ABSTRACT
THIRTEEN We commonly recognize that stringent technical require ments in fields such as space and atomic energy have a potent influence on the management effort of all contrib utors to an advanced-technology program.1 But there is another, equally potent factor, namely, the sponsor’s way of doing business. It is a test of the contractor’s managerial skills when, as often happens, these two major sources of influence exert conflicting pressures on the organization, pulling it simultaneously in opposite and inconsistent di rections. □ Technical goals are achieved via an “unprogrammed” process. Alternatives are left open, problems are unpredict able, and coordination takes place through feedback. Business-system goals, on the other hand, are achieved via a programmed process. Alternatives are closed, problems are predictable, and coordination is achieved by advance plan ning. Technical problems introduce a steady flow of changes and uncertainty, and thus they might be considered a “radi cal” or an unsettling force. On the other hand, the transac tional bond tends to be a “conservative” force, requiring commitments, the spelling out of rights and responsibilities. □ For the advanced-technology program, then, the business system represents an integrative process, while the techni cal system stresses differentiation. As we have noted else where, integration and differentiation are interdependent processes.2 The potential for performing one of these func tions excellently is affected by the manner in which the other is conducted. Unrestrained pursuit of technical goals means sacrificing certain business-system goals. If the business system is treated as though it were a mere nuisance, tacked on to the end of a technically oriented program, it can become defensive and possibly even destructive. For these reasons the business and technical sides of an advancedtechnology program need to be established as complemen tary halves of an oscillating system, in which each one is continuously taking the other into account. 1 This analysis focuses on the sponsor-industriai-contractor relationship, but the findings are applicable to other situations involving technical and business systems goals, e.g., sponsor-university and contractor-contractor relationships.
