End-User Modeling Improves R&D Management at AgrEvo Canada, Inc

Calvin Sonntag and Thomas A. Grossman
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Calvin Sonntag: 91 Vanderbilt Drive, Winnipeg, Manitoba, Canada R3Y 1M9
Thomas A. Grossman: Faculty of Management, University of Calgary, Calgary, Alberta, Canada T2N 1N4

Interfaces, 1999, vol. 29, issue 5, 132-142

Abstract: The manager of strategic-project planning used spreadsheet modeling and optimization to change the process AgrEvo Canada uses to allocate resources to crop protection and biotechnology R&D projects. We developed a spreadsheet optimization model to show that a perceived bottleneck actually had excess capacity and that all projects could be funded by reallocating resources. To achieve benefits from these insights required resolving political issues rather than solving optimization problems. Descriptive models proved superior to prescriptive optimization results for achieving buy-in. Use of the model led to the shortest and most objective budgeting meeting ever. We brought clarity to a vexing internal debate and helped to retain R&D projects valued at tens of millions of dollars. Managers can effectively apply management science without intervention by management science professionals. End-user modelers are different from expert consultants. Additional field research on end-user modeling is needed.

Keywords: research and development; project selection; professional; OR/MS philosophy (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (3)

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