On the nature of OR: taking stock

Abstract

This paper argues that OR, having reached its maturity, must now play to its strengths. In strategic terms this means competing in those areas where OR's core competences can be brought to bear. Using a competence model it is suggested that OR's core products are (i) the development and implementation of the quantitative, algorithmic ‘smart bits’ and (ii) the ‘helpful ways’ of managing intervention processes. These core products are supported and sustained by three core competences labelled process, analytic, and context. Individuals and small groups of practitioners develop ‘strands of practice’ and larger groups ‘webs of practice’ on the basis of their core competences. It is argued that this is giving rise to the emergence of three archetypes of OR service, namely the OR technical consultancy, the OR process consultancy, and the full service OR consultancy. Both the technical and process consulting are built around ‘strands of practice’ of individuals and find their natural home in small service providers. The full service OR consulting practice, in the past located in internal OR groups, will in the future be located within the large management consultancies, which are capable of managing ‘webs of practice’. The implications for the worlds of OR practice and academia are examined.

Keywords:

• practice of OR
• OR groups
• consulting
• core competences