In theories of strategic management, organizational flexibility is consider
ed as a strategic asset in situations in which anticipation is impossible a
nd strategic surprise likely. In these situations, the use of traditional p
lanning strategies will be increasingly supplemented and sometimes replaced
by flexible configuration strategies. This paper distinguishes four of the
se strategies to configure the resources of the firm for effective response
s to strategic change, namely the rigid, the planned, the flexible, and the
chaotic mode. On the basis of this typology, the paper describes a method
for diagnosing organizational flexibility and guiding the transition proces
s, the flexibility audit and redesign (FAR) method. This method was applied
successfully within an administrative unit of the Dutch Postbank, a produc
tion unit of Philips Semiconductors, and an R&D unit of the Dutch National
Gas. Nonetheless, the application of the FAR method is very time-consuming
for the consultant and very expensive for the organization. Hence, a system
is developed that supports consultants in the application of the FAR metho
d and helps them to derive a better solution for the organizational flexibi
lity problem. This tool, called FARSYS, supports the data-gathering (FARSYS
I) as well as the decision-making process of the consultant (FARSYS II). (
C) 1999 Elsevier Science B.V. All rights reserved.