Evaluating the balanced Scorecard Model using System Dynamics methodology (case study: Saman bank)

Subject Areas : Management Accounting

محمد علی افشار کاظمی ¹ (ندارد)
فاطمه پناهی ² (مسئول مکاتبات)

Received: 2014-04-25 Accepted : 2014-05-31 Published : 2014-10-12

Keywords: Balanced Scorecard, Dynamic stimulation, stock-flow diagrams, casual loops,

Abstract :

Nowadays, the world faces a wide span of dynamic complicated problems.Dynamic here means " changing in the time". Dynamic problems need continuous thrivingmanagerial measures. Dynamic subjects in managerial and policy making domain, are thoseof continued and reversible nature.In this cases, we take managerial measures, see the results, evaluate and take newmeasures with new results and again further measures. Hence, a closed circle is formed.Feedbacks are the result of complicated counter measures between system variables.The main purpose in methodology of dynamic system, is to understand the reasons forimproper dynamisms and taking new policies to amend or omit those. This thesis tends toreveal the dynamic implementation of " Balanced scorecard(BSC) " model in "Saman Bank",resulting form higher managers approach to attract and sustain customers far beyond regularexpectations considering country's competitive and complicated economic condition. In thisrespect, Saman Bank thrives to utilize the organization full capacity to increase efficiencythrough a customer – centered organizational behavior as a sustainable competitiveadvantage.In this study, the dynamic model has been taken from each aspect of BSCand then theBSC simulation has been taken considering each aspect's counter effect.In each aspect, casual loop diagrams, stock and flow diagrams, variable definition, dataaccessibility, formulating, assumptions and results from simulation has been delivered. Modelbehavior and model sensitivity analysis has been done and finally the analysis of differentscenarios came to assist top management.