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Strategy support models

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  • John D. W. Morecroft

Abstract

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.

Suggested Citation

  • John D. W. Morecroft, 1984. "Strategy support models," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 215-229, July.
    • Handle: RePEc:bla:stratm:v:5:y:1984:i:3:p:215-229
    DOI: 10.1002/smj.4250050303
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    Cited by:

    1. Lane, David C. & Rouwette, Etiënne A.J.A., 2023. "Towards a behavioural system dynamics: Exploring its scope and delineating its promise," European Journal of Operational Research, Elsevier, vol. 306(2), pages 777-794.
    2. Sims, D. B. P. & Doyle, J. R., 1995. "Cognitive sculpting as a means of working with managers' metaphors," Omega, Elsevier, vol. 23(2), pages 117-124, April.
    3. Cheng, Yung-Hsiang & Chang, Yu-Hern & Lu, I.J., 2015. "Urban transportation energy and carbon dioxide emission reduction strategies," Applied Energy, Elsevier, vol. 157(C), pages 953-973.
    4. Shuliang Li & Jim Zheng Li, 2009. "A multi‐agent‐based hybrid framework for international marketing planning under uncertainty," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 16(3), pages 231-254, July.
    5. Federico Barnabè, 2011. "The dynamic nature of strategy: reflections on Kim Warren’s strategic management dynamics," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 15(3), pages 515-532, August.
    6. Wright, George & Cairns, George & O'Brien, Frances A. & Goodwin, Paul, 2019. "Scenario analysis to support decision making in addressing wicked problems: Pitfalls and potential," European Journal of Operational Research, Elsevier, vol. 278(1), pages 3-19.
    7. Stefan N. Groesser & Niklas Jovy, 2016. "Business model analysis using computational modeling: a strategy tool for exploration and decision-making," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 61-88, February.
    8. Stefan Groesser & Niklas Jovy, 2016. "Business model analysis using computational modeling: a strategy tool for exploration and decision-making," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 61-88, February.
    9. Edoardo Mollona, 2008. "J. Morecroft, Strategic Modelling and Business Dynamics. A Feedback Systems Approach," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(2), pages 213-217, May.
    10. Richard G. Fritz, 1989. "Strategic Planning With a Systems Dynamics Model For Regional Tourism Site Development," The Review of Regional Studies, Southern Regional Science Association, vol. 19(1), pages 57-71, Winter.
    11. E Tapinos & R G Dyson & M Meadows, 2011. "Does the Balanced Scorecard make a difference to the strategy development process?," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(5), pages 888-899, May.
    12. C Eden & F Ackermann & J M Bryson & G P Richardson & D F Andersen & C B Finn, 2009. "Integrating modes of policy analysis and strategic management practice: requisite elements and dilemmas," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(1), pages 2-13, January.
    13. Torres, Juan Pablo & Kunc, Martin & O'Brien, Frances, 2017. "Supporting strategy using system dynamics," European Journal of Operational Research, Elsevier, vol. 260(3), pages 1081-1094.
    14. Robinson, Stewart & Worthington, Claire & Burgess, Nicola & Radnor, Zoe J., 2014. "Facilitated modelling with discrete-event simulation: Reality or myth?," European Journal of Operational Research, Elsevier, vol. 234(1), pages 231-240.
    15. Federico Cosenz & Guido Noto, 2016. "Applying System Dynamics Modelling to Strategic Management: A Literature Review," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(6), pages 703-741, November.
    16. Stephen J. Mezias & Mary Ann Glynn, 1993. "The three faces of corporate renewal: Institution, revolution, and evolution," Strategic Management Journal, Wiley Blackwell, vol. 14(2), pages 77-101, February.
    17. Ninios, Panagiotis & Vlahos, Kiriakos & Bunn, Derek W., 1995. "Industry simulation: System modelling with an object oriented/DEVS technology," European Journal of Operational Research, Elsevier, vol. 81(3), pages 521-534, March.
    18. Strong, Peter & Shenvi, Aditi & Yu, Xuewen & Papamichail, K. Nadia & Wynn, Henry P. & Smith, Jim Q., 2023. "Building a Bayesian decision support system for evaluating COVID-19 countermeasure strategies," LSE Research Online Documents on Economics 113632, London School of Economics and Political Science, LSE Library.
    19. David C. Lane & Birgit Kopainsky & Hendrik Stouten & Hans Polet & Aimé Heene & Xavier Gellynck, 2017. "Learning from Collaboratively Playing with Simulation Models in Policy Making: An Experimental Evaluation in Fisheries Management," Systems Research and Behavioral Science, Wiley Blackwell, vol. 34(4), pages 403-413, July.

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