SusTech was a new European firm in a new industry, formed to develop operating software for “smart cities” that would leverage technology to improve the lives of everyday citizens. One of its key goals was to partner with government and corporate stakeholders to establish a small demonstration city to develop and refine smart city technology. The SusTech founders were acutely aware that it was vitally important to establish legitimacy for what is a new and unfamiliar concept, the concerted application of high technology to city infrastructure. Thus, they devoted tremendous energy, with apparent success, to hiring prestigious experts, partnering with prominent and respected companies, and garnering copious positive attention in the media.

However, despite these externally oriented successes, SusTech failed to achieve an adequate level of internal organization. Self-imposed deadlines for software development were routinely missed, and little progress was made on several explicit initiatives, such as a demonstration project involving smart taxis and buses. In addition, attempts to secure funding frequently met with failure. Remarkably, there was very little reflection on these obvious internal implementation problems in executive meetings. Rather, the CEO repeatedly focused on external events that had contributed to the selling of the SusTech brand. Negative feedback was seen as evidence of small thinking. A disproportionate number of senior hires also focused on external relations rather than doing the basic coding that was necessary to meet deadlines and achieve milestones. SusTech had developed a brand without a product.

Questionsx    

1. The chapter discussed the merits of being alert to the external environment. Can an organization be too focused on the environment?

2. Although achieving legitimacy is necessary for this new smart city venture, how did it conflict with the need to develop structure and make progress?

3. How would you structure SusTech to avoid the problems discussed in the case?