The Balanced Scorecard and the Strategic Learning Process: A System Dynamics Modeling Approach

Themain purpose of this paper is to improve on the conceptual as well as themethodological aspects of BSC as a quantitativemodel by combining elements from traditional balanced scorecard (BSC) thinking with the SystemsThinking.This is done by combining short and long term aspects ofmeasurements.The result is then used to build and construct a balanced scorecardmodel for strategic learning with the specific aim to maintain satisfied customers and motivated employees. Strategic planning, operational execution, feedback, and learning are some of the most important key features of any performance measurement model. This paper aims to address not only the conceptual domain related to BSC, that is, learning and system dynamics causality and feedback, but also the methodological domain concept of precision solved by differential equations. Our results show how a potential move from a static strategic vision map to a linked and dynamic understanding may be not fully realistic but very useful for learning purposes. The new knowledge obtained from the learning feedbacks fertilizes both decision discussion and decision-making and what may be required in order to move to the next level of BSC and system dynamics integration.