System dynamics modeling as a circular process: The smart commons approach to impact management

This study argues that the mainstream approaches to system dynamics (SD) modeling processes lack effective impact-based performance management tools and, paradoxically, build upon a nonsystemic view of some social dynamics that are key to sustainability transformations. A causal loop diagram of the mainstream approaches to participatory SD modeling is developed to discuss the fragilities of the learning and decision-making systems that result from such approaches. The analysis suggests that when common resources are at stake, ad hoc organizational solutions are needed at the field level, in addition to the traditional facilitating action at the project/group level, for SD modeling to succeed. Then, to address the fragilities of the existing approaches to participatory SD modeling, this study integrates concepts and solutions from institutional theories, adaptive co-management, and the body of knowledge on the (new) commons. A second causal loop diagram is provided to show how this new proposed approach could restructure the processes that link SD modeling inputs, activities, outputs, outcomes, and impacts due to a higher-level permanent organizational unit with specific roles and data management capabilities labeled “smart commons organization”. This study suggests that the proposed smart commons approach could enhance the contribution of SD modeling to sustainability transformations.