S trategic O ptions D evelopment and A nalysis

1. Strategic Options Development and Analysis The Principles Dr. Ion Georgiou FGV-EAESP-IMQ

2. Why maps? • SODA works by constructing and analyzing cognitive maps • The usefulness of cognitive mapping has gained currency during the last twenty years • Bryant J (1984) Modelling alternative realities in conflict and negotiation. Journal of the Operational Research Society35(11): 985-993 • Langfield-Smith K (1992) Exploring the need for a shared cognitive map. Journal of Management Studies29(3): 349-368 • Fiol CM (1992) Maps for managers: Where are we? Where do we go from here? Journal of Management Studies29(3): 267-285 • Kitchin RM (1994) Cognitive maps: what are they and why study them? Journal of Environmental Psychology14(1): 1-19 • Nicolini D (1999) Comparing methods for mapping organizational cognition. Organization Studies20(5): 833-860 • Daniels K, Johnson G (2002) On trees and triviality traps: locating the debate on the contribution of cognitive mapping to organizational research. Organization Science23(1): 73-81 • Tegarden DP, Sheetz SD (2003) Group cognitive mapping: a methodology and system for capturing and evaluating managerial and organizational cognition. OMEGA The International Journal of Management Science31(2): 113-125 • Kane M, Trochim WMK (2007) Concept Mapping for Planning and Evaluation. Sage: Thousand Oaks • the Institute for Human and Machine Cognition, Florida University System, Cmap tools program that ‘empowers users to construct, navigate, share and criticize knowledge models represented as concept maps’ (see http://www.ihmc.us/) • A string of mind mapping gurus have emerged, the most famous being Tony Buzan, the self-proclaimed ‘inventor of mind mapping’ (Buzan, 2002; see also http://www.imindmap.com) • … no matter whether one calls them concept maps, cognitive maps, or mind maps, particular structures have spawned spidergrams, bubble diagrams, logic diagrams, and tree diagrams (to name but a few) Dr. Ion Georgiou FGV-EAESP-IMQ

3. The mapping approach offered by Operational Research • Operational research offers its own version of cognitive mapping: Strategic Options Development and Analysis, or SODA. • What differentiates SODA from other cognitive mapping approaches is its basis in George Kelly’s psychological theory of personal constructs. • Although SODA does not pretend to appropriate Kelly’s theory en masse, it does borrow two key ideas: one theoretical, and one procedural Dr. Ion Georgiou FGV-EAESP-IMQ

4. George Kelly’s theory • Highly developed • Books • Kelly GA (1955/1991) The Psychology of Personal Constructs. 2nd edn. Routledge: London • Kelly GA (1963) A Theory of Personality: The Psychology of Personal Constructs. Norton: London. • Kelly GA (1970) A brief introduction to personal construct theory. In Bannister D (ed.), Perspectives in Personal Construct Theory. Academic Press: London pp. 1-30 • Journals • International Journal of Personal Construct Psychology among others... • Kelly’s central theme is the manner in which human beings understand the world through mental constructs Dr. Ion Georgiou FGV-EAESP-IMQ

5. George Kelly’s theory • Interested in uncovering the meaning behind what we say, and thus minimize ambiguity • He noted that problems tend to be analyzed or interpreted according to the type of analyst one consults: • a Freudian/Jungian analyst will structure and analyze according to Freudian/Jungian principles; • A Behaviorist would most probably analyze the situation and draw conclusions in terms of conditioning • This implies that the frame of reference of the analyst delimits what is perceived, how it is described, and what the ultimate prescription might be • Kelly’s objective was to devise a theory, coupled with an analytical technique, which would remove (as far as possible) the analyst’s frame of reference (i.e. bias), and so undertake problem description and resolution from the client’s point of view Dr. Ion Georgiou FGV-EAESP-IMQ

6. The new role of the analyst • Where once the analyst was seen as some type of specialist in the contents of the mind, s/he would now be appreciated more as a process facilitator specializing in structuring the client’s thoughts as the client sees them • This view of analysis, and of the role of the analyst, underpins SODA • what the client needs is help in structuring complex perceptions so that the client him/herself can then resolve the problem using this structure Dr. Ion Georgiou FGV-EAESP-IMQ

7. Kelly’s basic procedure • Reality, and what we make of it, is constituted by contrasts, rather than absolutes • Any individual understands a phenomenon in terms of constructs • A construct is constituted by a contrast • A person is pleasant • Not pleasant is not a contrast – it is the negative • What is the particular contrast which is being implicitly conveyed? • Pleasant… rude (here, pleasant includes politeness) • Pleasant… exciting (here, pleasant includes placidity: merely pleasant, maybe even a bit boring) • In this way, constructs open up the world of human understanding • Any model structured according to constructs differentiates at least two views of the world • This is useful because in one model we can identify a strategy which leads somewhere as opposed to following another (opposite) strategy which leads somewhere else • we can thus compare and contrast strategies • SODA does exactly this Dr. Ion Georgiou FGV-EAESP-IMQ

8. Understanding Kelly’s basic approach through a contemporary example negative available contrasts Dr. Ion Georgiou FGV-EAESP-IMQ

9. SODA Maps • They represent subjective data meaningfully and transparently through a process of cause and effect • They facilitate decision making, problem solving, and negotiation in organizational contexts • They act as documents of clear argumentation • Visual aid for • comprehending the perceptions of problem owners • discovering otherwise hidden aspects of the problem • Alternative strategies (stemming from thinking in opposites) • Feedback loops (stemming from the network structure of cognitive maps) Dr. Ion Georgiou FGV-EAESP-IMQ

10. [Di]Graph Theory [Social] Network Theory Graph drawing Matrix Theory Cartography SODA maps Epistemology Blockmodeling Graph Mining Psychology Topology Repertory Grids System Theory SODA: Interdisciplinary range • We want a tool that: • Models thoughts • Models choices • Incorporates multiple variable-types • Enables creativity and analysis • Can deal with individuals and teams • Helps attain a degree of disciplinary objectivity Dr. Ion Georgiou FGV-EAESP-IMQ

11. SODA Map • A model of the system of constructs used to communicate the problem • The model has a particular structure • Depending on its position in the structure, a construct may be an option/means/constraint or an outcome/end/objective. • The meaning of a construct is enhanced through its relationship to other constructs Dr. Ion Georgiou FGV-EAESP-IMQ

12. Strategic options, sometimes called strategic directions, are options which have no other options above them in the map, but which are below the outcomes. Model structure Alternative structures are available Outcomes (Head) Strategic options Operational options/constraints (Tail) Note, although the bottom-up structure is recommended, it is not a rule. Dr. Ion Georgiou FGV-EAESP-IMQ

13. Linking constructs • A SODA map is composed of interlinked constructs • The links are arrows • Arrows are positive or negative • Positive arrows have no symbol • Negative arrows have a –ve symbol +ve link - -ve link Dr. Ion Georgiou FGV-EAESP-IMQ

14. Understanding SODA thru SODA Dr. Ion Georgiou FGV-EAESP-IMQ

15. Merged maps • Individual maps structure the understanding of each individual involved in the situation • A holistic appreciation of the group’s understanding requires a merged map • Groups maps may be created by merging individual maps • similar constructs are merged into one • constructs from key members of the group should be retained • a balance of constructs from all members of the group should be present • the facilitator may suggest the addition/deletion of constructs and links Dr. Ion Georgiou FGV-EAESP-IMQ

16. Merging maps Dr. Ion Georgiou FGV-EAESP-IMQ

17. Clusters • Maps consist of interacting constructs • Therefore a map is system of constructs • It is possible to identify groups of constructs within the map – sub-systems of constructs known as clusters • A cluster of constructs is one that refers to a particular issue • Aside from a map being a system of constructs, therefore, a map is also a system of interrelated clusters, each of which addresses a particular issue • Identification of clusters allows one to highlight the main issues of a situation, and the interrelations between them Dr. Ion Georgiou FGV-EAESP-IMQ

18. Unclustered map Dr. Ion Georgiou FGV-EAESP-IMQ

19. Clustered map unclustered constructs negotiative power complexity grid for projects Rep Grid Theory richness constrain Dr. Ion Georgiou FGV-EAESP-IMQ

20. Color-coding clusters Dr. Ion Georgiou FGV-EAESP-IMQ

21. Things to note about clusters • They usually have a head or two • Cluster with numerous heads usually indicate that a more attentive analysis is required • A head may be considered as symbolizing an issue that acts upon the problem situation • They usually have a number of tails that lead into a head • A head of one cluster can act as one of the tails of another cluster Dr. Ion Georgiou FGV-EAESP-IMQ

22. References • RAPW Chapter 2 • Eden (1988) Cognitive mapping. European Journal of Operational Research36(1): 1-13 • Eden C, Jones S (1984) Using repertory grids for problem construction. Journal of the Operational Research Society 35(9): 779-790 • Brown S (1992) Cognitive mapping and repertory grids for qualitative survey research: some comparative observations. Journal of Management Studies29(3): 287-307 • Ackermann A, Eden C, Brown I (2005) The Practice of Making Strategy: A Step-By-Step Guide. Sage: London • Bryson JM, Ackermann F, Eden C, Finn CB (2004) Visible Thinking: Unlocking Causal Mapping for Practical Business Results. Wiley: Chichester Dr. Ion Georgiou FGV-EAESP-IMQ