Modeling Cause and Effect Relationships of Strategy Map Using DEMATEL Technique

Subject Areas : Futurology

Javad Jasbi ¹ (دانشیار و عضو هیات علمی دانشگاه آزاد اسلامی، واحد علوم و تحقیقات)
Farshid Mohamadnejad ² (دکتری مدیریت صنعتی، دانشگاه آزاد اسلامی، واحد علوم و تحقیقات)

Received: 2012-05-31 Accepted : 2012-09-10 Published : 2013-04-21

Keywords: Balanced Scorecards, Strategy map, Cause and effect Relationships, DEMATEL&#x0D, &#x0D, Technique, Decision support system,

Abstract :

The Balanced Scorecard is widely adopted performance management framework firstintroduced in the early 1990s. More recently it has been proposed as the basic for a strategicmanagement system. Strategy mapping is the most important task in building a BalancedScorecard system. Strategy mapping is the process for visually making cause and effectrelationships between all possible strategic objectives in an organization. The process forbuilding and constructing a strategy map is a human centric activity which could be consideredas the combination and integration of all knowledge and preferences of the managerial boards.From the view point of strategic decision making in an organization, the process for building astrategy map, could be viewed in a general body of a unified group decision making context. Ifwe see the strategy map, as a structural modeling framework for making the cause and effectrelationships among the strategic objectives, it is possible to deploy Decision Making Trial andEvaluation Laboratory (DEMATEL) as a framework for structural modeling approach subject tothe problem. The DEMATEL method gathers collective knowledge to capture the causalrelationships between strategic criteria. The model is especially practical and useful forvisualizing the structure of complicated causal relationships with matrices or digraphs. In thisprocess, the integrated structure can be offered for the macro level balanced scorecard and inaddition to the mathematic modeling of cause and effect relationships, a decision supportsystem could be presented in the execution frame that may increase the efficiency of thebalanced scorecard management system.