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Mechanism Design for Total Quality Management: Using the Bootstrap Algorithm for Changing the Control Game

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Title: Mechanism Design for Total Quality Management: Using the Bootstrap Algorithm for Changing the Control Game


1
Mechanism Design for Total Quality Management
Using the Bootstrap Algorithm for Changing the
Control Game
  • Petter Øgland
  • Presentation of thesis
  • Oslo, November 27th 2013

2
Plan for presentation
  • Motivation (7 minutes)
  • Problem Critical systems are getting too complex
    to be controllable
  • Possible solution Bootstrap Algorithm (BA), if
    it works as claimed
  • Theoretical model and hypotheses (7 minutes)
  • A game theoretical perspective on total quality
    management (TQM)
  • Interpreting the BA through Monopoly and Genetic
    Algorithms (GA)
  • Testable BA hypothesis The BA is efficient,
    stable and optimal
  • Research method and results (7 minutes)
  • 20 years of action research, three cycles DNMI
    NTAX NTAX/UiO
  • BA hypothesis supported
  • Contributions to theory and implications for
    practice (7 minutes)
  • Use of Monopoly, GA and game theory to strengthen
    BA theory
  • The BA is useful for implementing TQM in complex
    environments

3
Tightly coupled complex systems in crisis
Climate, finance, technology
Three Mile Island accident, Pennsylvania, March
1979
Perrow (1984) Tightly coupled complex systems
should be avoided
...but can we?
Presidents Commission, October 1979 Inadequate
quality assurance
4
Control crisis is followed by control revolution
Information society evolves
How do people handle control crisis in highly
complex environments?
Are they implementing Total Quality Management
(TQM), or are they pretending to do so?
5
80 TQM implementation failure
Explanation FAKE TQM The TQM standards
industry (ISO 9000, CMM, etc) creates a global
network of organised hypocrisy
What is needed REAL TQM The Bootstrap
Algorithm (BA) is a way of developing information
infrastructure (quality control infrastructure)
by cultivation and spreading
6
But are we sure the BA actually works?
  • Nonfalsifiable theory (ideological)
  • It gives the impression of being normative
    (algorithm), but is descriptive (Hanseth
    Lyytinen, 2004), meaning that it is more like a
    metaheuristic than an algorithm (Talbi, 2009
    Luke, 2011)
  • Anecdotal empirical evidence
  • It is based insights from information
    infrastructure development case studies (Hanseth
    Aanestad, 2003)
  • Cannot be tested according to normal scientific
    procedures like comparison of treatment
    laboratory studies
  • It is used as a guideline for doing networks of
    action research on international health
    information systems (Braa et al, 2004)
  • It has so far not been critically investigated
    from a practitioners point of view (i.e. action
    research on the BA itself)

7
Theoretical model and hypotheses
REAL TQM critical theory The organisation
must break loose of false consciousness and
liberate itself from the oppression of the
hypocrisy
Critical theory and game theory Tragedy of the
commons (Hardin, 1968), political activism and
social theory in general can be formulated
through game theory (Binmore, 2009 Elster, 1981
Gintis, 2009).
8
Three levels of TQM game play
9
Cultivating information infrastructure on a
mission to conquer the world
The Health Information System Programme (HISP)
controls and expands itself as a network of
research and development across the world
In the Monopoly game the players control and
expand their assets as a network of real estate
trades and developments across the game board
10
Thinking about the Bootstrap Algorithm (BA) as a
Monopoly strategy
Start with simple, cheap, flexible solution small network of users that may benefit significantly from improved communication with each other only simple practices non-critical practices motivated users knowledgeable users Repeat as long as possible Enrol more users Find and implement more innovative use go to 1 Use solution in more critical cases go to 1 Use solution in more complex cases go to 1 Improve the solution so new tasks can be supported go to 1
Hanseth Aanestad (2003)
11
Thinking about the Bootstrap Algorithm (BA) as a
Genetic Algorithm
Frayn (2005) uses the GA as a Monopoly strategy
when studying the game by computer simulation
Genetic Algorithm (GA) (Holland, 1995)
12
RH The BA is an optimal mechanism design for
implementing TQM
RH2 The BA is efficient
RH The BA is an optimal mechanism design for
implementing TQM
RH3 The BA is optimal
RH1 The BA is stable
13
Canonical Action Research (CAR)
  • The research process was not originally designed
    as CAR, but CAR is useful for explaining how
    things were done
  • Twenty years of TQM implementation by trying to
    bootstrap the information infrastructure
  • Three cycles (DNMI NTAX NTAX/UiO)

14
First cycle 1992-99 Det Norske Meteorologiske
Institutt (DNMI)
  • Diagnosis Complexity made project management
    based on water-fall model unsuccessful in
    developing Climate Database (KLIBAS)
  • Treatment Complex adaptive systems (CAS) was
    used to define a BA that proved successful for
    developing and improving KLIBAS in the context of
    TQM implementation
  • Outcome Formulation of BA and experience from
    using it

15
Second cycle 1999-2005 Skatteetaten (NTAX)
  • Diagnosis Strong elements of fake TQM in a
    world of bureaucracy, politics and complexity
  • Treatment The BA approach developed at DNMI was
    able to change fake TQM into real TQM but
    ultimately failed
  • Outcome Need to investigate why the what gets
    measured gets done idea, as used in the BA
    design, did not give expected results

16
Third cycle 2006-2011 Collaborating with UiO for
creating change at NTAX
  • Diagnosis The what gets measured gets done
    idea did not work among COBOL programmers at NTAX
    as there was lack of management commitment to TQM
  • Treatment Improve the audit process by being
    more specific in the formulation of the audit
    game, which helped, but in the end the process
    failed
  • Outcome The importance of having game theoretic
    representations of the social theories used when
    studying BA through action research

17
BA stability hypothesis (RH1)
Size of population (improv. projects)
THIRD CYCLE
FIRST CYCLE
SECOND CYCLE
18
Outcome of hypothesis test (RH1)
RH2 The BA works
RH The BA is an optimal mechanism design for
implementing TQM
RH3 The BA is optimal
RH1 The BA is stable
19
BA impact hypothesis (RH2)
  1. Opening Get involved in as much and as diverse
    TQM work as possible (random)
  2. Property trading Hamlet game, Pac-Man game,
    what gets measured gets done game,
    self-protection game
  3. Property development Deconstruction game
  4. Endgame Auto-pilot

20
Outcome of hypothesis test (RH1 RH2)
RH2 The BA works
RH The BA is an optimal mechanism design for
implementing TQM
RH3 The BA is optimal
RH1 The BA is stable
21
BA optimality hypothesis (RH3)
  • Usually 3-5 years to implement TQM, following the
    CSF (Hendricks Singhal, 2001)
  • When using the BA to compensate for not being
    able to meet CSF, this study suggests 25 years to
    implement TQM
  • At Toyota it took 50 years (Liker, 2004)

By following optimal strategy it should
take about 25 years to implement TQM at NTAX?
22
Outcome of hypothesis test (RH RH1 RH2 RH3)
RH2 The BA works
RH The BA is an optimal mechanism design for
implementing TQM
RH3 The BA is optimal
RH1 The BA is stable
23
Contribution to knowledge 1 Monopoly as a model
of II dynamics
Kernel theory
Kernel theory
Old knowledge
New knowledge
24
Contribution to knowledge 2 The BA as a Genetic
Algorithm (GA)
Design theory
Old knowledge
New knowledge
Kernel theory
Design theory
25
Contribution to knowledge 3 Use of game theory
in action research
3. Testing of treatment Positivist attitude
1. Diagnosis Phenomenological attitude
2. Finding a treatment Mathematical analysis
of the game model
26
Implications for practice
Self-oppression through capitalist consumerism
FAKE TQM
REAL TQM
Emancipation by academic idealism
27
Summary of presentation
  • Motivation
  • Problem Critical systems are getting too complex
    to be controllable
  • Possible solution Bootstrap Algorithm (BA), if
    it works as claimed
  • Theoretical model and hypotheses
  • A game theoretical perspective on total quality
    management (TQM)
  • Interpreting the BA through Monopoly and Genetic
    Algorithms (GA)
  • Testable BA hypothesis The BA is efficient,
    stable and optimal
  • Research method and results
  • 20 years of action research, three cycles DNMI
    NTAX NTAX/UiO
  • BA hypothesis supported
  • Contributions to theory and implications for
    practice
  • Use of Monopoly, GA and game theory to strengthen
    BA theory
  • The BA is useful for implementing TQM in complex
    environments
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