Extension of the strategic renewal journey framework: The changing role of middle management

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Abstract

This paper presents the findings of a longitudinal study of a large corporation’s journey towards becoming an ambidextrous organisation in the face of emerging technology. By investigating the interplay between the top and middle management, the results show that business intelligence systems allowed the firm to pursue a controlled renewal journey that was data-driven, automated, and supported fast organisational learning. This substituted for active frontline and middle managers. The change in organisational direction was driven by a small and powerful strategic top management group, even though this was a multi-unit firm with more than 100,000 employees. The main advantage of this type of journey is that the organisation can fully realize the advantage of highly centralised formal planning and control while becoming resilient and ambidextrous. A wellfunctioning decision support system, organisational policies and communication strategy can substitute for collective sense-making and shared strategic schemas. The results also suggest that management control systems can have a profound impact on developing organisational ambidexterity. The article also provides further details on the nature and implications of the rhetorical tactics used by the top management team to focus on organisational attention and action.