Executive knowledge, models and learning

Over the last decade modelling and simulation have come of age, extending their influence beyond the mind and desktop of the analyst into the boardroom and the mental models of managers. In the past, business computer models were thought of as technical tools for tightly structured problems of prediction, optimization, or financial planning. But increasingly models are seen to have a different and more subtle role as instruments to support strategic thinking, group discussion and learning in management teams. In this respect they are quite similar to qualitative problem structuring approaches used by strategy advisers and process consultants. In the paper, models are described in terms of three attributes that support different cognitive and group processes in management teams. Models can be viewed as maps that capture and activate knowledge. They can also be viewed as frameworks that filter and organize knowledge. Finally, they can be viewed as microworlds for experimentation, cooperation and learning. The paper explains how the modelling process fits into conventional management team meetings, and then contrasts the value chain methodology and system dynamics in order to illustrate the variety of group and cognitive support provided by different maps and frameworks.