A major challenge in strategy development is to deduce the consequences of the interacting programmes underlying strategy. The paper argues that behavioural simulation models can help meet this challenge by acting out the consequences of strategy proposals in their full organizational setting. However, the real key to effective strategy support is not simply having a model, but using it in a structured dialogue with executives. To illustrate the idea, the paper presents a system dynamics simulation model used to aid executives of an advanced office equipment firm in setting their marketing strategy. The paper describes the process by which the model was created and brought to the attention of executives. Several examples are provided of the dialectical use of the model, showing how differences in management intuition and model‐generated opinion led to improved insight into the consequences of strategy.
Strategic Management Journal – Wiley
Published: Jul 1, 1984
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