Quantitative problem structuring methods for multi-actor problems: an analysis of reported applications

Problem structuring methods (PSMs) are proposed as vital tools for coping with complex and unstructured problems that help decision-makers make decisions or come to a shared understanding of a problem situation. Despite their popularity, choosing a PSM for an unstructured problem situation is problematic as good categorization and evaluation of PSMs is lacking. As a first step we postulate a categorization of quantitative PSMs applied to multi-actor situations. We list the different application areas, the types of design that were used, and the type of outcomes the methods provide. To understand why and how certain PSMs are applied, we categorize applications of metagames/conflict analysis, hypergames, drama theory, Q-methodology, and transactional analysis. We find that method choice and validation of the applications are yet underdeveloped for this specific sub-field, and suggest further work on this as it will help to understand the added value of PSMs.     

Beyond problem structuring methods: reinventing the future of OR/MS

Some of the most influential pioneers of OR felt disappointed by the way it developed in the 1960s and 1970s. In their view, the original intention to create a holistic, interdisciplinary science addressed to strategic problems was betrayed. Problem structuring methods (PSMs) have made a significant contribution to taking OR/MS forward again in the direction charted by those pioneers. From a theoretical perspective, however, it is clear that the opportunities provided by PSMs tend to be limited to those drawn from the interpretive paradigm. That is only one way of adding to the positivist/quantitative approach of classical OR/MS. This paper suggests that OR has an obligation to explore a wider range of theoretical options and to convert the possibilities offered by all of these into a form that managers and management scientists can use. Only in this way can OR be reinvented to live up to the ambitions of its founders.     

Problem structuring methods for large group interventions

Problem structuring methods (PSMs) aim to build shared understanding in a group of decision makers. This shared understanding is used as a basis for them to negotiate an agreed action plan that they are prepared to help implement. Engaging in a social process of negotiation with a large number of people is difficult, and so PSMs have typically focused on small groups of less than 20. This paper explores the legitimacy of deploying PSMs in large groups of people (50–1000), where the aim is to negotiate action and build commitment to its implementation. We review the difficulties of facilitating large groups with PSMs, drawing heavily on our experience of working with over 25 large groups. We offer a range of lessons learned and suggest concrete approaches to facilitating large groups to achieve the objectives of PSMs. This paper contributes to the evaluation and development of PSMs.     

Assessing the impact of problem structuring methods in multi-organizational settings: an empirical investigation

Problem structuring methods (PSMs) have most commonly been employed with groups operating within single-organizational contexts. This paper argues that PSMs are by their nature also appropriate for supporting the work of multi-organizational groups (MOGs) operating within a partnership context. An experience of the use of a PSM in this context is reported and evaluated. The research findings suggest that there is indeed scope for the use of PSMs with MOGs, and that these methods do appear to have a positive role in achieving some of the products claimed for PSM interventions. In particular, the experience as a whole tends to demonstrate that mutual accommodations between the organizations represented in the MOG can be the result of the use of PSMs. The paper concludes with a discussion of the significance of the experience, and proposes some directions for further research.     

Exploring new directions for research in problem structuring methods: on the role of cognitive style

Prior research has argued that cognitive style can have a significant impact on group decision making. In addition, several scholars have proposed that cognitive style can play a key role in the design and use of group decision support systems. However, cognitive style has not received a great deal of attention in the problem structuring methods (PSMs) community. This is surprising, given that PSMs are specifically developed to support a group in their decision making. The purpose of this paper is thus to examine the significance of cognitive style within PSMs. The paper identifies and explores the role of four different cognitive style functions in problem structuring interventions. This analysis is carried out by focusing on the different tasks embedded within a group process supported by PSMs. Implications for the research and practice of PSMs are then discussed.     

Forms of conversation and problem structuring methods: a conceptual development

Problem structuring methods (PSMs) are a family of participatory and interactive methods whose purpose is to assist groups of diverse composition tackle a complex problematic situation of common interest. This is achieved through modelling and facilitation, with a view to generating consensus on problem structure, and agreement on initial commitments. Despite the apparent success of PSMs reported in the literature, little progress has been made towards the development of theoretical models that integrate these experiences and guide PSM practitioners and academics in developing and implementing effective PSM interventions. In particular, no theoretical models have been presented concerning how conversational processes within a group are affected by PSMs. This paper develops a theoretical model of conversation intended to provide a means to identify a specific role for the analytical assistance provided through PSMs, and for evaluating their effectiveness. The hypothesis articulated from this model is that PSMs have the potential to improve the quality of the conversation in which actors participate. PSMs generate this effect through facilitating the structuring and sense-making activities embedded within a conversation. Improvement in the quality of conversation should tend to help actors engage in dialogue as a particular form of conversation, achieve shared understanding, and increase the actors’ ownership of the commitments achieved during the conversation. The paper concludes with a discussion of the implications of the model for research and practice.     

Evaluating problem-structuring methods: developing an approach to show the value and effectiveness of PSMs

This paper discusses the challenges associated with the evaluation of problem-structuring methods (PSMs). PSMs are seen as complex interventions that seek wide-level change and action at many levels including individual and system. There is now a widespread acceptance that the traditional evaluation approaches are inappropriate for the evaluation of PSMs. The difficulty is compounded when PSMs are used in multi-agency settings. The paper proposes that evaluation, while pragmatic and situated, must be a theory-based exercise. Part of the challenge is to provide a narrative of the intervention as well as an agreed assessment.     

On becoming expert in the use of problem structuring methods

While much has been written about the theory and practice of using problem structuring methods (PSMs) there is little formal discussion of how individuals may effectively learn about their use. In this paper it is argued that a foundation for designing and providing a suitable learning environment lies in understanding the nature of being an expert user of PSMs and the knowledge that such experts hold and deploy. An analysis of how knowledge and expertise are grounded in the work involved in using PSMs is offered. This leads to some proposals for what is required if processes to support the acquisition of expertise in the use of PSMs are to be implemented.     

On the importance of behavioral operational research: The case of understanding and communicating about dynamic systems

We point out the need for Behavioral Operational Research (BOR) in advancing the practice of OR. So far, in OR behavioral phenomena have been acknowledged only in behavioral decision theory but behavioral issues are always present when supporting human problem solving by modeling. Behavioral effects can relate to the group interaction and communication when facilitating with OR models as well as to the possibility of procedural mistakes and cognitive biases. As an illustrative example we use well known system dynamics studies related to the understanding of accumulation. We show that one gets completely opposite results depending on the way the phenomenon is described and how the questions are phrased and graphs used. The results suggest that OR processes are highly sensitive to various behavioral effects. As a result, we need to pay attention to the way we communicate about models as they are being increasingly used in addressing important problems like climate change.     

A review of the recent contribution of systems thinking to operational research and management science

The systems approach, or systems thinking, has been intimately connected with the development of OR and management science initially through the work of founders such as Churchman and Ackoff and latterly through innovations such as soft systems. In this paper we have undertaken a review of the contribution that systems thinking has been making more recently, especially to the practice of OR. Systems thinking is a discipline in its own right, with many theoretical and methodological developments, but it is also applicable to almost any problem area because of its generality, and so such a review must always be selective. We have looked at the literature from both a theoretical and an applications orientation. In the first part we consider the main systems theories and methodologies in terms of their recent developments and also their applications. This covers: the systems approach, complexity theory, cybernetics, system dynamics, soft OR and PSMs, critical systems and multimethodology. In the second part we review the main domains of application: strategy, information systems, organisations, production and operations, ecology and agriculture, and medicine and health. Our overall conclusion is that while systems may not be well established institutionally, in terms of academic departments, it is incredibly healthy in terms of the quantity and variety of its applications.     

Teaching real-life OR to MSc students

The nature of the ‘messiness’ of the real projects in which we are involved determines how our OR practice proceeds. In order to train the future generation of Operational Researchers, we need to prepare them with the skills to deal with this messiness. The teachers themselves firstly must have these skills and have fresh experience of using them. This paper discusses the synergies to be experienced between teaching, consulting, research and in-company training. These abilities then need to be passed on to the students. Technique training provides an important tool-kit but the key skills have to be learned through guided experiential learning, with the learning loop closed by guided reflection (fostered and aided by mentors).     

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.     

Understanding problem structuring methods interventions

This article presents a conceptual framework and methodological guide for researching and understanding OR interventions particularly problem structuring methods (PSM). The article argues that OR/PSM interventions are complex events which can not be understood by traditional approaches alone. In this paper an alternative methodology is developed, where the units of analysis are the narratives and networks produced during PSM interventions. The paper outlines the main theoretical and methodological concerns that need to be appreciated in studying PSM interventions. The paper then explores actor-network theory and narrative analysis as approaches to study them. A case study describing the use of these approaches is provided.     

Black swans and white eagles: on mathematics and finance

It is often objected that we cannot use mathematical methods in finance because (1) finance is dominated by unpredictable unique events (the black swans), (2) there are qualitative effects that cannot be quantified, and (3) the laws themselves of finance keep on changing. In this paper we discuss these three objections, offering arguments to reject them. We begin by reviewing the development of the physical sciences, pointing out parallels that are relevant for our discussion. Modern science has abandoned the objective of describing reality and has adopted an operational point of view that regards physical laws as tools to connect observations. Modern science is no longer deterministic, but has accepted a fundamental uncertainty in physical laws both at micro and macroscopic levels. Unpredictable pivotal events exist in the physical sciences as well in finance but this does not lead us to question the use of mathematics in the physical sciences. On the contrary, using principles of safe design, we try to understand how to avoid and contain unpredictability. Financial markets are manmade artifacts with, as actors, a large number of interacting agents. If we so wish, we can reduce the level of uncertainty present in markets: But if we try to do so describing financial markets with simple mathematical laws, we find that these laws are not stable but change over time, eventually with sudden structural breaks. This makes the use of mathematical finance difficult but not impossible. We can forecast human decision-making processes, crucial in forecasting financial markets, at the statistical level in aggregate. From an operational point of view, we have the tools to understand and describe the behavior of large number of interacting agents. At the present stage of development of our science, we need to use the mathematics of adaptive systems, changing mathematical models in function of different market states. However, reductionism to a small number of basic laws remains a fundamental objective of financial economics as it is in the physical sciences.     

We're crippling our kids with kindness!!

Quite often as teachers we try to help our students by giving them short cuts or help with strategies they don't understand. We tend to ignore the need that children have to struggle with a problem before proper referents can be established. This article explores that need from results obtained while working with two classes of students: one class was made up of second graders and the other class were third graders. The problem was observed while working with the students on a project designed to established the proper concept of equality in the minds of the students and to help them develop some strategies for solving missing number problems. The results were suprising and startling and led to the realization that we, as teachers, are often too kind to our students for their own best good. We actually cripple our students mentally by feeding them too many hints and by trying to push them algorithmically beyond their ability without the development of proper referents for the mathematics being taught. It, too often, leads to rote memorization and prevents the students' development of a proper conceptual understanding. Concrete referents are essential before the establishment of a conceptual background can be firmly developed in the minds of each student.     

The potential impact of artificial intelligence on the practice of OR

The fantastic claims made by Artificial Intelligence Experts could lead us to think that computers will inevitably have a great impact on disciplines such as OR, even to the extent of displacing them. However, we should question whether there is any evidence to support these claims. This paper considers the present capabilities of computers and looks at the impact that the AI community has had on the practice of OR. It also examines the potential success of current research and lists some of the obstacles to development. The evidence suggests that although AI will provide significant support to the work of OR researchers, the impact of AI on the OR community will not be as great as the claims suggest.     

<Emphasis Type="Italic">Quid pro quo</Emphasis>: Reflections on the value of problem structuring group workshops

Attracting clients who are willing to invest in using a problem structuring method (PSM) can be particularly difficult for the emerging generation of modellers. There are many reasons for this, not least that the benefits of a problem structuring intervention are vague and evidence of benefits are often anecdotal for example, claims of constructing a deeper understanding of the problem or building the commitment of a group to implementing an outcome. This paper contributes to the evaluation of problem structuring methods by reflecting on the quid pro quo that a client and problem structuring modeller can enjoy from collaboration. The paper reflects on 21 cases, where Journey Making (a problem structuring method) was used with 16 organizations to help managers agree a suite of actions to tackle a complex strategic issue. The reflections are clustered around those benefits that pertain to: PSMs in general; PSMs that use computer-supported workshops; the Journey Making methodology.     

Application of structural equation modeling to evaluate the intention of shippers to use Internet services in liner shipping

Operations research (OR) is the application of modeling techniques to formulate and analyze systems and problems for management decision-making. Structural equation modeling (SEM) is a modeling technique applied to social or behavioral systems to understand and explain relationships that may exist among elements of systems. Recently, the measurement of unobservable variables has gained increasing attention in operations management (OM) research, and the OR discipline has begun to recognize the value of applying SEM to analyze behavioral-related OR problems. To provide OR researchers with a better understanding of the application of this useful statistical modeling technique, this paper presents a tutorial on the application of SEM. Specifically, we investigate the key factors that affect the adoption of Internet services in the context of liner shipping services. Although [Fishbein, M.A., Ajzen, I., 1975. Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research, Addison-Wesley, Reading, MA; Davis, F.D., 1989. Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly 13 (3), 319–339; Ajzen, I., 1985. From intention to actions: A theory of planned behavior. In: Kuhl, J., Bechmann, J. (Eds.), Action Control: From Cognition to Behavior. Springer Verlag, New York, pp. 11–39; Ajzen, I., 1991. The theory of planned behavior. Organizational Behavior and Human Decision Processes 50, 179–211] have made important contributions to understanding users’ behavior of technology acceptance, shippers’ resistance to end-user systems is still a common problem in the liner shipping industry. To better predict, explain, and increase shippers’ acceptance of technology, we need to understand why shippers accept or reject Internet services provided by their liner shipping carriers. Another objective of this paper is to propose and empirically test a theoretical framework that relates the intention of shippers to use Internet services in liner shipping with its antecedents such as perceived usefulness, perceived ease of use, and the perceptions of security protection. Tests of the structural model confirm Davis’s (1989) notion that perceived ease of use explains the intention of shippers to use Internet services, and that perceived ease of use has a strong positive effect on perceived usefulness. The results also indicate that security protection influences perceived ease of use. The SEM analyses in this study offer OR researchers a methodological guide on how to assess the efficacy of both a measurement model that relates observed indicators to latent factors and a structural model that poses relationships between constructs.     

Solving policy design problems: Alternating direction method of multipliers-based methods for structured inverse variational inequalities

Inverse variational inequalities have broad applications in various disciplines, and some of them have very appealing structures. There are several algorithms (e.g., proximal point algorithms and projection-type algorithms) for solving the inverse variational inequalities in general settings, while few of them have fully exploited the special structures. In this paper, we consider a class of inverse variational inequalities that has a separable structure and linear constraints, which has its root in spatial economic equilibrium problems. To design an efficient algorithm, we develop an alternating direction method of multipliers (ADMM) based method by utilizing the separable structure. Under some mild assumptions, we prove its global convergence. We propose an improved variant that makes the subproblems much easier and derive the convergence result under the same conditions. Finally, we present the preliminary numerical results to show the capability and efficiency of the proposed methods.