Applying system dynamics modeling to foster a cause-and-effect perspective in dealing with behavioral distortions associated with a city's performance measurement programs

This paper aims to show how applying system dynamics methodology to performance management can provide a powerful modeling perspective enabling public sector organizations to prevent, detect, and counteract behavioral distortions associated with performance measurement. A dynamic performance management approach is able to support performance management system designers in outlining and implementing a consistent set of measures that can allow public sector decision-makers to pursue sustainable organizational learning and development. This perspective implies a major shift from a static to a dynamic picture of organizational processes and results. It means framing delays between causes and ef…