This document discusses using system dynamics modeling to create a dynamic balanced scorecard for the Winston Salem Sanitation Division. It begins by identifying key variables like population, collection points, garbage accumulation and collection, workers, and service level indicators. Graphs show how these variables are related and influence each other. It also discusses using performance drivers and indexes to measure and influence variables like collection rates, productivity, customer satisfaction, and working hours. The purpose is to help analyze causal relationships between resources, activities and performance outcomes to improve decision making.

1. From a static to a dynamic BSC
analysis – Winston Salem
Sanitation Division
Carmine Bianchi
Full Professor in Business and Public Management
University of Palermo - Department of Management
bianchi@unipa.it - www.ced4.it
CED4
-System Dynamics Group
Armando Tauro
Professor in Business and Operation Management
University of Piura – Faculty og Engeneering
info@armandotauro.com - www.armandotauro.com
INNSA consultores- CED4
-System Dynamics Group
FUENTE

2. Identifying key variables and
reference behavior modes (1 of 6)
Population and collection points (households)

3. Tons collected in a year
Identifying key variables and
reference behavior modes (2 of 6)

4. Modeling Population
Population
Accumulation
rate
Depletion
rate

5. Modeling Collection points
Population
Accumulation
rate
Depletion
rate
Collection
points
Accumulation
rate
Depletion
rate
What kind of
relationship
links
Population to
Collection
points
(households)?
Average
household size

6. Modeling Collection points
Population
Accumulation
rate
Depletion
rate
Collection
points
Accumulation
rate
Depletion
rate
Average
household size
Pop. Accumulation rate = People/time
Pop. Depletion rate = People/time
Population = People
Avg. Household Size = People/Household
Coll. points Accumulation rate =
(People/time) / (People/Household) =
= Household/time
Coll. points Depletion rate =
(People/time) / (People/Household) =
= Household/time
Collection points = Households

7. Modeling Collection points
Population
Accumulation
rate
Depletion
rate
Collection
points
Accumulation
rate
Depletion
rate
Average
household size

8. Modeling Garbage accumulation and
collection
Collection
points
Accumulation
rate
Depletion
rate
Total Garbage
to collect
Accumulation
rate
Depletion
rate
What kind of
relationship
links
Collection
points to
collected
garbage ?
New Garbage to collect
per collection point per
week

9. Modeling Garbage accumulation and
collection
Collection
points
Accumulation
rate
Depletion
rate
Total Garbage
to collect
Accumulation
rate
Depletion
rate
New Garbage to collect
per collection point per
week
Coll. points Accumulation rate =
(People/time) / (People/Household) =
= Household/time
Coll. points Depletion rate =
(People/time) / (People/Household) =
= Household/time
Collection points = Households
New Garbage to collect per coll. point =
Tons/Households/week
Garbage to collect Accumulation rate =
Households * Tons/Household/week
= Tons/week
Garbage to collect Depletion rate =
?????
Total Garbage to collect = Tons

10. Modeling Garbage accumulation and
collection
Collection
points
Accumulation
rate
Depletion
rate
Total Garbage
to collect
Accumulation
rate
New Garbage to collect
per collection point per
week
Tons collected
per time
• How such end-results have been achieved?
• Which resources are used?
• What impact did they make?

11. Modeling Garbage accumulation and
collection
Collection
points
Accumulation
rate
Depletion
rate
Total Garbage
to collect
Accumulation
rate
New Garbage to collect
per collection point per
week
Tons collected
per time
FTE Positions

12. Identifying key variables and
reference behavior modes (3 of 6)
FTE positions

13. Identifying key variables and
reference behavior modes (4 of 6)
Indentifying the number of workers

14. Modeling Workers
Workers
Accumulation
rate
Depletion
rate
How do workers affect collected
garbage – other things being equal?

15. Identifying key variables and
reference behavior modes (5 of 6)
Indentifying workers’ productivity

16. Modeling Workers’ productivity
Quality of Incentive
& Manpower
planning systems
Change in quality of
incentive &
manpower planning
systems
Backyards collection
ratio
Tons collected /
working hour
Equipment
automation
Working hours /
person / week
Workers
Accumulation
rate
Depletion rate
STRATEGIC RESOURCES
Relative quality of Incentive &
Manpower planning systems
PERFORMANCE DRIVERS
Change in working
hours / week
Working
hours / week
Tons collected
per weekEND-RESULTS
Tons collected
per week
Garbage to
collect from
Backyards
Total Garbage
to collect
Accumulation
rate

17. Modeling service levels
STRATEGIC RESOURCES
PERFORMANCE DRIVERS
Total Garbage
to collect
Accumulation
rate
Tons collected
per week
END-RESULTS
Change in customer
satisfaction
Customer
satisfaction
Change in customer
satisfaction
Time to serve
households
Time to serve
households ratio
Perceived
time to serve
households
Change in
perceived time
Change in
perceived time

18. Identifying key variables and
reference behavior modes (6 of 6)
Indentifying Service levels

19. Performance indicators and Indexes
Performance indicator --- measure gauging
organization results:
 end-results (flows)
 drivers (auxiliaries – ratios).
PERFORMANCE DRIVERS
END-RESULTS

20. Performance indicators and Indexes
A performance indicator always affects
another variable:
 end-results -- may affect:
 a) strategic resources (last layer end-results)
b) other end-results (intermediate layer end-results)
 drivers -- may affect:
 a) end-results
 b) other drivers

21. Performance indicators and Indexes
Tons collected /
working hour
PERFORMANCE DRIVERS
END-RESULTS
STRATEGIC RESOURCES
Change in customer
satisfaction
Customer
satisfaction
Change in customer
satisfaction
Liquidity
Garbage Collection
expenses
Garbage
Collection
Backyards collection
ratio
Time to serve
households ratio
Time to serve
households
Perceived
time to serve
households
Change in
perceived time
Change in perceived
time
Working hours /
person / week
Change in working
hours / week
Working
hours / week
Tons collected
per week
Total Garbage
to collect
Tons collected
per week

22. Performance indicators and Indexes
Performance drivers:
 Ratio between a current state (resource) and a
benchmark, affecting performance usually through a
normalized graph function
Perceived
time to serve
households
Change in
perceived time
PERFORMANCE DRIVERS
STRATEGIC RESOURCES
END-RESULTS
Time to serve
households ratio
Normal time
to serve
households
Effect of Time to serve
households ratio on
customer satisfaction
Change in customer
satisfaction
Effect of Time to serve households
ratio on customer satisfaction
Time to serve households ratio
1 1.50.5
2
1
0.3

23. Performance indicators and Indexes
Performance drivers:
 Ratio between a current state (resource) and a
benchmark, affecting performance usually through a
normalized graph function
PERFORMANCE DRIVERS
STRATEGIC RESOURCES
END-RESULTS
Effect of Backyards
collection ratio on
workers productivity
Garbage to
collect from
Backyards
Total Garbage
to collect
Backyards
collection ratio
Tons collected /
working hour
Tons collected
per week
Normal Tons
collected per
week
Effect of backyards collection
ration on workers productivity
Backyards collection ratio
0.5 10
1.5
1
0.5

24. Performance indicators and Indexes
Indexes:
 Synthetic measures of the quality or state of a system. They are
usually expressed as ratios. They do not affect any specific
performance measure. They rather gauge a synthetic expression
of specific aspects regarding performance.
PERFORMANCE DRIVERS
STRATEGIC RESOURCES
END-RESULTS
Change in working
hours / week
Working
hours / weekWorkers
Accumulation
rate
Depletion rate
Working hours /
person / week
Working time
saturation index
Max hours /
worker /week
Max working
hours / week

25. Performance indicators and Indexes
Indexes:
 Synthetic measures of the quality or state of a system. They are
usually expressed as ratios. They do not affect any specific
performance measure. They rather gauge a synthetic expression
of specific aspects regarding performance.
PERFORMANCE DRIVERS
STRATEGIC RESOURCES
END-RESULTS
Tons collected per
.000 population
Total Garbage
to collect
Accumulation
rate
Tons collected
per week
Tons collected
per week
Population
Total collected
garbage

26. Modeling Performance starting from
accounting reports data
Collection
points
Accumulation
rate
Depletion
rate
Total Garbage
to collect
Accumulation
rate
New Garbage to collect
per collection point per
week
Tons collected
per time
• How such end-results have been achieved?
• Which resources are used?
• What impact did they make?

27. Modeling Performance starting from
accounting reports data
The need of a causal analysis:
Financial data are not enough (e.g. expenses)
Data on non-financial end-results (e.g. collected garbage)
and workload measures (e.g. total working hours) can be a
good starting point to search for causes
… but such data are actually the effect of performance
… however, their causes (i.e., primarily strategic resources
and performance drivers’ dynamics and linkages) are often
hidden and must be searched
Some of them must be inferred
Structure & behavior analysis, together with modeling with
decision makers’ participation, and matching SD with
accounting models are substantial vehicles in this effort.

28. Time to fix billing
complaints index
Skill
index
Staff
Capacity
Time to respond an
inquiry index
Knowledge
index
Time to install a
fixed line index
Time to restore
fixed line index
Competency
index (CI)
Average training hours
per staff