Contemporary OR/MS in strategy development and policy-making: some reflections

Abstract

It is now widely accepted that strategy-making and policy development require both rational analysis and an ability to work with insights that are sometimes hard to pin down. Can operational research (OR) contribute to this process in which soft and hard are interwoven? Simon's longstanding distinction between substantive and procedural rationality is helpful in addressing this question. Undoubtedly, OR has made major contributions to strategy development, although there has been a marked tendency to argue for even greater use of substantive rationality. In addition, some soft OR methods are also successfully used in strategy development as ways to provide procedural rationality. Add to this the suggestion of Sagasti that metaphor and language are powerful tools in strategizing, then there is a powerful case for the greater use of OR/management science is strategy development and policy-making.

Keywords:

• strategic planning
• soft OR
• methodology

Acknowledgements

I am grateful for stimulating discussions with Joyce Brown, John Davies, Robert Fildes, Vicky Mabin, Stephen Watson and Mark Westcombe during which these ideas have emerged.