Application of System Dynamics in Value Based Management – an approach based on a real-life case

摘要

Value Based Management is a common management technique to support organisations to get in a good shape to meet competition in the current turbulent economic era. The complete concept of Value Based Management has a very broad scope and is designed to support an organisation in aligning the business strategy, business processes and decisions in order to create maximum value for its stakeholders. In order to get an understanding of the way the business is organized, to identify the most sensitive value drivers and to determine their impact on the creation of value, it is essential to qualitatively or quantitatively model the organization. In this article we describe the application of System Dynamics in the Value Based Management context in order to support strategy development, based on experiences of PwC Consulting in The Netherlands. We identify the areas where System Dynamics adds value to Value Based Management and describe a number of steps we take in client engagements.