An Enterprise Simulation Approach to the Development of a Dynamic Balanced Scorecard

Full Citation
Helal, M., Rabelo, L. 2004. An enterprise simulation approach to the development of dynamic balanced scorecards. ASEM’04; Proceeding of 2004 American Society of Engineering Management Conference, October 20-23, Alexandria, Virginia

Abstract
The balanced scorecard seeks to provide managers with a comprehensive set of measures of performance of the organization. However, almost only big organizations could successfully implement scorecards and numerous failures have been reported. We argue that the causes of failure are fundamentally the inevitable subjectivity inherent in the methodology and the lack of a reliable tool to guide the implementation process. We recently proposed a hybrid approach using discrete event simulation and system dynamics to total enterprise simulation modeling. In this paper we explore the merits of using the enterprise simulation model to support management in developing the balanced scorecard.
Keywords: dynamic balanced scorecard, system dynamics, enterprise simulation