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A theoretical and empirical Approach: Multiple CasesOctober, 2001
Ignacio J. MartinezDecision and Policy Sciences
Modeling and Simulation TrackSystem Dynamics Group
University at Albany
Helping to uncover Organizational Intelligence: Understanding the Structure that drives the Dynamics of Best Practices.
Interesting Questions Who gets to say what practices are the
“best” practices, when, and how. How do these practices “make it” to
become in-practice best practices and eventually “standard” practice.
If a certain practices “evolves” into a best practice and then into standard practice who gets to govern it(them) and how? (and perhaps enforce them if necessary?)
Projects Best Practices: A
constructivist approach
A Professional Organization case. (System Dynamics Society)
Best Practices: An implementation approach
A small private health service case. (Adirondack Oral & Maxillofacial Surgery)
Best Practices: A structural approach
Theory building Best Practices: A
standard making approach
The establishments of international standards in the regulation of financial markets
General View
Governing Structure
Regulatory Committee
Regulatory Area in Org
Operational Area in Org
Legislative
Regulatory Agency
Regulatory Area in Financial Institution
Traders
Model Sectors of Best Practices Model (Knowledge1)
Human Resources
Novices Intermediates Experts Promotion Training Mentoring Culture Values
Projects
Projects Networks Insight
generation Insights
transfer Methods Knowledge
utilization
Knowledge Management
Identification Elicitation Dissemination Repositories Technology
Knowledge
Learning Forgetting Knowledge
accumulation Knowledge
obsolescence
Insight generation Knowledge transfer within networks
Knowledge transfer among networks
Technical Knowledge to be stored and used
People with different levels of expertise to work in projects
Knowledge accessibility to be used in training and mentoring activities
OperationalKnowledgeLearning Obsolescence
Junior Intermediate AdvancedNew
practitionersJunior
promotionIntermediatepromotion
Advancedretirement
Advanced moving toother fields
Intermediate movingto other fields
Junior moving toother fields
Averageretirement time
Total people inthe field
Growing fraction
SD projects perpeople
Total projects
Fraction of operationalknowledge transferred
Insights perproject
Total insightsPerceived
change of thefield
Effect over insightobsolescence
EOIO f
Time to perceiveTime to become
obsolete
Junior proportion Intermediateproportion Advanced
proportioin
Effect of conflictover migration
ECOM f
Normal migrationfraction
<Advanced movingto other fields>
<Intermediate movingto other fields>
Human resourcerotation index
<Total people inthe field>
Effect of people livingover obsolescence time
EPLOKL f
Avg time to becomeobsolete
<Junior moving toother fields>
JuniorProductivity
IntermediateProductivity
AdvancedProductivityJunior
Productivity rateIntermediate
productivity rateAdvanced
productivity rate
Intermediateproductivity loses
Juniorproductivity loses
Average Juniorproductivity
Average intermediateProductivity
Average Advancedproductivity
Advancedproductivity loses
Productivity initial
<Junior moving toother fields>
<Intermediate movingto other fields>
JuniorContribution
IntermediateContribution
AdvancedContribution<Average Advanced
productivity>
<Average Juniorproductivity>
<Average intermediateProductivity>
<Juniorproportion>
<Intermediateproportion>
<Advancedproportioin>
Effect of Knowledge oninsight generation
Insight normal
EKIG f
Core Knowledge
NormalizedKnowledge
Normalizedperceived change
<CoreKnowledge>
<OperationalKnowledge>
Core to totalknowledge ratio
Probability ofconflicting approaches
Weight on Core tototal ratio
Best Practices Model
Importance Best Practices
How are they generated Who gets to pick them Why do they pick them and how How are they implemented How are they transferred across
organizations and sectors. (public, private, professional, industrial, services, etc)
A Small Health Care Practice Case: Adirondack Oral & Maxillofacial Surgery
Modeling the Impact of Knowledge-Based Innovations (Best practices implementation) in the Health Care Sector
Purpose… This study is set up to generate an
endogenous dynamic theory of the behavior of a small health care practice centered in innovations implementation, customer value, service quality, and community relationships.
Questions to be answered 1.What systemic structure is
conditioning the behavior of the system?
2.Does the structure that we have right now can deliver what we want in the future?
3.What future can we expect if we do nothing but the same?
Methodological Approach The health care model will be
approached using SD (System Dynamics) as the base approach to generate a dynamic hypothesis of the behavior and the University at Albany’s Group Modeling Techniques will be used.
Overview of the System Dynamics
Modeling Approach [Adapted from (Richardson and
Pugh 1981)]
ModelFormulation
Problem Identificationand Definition
SystemConceptualization
Model Testing andEvaluation
Model Use,Implementation, and
Dissemination
Design of LearningStrategy / Infrastructure
Understandings of theproblem and the system
Understandings ofthe Model
Products to generate 1. Structural Understanding of the
elements that causes the behavior of the practice.
2. Dynamic Understanding of the practice. 3. A transitional learning object to connect
efforts across the organization and to enhance the practice’s strategic planning capabilities through policy testing.
Human Factor
• Administrative staff
• Doctors
• Skills & Knowledge
• Stress & Motivation
• Training
• Performance Measurement System
• Culture
Financial
• Cash flow
• Investments
• Profitability
• Sustainability
Operations
• Administrative and operational standards
• Capacity
• Quality of Service
• Resource Load Balance
Community
• Patients
• Families, relatives, and friends
• Referring Doctors
• Insurance Companies
• Professional Assoc.
• Reputation and trust
• Brand recognition
Knowledge-BasedInnovation Projects
• Change Programs
• Administrative improvement
• Doctors involvement
• Intensity of projects
• Intelligence generation
Model Cash at handCash In Cash out
Income
+
Total Number ofProcedures/quarter
+
Patientsincoming patients
Fixed operatingcosts
Completion ofPatients
SatisfiedPatients
Reputationand Trust
Effect of Reputationand Trust
Variable operatingcosts
Unhappy patients
word of mouth
ReferingDoctorsNet Increase in
Referal Base
UnsatisfiedPatients
Total Number ofPatients Served
Potential Investmentin Capacity
Capacity
Net Reputation andTrust ChangePatients per unit of
capacity
bad word ofmouth
Reputation and TrustNormalized
Actual Investment
Expectations for the future Visually and
emotionally understand the interconnectedness of the system.
Generate a shared vision of the structure and purpose of the practice.
Express their perceptions of how their work affects to the whole.
Accomplishments Employee awareness of their
individual impact has increased. General impact captured in the
first model. Behavior generated useful to
identify the important sectors up to now.
Future Directions What to explore further? (In group)
Dynamics (Behavior) Structure
Grow the scope Grow the detail
Data Soft. Qualitative assessment Hard. Quantitative measurements
Projects Best Practices: A
constructivist approach
A Professional Organization case. (System Dynamics Society)
Best Practices: A standard making approach
The establishments of international standards in the regulation of financial markets
Best Practices: A structural approach
Theory building Best Practices: An
implementation approach
A small private health service case. (Adirondack Oral & Maxillofacial Surgery)
Pieces… International
Professional Organization
International Services Organization
Theoretical Model Empirical Model
of Implementation
A possible new approach? How to uncover Organizational Intelligence: Understanding the Structure that drives the transformation of Best Practices into Standards of Practice. (??)
Assumption: Assuring (through standards) that the organization practices (doing) the “best” practices (knowledge) closes the knowing-doing gap and leads to intelligent behavior influencing successful outcomes.