The Systems Approach to Problem Solving

Characteristics of the systems approach: 1) A top-down approach. The well done systems analysis starts with an analysis of the strategy and goals of the project and then proceeds to the specific. 2) A rational, objective basis for analysis. Decisions are based on carefully gathered evidence and analyzed using a logical procedure. 3) Considers a generalized problem including the problem setting. A properly done systems analysis always includes consideration of the problem environment including all stakeholders. 4) Client orientation 5) Index of performance and goals/objectives 6) Importance of Alternatives What do you mean you didnt consider any alternatives? 7) Problem decomposition 8) Normative Analytic Sins (from Jones, Morgan D., The Thinkers Toolkit, Three Rivers Press, 1998) We often begin our analysis by formulating our conclusion. We start at the end! Our analysis focuses on the solution that we intuitively favor. We give inadequate attention to alternative solutions. We tend to focus on the substance (evidence, arguments, conclusion) and not the process of our analysis. Most people are functionally illiterate when it comes to structuring their analysis. We instinctively rely on and are susceptible to biases and assumptions. We tend to stick to untrue beliefs in the face of contradictory evidence.

Simons Model for Decision Making - Decision-making consists of three major phases
1) Intelligence a. Problem Identification and Definition i. What's the problem? ii. Why is it a problem? iii. Whose problem is it? 2) Design a. Problem Structuring i. Generate alternatives ii. Set criteria and objectives iii. Develop models and scenarios to evaluate alternatives iv. Solve models to evaluate alternatives 3) Choice a. Solution i. Determine the outcome of chosen alternatives ii. Select best alternative H.A. Simon. 1960. The New Science of Management Decision. Harper and Row, NY. Newell, A., & Simon, H.A. (1972). Human Problem Solving. Prentice-Hall, Englewood Cliffs, NJ.

The Systems Approach to Problem Solving

STEP ONE: Determine Goals of System
The systems analyst must expect to engage in a dialogue with the client to arrive at a suitable statement of a large-scale system problem. a. Define the Overall Problem. Be certain to generalize the question. Determine the scope and purpose of analysis being certain to distinguish symptoms from problems. b. Describe the Current Situation. Decompose the system into components As Is. Develop descriptive scenario understand the competitive, regulatory and technical environment. Do background research use the library! c. Analyze the Current Situation find opportunities for improvements. d. Describe the New and Improved System To-be. This should include goals, constraints and requirements for the new system. e. Validate findings with stakeholders.

STEP TWO: Establish Criteria for Ranking Alternative Candidates

Bottom line: If its not measurable, its not worth doing. a. consider process performance criteria b. consider product/output performance criteria c. consider economic criteria

STEP THREE: Develop Alternative Solutions

The client often has great difficulty with goal development and with the establishment of performance criteria, yet it is the analyst who often resists the development of alternative solutions. a. Creatively Search for alternatives b. Examine combinations of elements c. Assemble elements to form alternative solutions

STEP FOUR: Rank Alternative Solutions

Select among alternatives using one or more of the following: a. Ranking methods pairwise ranking, instinctive ranking b. Scoring or rating methods weighted scoring, AHP, utility theory, decision analysis

STEP FIVE: Iterate

Segment and focus. After ranking the alternative solutions, the analyst can begin a more careful analysis of a smaller, more select group of leading alternatives. A more precise definition of the problem should also be developed for the next iteration. The analyst stops when the cost of an additional iteration exceeds the probable benefit of the added clarification.

STEP SIX: Action

A step-by-step, organized procedure for achieving the clients goals. a. Gantt Chart major project steps with major mileposts defined b. Delineation of constraints, critical incidents, relationships with affected groups, risk assessments and resources required. c. Define responsibilities of major actors. Sign-offs required for cooperating actors. Source: Gibson, J. E., Scherer, W. T., and Gibson, W. F., How to Do Systems Analysis, Wiley, 2007.