Making Sustainable Strategy in Complex Management Environments: Proposition for a Systemic and Practice-Oriented Methodology
UZH Business Working Paper No. 353
38 Pages Posted: 7 Nov 2012 Last revised: 26 Jun 2015
Date Written: April 2015
The increasing complexity of the modern world creates both higher risks and new interdependencies in the socioeconomic environment. To cope with these challenges powerful new tools must be applied to find sustainable solutions. System dynamics is a field that offers potential assistance in dealing with complex issues. However, managers and politicians often lack the knowledge and necessary skills to apply quantitative methods in their decision-making process. In contrast, qualitative approaches are easily understood and handled but have limited capacities for analysis. To address this gap, we have developed a bundle of tools tailored for managers and politicians facing complex problems. These tools enable executives to recognize effective levers and assess potential consequences of specific interventions in a highly interconnected system. The approach detailed here equips decision makers with a powerful method to develop, test, and communicate strategies to find long-term sustainable solutions for complex issues in business and society.
Keywords: causal loop diagram, semi-quantitative approach, adjacency matrix, feedback, mental model, strategic decision making
JEL Classification: Z00
Suggested Citation: Suggested Citation