Dynamic Performance Management: An Approach for Managing the Common Goods

Abstract

Public organizations need innovative approaches for managing common goods and to explain the dynamics linking the (re)generation of common goods and organizational performance. Although system dynamics is recognised as a useful approach for managing common goods, public organizations rarely adopt the system dynamics for this goal. The paper aims to review the literature on the system dynamics and its recent application, known as dynamic performance management, to highlight the state of the art and future opportunities on the management of common goods. The authors analyzed 144 documents using a systematic literature review. The results obtained outline a fair number of documents, countries and journals involving the study of system dynamics, but do not cover sufficient research on the linking between the (re)generation of common goods and organizational performance. This paper outlines academic and practical contributions. Firstly, it contributes to the theory of common goods. It provides insight for linking the management of common goods and organizational performance through the use of dynamic performance management approach. Furthermore, it shows scholars the main research opportunities. Secondly, it indicates to practitioners the documents providing useful ideas on the adoption of system dynamics for managing common goods.

Evolutionary paths of performance measurement and management system: the longitudinal case study of a leading SME

“…These new models challenged traditional performance models based on control of financial and economic measures (Franco-Santos et al, 2012;Kaplan, 2012;Kaplan andNorton, 2004, 2005;Nudurupati et al, 2016). Their main purpose was to shift focus from control to learning and support the decision-making process (Bititci et al, 2012;Bourne et al, 2013;Jä ä skelä inen and Laihonen, 2013;Nudurupati et al, 2016;Sardi and Sorano, 2019).…”

The role of HRM in the innovation of performance measurement and management systems: a multiple case study in SMEs

“…For instance, there are significant differences between public versus private, large versus small and medium-sized enterprises (SMEs) and service versus manufacturing firms (Garengo et al, 2005). Secondly, research indicates a trend towards multidisciplinary, dynamic and holistic approaches (Bititci et al, 2012;Sardi and Sorano, 2019;Seeck and Diehl, 2017). This scenario includes many challenges when fostering organisational innovation (Shipton et al, 2017).…”

Integrated processing of sustainability accounting reports: a multi-utility company case study

“…The need is for a holistic vision to include more factors rather than settle for the continuous trade-off. It should represent, for instance, the capital impact on value creation, performance measures linked to economic, environmental and social impact and especially value creation for all stakeholders (Sardi and Sorano, 2019). However, current approaches do not integrate sufficient key information for stakeholders because sustainability reports often include bureaucratic information without real integration of company strategy.…”

“…Data representation was directly linked to the purpose and results of the research (Coughlan and Coghlan, 2002). We adopted SD to highlight the material topics, which is recognised as an efficient method to represent an organisational context in terms of economic, environmental and social changes (Forrester et al, 1976;Sardi and Sorano, 2019). It was recently applied to performance management, it is known as dynamic performance management or DPM (Bianchi, 2016).…”

“…They allow the inclusion of more actors in context-specific analyses (Saeed, 1982(Saeed, , 1987 and an integrated, transparent and holistic view of the link between various factors . Although recognised as an innovative solution for improved performance management, DPM is little used in developing sustainability reports (Sardi and Sorano, 2019). We adopted this approach to represent material topics, using a simulation program, i.e.…”