A dynamic model of balanced scorecard to enhance strategic university planning process

Abstract

This paper focuses on the development of an interactive system dynamics simulation model of the strategic university planning framework. To develop the model, we integrated both the balanced scorecard method and the system dynamics modelling method. Contrasting the traditional university planning tools, the developed model addresses university management problems holistically and dynamically. By integrating the balanced scorecard and system dynamics modelling methods, this study was carried out in three phases. During the first phase, several interviews were conducted, and few documents content were analyzed to formulate the university balanced scorecard. The second phase involved the development of the university planning simulation model. In the third phase, the implications of various different strategies towards university performances were evaluated. Inclusive, a Microworld of the dynamic balanced scorecard for university planning (DBSC-UNI) is constructed to support decision makers in analysing the impact of various different policies towards university performances before real-world implementation. It is found that using system dynamics modelling method, the cause-and-effect relationships among variables related to the four conventional balanced scorecard perspectives are better understand. The dynamic processes that give rise to performance differences between targeted and actual performances also could be better understood. So, it is expected that the quality of the decisions taken are improved because of being better informed. The developed model can be exploited by university management to design policies that can positively influence the future in the direction of desired goals, and will have minimal side effects. This paper integrates balanced scorecard and system dynamics modelling methods in analyzing university performance. Therefore, this paper demonstrates the effectiveness and strength of system dynamics modelling method in solving problem in strategic planning area particularly in higher education sector.