Putting Soft OR Methods to Work: Information Systems Strategy Development at Richards Bay

The development of an information systems (IS) strategy for a mineral extraction and processing plant operated by Rio Tinto Zinc (RTZ) in South Africa is described. The participative approach used was developed from soft OR and systems thinking. The aim of the Richards Bay project was to test commercially whether the Participative Information Management Strategy (PIMS) methodology could be used as a standard method to be applied to the development of an information systems strategy at any mine site. The paper describes the implementation of the process and the problems encountered. More generally it discusses the diffusion of new ideas in an international company, illustrated by the use of the participative approach for other activities including systems development. Conclusions are drawn about the value of participative approaches based on soft OR in this context.     

Putting soft OR methods to work: the case of IS strategy development for the UK Parliament

In 1999 a project was undertaken to develop an information systems strategy (ISS) for the UK Parliament. This was the first time that both Houses of Parliament, the Lords and the Commons, had collaborated in such a venture. The paper describes the attempt to apply soft OR in the project. Because of the inherent interest of the context of the intervention, the paper describes the project in some detail. In the event the formal soft OR methods were not used but a soft approach was taken. The experience complements earlier studies in the retail, mining and electricity supply industries. The paper is the last in a series of published case studies, which describe attempts to apply soft methods in practice. Together the cases articulate the ‘strand of practice’ of one practitioner.     

Strategy making with the whole organisation: OR and the art of the possible

Present-day expectations of wide stakeholder involvement in strategy-making processes have been addressed in distinctive ways by the Operational Research (OR) and Organisational Development (OD) communities. This paper describes an intervention supporting a strategy for change in a university where a high degree of participation was essential to address the substantive issues faced following the disappointing outcome of an employee satisfaction survey. The importance of staff satisfaction for achieving good business outcomes is explained in the paper before an account is given of the work that was undertaken using a combination of Large Group Intervention and Problem Structuring Method approaches. The achievement of the project in shifting the locus of perceived control and opening up a more participative strategic debate is next assessed. The case demonstrated the benefit of using an intervention process whose participatory nature mirrored the desired changes in the client organisation, and in which the dramatisation of senior management group commitment underlined determination to effect change. Other implications are discussed: the value of using a novel assemblage of approaches and techniques rather than inflexibly following a single methodology; the potential payoff from closer work between the disciplines of OR and OD; and the observation that there is a real opportunity for the wider use of participative approaches in strategy making, something that OR practitioners are well-placed to provide.     

Broadening the boundaries: an application of critical systems thinking to IS planning in Colombia

Most current information systems (IS) planning methodologies are focused on achieving plans that provide competitive advantage to business and solve the problems of information needs by using the latest technologies available. This paper presents an alternative approach to IS planning based on critical systems thinking—a research perspective that encourages the analysis of stakeholders' understandings of social contexts prior to the selection and/or design of planning methods. The approach is underpinned by a combination of the systems theories of autopoiesis and boundary critique, and it enables participants to reflect on different concerns and values during IS planning. This approach was applied in a project with a Colombian University, and it helped participants to uncover and address important human issues not usually seen as relevant by traditional approaches to IS planning. In addition, it led the authors to undertake further research on ethics after the project had been concluded.     

SSM and technology management: Developing multimethodology through practice

Growing competition and economic recession is driving the need for more rapid redesign of operations enabled by innovative technologies. The acquisition, development and implementation of systems to manage customer complaints and control the quality assurance process is a critical area for engineering and manufacturing companies. Multimethodologies, and especially those that can bridge ‘soft’ and ‘hard’ OR practices, have been seen as a possible means to facilitate rapid problem structuring, the analysis of alternative process design and then the specification through to implementation of systems solutions. Despite the many ‘hard’ and ‘soft’ OR problem structuring and management methods available, there are relatively few detailed empirical research studies of how they can be combined and conducted in practice. This study examines how a multimethodology was developed, and used successfully, in an engineering company to address customer complaints/concerns, both strategically and operationally. The action research study examined and utilised emerging ‘soft’ OR theory to iteratively develop a new framework that encompasses problem structuring through to technology selection and adoption. This was based on combining Soft Systems Methodology (SSM) for problem exploration and structuring, learning theories and methods for problem diagnosis, and technology management for selecting between alternatives and implementing the solution. The results show that, through the use of action research and the development of a contextualised multimethodology, stakeholders within organisations can participate in the design of new systems and more rapidly adopt technology to address the operational problems of customer complaints in more systemic, innovative and informed ways.     

Multimethodology in Metaheuristics

As a combination of different methodologies or parts of methodologies, Multimethodology is becoming more frequent in OR practice. This paper contributes with a new proposal and a new field of application: the employment of Multimethodology in problem solving with Metaheuristics (Mh). A convenient selection of soft and hard methods will be considered, from Soft OR, Creativity and Metaheuristics, such as Strategic Choice Approach, SWOT Analysis and Divergent and Convergent thinking. Formulating the ‘right’ optimisation problem, choosing a method based on Mh and accomplishing an effective implementation is an imprecise decision-making process, which may require skills and ideas that are beyond the ordinary boundaries of Mh practice. The relevance and success of Mh have been well-known for decades, but some open questions concerning choice and implementation strategies, for instance, still remain. If these questions are not adequately answered, they may lose credibility in the long term. The quality of solutions and computational times are not the only criteria used to analyse Mh, nor are they the most important. Very often, the effectiveness of an approach has to be evaluated from the perspective of modelling and practical problem solving. This paper investigates the advantages of Multimethodology and, furthermore, it sketches a framework for a coherent and comprehensive comparison of Mh and recommends a dynamic guiding tool for their implementation.     

Progress control in iterated local search for nurse rostering

This paper describes an approach in which a local search technique is alternated with a process which ‘jumps’ to another point in the search space. After each ‘jump’ a (time-intensive) local search is used to obtain a new local optimum. The focus of the paper is in monitoring the progress of this technique on a set of real world nurse rostering problems. We propose a model for estimating the quality of this new local optimum. We can then decide whether to end the local search based on the predicted quality. The fact that we avoid searching these bad neighbourhoods enables us to reach better solutions in the same amount of time. We evaluate the approach on five highly constrained problems in nurse rostering. These problems represent complex and challenging real world rostering situations and the approach described here has been developed during a commercial implementation project by ORTEC bv.     

Problem structuring in project management: an application of soft systems methodology (SSM)

Recent research suggests a major role for problem structuring methods (PSMs) in the field of project management, particularly at the front-end of projects, where objectives are often unclear and where different constituencies have conflicting aims. This paper presents a case example of soft systems methodology (SSM) at the front-end of a major project within Tesco Stores Ltd. A detailed account of the intervention is given, including the results achieved and a discussion of how the methodology was used for multiple purposes within the same intervention. Within the literature, there remains a lack of detailed examples from which people can learn more about the use of PSMs in project management. By providing a detailed example of SSM in action, this paper seeks to highlight the importance of problem structuring at the front-end of projects and the potential role an approach such as SSM can play at this crucial stage.     

Insights into the development of strategy from a complexity perspective

This paper provides an account of an ongoing project with an independent school in the UK. The project focuses on a strategy development intervention which, from the start, was systemic in orientation. The intention was to integrate simple systems concepts and approaches into the strategy development process to: address power relations in actively engaging a wide range of stakeholders with the school’s strategy-making process; generate a range of good ideas; and make the strategy-making process transparent in order to inspire stakeholder confidence in, and commitment to, it and its outcomes. This paper describes how seeking to meet these aims entailed a series of workshops during the course of which an awareness of the relevance, in our interpretation, of Complex Adaptive Systems concepts grew.     

Putting Soft OR Methods to Work: Information Systems Strategy Development at Sainsbury's

The development of a new information systems (IS) strategy for a major UK food and grocery retailer is described. The approach taken was highly participative and made use of a number of models and methods developed by the advocates of soft OR and systems thinking. The resulting process was successful in delivering a strategy developed by management, with commitment to implement it. In addition, the teamwork across functional boundaries was recognized as valuable management development.     

Complexity management in practice: A Viable System Model intervention in an Irish eco-community

While soft OR tools offer specific solutions to manage complexity in organisations, little is known concerning soft OR tools to deal with self-organisation in communities. This paper describes an action research project where the authors facilitated a process of self-organisation in a developing Irish eco-community whose members operate in a non-hierarchical, and cooperative fashion. We used the Viable System Model as a hermeneutical enabler of the community learning process concerning their self-organisation: by embedding VSM distinctions, they redesigned their primary tasks and developed meta-systemic management tools to deal with the complexity they were facing. Observations of the dynamics of the self-organising process over a period of 3 years show the community designed their roles and tasks more effectively, improved the connectivity of roles, and in general, their viability and sustainability. We reflect on the distinctiveness of the methods used, and their contributions to research in soft OR in community projects.     

Multiobjective optimization of credit capital allocation in financial institutions

The evolution of international regulation leads to new capital requirements imposed on globally active companies. Financial services firms allocate capital to business lines in order to withstand the materializing credit losses and to measure the performance of various business lines. In this study, we introduce a methodology for optimal credit capital allocation based on operations research approach. In particular, we focus on the efficient allocation of capital to business lines characterized by credit risk losses and cost of capital. We compare different allocation methods and provide a rationale behind using the OR approach. Finally, we formulate a multiobjective optimization model to capital allocation problem and apply it to a real-world case of two financial conglomerates.     

On the Nature of OR — Entering the Fray

In 1980 a seminar of operational researchers and practitioners from a variety of different countries concluded that there was a remarkable consensus about the way that the process of operational research and systems analysis should be understood and practised. Since then the development of new methods has continued apace, stimulated by interaction with the social sciences and paradigms other than natural science. This paper enters the debate, started in this journal, about the nature of OR's status as science or technology. It recognizes the historic claims of science on OR, but it suggests that for ‘private’ consumption, technology will prove more fruitful, and for ‘public’ consumption practitioners will increasingly adopt the label ‘consultant’. Ackoff's original six-step method of OR is updated to reflect current OR practice. The process suggested acknowledges the importance of context, socio-political factors and the growing role of facilitation.     

Fuzzy systems based on component software

This paper describes hierarchical modeling of fuzzy logic concepts that has been used within the recently developed model of intelligent systems, called OBOA. The model is based on a multilevel, hierarchical, general object-oriented approach. Current methods and software design and development tools for intelligent systems are usually difficult to extend, and it is not easy to reuse their components in developing intelligent systems. The OBOA model tries to reduce these deficiencies. The model starts with a well-founded software engineering principle, making clear distinction between generic, low-level intelligent software components, and domain-dependent, high-level components of an intelligent system. This paper concentrates on modeling and implementation of fuzzy logic concepts within the hierarchical levels of the OBOA model. The fuzzy components described are extensible and adjustable. As an illustration of how these components are used in practice, a practical design example from the domain of medical diagnosis is shown. The paper also suggests some steps towards future design of fuzzy components and tools for intelligent systems.     

Towards user-friendly OR: a Chinese experience

In contemporary China, user-friendliness has become not only a necessity for the success of OR projects but also a must for the survival of OR workers. This paper presents an approach that, based upon insights from Chinese thought as well as OR/MS experience in the Chinese context since the 1950s, can be useful for improving user-friendliness in the OR process. The paper also reports a real-world project in which OR workers pursue the user-friendliness of their work under the guidance of these insights and approach. A cultural analysis suggests that, while user-friendly OR is a universal concern, the Eastern and Western ways of tackling the issue appear different. The paper concludes that, in reality, Chinese OR workers must enhance their vision and skills so as to solve sociotechnical problems with diverse methods and do so in a user-friendly manner.     

The initiation,evaluation and selection of operational research projects

This paper discusses the problems involved in conducting successful Operational Research within a large organisation and suggests ways of overcoming them. It describes ways in which Operational Research projects arise, methods of assessing their relative merits, and methods used by the authors to obtain a suitable portfolio of projects. It is argued that an Operational Research Group should apply to its own project planning the scientific approach that it advocates for others.     

Vendor rating for an entrepreneur development programme: a case study using the analytic hierarchy process method

With collaborative purchasing programmes where one of the aims is to develop suppliers, vendor rating is important not only in supplier selection and in deciding how to allocate business but also to determine where scarce development effort is best applied. This paper describes a case study into vendor rating for a government sponsored Entrepreneur Development programme in Malaysia. The paper reviews current methods for vendor rating and finds them wanting. It illustrates a new approach based on the use of Saaty's Analytic Hierarchy process method, which was developed to assist in multi-criteria decision problems. The new method overcomes the difficulties associated with the categorical and simple linear weighted average criteria ranking methods. It provides a more systematic way of deriving the weights to be used and for scoring the performance of vendors.     

Operational research and critical systems thinking—an integrated perspective

On the basis of a review of the role of systems thinking in the history of OR, Part 1 of this essay proposed a systematic understanding of OR as applied systems thinking. Further, it identified the contribution of ‘critical’ systems thinking (CST) in a combined ability of its two strands, critical systems heuristics (CSH) and total systems intervention (TSI), to enhance the conceptual sophistication of OR. Part 2 aims to translate this understanding into a framework for good professional practice. How exactly can CST strengthen the competence profile of OR professionals? Drawing on three experience-based archetypes of professional service and some basic argumentation-theoretical considerations, a new understanding of OR and applied systems thinking as argumentative practice emerges. In this new understanding CST finds a systematic place and some exemplary uses of CSH and TSI can be located—an integrated perspective.     

Creating Employment Opportunities for People with Mental Health Problems: A Feasibility Study for New Initiatives

This paper describes a feasibility study for the development of a network of employment services for people with mental health problems (and others) who are unemployed. It highlights the problems of using debate-orientated, soft OR methods when there are difficulties of open communication between different interest groups. In this case, the interest groups were clients and professionals in the mental health system. To bypass these difficulties, a series of confidential interviews was conducted with stakeholders. The issue of who was to be interviewed was resolved through a rolling programme of recommendations, where each interviewee recommended others until most of the people being recommended were people who had already been seen. This approach allowed for the involvement of many people and agencies who the researchers did not initially suspect might be stakeholders. Having conducted the interviews, the researchers then produced a design in the form of an ‘expert’ report. Although they had serious reservations about taking such an approach instead of simply supporting the expertise of already identified stakeholders, it turned out, upon reflection, that they had made the right decision. The ‘expert’ appoach allowed the views of service users to be taken into account. Also, the rolling programme of recommendations used to determine who should be interviewed actually uncovered hitherto ‘hidden’ stakeholders who were crucial to the success or failure of the whole project.