Dynamic Performance Management

Abstract

PrefaceThis book is the first in a series on "System Dynamics for Performance Management." The purpose of the series is to bridge the gap between system dynamics and its applications in organizations, with a specific focus on performance management.Most contributions to this series are expected to come from the research and teaching at the doctorate level program in "Model Based Public Planning, Policy Design and Management," which was started in 2007 as a double degree collaboration between the Universities of Palermo and Bergen. The collaboration is further enhanced by the joint "European Master in System Dynamics," which is delivered as an "Erasmus Mundus" EU-funded program with the Radboud University of Nijmegen and the University of Lisbon. The teaching work related to the Master in Public Management, recently started by the System Dynamics Group at the University of Palermo, also will contribute to such endeavor.The purpose of the book is to support the reader's understanding of how to design and implement planning and control (P&C) systems that can help organizations manage their growth and restructuring processes in a sustainability perspective. More specifically, the book shows how to develop system dynamics models that can better support an understanding of the following:• What is organizational performance and how to frame and measure it; • How to identify and map the processes underlying performance; • How to design and implement a dynamic performance management system and link it to strategic planning; • How to tie strategic resource dynamics to processes and performance indicators; • How to link strategic resources and performance indicators to responsibility and incentive systems.The book builds on my work over the last 20 years in research, teaching, and consulting in the field of system dynamics modeling applied to performance management, with a specific focus on public sector organizations and business.vii It also includes numerous case studies and dynamic performance management models for providing examples of how such methods work in practice.Reading the book is beneficial to: (1) graduate students in business and public management, (2) researchers in performance management and system dynamics modeling, and (3) managers in business and public sector organizations in the fields of performance management and planning.The book is not designed to enable the reader to become an experienced system dynamics modeler; rather, it aims to develop the reader's capabilities to design and implement performance management systems by using a system dynamics approach. A literature review is included to provide a guideline for further improvements to those readers who wish to develop relevant, specific, and detailed system dynamics modeling skills and to establish the foundation for teaching system dynamics applied to performance management in organizational and inter-organizational contexts. This is particularly relevant for those graduate students who have taken system dynamics courses and need to apply thei...

Applying a Dynamic Performance Management Framework to Wicked Issues: How Coproduction Helps to Transform Young People’s Services in Surrey County Council, UK

“…[They] can improve policy making in general by upgrading the quality of a manager's mental models" (Paich, 1985, p. 130). They are therefore learning tools which can support the design and implementation of DPM systems (Bianchi, 2016;Bianchi & Rivenbark, 2014), which can enable decision makers better to frame trade-offs across time and space.…”

Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models

“…Such an approach-named dynamic business modeling for sustainability (DBMfS)-builds upon a revised BMC derived from the combination of an adapted sustainable BMC (Osterwalder & Pigneur, 2010) proposed by Bocken (2015) and Bocken, Schuit, and Kraaijenhagen (2018) and system dynamics (SD) modeling (Cosenz, 2017;Cosenz & Noto, 2016;Cosenz & Noto, 2018). The methodological support provided by SD has proven to be effective in modeling and analyzing business systems characterized by dynamic complexity and unpredictability, as well as in experimenting with the models to design and test strategies for performance management, sustainable development, and change (Bianchi, 2016;Morecroft, 2007Morecroft, , 2013Sterman, 2000;Torres, Kunc, & O'Brien, 2017;Videira, Antunes, Santos, & Lopes, 2010). Following the abovementioned purpose, this paper also provides an illustrative example of a DBMfS design in a real organization (Patagonia).…”

A dynamic analysis of the effects of word-of-mouth on online brand communities

“…Modeling by using a simulation methodology of system dynamics allows various scenarios presented in WOM strategies to be analyzed. the complexity of the market and consumer dynamics must be viewed from the point of view of: constant innovative product development, the product's market penetration, and its dissemination through marketing strategies that enable the customer to become attracted to a product or service (Bianchi, 2016). Despite the system dynamics methodology being suitable for this research, it has some limitations regarding the data collection process for the simulation model and the validation process with decision makers.…”