A Systems Perspective on Organizations and People integrating micro - - PowerPoint PPT Presentation

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A Systems Perspective on Organizations and People integrating micro - - PowerPoint PPT Presentation

A Systems Perspective on Organizations and People integrating micro and macro motives 29 October 2014, Presentation to Business Information Systems Giovanni Sileno g.sileno@uva.nl Leibniz Center for Law University of Amsterdam Preliminary


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A Systems Perspective on Organizations and People

Giovanni Sileno g.sileno@uva.nl Leibniz Center for Law University of Amsterdam

29 October 2014, Presentation to Business Information Systems

integrating micro and macro motives

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  • In this lecture we will present,

introduce and work with models.

Preliminary statement

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Why Modeling? (1)

  • Modeling can guide exploration:

– figure out what questions to ask – reveal key design decisions – uncover problems

e.g. physical models

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SLIDE 4

Why Modeling? (1)

  • Modeling can guide exploration:

– figure out what questions to ask – reveal key design decisions – uncover problems

e.g. conceptual models

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SLIDE 5

Why Modeling? (1)

  • Modeling can guide exploration:

– figure out what questions to ask – reveal key design decisions – uncover problems

e.g. design models

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SLIDE 6

Why Modeling? (2)

  • Modeling can be used to check understanding

– reasoning about the model to understand its

consequences

– checking expectations – animating the model to help us visualize/validate

behaviour (simulation)

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Market Arena – an experiment

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Market Arena – an experiment

  • 15 groups of BIS

students

  • Each group had a

buyer and a seller

  • Three prizes: best

buyer, best seller, best trader.

  • All moves possible

(non compliance, informational passing, etc.)!!

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Market Arena – last year experiment

There were also NPC:

– Zero Intelligence

(ZI): random pricing

– Zero Intelligence

Plus (ZIP): basic pricing rationality

e.g. buyer, -1 for each

  • ffer received higher than

desired price, +1 for less

– Enforcer

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SLIDE 10

Market Arena – last year experiment The results?

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Market Arena – last year experiment

TOP10 Top buyer Top seller Top trader @5000 @10000 @5000 @10000 @5000 @10000 1 buyer_3B buyer_3B seller_2F seller_2F _2G _3D 2 buyer_3C buyer_3C seller_1E seller_1E _3D zi_4 3 buyer_2B buyer_2B seller_1F seller_1F _2F _2F 4 buyer_2A buyer_2A zip_seller3 zip_seller3 zi_4 _1E 5 buyer_2F zip_buyer9 zip_seller2 zip_seller2 _1E _1F 6 zip_buyer9 buyer_2F zip_seller12 zip_seller12 zip_9 zip_9 7 zip_buyer8 zip_buyer8 zip_seller9 zip_seller9 zip_4 zip_4 8 zip_buyer6 zip_buyer6 seller_1D seller_1D _1F zip_2 9 buyer_1E buyer_1E zip_seller5 seller_3E zip_2 _2G 10 zip_buyer10 zip_buyer10 zip_seller1 zip_seller5 zip_3 zip_3

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Why Modeling? (2)

  • Modeling can be used to check understanding

– reasoning about the model helps us to

understand its consequences

– checking expectations – animating the model helps us to visualize/validate

behaviour (simulation)

  • Modeling can be used as prescription:

– Model actualization

(execution/implementation)

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Why Modeling? (3)

  • Modeling can help in communication

– requires abstractions with the right focus – neglects unnecessary details

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Types of formal models used in organizations

Business process models Knowledge models Statistical models Accounting models

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Types of informal models used in organizations

experts' conceptualizations and knowledge

  • prototypical cases
  • failure modes
  • best and bad practices
  • non compliance

scenarios

  • ...
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M for modeling

source: http://caminao.wordpress.com

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M for modeling

Why? What? How?

source: http://caminao.wordpress.com

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Making sense of reality

VanRoy 2009, Weinberg 1977

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BIS: S as Systems

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Systems

  • A system is a set of interacting or interdependent

components forming an integrated whole. Examples:

– operating systems – biological organisms (e.g. the body) – theoretical systems (paradigms) – organizations...

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Cybernetic view

  • n Organizations
  • Cybernetics is the study of control and

communication in the animal and the machine (Norbert Wiener)

  • The word cybernetics comes from Greek

, meaning κυβερνητική governance, or the art of steering.

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Focus on: Viable Systems

Viable means that the system aims to continue to exist. In case of an artefact, at least until the time when its purpose has been achieved.

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Viable System Model

  • Three main components:

– Operation: responsible

  • f the primary activities.

– Metasystem: hold the

whole thing together.

– Environment, the

  • utside world which is
  • f direct relevance to

the system.

  • cf. Stafford Beer, Brain of the Firm, 1981
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System 1:

Operations

Primary activities,

  • perations, project

teams, quasi- autonomous

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System 2

Connection

Communication, conflict resolution, stabilisation

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System 3

Cohesion

Internal regulation,

  • ptimisation,

synergy

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System 4

Intelligence

Forward planning, strategy, innovation

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System 5

Policy

Ultimate authority, governance, identity

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BIS: B as Business

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A practical example: call center

John Seddon, Systems Thinking in the Public Sector (2011)

  • “A manager of one of the world's largest banking
  • perations told me that if he could reduce the

average handling time in his call centres by 30 seconds he could deliver millions to the bottom line.”

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A practical example: call center

John Seddon, Systems Thinking in the Public Sector (2011)

  • “A manager of one of the world's largest banking
  • perations told me that if he could reduce the

average handling time in his call centres by 30 seconds he could deliver millions to the bottom line.”

  • Common managerial thinking focuses on cost!
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  • consequence
  • f the

position in which management is placed!

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Profit = Income – Cost

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Profit = Income – Cost

Cost covers only half of the picture!

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  • what

happens at the system boundaries?

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A practical example: call center

John Seddon, Systems Thinking in the Public Sector (2011)

  • “A manager of one of the world's largest banking
  • perations told me that if he could reduce the

average handling time in his call centres by 30 seconds he could deliver millions to the bottom line.”

  • Type of value demand questions:

– Can I have a loan? – Can you help me pay the bill?

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BIS: B as Business

  • Business driven by value demand
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BIS: B as Business

  • Business driven by value demand
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BIS: B as Business

  • Business driven by value demand
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BIS: B as Business

  • Business driven by value demand
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BIS: B as Business

  • Business driven by value demand
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BIS: B as Business

  • Business driven by value demand
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BIS: B as Business

  • Business “haunted” by failure demand
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BIS: B as Business

  • Business “haunted” by failure demand
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BIS: B as Business

  • Business “haunted” by failure demand
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BIS: B as Business

misalignment with expectations of the consumers

  • Business “haunted” by failure demand
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BIS: B as Business

misalignment with expectations of the consumers

  • Business “haunted” by failure demand
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BIS: B as Business

  • Business “haunted” by failure demand
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BIS: B as Business

  • Business “haunted” by failure demand

misalignment with legal requirements

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BIS: B as Business

  • Business “haunted” by failure demand

misalignment with legal requirements

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John Seddon, Systems Thinking in the Public Sector (2011)

  • “A manager of one of the world's largest banking
  • perations told me that if he could reduce the

average handling time in his call centres by 30 seconds he could deliver millions to the bottom line.”

  • Type of failure demand questions:

– I don't understand this charge. – Why haven't you paid my direct debit?

A practical example: call center

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John Seddon, Systems Thinking in the Public Sector (2011)

  • “A manager of one of the world's largest banking
  • perations told me that if he could reduce the

average handling time in his call centres by 30 seconds he could deliver millions to the bottom line.”

  • Type of failure demand questions:

– I don't understand this charge. – Why haven't you paid my direct debit?

Is failure demand only a cost?

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SLIDE 53

Market research and marketing practices necessarily take a higher level perspective!

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Missing something: knowledge

  • f people at
  • perations

level.

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Three spheres of activities view

Missing something: knowledge

  • f people at
  • perations

level.

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SLIDE 56

Something is missing...

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Systems conceptualizations: Totality vs Assemblage

  • organicist metaphor
  • components defined by

relations of interiority

  • connections logically

necessary

  • world of necessity
  • symbiosis metaphor
  • components defined by

relations of exteriority

  • connections contextually
  • bligatory
  • world of possibility
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SLIDE 58

Basic assemblage

  • If we take a simple grain of sand..
  • it has a certain structure (mass/volume), forming its

individual shape

  • which is subjected to certain physical laws (among

which the law of gravity)

  • Imagine now to drop grains of sand from the same

fixed position...

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Basic assemblage

  • A pile of sand is a whole,

composed by interacting grains.

  • Its macro-characteristics are a

consequence of the micro- characteristics of the components

  • Landslides occur in critical points, when the

system attempts to go beyond the maximum threshold of the structure

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Assemblage: a characterization

  • Organization from individual to collective entity

requires coordination capacities (ex. the piling up of the grain of sands)

  • Maintenance of the collective entity requires

reparation capacities (ex. the strengthening after landslides)

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Social (human) systems

Human communities can be seen as systems of interacting components (subsystems or system aggregates) defined by structure and behaviour e.g. organizations →

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Social (human) systems

Human communities can be seen as systems of interacting components (subsystems or system aggregates) defined by structure and behaviour e.g. organizations → What is structure of a social system ? What are the components of a social system?

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Going further: Complex Adaptive Systems (CAS)

  • Aggregate behaviour

– A collective behaviour

emerges from the interactions of the parts

  • cf. John H. Holland, Complex Adaptive Systems (1992)
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Going further: Complex Adaptive Systems (CAS)

  • Evolution

– The parts evolve in a

Darwinian fashion: there is a selection, and in general they improve the ability to survive in their interactions with the surrounding parts.

  • cf. John H. Holland, Complex Adaptive Systems (1992)
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Going further: Complex Adaptive Systems (CAS)

  • Anticipation

– The parts develops

rules that anticipate the consequences of certain responses

  • e.g. Pavlov's studies
  • cf. John H. Holland, Complex Adaptive Systems (1992)
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Going further: Complex Adaptive Systems (CAS)

  • Anticipation

– The parts develops

rules that anticipate the consequences of certain responses

  • e.g. Pavlov's studies
  • e.g. Oil, water

shortage

  • cf. John H. Holland, Complex Adaptive Systems (1992)
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Anticipation and teleological thinking: how we model that?

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physical stance interpreting using the physical laws

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physical stance design stance interpretation related to what the entity is supposed to do (i.e. has been designed to do)

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physical stance design stance sometimes it breaks! interpretation related to what the entity is supposed to do (i.e. has been designed to do)

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physical stance design stance intentional stance interpreting an entity as an agent, ascribing him beliefs, desires, intents and enough rationality to do what he ought to do given those beliefs and desires

  • cf. Daniel Dennett, The Intentional Stance (1987)
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physical stance design stance intentional stance interpreting an entity as an agent, ascribing him beliefs, desires, intents and enough rationality to do what he ought to do given those beliefs and desires

  • cf. Daniel Dennett, The Intentional Stance (1987)
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physical stance design stance intentional stance

  • cf. Daniel Dennett, The Intentional Stance (1987)

interpreting an entity as an agent, ascribing him beliefs, desires, intents and enough rationality to do what he ought to do given those beliefs and desires

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physical stance design stance intentional stance

  • cf. Daniel Dennett, The Intentional Stance (1987)

interpreting an entity as an agent, ascribing him beliefs, desires, intents and enough rationality to do what he ought to do given those beliefs and desires

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physical stance design stance intentional stance interpreting an entity as a member of a social collective entity, and ascribing him institutional powers, duties and prohibitions. institutional stance

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Agency

As humans, we tend to think of groups, organizations, countries, cultures and other entities as agents.

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Agentic characterization

Therefore, an agentic characterization (intentional and institutional) provide the key for models of social behaviour

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Agentic characterization

Therefore, an agentic characterization (intentional and institutional) provide the key for models of social behaviour → stories, user cases, hyp. scenarios!

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Views available in narratives

agents have behaved agents usually behave agents should behave How

  • ccurrence

description pattern description normative specification Why

  • ccurrence

explanation behavioural mechanism norm-creating mechanism

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Views available in narratives

agents have behaved agents usually behave agents should behave How

  • ccurrence

description pattern description normative specification Why

  • ccurrence

explanation behavioural mechanism norm-creating mechanism

Our current research concerns a representational alignment of these views.

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Example: occurrence description

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Example: pattern description

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Example: normative specification

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Example: agent-role script

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Views available in narratives

agents have behaved agents usually behave agents should behave How

  • ccurrence

description pattern description normative specification Why

  • ccurrence

explanation behavioural mechanism norm-creating mechanism

Our current research concerns a representational alignment of these views. Why?

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SLIDE 86

Views available in narratives

agents have behaved agents usually behave agents should behave How

  • ccurrence

description pattern description normative specification Why

  • ccurrence

explanation behavioural mechanism norm-creating mechanism

  • Occurrence intepretation, Model-based diagnosis
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SLIDE 87

Views available in narratives

agents have behaved agents usually behave agents should behave How

  • ccurrence

description pattern description normative specification Why

  • ccurrence

explanation behavioural mechanism norm-creating mechanism

  • Occurrence intepretation, Model-based diagnosis
  • Validation of design against environmental models
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SLIDE 88

Views available in narratives

agents have behaved agents usually behave agents should behave How

  • ccurrence

description pattern description normative specification Why

  • ccurrence

explanation behavioural mechanism norm-creating mechanism

  • Occurrence intepretation, Model-based diagnosis
  • Validation of design against environmental models
  • Verification of compliance
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Conclusions

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Conclusions

An adequate computational framework should support an organization in:

  • responding to a problem, testing the case

available data against a database of known scenarios

  • adapting to a problem/opportunity,

transmitting to the designer/policy maker prototypical scenarios not yet accounted

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Conclusions

M

  • s

t

  • f

t h e e c

  • n
  • m

i c , d e c i s i

  • n
  • m

a k i n g t h e

  • r

e t i c a l m

  • d

e l s s t a r t s f r

  • m

c l

  • s

e d

  • w
  • r

l d a s s u m p t i

  • n

. T h e c l

  • s

u r e

  • f

t h e s y s t e m c

  • m

e s b y d e s i g n

  • r

a s s t r i c t a s s u m p t i

  • n

b a s i s f

  • r

a l l a n a l y t i c a l t

  • l

s . → S i m i l a r l y , b u s i n e s s p r

  • c

e s s p r a c t i c e s t e n d t

  • c
  • n

s i d e r t h e h u m a n f a c t

  • r

a n a c c i d e n t r a t h e r t h a n

  • f

a n e s s e n t i a l

  • p

e r a t i

  • n

a l c h a r a c t e r i s t i c

  • f

t h e s y s t e m .

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Conclusions

However

guidance != control

as institutions/organizations influence agents, agents influence institutions/organizations → we need a constructivist approach toward

  • rganizations, i.e. considering that the components

and the environment are adapting as well