Down in the Mines
The Importance of Applying Socio-Technical Systems Theory in Organisations Investing in Large Technical Expenditures
Over the years of leading organisational development and change initiatives, one thing has become increasingly clear to me: technology alone won’t cut it. Government agencies are pouring billions into digital transformations – whether the focus is ERP, AI, or HRM systems – but without integrating these technical solutions into the social fabric of our government agencies, success remains elusive.
Consider what happened in the 1940s. The Tavistock Institute found that coal miners, who thrived in tightly coordinated teams, saw their productivity nosedive when new technology was introduced without their input. Suddenly, they were working in isolation, their roles fractured, and efficiency plummeted. But when they were brought into the process – allowed to shape how technology fit into their workflows – team cohesion was restored, and productivity shot back up. This insight laid the groundwork for what later became known as Socio-Technical Systems (STS) theory.
STS theory is an organisational approach that considers both social and technical elements when designing and implementing systems. It emphasises the interdependence of technical systems, social systems, and work design, advocating for a holistic approach rather than a technology-centric focus. It’s not just about rolling out new software or upgrading infrastructure – it’s about ensuring technology enhances, rather than disrupts, the way people work.
Fast forward to today, and we’re seeing history repeat itself. Recent reports reveal that over $3.5 billion worth of government digital projects are struggling to deliver expected outcomes. The latest Major Digital Project report points to a familiar set of challenges – financial pressures, scope creep, resourcing issues, tight timelines, technical hurdles, and a need for stronger project management. At first glance, fixing these problems might seem to require more time, money, and effort than most agencies can afford. But if we apply the principles of STS theory, the solution becomes much clearer.
Just like the coal miners who regained productivity when they were actively involved in integrating new technology, government agencies can achieve better results by aligning technical solutions with existing social systems – people, culture, structures, and workflows. Investing in technology isn’t just about deployment; it’s about understanding the ripple effects these systems have on the workforce. Ignoring the human side of the equation leads to friction, missed opportunities, and wasted resources.
Applying STS theory allows organisations to:
Boost adoption rates by engaging employees early in the process
Seamlessly integrate new tools into existing workflows
Reduce risks and costs through collaborative implementation
Maximise ROI by ensuring technology and culture evolve together
Before making major technical investments, however, organisations should take a step back and assess their current state through a socio-technical lens. One way to do this is with a Socio-Technical Systems Assessment Survey (STSAS), a tool designed to evaluate how well an organisation aligns with STS principles.
The STSAS is based on STS theory and developed by Dr. William Pasmore, Professor at Columbia University. It delves into six key dimensions that underpin successful technological transformation. It evaluates how current technologies align with business objectives but also measures critical dimensions such as innovativeness, human resource development, environmental agility, cooperation, commitment, and the balance between technical systems and social dynamics (i.e. joint optimisation).
Armed with insights from the STSAS, organisations can transition smoothly from assessment to action. The survey’s findings highlight specific areas – whether gaps in process integration, cultural readiness, or employee engagement – that require attention before new technology is deployed. With this data in hand, leaders can develop targeted, actionable plans that align technical systems with social dynamics. In doing so, the principles of STS theory become not just a theoretical framework but a practical roadmap for successful, sustainable technological investments.
But! I want to make it clear (if I haven’t already) that to successfully integrate STS theory into large-scale tech investments, organisations need to embed a collaborative approach that taps into both technical expertise and human insight. That means bringing key stakeholders – employees, managers, and IT teams – into the conversation from day one. It also means designing change management strategies that include targeted training, real-time support, and iterative feedback loops to continuously refine implementation based on lived experiences.
Right now, Australian government agencies are at a crossroads. With billions of dollars in digital projects under scrutiny, it’s clear that simply deploying new technology won’t cut it. What’s needed is a balanced approach that looks beyond the hardware and software to the people and processes that drive success.
Take a cue from the coal miners of the 1940s: when technology is imposed without input, it disrupts workflow and stifles productivity. But when organisations empower their people to shape technology adoption, the benefits multiply. By embracing STS theory, government agencies can create digital solutions that don’t just function efficiently on paper but actually work for the teams using them. And that’s the real key to making technology investments pay off in the long run.
Our team partners with organisations to navigate this complexity, bringing a thoughtful approach that considers both the technical and social elements of your systems. We've seen firsthand how addressing these interconnected factors leads to more sustainable outcomes.
If you're grappling with systems that don't quite serve your people or your objectives, we'd welcome a conversation about approaches that might help.
Reach out to: craig@openloop.com.au to explore how socio-technical thinking could benefit your organisation.