Amity Global Business School , Singapore

Problem StructuringMethodsSubmitted By :-Rajat Gupta , Batch – Charlie

Given By:-Prof.Kumar

Pro b l e m St r u ctu r i n g and P r o b l e m Stru c turi n g M e thods

What is Problem Structuring?1. Problem Structuring Methods are a broad

group of approaches that are used to handle a problem.

2. Its purpose is to assist in structuring a problem instead of directly solving it .

3. These methods are Participative and Interactive in Nature.

Ways to Structure the Problems?1. There are two approaches used in

Problem Structuring :- a.Hard OR – Thisthe classical, traditional and old method.b.Soft OR – This is the modern approach which

aims at applicability of technique rather than correctness of the technique.

2. Here in this assignment we will be using Soft OR because of the following reasons:- Tangible Easy to Explain Easy to Use

Soft OR Techniques?

SoftOR

Techniques

StrategicOptions

Develop ment andAnalysis

(SODA) Soft

SystemsMethodolo

gy(SSM)

StrategicChoice(SC)

Example (Hypothetical Situation) :

Traffic Jam is a major problem in Delhi. With theIncreasing income and standard of living of the citizens , the so called Status symbol “CARS” havemultiplied in a large no. Delhi Government is spending millions of Rupees on Public Transport like buses , DMRC(Delhi Metro Rail Corporation) ,Autos, taxis but there is no ease in traffic Movement . On the Contrary , the conditions have been worsen . Keeping in mind the scarcity of land availability and accessibility ,according to me theonly way to solve this problem is “CON S T R U C T I O N OF B RI D G ES ”.Assumption :: While finding the Problem structuring method in this assignment we have to keep in mind the Problem i.e. traffic jams and solution i.e. Contruction of more Bridges.

In the Assignment , all the Soft OR techniques will be explained in detailed along with the example and application of the Hypothetical Situation assumed by us.

FIRST TECHNIQUE:: Strategic OptionsDevelopment andAnalysis(SODA)SODA elicits information from members of thegroup using individual interviews. Suchinformation is represented on cognitive mapswhich shows:-

(1) Concepts that are relevant(2) Linkage between the Concepts

Important Notes :- By concept here I mean a short phrase capturing some idea that should be an action-oriented idea, that is intended to suggest anoption for changingthe situation.

In this concept , we use three dots to separate positive and negative concepts , so that we can capture both concepts in "more Bridges...less few bridges" This is read as "more Bridges rather than few bridges", i.e. "more Bridges as opposed to lessBridges ".

Concepts are linked by arrows, with the direction of the arrow being such that concepts representing options lead to concepts representingoutcomes.For example:

Concepts in maps are generally either:

I. Goals at the head (the top) of the arrow(generally termed as maps), these are things that are self-evidently regarded as "good things”

II. Options being at the tail (the bottom) of the map

As an example we show below a small map based onour Traffic jam example given above. We can see that the goals (at the top of the map) is "Less Traffic jams" .

In the above the strategic options is "more bridges.” As for all problem structuring methods the aim

of SODA is to achieve understanding/agreement within the group.

SECOND TECHNIQUE:: Soft Systems Methodology (SSM)SSM operates by defining systems of purposeful activity (the root definition), building models of a number of relevant systems, and comparing these models to the real world action going on, in order tostructure a debate focusing onthe differences.

There are seven stages in the SSM process, but they are not necessarily followed in a linear fashion :-

A. Stage 1 & 2 : Finding OutThis stage entails entering the problem situationand identifying withinit:

People - essentially all those with an interest in the system or who are likely to be affected by changes to it . For e.g. in our example the Population residing in Delhi and the Government are the “PEOPLE”

Culture - social roles, norms of behaviour,values. For e.g. in our example “CULTURE” can be Government Policies regarding Vehicles , Nearby Area development when bridges are constructed , and problems faced by the local residents by constructions of the bridges in their locality.

Politics - Commodities of power and how theyare obtained, used, preserved and transmitted.

B. Stage 3: Developingroot definitions

SSM requires one or more root definitions to bestated. These are sentences which describe the ideal system (or subsystems within the overall system). This is done by classifying the elements into following heads:-C - CustomerA - ActorsT - Transformation processW - Weltanschauung or worldviewO - ownerE - environmental constraints

Now in reference to our hypothetical example ,below are the basic elements that are classified into various heads namely :-

R o ot D e f i n ition : - The Bridge system is a system for ensuring smoother flow of traffic and hence leading to less traffic jams .

C - customer – SocietyA - actors – State Government and PrivateConstruction companies. T - transformationprocess – need to make more bridges to linktwo different places so that the trafficproblem can be minimised.W - Weltanschauung - desire to smoothen andregularise traffic movement in the city by construction of more bridges.O - Owner –Government or Private Construction CompaniesE - environmental constraints – Beauty of near by locality is affected , initially the local residents of the construction sites may be against because it would create hastle on theirdaily lives .

C. Stage 4: Building Conceptual Methods In this Step , A root definition is

developed with links connecting them Next , Verbal Definitions and Statements are used to define the

Root Definition. These activities are linked according to

logical dependencies by an arrow going from X to Y , and Y is dependent on X .

Like in our example - “X” is Traffic Jam Problem where as “Y” is construction of bridges . According to the above mentioned theory Construction of bridges is directly linked with Reduction of Traffic Jam.

The model should contain a monitoring and control subsystem which monitors:

The effectiveness of the system (is this the right thing to do?)

The efficacy of the system (does it work?) The efficiency of the system (does it use the minimum

resources necessary?)

In reference to our example , following are the points which denote effectiveness , efficacy , efficiency :-

Identify appropriate Traffic Congested Locations.

Identify Financial Needs .

Identify Resources to be needed.

Identify appropriate support at end from

Government.

Ultimately as the bridges get constructed in Congested Areas ,it will lead to smooth flow of traffic.

D. Stage 5 : Comparing Models with the real World

This stage involves comparing the models thathave been developed with the real world. The most systematic way to do this is by ordered questions, namely for each and every activityandlink in the model ask the questions:

Does this happen in the real situation? How? By what criteria is it judged? Is it a subject of concern in the current situation?

In reference to our example , we might identify that we are not focussing much on “Finding out the areas that get congested due to traffic jams”

E. Stage 6 : Identifying changes This stage involves identifying changes that could be made to the

real world system, changes that appear, to those participating in the SSM process, as worth trying. The changes need to be systematically desirable and culturally feasible.

With reference to our model above for examplewe might identify putting more resources intofinding out the areas that get congested and ultimately traffic Jams.

F. Stage 7 : Taking action This stage involves putting into practice

the most appropriate changes identified inthe previous stage.

THIRD TECHNIQUE :: STRATEGIC CHOICE (SC)SC identifies four modes of decision-making activity:

Shaping - considering the structure of the decision problems

designing - considering possible courses of action

Comparing - comparing possible courses of action

Choosing - choosing courses of action

with the facilitator identifying when to switch between modes, which are not followed in a linear fashion, but are switched between as appropriate.A key theme underlying SC is the identification of uncertainty areas.

A. Now we will discuss Uncertainty Areas in DetailIn total there can be three types of UncertainityAreas namely

Uncertainty about the working Environment (UE), reduced by a technical response.

Uncertainty about guiding Values (UV), reducedby a political response. Uncertainty about Related decision fields (UR), reduced by an

exploration of structural relationships.

Shaping mode In the shaping mode decision areasare identified as questions. These are simply areas where alternative courses of action are possible (i.e. a choice is possible). These decision areas are then presented on a decision graph.

DesigningmodeIn the designing mode we take each problemfocus in turni.e. :-

I. List a small number (say two to five) of mutually exclusive

possible courses of action (options) ineach of the decision areas

II. List incompatible options in different decision areas (note all options in the same decision area are incompatible as they are mutually exclusive), this can bedone graphically if so desired using an option graph

III. List (enumerate) all possible feasible decision schemes where a feasible decision scheme consists of one option from each of the decision

areas and none of the options chosen are incompatible.

For our Traffic Jam example with the problem focus based on the areas:

o Build more Bridges?o Impose High Taxes on Private Vehicles?o Concessions on travelling in Public Transport?

Comparing ModeIn the comparing mode we compare each of thefeasibledecision schemes. This is done by:

identifyingcomparison areas and

within each area assigning each feasible decision scheme a value.

Like in our example of Traffic Jam wecould compare our feasible decisionschemes with respect to the comparisonareas of:

o Capital cost (in £'million terms)o Running cost (in £'million terms)o Acceptability to government.o Acceptability to the public.

Choosing ModeI. In the choosing mode a commitment package (i.e. what

we are proposing to do) is decided upon (or more than one package for submission to higher authorities). A commitment package is guided by the preferred feasible decision scheme andconsists of: Decisions taken now Explorations to reduce levels of

uncertainty (together with estimatesof resources needed and timescales)

Decisions deferred until later Any contingency plans.