Programmification – the perspective of system rationality

Abstract

Purpose – This article contributesto the understanding of programmification. Programmification is not only an organisational phenomenon, commonly referred to asthe increasing use of programmes or portfolios of projects, but also an infrastructural one, where an ambient programmification of the public digital sphere occurs. The socalled decentralised autonomous organisations (DAOs) rely on this infrastructural programmification. Design/methodology/approach – The article analyses the programmification of conventional organisations and DAOs with the concept of system rationality. It applies the framework that Niklas Luhmann laid out in his timeless, seminal work Zweckbegriff und Systemrationalit€at. System rationality is based on purpose programmes, which can be shaped in various ways and operate in an informational medium that is created by several complexity reduction strategies. Drawing on a review of available research results, these relevant factors are applied to map the system rationality impact of programmification for conventional organisations and DAOs. Findings – System rationality of programmification shows contrasting patterns for conventional organisations and DAOs. Programmification enhances some system rationality factors but limits others. Projectification is closely connected to programmification of conventional organisations, but also an indispensable enabler of DAOs. Originality/value – The lens of system rationality offers a deeper insight than what has been so far rendered by studies oriented to managerial and governance aspects. The direct comparison between programmification in these diverging organisationalforms answers questionsso far not addressed in the literature. The article explains how DAOs can engage in higher complexity products and services. It also arguesthat project governance within programme structures should mainly be oriented towards communication rather than process compliance.