System Dynamics and Balanced Scorecard

Locked
Henk Akkermans
Junior Member
Posts: 14
Joined: Fri Mar 29, 2002 3:39 am

System Dynamics and Balanced Scorecard

Post by Henk Akkermans » Fri Apr 05, 2002 8:03 am

Dear Amarildo,

My colleague Kim van Oorschot and Myself recently wrote a paper on a case
study of using SD to develop a balanced scorecard for a management team in
the insurance sector. It was presented at the SD conference in Palermo and
is called Developing a Balanced Scorecard with System Dynamics. It not only
describes the case, the BSC and the SD model we developed, but also explains
how SD can address several of the shortcomings that most BSC tend to have
until now. I will send you a .pdf version if you are interested.

Best regards,

Henk Akkermans

henk@minase.nl
Minase, The Netherlands




"James L. Ritchie-Dunham"
Junior Member
Posts: 14
Joined: Fri Mar 29, 2002 3:39 am

System Dynamics and Balanced Scorecard

Post by "James L. Ritchie-Dunham" » Wed Oct 02, 2002 10:42 am

Amarildo,



My dissertation looked at the influence of scorecards (financial and
balanced) and enterprise information systems (fragmented and integrated)
on different attributes of mental models and on organizational
performance. It is available on-line at

(
http://www.instituteforstrategicclarity.org/lppubli.htm).

Before you download the 3.0MB file, I will give you a brief overview.
In a SD simulator-based experiment, we had 118 MBA students run a
wireless telecommunications firm. For the mental model, we measured the
subjects understanding of the causal linkages in the system, and where
the subjects focused most of their attention. For organizational
performance, we measured overall economic performance in the short and
long-term. The results indicate that subjects using the balanced
scorecard had a better understanding of the causal linkages in the
business model than did subjects using the financial scorecard. The
scorecard did not, however, significantly influence where subjects
focused their attention. Additionally, better mental models of the
causal linkages led to better long-term performance, but there was no
difference for short-term performance. Where the subjects focused their
attention had a very significant positive influence on both short and
long-term performance.


I would enjoy discussing this topic with you and any others interested.


Sincerely,


Jim

==============================
James L. Ritchie-Dunham, PhD
Executive Director
Institute for Strategic Clarity
56 Maple Street
Wilton, NH 03086-5505 USA
jimrd@instituteforstrategicclarity.org
http://www.instituteforstrategicclarity.org/

chust@monisys.ca
Junior Member
Posts: 14
Joined: Fri Mar 29, 2002 3:39 am

System Dynamics and Balanced Scorecard

Post by chust@monisys.ca » Fri Oct 04, 2002 3:32 pm

Exactly,

To enable any Performance Measurement framework to achieve its objectives of
improving Management Decision making Managers need:
1. to understand what in their System caused the indicator to do what it did
2. what to do in response to the problem without damaging other parts of the
their System.

One of the few methods/tools to do this with a group of people is System
Dyanmics. In Ottawa, DND [Department of Defence] has started using SD to do
exactly this.

Yours,

Gordon Kubanek, P.Eng.
Ottawa Canada
From: chust@monisys.ca
www.TDVglobal.com

Locked