The purpose of the paper is to analyze how a change towards product orientation based on an agile approach challenges, contrasts and/or coexists with other principles of organization and grouping, such as development projects, the existing hierarchical line structure and process management.
This is a case study of one organization, based on an explorative appoach.
Taking the competing dimension of coordination and principles of grouping as the starting point, this study identify, describe and analyze the tensions that result from the introduction of product organization. The product initiative has met many obstacles and tensions along four dimensions: Process, line, information technology units and development projects. For each of these dimensions a number of challenges have been identified, that contribute to increased complexity in the organization.
A limitation of the study is that the findings cannot be generalized to other organizations.
A practical implication of the study is that product organization triggers tensions with other principles of organizations and grouping.
This study mainly contributes to the knowledge of agile management and agile organization, identifying and theorizing challenges that have been neglected and/or poorly understood both in the popular literature and in organizational research. This is particularly the case in the public sector. This study is also relevant to the domain of multidimensional structures, adding an understanding of the novel opportunities and challenges of product- and agile-based grouping of activities in an organization.
