Enhancing Performance Management and Sustainable Organizational Growth Through System-Dynamics Modelling

Abstract

Organizational growth and performance management provide two important research topics for both enterprises and public sector organizations.\ud Improving performance levels, or at least keeping them stable over time, is a hot\ud topic not only for business executives and entrepreneurs, but also for managers\ud and policy makers in public and non-profit institutions. How best to design Planning\ud & Control (P&C) systems to support organizational performance management and\ud assessment in a sustainability perspective? This paper illustrates the need for\ud a methodological framework that would link system dynamics to P&C systems so\ud as to support decision-makers in managing organizational performance, as well as\ud to foster sustainable growth and monitor crisis prevention. The need for this\ud conceptual framework is discussed in the paper

Dealing with Multi-Level Governance and Wicked Problems in Urban Transportation Systems: The Case of Palermo Municipality

“…The combination of SD and PM has been debated by two converging streams of literature [12]: (1) a dynamic resource-based view [19][20][21][22]; and (2) a dynamic view of performance management [12,23,24]. These two approaches both represent strategic resources as "stocks".…”

“…The feedback loops built by following this approach imply that the flows affecting strategic resources are measured over a time lag. This makes clear how the delays involved in the resources accumulation process represent a central issue in managing performance in a dynamic and complex environment [12,23] such as the one studied here.…”

“…This approach provides a systemic view of a production/provision process since each performance indicator shows how the employment of the linked strategic resources affects all the other interdependent resources within the system [12,23]. Due to this interdependence, each strategic resource has indeed the power to foster, or not, others in the same system.…”

A dynamic performance management approach to support local strategic planning

“…Conversely, at the interinstitutional level, performance results from the interaction of different institutions whose policies should converge into positive outcomes for the wider system (i.e. the local area) to which they belong (Bianchi, 2010;2012). If we aim to evaluate policy outcomes in such a context, the interinstitutional system's performance would not result from a mere sum of the performance levels produced by each single institution.…”

“…End-results that most synthetically measure the overall organizational performance are flows affecting the accumulation of corresponding strategic resources that cannot be purchased. These are: 1) resources generated by management routines, and 2) financial resources (Bianchi, 2012). Figure 1 also highlights that performance drivers are a measure of factors on which to act in order to affect the final performance.…”