Strategic Modelling and Business Dynamics: A Feedback Systems Approach by John Morecroft

Strategic Modelling and Business Dynamics: A Feedback Systems Approach provides a unique look at the field of systems dynamics and its role in strategic modeling and decision-making for businesses. Written by John Morecroft, the book details how to use system dynamics to understand a business’s operations, identify areas for improvement, and make better decisions. In this 1000-word summary, readers will gain an understanding of the book's main themes and practices that it depicts.

John Morecroft begins the book with an overview of the feedback systems approach, which can range from simple cause-and-effect relations between two variables to more complex interactions involving many variables. He then moves on to discuss the importance of understanding the dynamic structures of business operations and how system dynamics can be used to model operations.

He emphasizes the need for simulating strategic decisions in order to make the best possible choice for a company. He explains how simulations can take uncertainties into account and provide results that reflect real business environments. In particular, Morecroft advocates for the use of system dynamics in strategic models. This approach provides a way to create dynamic models that examine how strategic change affects the organization's flow of resources.

Next, Morecroft delves deeper into the role of system dynamics in strategic decision-making and how simulations can be used to study the various dynamics of the organization. The book provides case studies on how different companies used system dynamics to improve their planning and decision-making.

Next, Morecroft provides a comprehensive guide on how system dynamics can be used in the planning process, allowing readers to create their own models. In this section, readers learn how to use various mathematical tools and techniques to analyze system dynamics. He also demonstrates how to create a detailed model of an organization's system of resources and how to use simulations to examine the dynamic structure and behavior of the system.

With the use of system dynamics, Morecroft explains, organizations can forecast and understand their operations better, facilitating planning, problem-solving, and decision-making. The book provides many examples of how this approach has been used to improve a company's output.

In the final section of the book, Morecroft discusses the role of system dynamics in achieving collective goals. He emphasizes the need for collaboration between groups and the importance of consensus-based decision-making. He provides numerous case studies of successful collaboration between systems dynamics and traditional managerial practices.

Overall, Strategic Modeling and Business Dynamics: A Feedback Systems Approach provides an insightful look at the field of system dynamics and its importance in business operations. With its detailed instructions and case studies, readers will gain an understanding of the applications and benefits of using system dynamics in their own organizations. It is an essential resource for anyone interested in learning more about the principles and processes of system dynamics.