Financing organizational changes from without

Abstract

Purpose Achieving specific changes within autonomous organizations is often a necessary condition for the success of strategic public policy. Wherever it is impossible to induce such changes by regulations, a frequently used tool is inducing their occurrence with financial stimuli. This practice appears to have been fully substantiated by the early systems-evolutionary understanding of the relationship between organizations and their environment, whose peak popularity in the 1950s and 1960s coincided with the appearance of new international organizations formulating strategic policies on a previously unprecedented scale. The conceptual framework available at that time failed, however, to provide a solid ground for operationalization and systemic evaluation of such interventions. As a result, even though it was implicitly presumed that policy implementation depended on organizational changes taking place in a large number of organizations, a conceptualization of the exact ways of how to ensure and assess such changes was hardly pronounced. This paper aims to uncover the problematique of that missing conceptualization. Design/methodology/approach In this paper, the author draws on the second-order stream of systems thinking, arguing that without such a deliberate operationalization, it seems much more likely that the external financing of organizational changes functions merely as organizational “perturbations” which do not crystallize into lasting changes, as they are mitigated by equally potent “compensation” to cancel out the perturbations. Using the theory of social system’s autopoiesis, the author posits that adaptive fluctuations evoked in organizations by the interferences of the policymakers may thus be considered “change” just as well as non-change. Findings Once the behavior of an autopoietic organizational system is seen as a continuous perpetuation of its own identity pattern, fashioned discursively as the organization’s self-description, then the only change which seems worthy of the publicly assigned resources and efforts is a shift in that pattern. Originality/value It is argued that the assessment of whether target organizations are indeed implementing or only superficially performing (and instantly compensating for) the desired changes should be inferred from a qualitative analysis of the daily discursive practices that forge the target domains rather than by a comparison of the measurable parameters, which are currently dominating in the evidence-based paradigm.