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Erland Hejn Nielsen

Discussing Feedback System Thinking in Relation to a Balanced Scorecard, Inspired by an Actual Case

Research output: Contribution to conferencePaperResearchpeer-review

  • CORAL - Centre for Operations Research Applications in Logistics
  • Department of Business Studies
Since the emergence of the Balanced Scorecard at the beginning of the 1990s, only few articles have proposed a framework of translating BSC into an analytical numerical model. This paper addresses two research themes : (1) a discussion of the cause-and-effect modeling within the BSC and (2), how may the feedback systems thinking and causal loop reasoning be conducted within BSC. In contrast to previous literature on BSC this paper focuses on a System Dynamics Modeling approach to transform a static BSC into a dynamic and analytical closed loop management model by incorporating both time-lags and cause-and-effect schemes. Our main result shows that SDM is a relevant and possible approach for building a BSC. The SDM model adds additional benefit to the BSC by (1) providing a translation of the strategy into operational terms and (2) offering possibilities for the decision maker to simulate scenarios for planning, learning and feedback. In addition the model shows how both structural and direct action settings impact significantly on the solution paths.
Original languageEnglish
Publication year2010
Publication statusPublished - 2010
EventAmerican Accounting Association: Event 2010 Management Accounting Section - Seattle, United States
Duration: 6 Jan 20109 Jan 2010


ConferenceAmerican Accounting Association: Event 2010 Management Accounting Section
CountryUnited States

    Research areas

  • Balanced Scorecard, Feedback Systems Thinking, Time-delays, Cause-and-effect, System Dynamics, Simulation

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