On the usability of quantitative modelling in operations strategy decision making

Abstract

Quantitative modelling seems admirably suited to help managers in their strategic decision making on operations management issues, but in practice models are rarely used for this purpose. Investigates the reasons why, based on a detailed cross‐case analysis of six cases of modelling‐supported strategic decision making. In several of these cases, effective strategic decision making was achieved despite unfavourable technical contingencies, such as a lack of quantitative data, or low tangibility of the issue at stake. This suggests that such technical conditions cannot be crucial for effective model‐based support. However, no case was found where good overall results were achieved under adverse organizational conditions, such as low quality of communication between stakeholders during the modelling/decision‐making process and low ownership with these stakeholders for the resulting model and its implications. This suggests that such organizational contingencies are indeed crucial for effective model‐based support. The modelling method described achieved good communication and ownership by operating in a process‐oriented consulting mode, where client participation in group model‐building sessions played a central role.

Citation

Akkermans, H. and Bertrand, W. (1997), "On the usability of quantitative modelling in operations strategy decision making", International Journal of Operations & Production Management, Vol. 17 No. 10, pp. 953-966. https://doi.org/10.1108/01443579710176924