Application of System Dynamics theory in the evaluation of an integrated Business Excellence system

Abstract

Aim of this research is to propose an accurate model of measuring business excellence by applying the theory of System Dynamics. This theory defines the interaction of system variables giving the opportunity of a reliable and fair score as well as objective decision-making with regard to the areas that are susceptible of continuous improvement. This paper utilises the principles of the System Dynamics in order to propose a new method for measuring business excellence and thus contributing to a thorough evaluation of an enterprise which implements a Business Excellence Model. The proposed business excellence system is adopted and applied as the Hellenic National Quality Award scheme. The study only adopts empirical data from the application of the proposed business excellence system due to the early stages of implementation in the market. Future research may use more data to better tune the proposed method. Based on the more accurate analytical results achieved by the proposed model, the Hellenic national authority of managing the Hellenic scheme of business excellence might use the proposed model for measuring business excellence and to drive continuous improvement and competitiveness according to its strategy.