Using net benefit analysis to value costs and benefits of re-grouping in organization design

Runar Solberg, Ali Yassine, Nicolay Worren

    Research output: Contribution to conferencePaperpeer-review

    Abstract

    DSM clustering methods and software tools for organization design utilize data about task interdependencies to optimize a solution based on a single grouping criterion: Minimization of coordination costs. At the same time, there may be unwanted side-effects of optimizing based on this criterion alone, such as an increased difficulty of functional learning (e.g., supervision and knowledge exchange among functional specialists). The challenge is that it has so far been difficult to quantify and analyze such additional criteria, which may be qualitative. In this paper, we consider whether the “net benefit” method from medicine can be utilized to bring together qualitative and quantitative criteria on the same scale and compare both the costs and benefits of alternative organizational structures.

    Original languageEnglish
    Pages39-47
    Number of pages9
    DOIs
    StatePublished - 2023
    Event25th International Dependency and Structure Modelling Conference, DSM 2023 - Gothenburg, Sweden
    Duration: 3 Oct 20235 Oct 2023

    Conference

    Conference25th International Dependency and Structure Modelling Conference, DSM 2023
    Country/TerritorySweden
    CityGothenburg
    Period3/10/235/10/23

    Keywords

    • DSM
    • clustering
    • criteria
    • interdependencies
    • organization design

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