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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
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
Initial Algorithm
Run divisionmodels using
managers'policies
Managers learn
Managersinnovate
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
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
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