A System Dynamics-Based Simulation Experiment for Testing Mental Model and Performance Effects of Using the Balanced Scorecard

This study develops a theoretical model that explains the effectiveness of the balanced scorecard approach by means of a system dynamics and feedback learning perspective. Presumably, the balanced scorecard leads to a better understanding of context, allowing managers to externalize and improve their mental models. We present a set of hypotheses about the influence of the balanced scorecard approach on mental models and performance. A test based on a simulation experiment that uses a system dynamics model is performed. The experiment included three types of parameters: financial indicators; balanced scorecard indicators; and balanced scorecard indicators with the aid of a strategy map review. Two out of the three hypotheses were confirmed. It was concluded that a strategy map review positively influences mental model similarity, and mental model similarity positively influences performance.

A system dynamics-based simulation

This study develops a theoretical model that explains the effectiveness of the balanced scorecard approach by means of a system dynamics and feedback learning perspective. Presumably, the balanced scorecard leads to a better understanding of context, allowing managers to externalize and improve their mental models. We present a set of hypotheses about the influence of the balanced scorecard approach on mental models and performance. A test based on a simulation experiment that uses a system dynamics model is performed. The experiment included three types of parameters: financial indicators; balanced scorecard indicators; and balanced scorecard indicators with the aid of a strategy map review. Two out of the three hypotheses were confirmed. It was concluded that a strategy map review positively influences mental model similarity, and mental model similarity positively influences performance.

A Feedback Learning and Mental Models Perspective on Strategic Decision Making

This study aims to be a contribution to a theoretical model that explains the effectiveness of the learning and decision-making processes by means of a feedback and mental models perspective. With appropriate mental models, managers should be able to improve their capacity to deal with dynamically complex contexts, in order to achieve long-term success. We present a set of hypotheses about the influence of feedback information and systems thinking facilitation on mental models and management performance. We explore, under controlled conditions, the role of mental models in terms of structure and behaviour. A test based on a simulation experiment with a system dynamics model was performed. Three out of the four hypotheses were confirmed. Causal diagramming positively influences mental model structure similarity, mental model structure similarity positively influences mental model behaviour similarity, and mental model behaviour similarity positively influences the quality of the decision.

A Feedback Learning and Mental Models Perspective on Strategic Decision Making

This study aims to be a contribution to a theoretical model that explains the effectiveness of the learning and decision-making processes by means of a feedback and mental models perspective. With appropriate mental models, managers should be able to improve their capacity to deal with dynamically complex contexts, in order to achieve long-term success. We present a set of hypotheses about the influence of feedback information and systems thinking facilitation on mental models and management performance. We explore, under controlled conditions, the role of mental models in terms of structure and behaviour. A test based on a simulation experiment with a system dynamics model was performed. Three out of the four hypotheses were confirmed. Causal diagramming positively influences mental model structure similarity, mental model structure similarity positively influences mental model behaviour similarity, and mental model behaviour similarity positively influences the quality of the decision

Strategy Lab Experiences: Bathtub Dynamics

As the world changes ever faster, managers increasingly recognize the complexity and turbulence of the business systems in which they are embedded. The management problems are dynamic, while the dynamic complexity comes frequently from few variables with circle and delays interrelations that introduce nonlinearities.The present paper describes a research conducted in Portugal with two different groups - one, academic; the other, professional - where we explored the subjects’ understanding of some basic systems thinking concepts such as stock-flow relationship, feedback processes and time delays.

Scenario Planning and Evaluation of Pricing Strategies in the Portuguese Bulk LPG Market

Portugal has the largest LPG (Liquefied Petroleum Gas) share of primary energy demand in the EU (about 5%). Due to the increasing international cost of LPG in the last years and the high price sensitivity of the consumers the preference for substitute energy sources in new and existing consumers has been increasing. To select the kind of energy, some consumer estimate and compare the total costs while others follow agents (equipment sellers) recommendations. It takes time to build agents perception about the most advantageous source of energy, which is seen as an important resource that drives client resource accumulation and retention. Marketing strategies have to take into consideration some market dynamic effects derived from the accumulation and depletion of these resources. A simple system dynamics model was built, combined with Economic Value Added framework, to evaluate some pricing strategies under different scenarios of LPG international cost.

Scenario Planning and Evaluation of Pricing Strategies in the Portuguese Bulk LPG Market

Portugal has the largest LPG (Liquefied Petroleum Gas) share of primary energy demand in the EU (about 5%). Due to the increasing international cost of LPG in the last years and the high price sensitivity of the consumers the preference for substitute energy sources in new and existing consumers has been increasing. To select the kind of energy, some consumer estimate and compare the total costs while others follow agents (equipment sellers) recommendations. It takes time to build agents perception about the most advantageous source of energy, which is seen as an important resource that drives client resource accumulation and retention. Marketing strategies have to take into consideration some market dynamic effects derived from the accumulation and depletion of these resources. A simple system dynamics model was built, combined with Economic Value Added framework, to evaluate some pricing strategies under different scenarios of LPG international cost.

Balanced Scorecard Dinâmico: Uma Proposta de Modelação da Dinâmica das Organizações

O Balanced Scorecard (BSC) tem vindo a revelar-se um conceito popular como ferramenta de suporte à descrição e implementação da estratégia organizacional. Esta abordagem propõe que os gestores se foquem no desenvolvimento e utilização dum número reduzido de indicadores críticos de desempenho, financeiros e não financeiros, que combinam diferentes disciplinas e perspectivas da organização e que estão articulados numa cadeia causal que explica de forma consistente o desempenho futuro de acordo com a estratégia formulada. Contudo, diversas dúvidas e críticas tem emergido relativamente à qualidade do processo de desenvolvimento do BSC e que colocam em causa a consistência e a validade da estrutura de indicadores que constitui o instrumento fundamental para o controlo da implementação da estratégia. Com o propósito de ultrapassar estes problemas, uma abordagem baseada na modelação e simulação dinâmica (dinâmica de sistemas) é proposta como suporte ao processo de desenvolvimento do BSC. Esta abordagem permite acelerar e melhorar a aprendizagem dos gestores acerca do processo de criação futura de valor que está associado à estratégia formulada e respectiva implementação, contribuindo assim para a validade e consistência da estrutura de indicadores do BSC.

Modeling the Diffusion of Energy Performance Contracting

The Portuguese Energy Policy considers the development of a commercially viable and competitive market for energy performance contracting (EPC) as a main mechanism to achieve the objectives of energy efficiency improvement. This paper proposes a study to investigate how to achieve widespread adoption of energy performance contracting by means of system dynamics modelling and simulation. To explore and gather insights on this question, a system dynamics model representing the system of the Portuguese EPC market at industry level will be created. The simulation of that model will provide a helpful basis for analysing and explaining the development of key variables, and accelerating learning on the managerial, organizational and political adaptation processes that foster the diffusion of EPC adoption. The first phase of this research project aims at identifying and analysing the key factors and critical cause-effect relations that drive the adoption of EPC. With this purpose, a qualitative content analysis on relevant documents was performed and a set of interviews was conducted. That data was analysed to capture the critical variables and its interrelation to formulate a preliminary representation of the system structure as stock and flow diagrams.

Balanced Scorecard dinâmico

O Balanced Scorecard (BSC) tem vindo a revelar-se um conceito popular como ferramenta de suporte à descrição e implementação da estratégia organizacional. Esta abordagem propõe que os gestores se foquem no desenvolvimento e utilização dum número reduzido de indicadores críticos de desempenho, financeiros e não financeiros, que combinam diferentes disciplinas e perspectivas da organização e que estão articulados numa cadeia causal que explica de forma consistente o desempenho futuro de acordo com a estratégia formulada. Contudo, diversas dúvidas e críticas tem emergido relativamente à qualidade do processo de desenvolvimento do BSC e que colocam em causa a consistência e a validade da estrutura de indicadores que constitui o instrumento fundamental para o controlo da implementação da estratégia. Com o propósito de ultrapassar estes problemas, uma abordagem baseada na modelação e simulação dinâmica (dinâmica de sistemas) é proposta como suporte ao processo de desenvolvimento do BSC. Esta abordagem permite acelerar e melhorar a aprendizagem dos gestores acerca do processo de criação futura de valor que está associado à estratégia formulada e respectiva implementação, contribuindo assim para a validade e consistência da estrutura de indicadores do BSC.

Gestão da qualidade: avaliação do processo de acreditação do Hospital Divina Providência

A temática desta pesquisa surgiu da análise do projeto de acreditação hospitalar do Hospital Divina Providência (HDP) junto à Organização Nacional de Acreditação - ONA do Governo Federal do Brasil – no município de Marituba da Região Metropolitana de Belém, objetivando mensurar o grau de entendimento dos colaboradores, usuários e gestores sobre o processo de Acreditação desenvolvido na Instituição. A metodologia utilizada para realização da pesquisa caracteriza-se como exploratória descritiva com abordagem quantitativa e quantitativa, de amostra probabilística por acessibilidade, aplicada aos três tipos de elementos acima mencionados, com o intuito de verificar, qual o nível de conhecimentos sobre o assunto abordado, e como eles veem a empresa inserida nesse tema. No decorrer do estudo, foi analisado quão grande tem se tornado a abordagem no Brasil e mundo, e como os hospitais têm adotado as certificações de qualidade como um fator de competitividade no mercado e de reconhecimento. Conclui-se que, a entidade não mantém um sistema de aprimoramento de gestão da qualidade com vistas a uma certificação de acreditação juntos aos colaboradores e gestores, de forma a auxiliá-los no desenvolvimento e amadurecimento do referido processo. Percebe-se também, que não há conformidade e nem integração de ideias a respeito do tema abordado entre gestores e colaboradores do HDP.