SUCCESS AND SURVIVAL OF OPERATIONAL-RESEARCH GROUPS - A REVIEW

Operational Research groups were established in private and public sec tor organizations following on from their success supporting the milit ary in the Second World War. In the early years their numbers grew rap idly but by the mid-1970s evidence started to accumulate that they wer e being viewed less favourably. Many organizations chose not to set up OR groups. Established groups were closed down or dispersed to operat ing units in organizations, particularly during the recessionary perio ds. In 1993 following on the closures of some major OR groups in the U K, the Operational Research Society decided to fund research to examin e those factors influencing a group's success and survival. This revie w, which forms part of the research, first examines the history of OR groups in the UK and North America, arguing that in practice they were one of a number of internal organizational consultancies. As such the y were judged by their competitive performance. Despite the intent of the founding fathers of OR many groups found their scope was limited t o mainly tactical problems using analytical model based approaches alt hough there were exceptions that were successful in making major contr ibutions at the strategic level also. Within their chosen fields of ac tivity however many groups flourished whilst some failed. This review presents a comprehensive list of influences on success and survival. T hey include changes in the external environment, together with shifts in managerial style and culture, organizational factors, and the OR gr oup itself. The review concludes that, while OR groups can do much to protect themselves from closure, organizational changes within a hosti le managerial culture demand a creative response that acknowledges new requirements. Areas where an OR group has greatest influence over its effectiveness include its leadership and personnel, project balance a nd management. In addition, to be successful OR groups need to positiv ely develop and market their services in an increasingly competitive m anagerial climate.