28, No. 1

5 Users/decision makers The executive director and the three assistant executive directors of the City were the users/decision makers. They had the power to influence the development of the information systems and, with regard to budget preparation, their role was to determine computerization needs. They were also responsible for allocating funds to carry out the three-year systems development plan. Their view was that the executive director cannot be a leader in the field, since to take advantage of information systems, the users in each department must themselves be convinced; consequently, the idea must emerge from the workplace. They believed that, at most, they could encourage department heads to ask questions. They also believed that the union did not have a role to play in the adoption of technology, and that the collective agreement protected the employees. According to the executive director and the assistant executive directors, the implementation of information systems has some advantages. Automation of operations allows for faster data access and information processing. Information sharing, which reduces duplication of data input, increases communications between departments. On the other hand, the users/decision makers deplored the fact that the information systems had not produced the anticipated advantages in terms of reducing staff. They admitted that this was probably an illusion from the outset and they increasingly realized that this objective could not be attained. They also wondered how each of the departments was using the staff time that information systems enabled it to save. The decision makers emphasized the lack of autonomy of the departments, a factor that impeded the integration of the systems. Some departments counted too much on long-term support from the systems department. While users expected the information systems to do everything, they did not fully exploit these systems. Each department was responsible for integrating its information systems with the help of a resource person. The systems department had the expertise and the information, but was not able to change the organization of work or to ensure that the information systems were integrated within the departments. According to the decision makers, autonomy could be achieved only through greater commitment on the part of the users/managers, who had to identify and assess needs so that work could be reorganized, then speeded up with the help of technology. The managers had to manage the implementation by investing the necessary effort and stimulating the desire of the users/operators to participate. Finally, users/managers had to see to the development of a close collaboration and a cooperative relationship with the systems department. As far as the users/operators were concerned, the decision makers emphasized that some had an aptitude for technology, while others did not. Consequently, the employees who were the most gifted in the area of information technology played an essential role with their colleagues where training in the workplace was concerned. Users/managers This category comprised the municipality s department heads. Their experience over the last few years had led them to recognize that their main role was to identify and analyze the needs associated with the acquisition and development of the information systems. As far as planning the addition of the new systems was concerned, they dealt with the preliminary needs assessment. Some of them emphasized the difficulties they had in assuming responsibility for managing and developing the systems because of their lack of technical knowledge. The managers noted that information systems had undergone extensive development over the last few years. They also noted that the organization had not really changed at most, it had adjusted. For them, the systems department was the administrative unit that had ultimate control over planning, needs assessment, design and implementation of information systems, and ongoing training of users/operators. They made the users/managers/ designers and designers responsible for the performance of the information systems and for the performance of the users who employed these systems. The advantages most appreciated by the users/managers were the availability of information that they could not obtain previously; the opportunity to meet deadlines more effectively, which considerably reduced the stress associated with preparing certain files; more rapid access to information; improved presentation of files; and more abundant and accurate data for analyzing files. However, Optimum, The Journal of Public Sector Management Vol. 28, No. 1 23

6 users/managers agreed that the benefits provided by the information systems were soon forgotten. The intangible nature of most of the benefits obtained to date is responsible for the tendency to say nothing about the contribution of information systems within the organization. The users/managers believed that the users/decision makers were not focused on the management of the information systems. The users/decision makers were primarily concerned with the financial aspect and sought to increase productivity, and thus wanted to reduce staff. The users/managers wanted the decision makers to give the departments a clear mandate to increase the efficiency of their information systems. According to them, the departments were experiencing a virtually continuous process of implementation. This rapid development consumed large amounts of energy and was a source of problems. Implementation is too rapid, and individuals are expected to produce at the same rate as before. The systems department and the other departments of this municipal government did not have sufficient human resources to devote the required time to implementing and integrating the systems. It was becoming increasingly difficult to improve an information system once it was installed. In the systems department, it was always a case of crisis management. This department allows itself to be carried along by events and cannot offer all the technical support required. For the users/managers, the basic training taken by the users/operators was not a problem; it was the practical assimilation and transfer of knowledge in the workplace that were difficult. They noted that there was currently a roadblock because a number of users/operators felt powerless and were afraid of failure. The employees are experiencing more pressures to adapt, and this is a source of stress, in particular for the older employees who are being outstripped by their younger colleagues. According to the users/managers, professional development was left to the individual. The learning process was difficult and the opportunities for taking more than basic training varied from one department to another. Some departments with more abundant human resources can afford a specialized resource, a leader. For the others, this solution is impossible. Finally, the managers noted that training had an impact on the development and use of technology. Effective integration required increasingly specialized human resources. Unfortunately, such resources were not only rare, but also poorly distributed within the organization. Users/managers/designers The category of users/managers/designers comprised the managerial staff of the systems department. They were the true architects of the information technology policies and were in charge of implementing the technical design and management process of the information systems. They believed they had delivered the goods and emphasized that most of the mandates set out in the master plan of 1983 had been carried out, although deadlines had to be moved back in some cases. Consequently, it was time to develop a new master plan. As far as the management of the equipment was concerned, the users/managers/designers noted that despite the rapid development of technology, their management style and choice of equipment ensured good technical performance. They were proud of the quality and reliability of the City s financial information systems. In their opinion, The gains achieved through technology are reinvested elsewhere, and this makes it difficult to assess the benefits. Furthermore, the scarcity of human resources made it impossible to evaluate the information systems systematically. The users/managers/designers had to limit themselves to the informal feedback of users, and often relied upon requests for adjustment to assess the utilization of the systems. According to the users/managers/designers, the City had not structured its organizational planning. The heads of the various departments did their own planning separately organizational planning was no more than the sum of these different plans. The advocated management style was reactive, influenced by the priorities of City Council. Consequently, the information systems development plan was not officially associated with the objectives of the organization. Although all users were aware that the users/decision makers expected the introduction of technology to increase productivity and allow rationalization of human resources, everyone wanted the specific objectives of each department 24 Optimum, The Journal of Public Sector Management Vol. 28, No. 1

7 to be more clearly and precisely defined. To make progress in the technological area, the decision makers had to manifest a clear and decisive will, setting precise objectives and stating well-defined strategies. It was not enough for them merely to support the systems department. Concrete action was necessary. Official support is needed so that all staff members will feel that the executive level and the managers support the cause. The users/managers/designers thought that there was confusion among the respective mandates of the various stakeholders, resulting in a lack of consistency and collaboration with regard to management of the information systems. The users/managers do not assume responsibility for their information systems. They delegate responsibility for managing, maintaining and developing the information systems to the systems department, thus creating frustration on both sides. It was essential that the users/managers realize that their lack of involvement influenced the attitude of their employees. Regarding the technological aspect of the work, the users/managers/designers declared: We would like to go much further, but technological development depends on the development of the users. Consequently, we cannot go any faster because if we did, our efforts would be a flop and we would be obliged to back off. They mentioned that some employees adapted very well, while others gave up. Some had weaknesses in the professional area because of their lack of formal education. Most of the older staff are losers in this area. Technology is disturbing to them, and they often feel undervalued in relation to younger employees. Some have difficulty understanding technology, feel that it is beyond them and just mark time. Designers This category comprised the analysts and programmers who developed the information systems with the users/managers, users/operators and clients. The designers stressed that at the beginning of a project, the users/operators often exhibited resistance to change because they did not necessarily see the benefits to be derived from the introduction of new systems. Users become more ready to accept technology when they realize that it will help them in the long run. After a certain time, most of us say that we no longer want to do without technology, and want to become involved. According to the designers, the users/decision makers were not very knowledgeable about systems. It was thus difficult for them to follow technological development. The managers are not aware of the quantity of work that is required to implement a new system, and their expectations are not clearly perceived. Moreover, the designers thought that the decision makers should become more involved, should listen to others and should manage their priorities. At the present time, we are just going around putting out fires one after the other, responding to the hierarchical level of the person who makes the request or to the person who makes the most noise. The designers also admitted that they were more sensitive to the requests concerning the systems that they had personally developed. They felt that some users/managers took an interest and were seeing to it that information systems were developed. Others, however, had difficulty following what was happening. The decision makers and managers should have had a different outlook on the use of information systems. Technology is only a tool. It cannot replace managers, and is not an instant solution to problems of management and information. The organization should, as a first step, have helped users to manage their information systems and to evaluate their performance. It was only later that the organization should have considered adding new technological tools. According to the designers, little effort was made to question the way things were done. The central administration should become involved and should initiate discussions with the various stakeholders in order to change working methods and if necessary, to review some job descriptions, instead of trying to evade the question and pretend that nothing has changed. The designers were also aware that both the employer and the union groups were afraid of being cheated in such a process. The designers said that they had worked with the operators throughout the process of developing systems internally to help train them on the job. The designers also emphasized that employees in the systems department did their best to train other employees, but that their efforts often left something to be desired. The lack of ongoing training was a problem, since the field of information technology was developing at a very fast pace. Among programmers and users, it often happened that only one person really knew an information system well. Optimum, The Journal of Public Sector Management Vol. 28, No. 1 25

8 Consequently, when staff changes occured, information systems were no longer used in accordance with their capabilities. New employees are introduced to the basic functions, but the benefits for which the systems have been developed are often lost. The designers thought that in cases where information systems were acquired from outside, the systems department simply functioned as an installer of machines. The follow-up provided by this department was weak or nonexistent, and it provided only minimal training. The operators were left to fend for themselves. Users/operators The users/operators were unionized employees who were directly affected by the implementation of the systems. They worked to capture data or to produce outputs. The introduction of information systems offered them a number of benefits. They appreciated above all the reduction of repetitive and monotonous tasks, the improvement in quality and accuracy of data, and the speed with which the new information systems performed operations that were previously very complicated. This is a very worthwhile working tool that I would no longer want to do without, although I don t make full use of it. The users/operators unanimously stated that the implementation of the information systems was not planned and that very little effort was made to consult them when the analysis was done. In certain cases, however, they could have improved the systems and facilitated their implementation. The users/operators received basic training on the job. They were asked to work with and operate an information system without being given any explanation of the possibilities that the system offered. The individual is placed in front of the equipment, and must then learn how to use it. The progress that this individual makes will depend upon his or her personal interest and free time. Consequently, people who are not self-motivated just mark time and try to unload their work onto others. The users/operators deplored the lack of technical knowledge among managers. Since the managers were not able to evaluate the possibilities offered by the information systems, they did not encourage the maximum use of these tools. A person cannot be a leader and sell a system if he or she does not know it. Furthermore, the managers directed the work to the most capable employees. As a result, there was an unequal distribution of the volume of work. According to the users/operators, the managers also tended to concentrate training on certain employees. Finally, the users/operators thought that senior management was not aware of the additional volume of work that implementation of a new system entailed. It is interesting to note that all the other actors in the concrete action system thought that the role of the users/operators was to maximize the use of the new technological tools at their disposal. They had to be on the lookout for defects and point them out to the systems department. The decision makers and managers added that the users/operators had to show initiative and open-mindedness when dealing with the new situation and had to offer them their cooperation, especially when the systems were being implemented. Their collaboration was particularly useful in regard to training and mutual help in the workplace. The union The bargaining unit most affected by the technological changes produced by the information systems was the municipal employees union. Representatives of this union admitted that in the beginning, the union and the employees were not aware of the impact of technological changes, or how soon the organization would experience them. They deplored the fact that the clause on technological change in the collective agreement had not been applied in the spirit of the original document, and that the union was not regarded as an important stakeholder in managing technological change. We are kept out of the process and limited to playing the role of watchdog of the collective agreement. What remains for us to do is to negotiate the machinations of the employer party in order to avoid disputes. The union thought that in most cases, the people affected by the technological changes were not involved in the process. They confronted a fait accompli. They had received only minimal preparation, so implementation for them was difficult. Afterwards, there was virtually no follow-up or evaluation. Nonetheless, the employees were happy to work with computer tools and did not want to go 26 Optimum, The Journal of Public Sector Management Vol. 28, No. 1

9 back to the old system. They wanted to improve the information systems, but when they pointed out the deficiencies, no one had time to deal with them. According to these respondents, the users/decision makers should have informed employees about the planning for technological changes. The decision makers were not advised of the day-to-day problems experienced by staff. With too many intermediaries, the complaints of the rank and file did not reach the upper levels of the hierarchy. The representatives of the union stated that although training was minimal, the desire to learn and to succeed was present. Management should be fair and offer training to all human resources. They would thus reduce the trend towards funnelling training to the most skilful employees. In addition, they should guide employees in choosing courses so that the training received will harmonize with the City s plan. To managers, it is obvious that some employees are more motivated to get involved than others, and that it depends on what each person expects to gain. Clients The clients were primarily the professionals and middle managers for whom a system had been developed or acquired. They had often been identified as possible leaders for managing the information systems within their respective departments. They acknowledged that the systems had developed considerably over the past few years. According to them, the major benefit of the information systems was the time saved by the quality, precision and quantity of information made available. Moreover, some applications facilitated the performance of complicated operations. Clients mentioned that after a system was implemented, the systems department did not do a follow-up in each department and did not go into the workplace to help staff make better use of the possibilities offered by the information systems. Furthermore, the time required for modifying existing systems was enormous. One has to learn to live with the defects or find ways of getting around them. According to the clients, the decision makers should have seen to it that the departments became clearly involved. Managers should have taken more interest in the management of the information systems and should have participated in the process. The clients mentioned that in their respective departments, they were often unofficially given the role of information systems manager. They thus felt trapped between their own duties and the management of the systems. This is something added to our regular job, which considerably prolongs the implementation. Finally, clients said that training should also have been open to users/managers, who would thus have been more aware of the complexity of information systems and the possibilities they offer. Users/managers should have freed up more employees to take courses so that they could put their knowledge to use in the workplace. The most skillful employees were overworked and were constantly obliged to help in training others. Data analysis We have analyzed the points of convergence in the perceptions of the technological changes expressed by the various groups of actors. These points of convergence represent the diagnosis of the integration status of the information systems and the impact of these systems on the City s performance. Acceptance of technology Acceptance of technology was widespread and had come about gradually. The respondents indicated that they had gone through several stages of acceptance, from the first contact with the machine, when they were hesitant, fearful and rather suspicious, to gradual acceptance that continued to a point where it became unthinkable for them to go backward. Technology became an integral part of the working environment. This acceptance of new technologies by the different groups of actors represented a definite advantage for the City. Positive effects of the master plan The 1983 information systems master plan provided an impetus for the adoption of these systems. It allowed the organization to diagnose the actual status of the information systems, to orient development and thus to rationalize the investment. Optimum, The Journal of Public Sector Management Vol. 28, No. 1 27

10 Confusion over the responsibility for managing the systems Table 1 shows how the groups of actors who formed the municipality s managerial levels perceived their roles and responsibilities. According to the managers and users/managers/designers, the decision makers should have played a much more active role through concrete actions, precise objectives, well-defined strategies and a clear will to implement them. For their part, the decision makers did not identify themselves as capable of providing leadership in this area. They shared with the users/managers/designers the opinion that it was up to the managers in each department to ensure the integration of the information systems. The managers believed that it was difficult for them to assume responsibility for managing the systems because they did not have the necessary technical knowledge. Consequently, they believed this was the responsibility of the systems department. Such confusion was a source of many divergent impressions and perceptions and had a great influence on the behaviour of the users. The result was a widespread attitude of wait and see. Nobody took charge of the information systems. Despite some complaints, all groups of actors seemed to be satisfied with the status quo and were waiting for leadership to be manifested by others. Users/operators important but uninvolved actors In principle, the users/operators were regarded by all actors in the concrete action system as important to the adoption of the new systems. They all talked about the influence TABLE 1 Perceptions of roles and responsibilities Managerial actors Decision makers Perceptions of roles and responsibilities Managers Users/managers/designers Decision makers The decision makers cannot be leaders in the field. At most, they think that they can get the heads of the departments to ask questions. Each department is responsible for ensuring integration of its own information systems. This independence requires greater involvement by department heads. The systems department has expertise and information, but is not able to change the organization of work or to ensure the integration of information systems into the departments. Managers The decision makers are not focused on the management of information technologies. They are primarily interested in the financial aspect. They should give the departments a clear mandate to increase the efficiency of information systems. Managers should identify and assess needs and make their staff available for training. Some emphasize that because they lack knowledge, it is difficult for them to assume responsibility for managing systems. The systems department is the lead department for everything connected with management of the systems. The users/managers/designers and the designers are responsible for the performance of information systems. Users/managers/ designers The decision makers need a clear will reflected in concrete actions and require official support so that all employees feel that management espouses the cause. The managers do not take charge of their information systems. They delegate to the systems department the responsibility for managing, maintaining and developing systems in their own departments. The systems department is responsible for systematizing and computerizing activities for all municipal departments. 28 Optimum, The Journal of Public Sector Management Vol. 28, No. 1

11 of the users/operators, which was felt when the time came to integrate information systems into the departments. In practice, however, the users/operators were not given much room in the process of designing and implementing the information systems. Moreover, the responsibilities attributed to them remained informal and unknown to the major stakeholders. Regarding the management of the information systems, the users/operators and their union also shared the widespread wait-and-see attitude that characterized the concrete action system. At most, the union defended what had been gained through the collective agreement; its actions, which often reflected a defensive position, favoured the status quo. with the pace of the technological development. This concerned not only the users/operators, but also the users/decision makers and the users/managers. Lack of reorganization of work on the basis of the new technologies Little effort was made to rethink the way things were being done. All the stakeholders emphasized that no action was taken in terms of the organization of work. Employees continued as if the new technologies had no effect on the work environment. An incomplete implementation phase focused solely on technology The users/operators thought that the decision makers, managers and users/managers/designers were working from a short-term perspective and provided little room for the implementation phase. The users/operators mentioned that they were presented with faits accomplis, that they were entitled to only minimal preparation, and that the systems department neither provided follow-up nor assessed the implementation. The users/managers/designers and the designers said that they were constantly being asked to do things and that one project did not wait until another one was finished, leaving little time to deal with implementation. Finally, the managers stressed that the pace of implementation was too rapid and that the various departments and the systems department itself did not have the resources required to devote enough time to implementing and integrating systems. Significant deficiencies in training The training given to employees was limited to the basic functions of the system. Individuals who seemed to have potential were identified and indirectly given the task of training their colleagues. The transfer of knowledge in the workplace did not figure in any action plan. The organization wanted a synergy to develop naturally among the users/operators so that they would make optimal use of the tools at their disposal. Everyone acknowledged that the professional development of individuals did not keep up No structured evaluation of the information systems The municipal government did not properly evaluate the information systems. Users/decision makers based their appraisal on feedback from department heads, including the head of the systems department. For their part, the users/managers/designers simply relied on the informal feedback they received from users, and often used requests for adjustment as a basis for appraising the utilization of the information systems. Finally, the operators said that their comments did not reach the users/decision makers. No evaluation was made of the medium- and long-term effects on productivity, organization of work, job satisfaction, etc. It was thus not surprising that the actors had difficulty in appreciating the benefits produced by the technological changes. Conclusion There is no doubt that information technologies have made a significant penetration into this municipal government. This penetration occurred in a series of typical phases: automation of accounting functions; propagation into other administrative units; and development toward microcomputer technology and a multitude of local applications. It should be emphasized that the master plan had a positive impact. The use of technology was clearly aimed at improving the City s performance and was intended to lead to a reduction of personnel. All the actors in the concrete action system accepted the new technologies very well and no longer thought of functioning without the existing information systems. Optimum, The Journal of Public Sector Management Vol. 28, No. 1 29

12 How has the adoption of these technologies influenced the City s performance? This is difficult to determine because the City has not established processes for systematically evaluating the information systems that it put in place. In questioning each group of actors about the benefits realized from the information systems, we found that these benefits could be summed up as more rapid access to a larger quantity of information of better quality. Another advantage was the elimination of repetitive tasks. For their part, the decision makers stated that the planned staff reductions had not been realized. They admitted that such an objective was utopian. How can it be that technology seems to have contributed so little to improving the City s performance? The actors all thought that the information systems put in place had not really been integrated into the culture and functioning of the City. The major consequence of the situation was that, as all respondents agreed, the systems were underutilized and very little advantage was taken of the benefits they offer. (On this subject, Gagnon stated: The use of technology is a necessary, but not sufficient, condition for ensuring business development. 9 ) Two major factors may explain this lack of integration of systems. The first is the confusion regarding management of the process for adopting systems. At the present time, the systems department assumes responsibility for the process by default, while being aware that it is not best suited for this role. The second factor is that the implementation phase is incomplete, or even forgotten, especially in regard to the effect that the systems have on the organization and on human resources. (On this subject, Voyer emphasizes: However high the quality of the hardware or the software, if the employee does not use it, or if the organizational context does not encourage it, or if the work is not adjusted to take advantage of the possibilities, the result will be failure. 10 ) The work has not been reorganized in terms of the use of new technologies, yet this is the area in which important productivity gains can be realized. Little place has been given to the users/operators, who unquestionably are often best able to exploit the new technologies. The Employees must stop thinking that computerization projects can in themselves transform the organization. users/operators indeed say that they can offer advice to improve how the systems are used. They also emphasize that their many comments on the deficient functioning of information systems were not taken into account. Training has also been very deficient. No strategy for the professional development of municipal staff was adopted, and the designers have not made any effort to provide the basic elements of training that the employees need in order to operate the systems proficiently. What can be done to reorient the City s technological strategy? Employees must stop thinking that computerization projects can in themselves transform the organization. Improvement of productivity is due not only to technology, but also to the way by which it is integrated into the realities of each department. The City must examine the possibilities for integrating the information systems into the operations of its various departments; only then will it be able to realize computerization. It will have to evaluate each computerization project formally to determine the extent to which it has contributed to improving the quality of services offered to citizens and to reducing the cost of producing those services. The systems department can ensure the integration of the technology on its own. Within the concrete action system, the dynamics must be such that those involved will employ a collaborative process. The municipal government must seek to attain a new equilibrium where each group of actors has its place in the design, operation and development of the information systems. To arrive at this new balance, the decision makers must demonstrate leadership, in particular by clearly establishing the expectations, roles and responsibilities of each actor. The users/managers must commit to taking charge of the organization s information systems. 11 It is up to them to specify the objectives and orientations of the systems management process. Thereafter, they will have to maintain control over needs assessment, design, implementation, operation and evaluation of the information systems. However, to arrive at that stage, they must become aware that they are in the best position to carry out the integration of the systems. They must develop their technical knowledge. They do not have to become specialists; some knowledge of organizational information systems and their potential will suffice. 30 Optimum, The Journal of Public Sector Management Vol. 28, No. 1

13 Since the managers are taking over the information systems, their relationship with the systems department must be redefined. Some years ago, the information technology specialist was the expert and decision maker. Today, with microcomputer technology, a client/supplier relationship must be created between the systems department and the other departments. Through service contracts, such an alliance makes it possible to manage information systems on the basis of partnership rather than through a transfer of responsibilities, as is now the case. It is absolutely necessary, however, that any service contract involve a system assessment phase. This assessment will allow the parties to define jointly the formal process and the precise indicators that will enable them to determine the extent to which the objectives have been reached. These indicators include how much the system is used, its integration into the department, and its contribution to improving the City s performance. As far as the implementation of the systems is concerned, the most promising approach will be achieved in collaboration with the actors affected by the change. 12 This approach will make it possible to propose implementation strategies that take into account a range of factors: sharing of responsibilities (various aspects of the organization will have to be rethought); technological or budgetary constraints; and power relationships among individuals. In this respect, the City must initiate discussions and negotiations with the union of municipal employees. The two parties must agree on the adjustments that should be made to take into account the impact of information technologies on the organization of work, job descriptions and training. In this way, the City will avoid finding itself with some employees who are skilled in information technology and others who are not. A final, very important element in any strategic information systems management plan is communication. One of the means that the City can use to get its staff to share its vision and goals is to adopt mechanisms that facilitate the dissemination and exchange of information. It is essential that all members of the organization have a clear and precise idea of the plans for managing technologies and that they participate in the implementation process. In this way, the process will become legitimate in their eyes. Although we have reason to believe that these conclusions apply, with a fair degree of accuracy, to other municipal organizations, we unfortunately cannot generalize them. This is a limitation of our study, which dealt with only a single case. Extensive research on a larger number of cases will make it possible to apply our conclusions to a broader field. Endnotes 1. Peter Clark and Ken Starkey. Organization Transitions and Innovation-Design (New York: Pinter Publishers, 1988), p. 211; Mel Horwitch. Technology in the Modern Corporation: A Strategic Perspective (Pergamon Press, 1986), p. 232; Michael E. Porter. Choix stratégiques et concurrence : techniques d analyse des secteurs et de la concurrence dans l industrie (Strategic choices and competition: techniques for analyzing industry sectors and competition) (Paris: Economica, 1982). 2. Robert Gravel. La croissance informatique en milieu municipal (The growth of information technology in the municipal government environment), a lecture given at the conference of the Association des informaticiens municipaux du Québec (Association of Municipal Information Technology Specialists of Quebec), Charlevoix, Yves-Chantal Gagnon and Maurice Landry. Les changements technologiques une stratégie d étude exploratoire (Technological changes-a strategy for exploratory study), Relations industrielles (Industrial relations), 44(2), 1989, pp ; Yves-Chantal Gagnon. Les acteurs et le système d action concret du changements technologiques (Actors and the concrete action system in technological change), in Changement technologique et gestion des ressources humaines : Fondements et pratiques (Technological change in management of human resources: foundations and practices), Réal Jacob and Jean Ducharme, editors, 1995, pp ; Jocelyne Dragon. Gestion intégrée des systèmes d information (Integrated management of information systems), An action report in completion of the requirements for a Master s degree in Public Administration, ENAP, 1995, p Gagnon and Landry, p Michel Crozier and Erhard Friedberg. L acteur et le système (The actor and the system) (Paris, Éditions du Seuil, 1981), p Gagnon and Landry, p Y. Gupta and T.S. Raghunathan. Organizational Adoption of MIS Planning as an Innovation, The International Journal of Management Science, 16(5), 1988, pp Izak Benbasat, David K. Goldstein and Melissa Mead. The Case Research Strategy in Studies of Information Systems, MIS Quarterly, 11(3), 1983, pp ; T.V. Bonoma. A Case Study in Case Research: Marketing Implementation, Working Paper No (Boston: Harvard University Graduate School of Business Administration, 1983); Kathleen M. Eisenhardt. Building Theories from Case Study Research, Academy of Management Review, 14(4), 1989, pp ; F.J. Roethlisberger. The Elusive Phenomena (Boston: Harvard Business School, Division of Research, 1977); R.K. Yin. The Case Study as a Serious Research Strategy, Knowledge, 3(l), 1981, pp Yves-Chantal Gagnon. La technologie et le développement des entreprises (Technology and the business development), a lecture given as part of the Jacques Cartier talks (Lyons: France, December 1993), p Pierre Voyer. Le Manuel du technomanager. La gestion de l information et ses technologies (The technological manager s handbook-management of information and its technologies) (Montreal: Agence d Arc, 1990), p Yves-Chantal Gagnon and Jean Nollet. Pour accroître les chances de succès dans l implantation de systèmes d information (Increasing the chances of success in implementing information systems), Revue Gestion (Management Review), November 1990, pp Ibid. Optimum, The Journal of Public Sector Management Vol. 28, No. 1 31