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Copyright © 2001,2002 Jim Hines and Jody House Activities Discrete event/agent based/SD hybrids Supply chains Tangible interfaces Molecules of structure Model analysis Distance program in SD Organizational evolution

Copyright © 2001,2002 Jim Hines and Jody House Activities Discrete event/agent based/SD hybrids Supply chains Tangible interfaces Molecules of structure

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Copyright © 2001,2002 Jim Hines and Jody House

Activities

• Discrete event/agent based/SD hybrids• Supply chains• Tangible interfaces• Molecules of structure• Model analysis• Distance program in SD• Organizational evolution

Copyright © 2001,2002 Jim Hines and Jody House 2

Organizational Evolution

Copyright © 2001,2002 Jim Hines and Jody House

Status

• Basic Theory • Simulation environment

– Genetic algorithm + discrete event + SD-type model

– Genetic programming + discrete event + SD-type model

Copyright © 2001,2002 Jim Hines and Jody House

OrgEv: Applications

• Team management• Flavors of the month management• Frequency of promotions• Mergers and acquisitions• Rank-and-fire policies• New companies (punctuated equilibrium)• Specialization• Evolution of (internal) markets

Copyright © 2001,2002 Jim Hines and Jody House

AgendaSD vs. Org Ev

• Theory and algorithm

• Applications• Innovation

• Flavor of the Month Management

• Promotion frequency

Copyright © 2001,2002 Jim Hines and Jody House

SD vs. OrgEv

• You use SD to diagnose and treat poor policies (decision rules)

• You use OrgEv to create an internal environment that breads healthy policies

Copyright © 2001,2002 Jim Hines and Jody House

Agenda

SD vs. OrgEvTheory and algorithm

• Applications

Copyright © 2001,2002 Jim Hines and Jody House

Theory

• Imitation and Bacteria

• Recombination

• Innovation and Mutation

• Algorithm

Copyright © 2001,2002 Jim Hines and Jody House

Recombination

2,146 1,849

Teacher Learner

2,849

Copyright © 2001,2002 Jim Hines and Jody House

Imitation

Pilus

Recipient

Bacteria

Donor

Copyright © 2001,2002 Jim Hines and Jody House

Innovation and Mutation

ACGGCTTCG ACTGCTTCG

Copyright © 2001,2002 Jim Hines and Jody House

Initial Algorithm

Run divisionmodels using

managers'policies

Managers learn

Managersinnovate

Copyright © 2001,2002 Jim Hines and Jody House

Project Model

Copyright © 2001,2002 Jim Hines and Jody House

Learning by Recombination

Teacher (Donor)

Learner (Recipient) 00 0000

111 111

11 1111

Before After

11 0000

Copyright © 2001,2002 Jim Hines and Jody House

Innovation

11 1 111 11 0 111 Flip !

Before After

11 1 111 11 0 111 Flip !

Copyright © 2001,2002 Jim Hines and Jody House

Learning Drift

0 5 10 15 20 25 300

2

4

6

8

10

12

14

16

Generation

Ave

rage

# o

f P

rogr

amm

ers

0 5 10 15 20 25 300 5 10 15 20 25 300

2

4

6

8

10

12

14

16

0

2

4

6

8

10

12

14

16

Generation

Ave

rage

# o

f P

rogr

amm

ers

Copyright © 2001,2002 Jim Hines and Jody House

Learning Drift and Random Consensus

05

1015

2025

020

40600

5

10

15

GenerationIndividual

Num

ber

of

Prog

ram

mer

s

05

1015

2025

020

40600

5

10

15

GenerationIndividual

Num

ber

of

Prog

ram

mer

s

Copyright © 2001,2002 Jim Hines and Jody House

Pointing and Pushing Mechanisms

• Corner office

• Badges

• Hierarchy

• Salary

Copyright © 2001,2002 Jim Hines and Jody House

Full Algorithm

Run divisionmodels using

managers'policies

Managers learn

Managersinnovate

Evaluate divisionperformance

Promotemanagers

Copyright © 2001,2002 Jim Hines and Jody House

The Source of Good Policies

05

1015

2025

020

40600

5

10

15

GenerationIndividual

Num

ber

of

Prog

ram

mer

s

05

1015

2025

020

40600

5

10

15

GenerationIndividual

Num

ber

of

Prog

ram

mer

s

Copyright © 2001,2002 Jim Hines and Jody House

Innovation Prevents Premature Consensus

05

1015

2025

0

20

40

0

5

10

15

GenerationIndividual

Num

ber

of P

rogr

amm

ers

05

1015

2025

0

20

40

0

5

10

15

GenerationIndividual

Num

ber

of P

rogr

amm

ers

Copyright © 2001,2002 Jim Hines and Jody House

AgendaSD vs. OrgEvTheory and algorithm

• ApplicationsTeam promotion

• Specialization *

Copyright © 2001,2002 Jim Hines and Jody House

Team Algorithm

Run divisionmodels using

managers'policies

Managers learn

Managersinnovate

Evaluate divisionperformance

Promotemanagers

Mix teams

Copyright © 2001,2002 Jim Hines and Jody House

The Landscapes

Copyright © 2001,2002 Jim Hines and Jody House

Performance of Teams

Copyright © 2001,2002 Jim Hines and Jody House

Teams:

Should we worry about team size or the number of teams?

Copyright © 2001,2002 Jim Hines and Jody House

Team Promotion

20 runs each0 20 40 60 80 100

6

8

10

12

14

16

Generation

Ind

ivid

ua

l

10 Teams in Population of 50

0 20 40 60 80 1006

8

10

12

14

16

Generation

Ind

ivid

ua

l

5 Teams in Population of 50

0 20 40 60 80 1006

8

10

12

14

16

Generation

Ind

ivid

ua

l

2 Teams in Population of 50

0 20 40 60 80 1000

5

10

15

Generation

Indi

vid

ual

1 Team in Population of 50

0 20 40 60 80 1006

8

10

12

14

16

Generation

Ind

ivid

ua

l

25 Teams in Population of 50

20 Runs

Copyright © 2001,2002 Jim Hines and Jody House

Final Policy

0

2

4

6

8

10

12

14

16

0 5 10 15 20 25 30

# of Teams in Population of 50

Fin

al P

olic

y

Final Policy

0

2

4

6

8

10

12

14

16

0 5 10 15 20 25Teamsize for 5 Teams in Population

Fin

al P

olic

y

Copyright © 2001,2002 Jim Hines and Jody House

AgendaIntroductionMotivationTheory and algorithm

• ApplicationsTeam promotionSpecialization

Copyright © 2001,2002 Jim Hines and Jody House

• Practice group in medium-sized law firm

• Believe the law is becoming so complex that no one know it all

• Solution: specialization

• Initial approach identify areas of the law and have people “sign up”

The Situation

Copyright © 2001,2002 Jim Hines and Jody House

Progress after Ten Years …

• Nix

• Zip

• Nil

• Zilch

• Nothing

• Naught

Copyright © 2001,2002 Jim Hines and Jody House

Requirement and consequence

• Required: Community of specialists (Min of 5 people per specialty?)

• Consequence: Firm is changing dimension of specialization to one that has only three categories

Copyright © 2001,2002 Jim Hines and Jody House

Kinds of Speciation

XAllopatricSympatric

Copyright © 2001,2002 Jim Hines and Jody House

Sympatric SpeciationProcesses

• Frequency dependent selection

• Sexual selection

Copyright © 2001,2002 Jim Hines and Jody House

Passing along benefits in an ecology: The Bucket Brigade

Finderpoints

FinderBidOnWork

fractionBid

Minder/Grinderpoints 0

Drafterpoints 0 0MinderBid

OnWork 0Drafter Bidon Work 0 0

paymentForWork 0 0

Minder/Grinderpoints 1 Drafter

points 1 0MinderBidOnWork 1

Drafter Bidon Work 1 0

paymentForWork 1 0

Drafterpoints 0 1Drafter Bid

on Work 0 1paymentForWork 0 1

Drafterpoints 1 1Drafter Bid

on Work 1 1paymentFor

Work 1 1

Copyright © 2001,2002 Jim Hines and Jody House

Summary and Reflections