THE PRINCIPLES OF SYSTEM DYNAMICS TOWARDS BALANCED SCORECARD IMPLEMENTATION

This paper discusses the possibilities of using system dynamics models to solve the problem of innovation management methods in various fields, mainly with respect to practical use of simulations for management decision-making support in a complex world. System dynamics emphasizes explicit modeling, and takes advantage of the involvement of dynamic characteristics including delayed nonlinear feedback activity, which can be used towards Balance Scorecard implementation. SD, used as a common frame for building BSC, is illustrated to implement strategy into regions and above all can be used for creation of a business flight simulator. This simulator of a Balance Scorecard is shown as tool that could support management systems thinking and would help to understand dynamic relations in an organization as a whole.