Using a system dynamics approach for identifying and removing management model inadequacy

Abstract

PurposeThe purpose of this paper is to discuss how system dynamics (SD) modeling can help in cases where the management models used by an organization are not adequate for the task at hand.Design/methodology/approachTwo specific cases of management model inadequacy are discussed in this paper – namely management model obsolescence and management model inappropriateness. Each of the two cases is being demonstrated with the use of a specific practical case study. SD simulation models have been constructed based on a more comprehensive view than the ones used at the outset in order to come up with more robust and reliable management models, which were appropriate to the situations at hand. The cases conducted were exploratory in the tradition of action research and the findings are preliminary.FindingsThe inadequacy of prior management models was demonstrated by the superior results obtained – as derived from the SD models – if more appropriate management models, leading to new value potentials, were used.Practical implicationsThe use of complete systems models prevented the organizational obstacles hindering the assessment of management models used for their adequacy. The paper is addressed primarily to the academic research community; however, the findings are of interest to practitioners as well.Originality/valueThe paper contributes to the research on management models, and the use of SD in organizations more generally.