Crisis as Status Quo: A Systems Approach to Understanding Institutional Organizations During a Period of Societal Transformation *

A detailed description of current societal transformation is presented emphasizing the shift from mechanistic to holistic thought, the proliferation of technology, and the shift to post-industrial society. The conservative role societal institutions play during periods of stability is discussed along with the problems that arise during periods of transition. A theoretical framework for describing the conservative behavior of these organizations based on the work of Russell Ackoff and Donald Schon is presented. It indicates that the systems behave in ways characteristic of bureaucratic monopolies. The piece concludes with a brief discussion of organizational alternatives to the existing institutional forms incorporating systemic concepts of organizational design.