Improving performance and fostering accountability in the public sector through system dynamics modelling: From an 'external' to an 'internal' perspective

This paper aims to outline the benefits justifying a tailored approach to System Dynamics (SD) modelling in the public sector, to improve performance and foster decision makers' accountability. The need of combining an 'internal' with an 'external' perspective (in respect to decisionmakers) in developing SDmodels is claimed. Different levels of intervention (i.e. macro, micro and meso) are discussed. Two case studies are analysed. The first one demonstrates how a dynamic resource-based view (DRBV) can support an analysis of the impact of back and front office units on a public sector organization's performance drivers. The second case shows how SD modelling based on a DRBV can also be applied to improve performance on a political level. Copyright © 2010 John Wiley & Sons, Ltd.