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428 Chapter 13

In the anarchy model, there is an absence of overall information management
policy. Individuals are left to their own devices to obtain and manage their own
information that is made possible by the introduction of the personal computer.
Anarchy models are often seen in early stages of start-ups. They stand at the opposite
end of the spectrum from technocratic model because no amalgamation of corporate
information is possible (e.g., of revenues, costs, customer order levels, etc.). This model
rarely represents a conscious choice but instead tends to evolve into some sort of order
with time.
The feudalism model is based on the management of information by individual
business units or functions, which defi ne their own information needs and report only
limited information to the overall corporation. This is the most commonly encoun-
tered model with its emphasis on “ the control of information ” and “ knowledge is
power. ” The “ king ” decides on content, language, format, distribution list, and the
analysis. Key organizational and environmental information often ignored. It is quite
diffi cult to make informed decisions.
In the monarchy, the fi rm ’ s leaders create the defi nition of information categories
and reporting structures: they may or may not share the information willingly after
having collected it. The CEO or someone empowered by the CEO dictates the
rules for how information will be managed. This model represents an extreme top-
down model that is commonly found in entrepreneurial profi les, small business
owner, and micro-managers. This model is appropriate when consensus cannot be
reached.
A constitutional monarchy can evolve directly from feudalism or monarchies. There
is a document (Magna Carta) that is an information management charter that states
the monarch ’ s limitations. This document identifi es what information will be col-
lected, rules, processes, platforms, common vocabulary, and so on.
Finally, the federalism model emphasizes an approach to information management
based on consensus and negotiation on the organization ’ s key information elements
and reporting structures. This is the preferred model for most intellectual capital
management applications as it makes extensive use of negotiation to bring potentially
competing and noncompeting parties together. People with different interests work
out among themselves a collective purpose and a means of achieving it. Federalism
requires strong (but not too strong) central leadership and a culture of trust, coopera-
tion, and learning. It is important to understand the value of information itself as well
as that of the technology that stores, manipulates, and distributes it. Federalism
encourages the use of cooperative information resources to create a shared information
vision for genuine leveraging of fi rm ’ s knowledge assets in the form of data marts not