Developing a performance management system using soft systems methodology: A Chinese case study

The economic crisis created major problems for a successful, hi-tech Chinese company – Tonsan. They already had in place a performance management system based around the balanced scorecard which worked successfully in times of growth and high demand. However, with the world downturn they suddenly found that their current system was not able to cope with the demands placed on it. The authors were called in and decided to design a new, strategic performance management system to overhaul all the key business processes. The approach taken to develop the PM system was based around Soft Systems Methodology (SSM), a well established systems-based approach to problem solving and organizational design. The methodology progressed from the development of key strategic objectives (using the BSC and strategy maps), through a structured decomposition of necessary organizational activities, the construction of key performance indicators, the specification of targets, to communication and future planning. It involved significant levels of participation and communication throughout the organization. The results were judged by senior management to have been very successful, and the company has grown significantly.     

Strategic planning decisions in an R & D setting

Strategic planning, by nature, is concerned with the organization's interaction with its environment and is normative because it deals with organizational motives and self image. The salient problem confronting strategic planning is to reflect the abstract and implicit value system held by management within a disciplined and informed analytical methodology.The Gas Research Institute has developed a strategic planning process, centered upon the annual development of a projection of the U.S. energy/economic situation. The process, which requires collaboration of top management and analytical staff, brings current environmental data and sophisticated methodology to bear on the outlook for the gas industry and gas-related technologies, but it ensures that analytical judgements will be influenced and, if necessary, overriden by current management values. Contradictions between managament perceptions and objective analysis are raised and resolved in an explicit process.     

基于战略导向的项目组合选择优化研究

本文研究了以项目组合的选择实现组织战略目标最大化的问题,将战略目标分解为收益、成本和风险目标,运用模糊集截集原理和目标标准法则把战略目标整合为单个的权衡目标。用梯形模糊数表示项目的不确定参数,并考虑项目间的相互影响关系,建立了基于战略目标的项目组合选择模型,来实现项目组合选择与战略目标的一致。并针对模型提出了遗传算法进行求解,用示例验证了方法的有效性。     

A methodology for supporting strategy implementation based on the VSM: A case study in a Latin-American multi-national

Soft OR tools have increasingly been used to support the strategic development of companies at operational and managerial levels. However, we still lack OR applications that can be useful in dealing with the “implementation gap”, understood as the scarcity of resources available to organizations seeking to align their existing processes and structures with a new strategy. In this paper we contribute to filling that gap, describing an action research case study where we supported strategy implementation in a Latin American multinational corporation through a soft OR methodology. We enhanced the ‘Methodology to support organizational self-transformation’, inspired by the Viable System Model, with substantive improvements in data collection and analyses. Those adjustments became necessary to facilitate second order learning and agreements on required structural changes among a large number of participants. This case study contributes to the soft OR and strategy literature with insights about the promise and constraints of this soft OR methodology to collectively structure complex decisions that support organizational redesign and strategy implementation.     

A problem-structuring model for analyzing transportation–environment relationships

This study discusses a decision support framework that guides policy makers in their strategic transportation related decisions by using multi-methodology. For this purpose, a methodology for analyzing the effects of transportation policies on environment, society, economy, and energy is proposed. In the proposed methodology, a three-stage problem structuring model is developed. Initially, experts’ opinions are structured by using a cognitive map to determine the relationships between transportation and environmental concepts. Then a structural equation model (SEM) is constructed, based on the cognitive map, to quantify the relations among external transportation and environmental factors. Finally the results of the SEM model are used to evaluate the consequences of possible policies via scenario analysis. In this paper a pilot study that covers only one module of the whole framework, namely transportation–environment interaction module, is conducted to present the applicability and usefulness of the methodology. This pilot study also reveals the impacts of transportation policies on the environment. To achieve a sustainable transportation system, the extent of the relationships between transportation and the environment must be considered. The World Development Indicators developed by the World Bank are used for this purpose.     

Inclusion of flexibility benefits in discounted cash flow analyses for investment evaluation: A simulation/optimization model

It has been argued that conventional discounted cash flow (DCF) techniques, which are commonly used for investment justification, are inadequate and may even be inappropriate for the justification of advanced manufacturing systems whose strategic value comes from such attributes as flexibility. The problem lies in the proper estimation of the value of flexibility in financial or cash flow terms, so that the DCF techniques, which are otherwise conceptually sound, become relevant. This involves an assessment of the value of the flexibility of the manufacturing system in dealing with the uncertainties in its operating environment. We propose a simulation-optimization methodology for this assessment in cash flow terms and use it in a DCF framework. We use simulation to generate the environmental parameters in each period of an appropriate evaluation horizon. We develop a mathematical programming model to determine the distribution of the possible net revenues of the system in each period by capturing the combined effect of the different types of flexibilities that the manufacturing system may possess. We illustrate the application of our methodology using numerical examples and discuss how it can be used to assess the value of flexibility in cash flow terms. We show that our approach facilitates the justification of capital investment in advanced manufacturing systems which tend to get undervalued under the traditional DCF approaches. It would also help managers address such important questions as “how much incremental investment should we be willing to make now for the additional flexibility features?” and “does the expected present value of the future benefits of added flexibility justify the incremental capital investment now?” In essence, our paper addresses the question as to appropriate techniques or approaches for justifying proposed strategic investment decisions.     

Adapting RRI public engagement indicators to the Spanish scientific and innovation context: a participatory methodology based on AHP and content analysis

The paradigm proposed by Responsible Research and Innovation in the European Commission policy discourse identifies Public Engagement as a key area for exchange and dialogue among multiple actors following an inclusive and participatory process. Two definite set of indicators have already arisen at European level to monitor Public Engagement activities in the Science and Innovation realm. Our study aims to propose a deliberative participatory process, which involves selected stakeholders, for the adaptation of the European indicators to the specific Spanish scientific and innovation context. The methodological procedure is of exploratory nature and will be based in a combination of, on the one hand, qualitative content analysis techniques for the in-depth study of the deliberative process and the generation of indicators; and, on the other hand, a multi-criteria decision analysis technique such as the Analytic Hierarchy Process for the prioritization of the indicators. The discussion will focus on the procedure to articulate stakeholders’ values and use them as the basis for creating a context-based improved list of indicators. Two types of research questions arise: (i) Is the proposed methodology adequate for the adaptation of the European indicators to the Spanish context? (ii) What are the main indicators to monitor and to expand reflection on the public engagement in the Spanish science and innovation?

     

The Other Side of the Network Coin: Cost Considerations of Network Structure

The purpose of this study is to investigate the differential impact that inter-organizational network connections have on organizational level change. Drawing from the strategic leaning perspective on adaptation, this study investigates how the nature of inter-organizational ties among top management impact the cost and the effectiveness of an organizational level change process. To build on the existing empirical work in this area, this study employs a virtual experiment to create a controlled laboratory investigation of the hypothesized relationships among the strength, formalization, and functional equivalence of network ties; and the cost and effectiveness of an organizational change process. The findings of this study provide support for the strength of weak ties argument and structural hole theory, in addition to suggesting a caveat to Galbraith's information processing model. Furthermore, the results reveal that the tradeoff between increasing effectiveness and decreasing costs is not universally applicable across all decisions regarding network structure.     

The use of management science techniques in a corporate strategic planning system

This paper will discuss the role that Management Science has played in the Strategic Planning process in Gulf Oil Corporation. Two levels of planning will be covered: planning at the functional Company level and at the Corporate level. Both the problems and rewards of using Management Science techniques in these areas will be discussed and illustrated through models developed at Gulf.Gulf Oil Corporation is organizationally subdivided into functional companies that are each responsible for long-range planning in their respective business areas. Corporate Headquarters is responsible for allocations of capital, debt control, dividend policy and strategy. Models developed for use at these two levels face different organizational, personnel, technical and data problems and these problems recur as the organization and personnel change. For models to be effective, the perceived benefits ensuing from their use must outweigh the problems encountered in their implementation. Three models will be discussed to illustrate these points; a Corporate model designed to examine capital allocations, debt control, dividend policies, and net cash flow; a model to aid in the formulation of a strategic policy in the Synthetic Fuels area; and, a model to help plan capital improvements or divestments in the petroleum business.     

Structural models with qualitative values

In fields of study from cognition to organizations and social networks , empirical structures have been formally represented in terms of graph theoretical models. When the empirical relationships can be seen as valued, a valued graph or digraph is called for. Values have been conventionally identified with real numbers, but other sorts of entities (most often signs) have been used. In this paper, we demonstrate a general system under which graphs and digraphs with values that are not numbers may be used to represent various important properties and features of empirical structures. Special cases include multiplexity of relationships, formal and informal linkages in organizational structures, systems and their environments, and structural consistency principles. The general system incorporates a matrix methodology which permits the convenient analysis of empirical structures. These cases are also intended to exemplify the ways in which valued relational models may be developed to extend this kind of formalization and its methodology to other areas of substantive interest.     

A decision support model for establishing an air taxi service: a case study

Recent availability of relatively cheap small jet aircraft creates opportunities for a new air transport business: Air taxi, an on-demand service in which travellers call in one or a few days in advance to book transportation. In this paper, we present a methodology and simulation study supporting important strategic decisions, like for instance determining the required number of aircraft, for a company planning to establish an air taxi service in Norway. The methodology is based on a module simulating incoming bookings, built around a heuristic for solving the underlying dial-a-flight problem. The heuristic includes a separate method for solving the important subproblem of determining the best distribution of waiting time along a single aircraft schedule. The methodology has proved to provide reliable decision support to the company.     

基于投影寻踪分类模型的高管团队战略协同分析

着眼于企业高管团队战略协同系统所蕴含的学术与实践价值,研究系统效能重于高管团队自身的作为,关注系统优化则更重于传统模式下高管团队的内部建设.本文首先探究了高管团队与企业战略的协同机理;然后将基于实码加速遗传算法的投影寻踪分类模型技术引入子系统及子系统序参量的权重计算和有序度评价,提出了新的协同度评价方法,建立了高管团队的战略协同度评价模型;应用该模型对S企业进行了实例研究,印证了模型的可操作性.企业高管团队的战略协同度评价结果有助于识别具体企业高管团队战略协同进程中的制约要素,从而有针对性地提出优化对策.     

An Organizational Model of Integrated Budgeting for Short-Run Operations and Long-Run Investments

In managerial finance, the short run usually refers to multiperiod models which involve operating plans and cash flow analysis. Long-run models are for capital investment or capital budgeting. Their essential link is the emphasis on cash flow and budgets. This relation is explored with an integrated model and its decompositions by budgets. The decomposition yields subunit models for the short run and long run which are related to earlier models, but yields insight into the organizational use of budgets for coordination and control. To obtain relative efficiency measures on two alternatives organizational budgeting mechanisms, a simulation was performed and analyzed.     

公共资本对产出及私人资本的动态冲击效应研究

估算了我国总的资本存量和公共资本存量,并从资本存量的角度基于结构向量自回归模型(SVAR)研究了公共资本对私人资本和产出的动态影响.通过实证研究得出以下结论:1)在我国公共资本对私人资本具有先"挤入"后"挤出"的效应.给公共资本一个百分点的冲击,在第'三年使得私人资本增加0.5个百分点.2)产出对公共资本冲击的响应更加快速和直接,给公共资本一个百分点的冲击会使得产出在第2期时增长0.8个百分点,但是这种正的响应会逐渐减弱,并在第6期后不再显著.3)方差分解的结果表明,私人资本对产出的贡献率要大于公共资本对产出的贡献率,私人资本对产出贡献率的最大值为61%,而公共资本对产出贡献率的最大值为28%.     

A comparison study of fuzzy MADM methods in nuclear safeguards evaluation

Nuclear safeguards evaluation (NSE) is to verify that a State is living up to its international undertakings not to use nuclear programs for nuclear weapons purposes. The main issue in NSE is on the aggregation of expert evaluations for numerous indicators to make a final decision about the State’s nuclear activity. Fuzzy multiple attribute decision making (FMADM) methods are capable of dealing with such an issue. In this study, we propose a new FMADM methodology to solve the NSE problem. To this end, we investigate the applicability of four basic FMADM methods, namely a simple additive weighting method, a TOPSIS method, a linguistic method, and a non-compensatory method, to the NSE issue. As a result of the assessment of the basic methods, we propose a new FMADM methodology based on a new aggregation operator in which a cumulative belief structure is used to represent the expert evaluations. The basic methods and the proposed method as well are applied to an example from the literature for illustration purposes.     

Modelling of technology lifetime based on patent citation data and segmentation

Stakeholders faced with decisions on whether or not to invest in Research & Development (R&D) are increasingly in need of R&D supporting information. As such, the social demand for reliable methods to collect and assess such data continues to grow. In terms of technology appraisal and valuation, the economic life span is a particularly important factor that affects the size of the profit resulting from that technology. Here, we propose a new methodology for quantitatively estimating the technology lifetime based on patent citation data and segmentation. Using the proposed methodology, we are able to estimate the mean or median patent lifetime at both the technology group level and the individual patent level. The estimated technology lifetime may be used as an index for supporting decision-making on strategic investments related to R&D activities and for managing technology throughout its lifecycle, including R&D planning, development, and application. We have applied the proposed methodology to US patent data for the period 1976–2004 for four communications areas.     

A comparative analysis of machine learning techniques and fuzzy analytic hierarchy process to determine the tacit knowledge criteria

Knowledge management is widely considered as a strategic tool to increase firm performance by enabling the reuse of organizational knowledge. Although many have studied knowledge management in a variety of business settings, the concept of tacit knowledge, especially the individual one, has not been explored in due detail. The objective of this study is to identify and prioritize individual tacit knowledge criteria and to explain their effects on firm performance. In the proposed methodology, first, the most prevalent individual tacit knowledge variables are identified by means of knowledge elicitation and feature selection methods. Then, the extracted variables were prioritized using machine learning methods and fuzzy Analytic Hierarchy Process (AHP). Support vector machine (SVM), logistic regression, and artificial neural networks are used as the first approach, followed by fuzzy AHP as the second approach. Based on the comparative analysis results, SVM (as the best-performed machine-learning technique) and fuzzy AHP methods were identified for the subsequent analysis. The results showed that both SVM and fuzzy AHP determined time efficiency of employees, communication between employees and supervisors, and innovative capability of employees as the most important tacit knowledge criteria. These findings are mostly supported by the extant literature, and collectively shows the synergistic nature of the utilized analytics approaches in determining individual tacit knowledge criteria.

     

Developing a visioning methodology: Visioning Choices for the future of operational research

This paper describes the development of a participative visioning methodology, Visioning Choices, which is placed within the family of problem structuring methods, due to a range of characteristics and attributes that are discussed. The Visioning Choices methodology was developed in an action research paradigm, and consists of a number of stages. The case study presented describes an application of the methodology to the issue of the future of operational research (OR). More than 200 individuals participated in workshops to outline a desirable future for OR. Earlier work has shown that while the majority of organizations claim to have visions, and that visions are perceived to have an important role in contributing to organizational success, visions are usually developed using informal small group processes, rather than existing formal visioning methodologies. The paper uses coherence and correspondence arguments to reflect on the methodology described, and possible future developments to address issues such facilitation style and participant numbers.     

Networks, Fields and Organizations: Micro-Dynamics, Scale and Cohesive Embeddings

Social action is situated in fields that are simultaneously composed of interpersonal ties and relations among organizations, which are both usefully characterized as social networks. We introduce a novel approach to distinguishing different network macro-structures in terms of cohesive subsets and their overlaps. We develop a vocabulary that relates different forms of network cohesion to field properties as opposed to organizational constraints on ties and structures. We illustrate differences in probabilistic attachment processes in network evolution that link on the one hand to organizational constraints versus field properties and to cohesive network topologies on the other. This allows us to identify a set of important new micro-macro linkages between local behavior in networks and global network properties. The analytic strategy thus puts in place a methodology for Predictive Social Cohesion theory to be developed and tested in the context of informal and formal organizations and organizational fields. We also show how organizations and fields combine at different scales of cohesive depth and cohesive breadth. Operational measures and results are illustrated for three organizational examples, and analysis of these cases suggests that different structures of cohesive subsets and overlaps may be predictive in organizational contexts and similarly for the larger fields in which they are embedded. Useful predictions may also be based on feedback from level of cohesion in the larger field back to organizations, conditioned on the level of multiconnectivity to the field.     

Integrated decision support for aviation safety inspectors

This paper presents a systems viewpoint for developing an advanced decision support system for aircraft safety inspectors. Research results from a Federal Aviation Administration (FAA) sponsored project to use neural network and expert systems technology to analyze aircraft maintenance databases are summarized. One of the main objectives of this research is to define more refined “alert” indicators for national comparison purposes that can signal potential problem areas by aircraft type for safety inspector consideration.

Integration aspects are addressed on two levels: (1) integration of the various technical components of the decision support system, and (2) integration of the decision support system with individual behavior, management systems and organizational structure, as well as corporate culture across both formal and informal dimensions. The paper summarizes the creation of strategic “inspection profiles” for aging aircraft and reliability curve fitting for structural components both based upon using neural network technology. Also, the potential use of a model-based expert system to facilitate field inspection diagnostics is presented. Finally, a framework for developing an intelligent decision system to support aircraft safety inspections is proposed that links expert systems, neural networks, as well as a paradigm of the decision making process typically used in unstructured situations.