The Dynamics of Alignment: Insights from a Punctuated Equilibrium Model

Abstract

Several prior articles have emphasized the importance of alignment between business and information system (IS) strategies, and between business and IS structures. Seeking to advance our understanding of alignment, we examine the dynamics of changes in alignment through strategy/structure interactions in the business and IS domains. More specifically, we address the following question: In what ways does alignment evolve over time? Changes in the strategic IS management profile (which includes business strategy, IS strategy, business structure, and IS structure) over time are examined using a punctuated equilibrium model, involving long periods of relative stability, or evolutionary change, interrupted by short periods of quick and extensive, or revolutionary, change. Case studies of changes in business and IS strategies and structure over long time periods in three organizations suggest that the punctuated equilibrium model provides a valuable perspective for viewing these dynamics. The cases suggest that a pattern of alignment may continue over a long period, because either the level of alignment is high or the managers do not recognize the low alignment as a problem. Revolutions, involving changes in most or all dimensions of the strategic IS management profile, interrupt the evolutionary changes. However, organizations hesitate to make such revolutionary changes in strategic IS management profiles. Complete revolutions apparently require a combination of strong triggers. Finally, post-revolution adjustments to one dimension of the strategic IS management profile seem to follow revolutionary changes.