Early Experience with System Dynamics Modeling for Organizational Decision Making

Increased business dynamics mandates modern organizations to proactively prepare their response to operating environment changes. Typically, large size organizations consist of multiple interconnected departments. Individual department strategies need to be balanced so as overall organization performance is improved. With increased number of interdependent strategic parameters, complexity of their combinatorial evaluation increases. System dynamics (SD) modeling supports modeling dynamic behavior of organizations and strategy validation through simulation. We used SD modeling techniques to model large size organization decision making problem that involves dynamic as well as combinatorial complexity. In this paper, we share our experience and learning from this endeavor.