II Governance

1. II Governance Governance Regimes

2. Management • What managers do • Wikipedia: • Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources.

3. IT Management • Project/system owner • Project Management • IT Processing Department • Principles • Closed hierarchical organization • Decisions, control • Tools: planning, milestones, checking progress, ..

4. Information Infrastructures • Ex: Internet, portfolio of IT solutions in large, distributed organizations, business sector infrastructures (SWIFT, supply chain infrastructures, ..) • From projects and organizations to networks and communities

5. Governance • What governments do. Others? • Wikipedia: • Governance is the act of governing. It relates to decisions that define expectations, grant power, or verify performance. It consists of either a separate process or part of management or leadership processes. These processes and systems are typically administered by a government. • In the case of a business or of a non-profit organisation, governance relates to consistent management, cohesive policies, guidance, processes and decision-rights for a given area of responsibility. For example, managing at a corporate level might involve evolving policies on privacy, on internal investment, and on the use of data.

6. IT Governance • More systems, systems covering several areas • Issues • principles, architecture, infrastructure strategies, business application needs, investment, prioritization • Alternatives • Business monarchy, IT monarchy, feudal, federal, IT duopoly, anarchy

7. Regulation • What parliaments do • Wikipedia • Regulation is administrative legislation that constitutes or constrains rights and allocates responsibilities. It can be distinguished from primary legislation (by Parliament or elected legislative body) on the one hand and judge-made law on the other. [1] Regulation can take many forms: legal restrictions promulgated by a government authority, self-regulation by an industry such as through a trade association, social regulation (e.g. norms), co-regulation, or market regulation. One can consider regulation as actions of conduct imposing sanctions, such as a fine, to the extent permitted by the law of the land. This action of administrative law, or implementing regulatory law, may be contrasted with statutory or case law. • Regulation mandated by a state attempts to produce outcomes which might not otherwise occur, produce or prevent outcomes in different places to what might otherwise occur, or produce or prevent outcomes in different timescales than would otherwise occur. In this way, regulations can be seen as implementation artifacts of policy statements. Common examples of regulation include controls on market entries, prices, wages, Development approvals, pollution effects, employment for certain people in certain industries, standards of production for certain goods, the military forces and services. The economics of imposing or removing regulations relating to markets is analysed in regulatory economics.

8. Economic perspective • Transaction Cost Theory • Market or hierarchy • Networks (interorganizational) • Theory Z: Clans (groups)

9. II Governance? • = IT regulation? • ”we reject kings, and tsars, ..” • Management: • projects, corporations (closed hierarchical organizations) • Governance • Larger domains, less strict • Regulation • Communities, law centered

10. Theories of regulation • Julia Black: • From command and control to cultivation • Larry Lessig: • Regulatory modalities • Law • Technology/architecture (”code is law”) • Market (prices) • Social norms

11. Ex: ePrescription • Governability: • Architecture • process strategy • governance regime (=organizing, decision rights, commuication tools, ..) • Chosen arch. + proc. Strat. = unmanagable complexity! • New arch + proc strat => new governance regime => control

12. Governance Regime • Organizing • Decision rights • Management tools • Communication tools • Project management tools • Information Systems • Performance indications (public sector) • …. • Legal issues

13. Trad projects • Organizing: Hierarchical organization • Architcture: Mirroring org. • Law: • Software licenses • Contracts with suppliers • Employment contracts • Social norms: organizational culture • ISO standards are law!

14. II Governance Research • II as Commons (Ostrom/Constantinides) • Rights • Operational rights • Access, contribution, extraction • Collective choice rights • Removal, management, exclusion • Constitutional rights • Alienation

15. Adaptive Co-Management • Natural resources • Learning and communication – not competition • Vertical and horizontal connections • Feed forward and backward • Institutions

16. Network Governance • Goal-directed – serendipitous • Brokered or shared governance • Externally or participant • Externally: • Mandated or voluntary • Shared Governance • Lead organization • Network-administrative organization

17. Network Brokered Participant External Mandated Voluntarily Lead organization Network administrative organization Shared

19. Tensions • Efficiency versus Inclusiveness • Internal versus external legitimacy • Flexibility versus stability

20. Evolution of network goveranance • Growth of network • Change in tasks • Change in trust • …

21. Orchestrating innovation networks • Managing knowledge mobility • Managing innovation appropraibility • Managing network stability

22. Managing knowledge mobility • «leveraging competencies in the network» • Knowlede absorbtion • Identify, assimilate, exploit • Network identification • Interorganizational socialization

23. Managing innovation appropriability • Avoid «free riders», opportunism, imitation • «.. governs an innovator’s ability to capture the profits generated by innovation» • «Appropriability regime:» • Trust and reciprocity • Procedural justice • Joint asset ownership

24. Network stability • Dilemma: Tensionbetweenstability and flexibility • Instability: isolation, migration, cliques, attrition • Commitment to thenetwork: • Enhancingreputation • Lengtheningtheshadowofthefuture • Multiplexity

26. Emergence and evolution of networks and governance structures • From network to community • Open source: • Blending bureaucratic and democraticmechanisms • De-facto governance (thefounder) • Designing governance • Implementinggovernance • Stabilizinggovernance

27. Ex.: Wikipedia. Shared Gov. • Parallel dev of II (content) and governance regime • Enabling, evolving, embedded and distributed • “ignore all rules” • New rights and roles among contributors • Meta-text in separate space • Reverting (3RR) • Featured Article Review procedure and Director • Bots for quality control (machine learning) and bot policy • Flagged revision

28. Ex.: Wikipedia • Phases: early beginnings, exponential growth, maturity • Collective governance capability • Cultivation of regulation • Rights to: access, do, decide • Internet, writing and version control • Generic routines embedded in the technological platforms

29. Cases • Internet: Shared & Voluntary NAOs • ePrescription: Health Directorate: Mandated NAO & LO • Fürst, Edimed, NNHN, Well: LO • Smartphone ecologies: Apple, Google LOs • BankID, Swift: Voluntary LOs