The effective communication of system dynamics to improve insight and learning in management education

John Morecroft

Abstract

Experienced exponents of system dynamics in management education appreciate that feedback, non-linearities and delays are ubiquitous, and create difficulties for making intuitive judgements about the dynamic behaviour of business systems. They have applied much effort to solving this problem, offering simple, high-level causal mapping techniques to conceptualise dynamic issues, formal simulation modelling, and simulation-based learning environments. However, the use of these methods is still not extensive, and it is often disconnected from other management development pedagogies.

System dynamics is ideally suited to operationalising certain concepts central to the management field, notably the resource-based and competence-based view of strategic management. However, three developments must be made if this potential is to be exploited. Firstly, system dynamics must connect with those established concepts and frameworks in the management field. Secondly, the barriers for managers to appreciate the power of system dynamics must be lowered, to make the method an integral part of the managerial mind-set. Thirdly, managers need help to climb the learning curve of understanding regarding the dynamic behaviour of the business systems they endeavour to manage, through a comprehensive set of resource-mapping and gaming simulation tools.

This paper describes how these developments can be implemented, reports on experience of using the resulting learning devices and comments on possible future directions. There is an exciting opportunity for system dynamics to make a major contribution to a new strategy paradigm, based on a dynamic resource-system view of the firm, a perspective that can be extended to other fields in management and to non-business contexts.

Keywords:

• system dynamics
• simulation
• management education
• learning
• microworlds
• strategy dynamics
• resource-based view