Strategic Options Development and Analysis

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Strategic Options Development and Analysis

• The Principles

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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 Society 35(11) 985-993
• Langfield-Smith K (1992) Exploring the need for a
  shared cognitive map. Journal of Management
  Studies 29(3) 349-368
• Fiol CM (1992) Maps for managers Where are we?
  Where do we go from here? Journal of Management
  Studies 29(3) 267-285
• Kitchin RM (1994) Cognitive maps what are they
  and why study them? Journal of Environmental
  Psychology 14(1) 1-19
• Nicolini D (1999) Comparing methods for mapping
  organizational cognition. Organization Studies
  20(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 Science
  23(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 Science 31(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)

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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 Kellys
  psychological theory of personal constructs.
• Although SODA does not pretend to appropriate
  Kellys theory en masse, it does borrow two key
  ideas one theoretical, and one procedural

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George Kellys 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...
• Kellys central theme is the manner in which
  human beings understand the world through mental
  constructs

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George Kellys 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
• Kellys objective was to devise a theory, coupled
  with an analytical technique, which would remove
  (as far as possible) the analysts frame of
  reference (i.e. bias), and so undertake problem
  description and resolution from the clients
  point of view

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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
  clients 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

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Kellys 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

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Understanding Kellys basic approach through a
contemporary example
negative
available contrasts
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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)

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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

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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

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Model structure
Strategic options, sometimes called strategic
directions, are options which have no other
options above them in the map, but which are
below the outcomes.
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.
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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
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Understanding SODA thru SODA
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Merged maps

• Individual maps structure the understanding of
  each individual involved in the situation
• A holistic appreciation of the groups
  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

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Merging maps
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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

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Unclustered map
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Clustered map
unclustered constructs
negotiative power
complexity
grid for projects
Rep Grid Theory
richness constrain
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Color-coding clusters
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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

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References

• RAPW Chapter 2
• Eden (1988) Cognitive mapping. European Journal
  of Operational Research 36(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
  Studies 29(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