Dr David Lane

For students taking the MSc Management and Strategy, MSc International Management, MSc Management, Organisations and Governance, MSc Economics and Management, MSc Management  Science and MPA Programme (all streams), and MSc Public Policy and Administration. Only in exceptional circumstances may students taking OR431 take this course and this is subject to approval by the teacher responsible. Students are required to obtain permission from the teaching department to take this course.

Pre-requisites are a sound understanding of algebraic and functional relationships as well as comfort with the use of elementary differential equations and the practical use of computer packages.

The course provides an introduction to the form of systems thinking called system dynamics. The emphasis is on the creation and use of strategic models which allow the rigorous testing of different policies to understand the behaviour of organisations over time.

The course treats the following subjects: the core concepts of system dynamics and its intended contribution to management thinking, the symbols and conventions of causal loop diagramming, creating causal theories with CLDs, the benefits of simulations models, iconography for strategic modelling, managerial applications of strategic modelling.

The first half of the course introduces the causal feedback thinking at the centre of system dynamics and shows how this qualitative modelling approach can add clarity and precision to strategic debates. In the second half of the course the benefits of fully specified and parametrised simulation models are then described using a range of examples and students are expected to explore and experiment with quantitative computer models using 'state of the art' simulation software with a graphical interface.

This course concentrates on the use of pre-built simulation models and the contribution that they can make to management. It therefore compliments the course OR431 System Dynamics Modelling which gives greater emphasis to the process of model building and which offers a broader range of examples from business, public-policy making, epidemiology/ecology and elsewhere. Non IMEX students may take either or both courses, subject to their specific degree requirements, the respective course restrictions, and the approval of the teacher responsible.

Two sessions per week (normally alternating lecture then class, some of these classes being held in computer rooms) for the 10 weeks of MT.

D. H. Meadows, Thinking in Systems: A primer, Earthscan; D. Sherwood, Seeing The Forest For The Trees: A manager's guide to applying systems thinking, Nicholas Brealey; G P Richardson (Ed), Modelling for Management; J A M Vennix, Group Model Building: facilitating team learning using system dynamics; J D W Morecroft & J Sterman, Modelling for Learning Organizations; J W Forrester, Industrial Dynamics; P M Senge, The Fifth Discipline; various research papers from the LSE Library offprints collection.

The course is examined by two pieces of individual course work.

These involve the following general areas and mark weightings: explanation and policy intervention using causal loop diagrams (50%) and analysis of the managerial implications of a simulation model in the form of a management report (50%).

For the first assignment students will be expected to choose their own policy issue to explore with CLDs.

For the second assignment students may use one of the examples on the course or explore some other application of system dynamics. For both assignments the student choices are subject to approval by the teacher responsible.

These pieces of work are made available at the mid-point and then towards the end of the course, with appropriately staged hand-in dates, the last being on the first day of LT.