This book provides the theoretical background of the Interpretive Structural Modeling (ISM) method as well as detailed instructions for both individual and group use. It does not attempt to teach general facilitation skills, but does provide numerous practical tips for facilitators wishing to use ISM for group decision making sessions.

It can be purchased in the following ways:

• It is included in the Concept Star Professional ISM software and Training Package.
• This book (electronic version) is also included in an inexpensive bundle - Reader+trial version of the Concept Star Professional software. It includes everything that you need to try out the ISM method. The price is refunded when you order any full version.

Book Summary

• Preface
• Table of Contents
• List of Figures
• List of Tables

1. INTRODUCTION 1

WHAT IS INTERPRETIVE STRUCTURAL MODELING (ISM)? 2

Conceptual View of ISM 3

Why does ISM Work so Well? 5

Decision Making Processes 8

Is ISM a Computer Tool? 9

Tools for Ideas and Numbers 10

2. COMPLEX PROBLEMS & SOLUTION FORMING PROCESSES 13

COMPLEX PROBLEMS 13

Information Related Barriers 14

Organizational Barriers 14

APPROACHES TO A SOLUTION 15

Perception Issues 15

Dealing with Perception Issues 15

Dealing with Information Barriers 16

USEFUL GROUP PRACTICES 17

PROBLEM SOLVING ENVIRONMENT 19

Social Environment 19

Physical Environment 20

Problem Solving Steps: 22

3. APPLICATIONS OF INTERPRETIVE STRUCTURAL MODELING 25

ISM AS A TRANSFORM FUNCTION 25

ISM APPLICATIONS & EXAMPLES 27

PERSONAL USES OF ISM 29

Example - Personal Values Analysis 29

STRATEGIC PLANNING WITH ISM 35

The Strategic Planning Process 36

Role of Strategic Planners 38

SCENARIO PLANNING WITH ISM 39

Traditional Method of Scenario Planning 39

ISM Based Scenario Planning 40

ISM & OTHER MANAGEMENT PROBLEM SOLVING TECHNIQUES 43

4. CREATING AN INTERPRETIVE STRUCTURAL MODEL (ISM) 45

INTRODUCTION 45

ISM AND COMPLEMENTARY SKILLS 45

Skills Needed for Group based Application of ISM 46

DESCRIPTION OF ISM STEPS 49

Step 1 - Define the Problem or Issue to be Analyzed 50

Step 2 - Create List of Ideas 58

Step 3 - Research Ideas to Understand Significance 72

Step 4 - Construct the ISM 73

Step 5 - Creating Action Plans 92

5. EXAMPLE - USING ISM FOR BUSINESS RE-ENGINEERING 95

INTRODUCTION 95

EXAMPLE 96

The First Meeting 96

Trial ISM Construction (before the session) 98

Session Planning 99

Session 1 - Idea Generation and Preliminary Screening 107

Session 2 - Construction of ISM 116

Session 3 - Decisions 124

6 ISM AND OTHER MANAGEMENT TOOLS 137

SEQUENCING AND PRIORITIZATION 138

AFFINITY DIAGRAM 140

VENN DIAGRAM 142

PRIORITY STRUCTURE 143

ACTIVITY NETWORK DIAGRAM 145

INTERRELATIONSHIP DIAGRAM 147

CROSS IMPACT TABLE 148

FLOWCHARTS 149

ROOT CAUSE ANALYSIS 151

Fishbone Diagram 152

Impact Map 153

TREE DIAGRAM 154

IMPACT WHEEL 156

INTENT STRUCTURE 157

NOMINAL GROUP TECHNIQUE (NGT) 159

APPENDIX A - EXPLORING HUMAN THINKING 163

VISUAL MAPPING 163

DIVERSITY OF IDEAS 165

APPENDIX B - BACKGROUND AND THEORETICAL BASIS OF ISM 67

BACKGROUND 167

TRANSITIVE LOGIC 167

APPENDIX C - SAMPLE TEMPLATES 169

ADTECH IDEA SHEET 169

PROJECT PLANNING TEMPLATE 170

APPENDIX D - QUESTIONS FOR SESSION FEEDBACK 171
 

APPENDIX E - EXAMPLE ISM APPLICATIONS 175

APPLICATIONS OF INTERACTIVE MANAGEMENT IN PLANNING FOR A UNIVERSITY DEPARTMENT 175

GROUP PROCESSES FOR MAKING PUBLIC EXPENDITURE REDUCTION DECISIONS 177

Application Example 177

A CULTURALLY SENSITIVE APPROACH TO TRIBAL GOVERNANCE ISSUE MANAGEMENT 180

Day 1 - Examine the problems related to tribal governance 180

Day 2 - Generate options to resolve the tribal governance situation 181

Session Outcomes 182

APPENDIX F - SOURCE OF ISM SOFTWARE 183
 

APPENDIX G - EXAMPLE SOLUTION 184
 

GLOSSARY 187
 

INDEX 193
 

REFERENCES 198
 

Figure 1-1: Conceptual View of ISM
Figure 1-2: Fundamental steps to construct an effective ISM
Figure 1-3: Example ISM Voting screen
Figure 1-4: Example Interpretive Structural Model
Figure 1-5: Decision-Making Processes

Figure 2-1: Messy problem involving several groups

Figure 3-1: ISM Transforms Complex Problems into Linear Problems
Figure 3-2: Sandra's ISM
Figure 3-3: Strategic Planning Process
Figure 3-4: Traditional Scenario Planning Process
Figure 3-5: Traditional Scenario Planning with ISM
Figure 3-6: ISM based Scenario Planning with Multiple Uncertainties

Figure 4-1: Facilitation Skills for Team-based ISM
Figure 4-2: Process to create a useful list of ideas
Figure 4-3: Idea Sheets with stickers showing Importance and Lack of Information
Figure 4-4: Scatter-graph of Idea Sheets
Figure 4-5: Example screen used to construct ISM
Figure 4-6: Example Voting Screen for Business Investment Strategy Developement
Figure 4-7: Estimating Time Needed for Voting

Figure 5-1: Outline of Sessions
Figure 5-2: Process Diagram
Figure 5-3: Idea Sheet Flow during Idea Generation Phase
Figure 5-4: Wall Graph of Ideas
Figure 5-5: Voting Screen
Figure 5-6: AdTech ISM

Figure 6-1: Example Venn Diagram
Figure 6-2: Example Impact Wheel

Table 1: Comparison of Operations for Ideas and for Numbers
Table 2: Implementation of Problem Solving Steps
Table 3: Management Tools and their Strengths
Table 4: ISM Applications
Table 5: ISM & Other Problem Solving Techniques
Table 6: Wording the Context
Table 7: Example ISM Control Phrases
Table 8: SWOT template example
Table 9: Action / Implementation Plan template example
Table 10: Template for Feasibility analysis
Table 11: Summary of Ideas for Implementation Planning
Table 12: Implementation Summary
Table 13: Example Cross Impact Table

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