The course gives an introduction to system dynamics as a language and a methodology for analyzing and understanding organizations business policies and strategies. This is accomplished by presenting the effects of the cognitive dimension on strategic business activities. This leads to the development of a conceptual structure for understanding organizations as complex systems. This perspective gives strategic decision makers a powerful methodology for both analyzing and communicating the long-term consequences of their strategic planning activities.

Students shall be able to identify and to define dynamic problems in the general area of strategic policy analysis. They will be able to identify the most relevant variables that comprise the issue under consideration, to develop behavior over time diagrams of the variables, and to construct causal loop diagrams that link the variables with system behavior. Students will be able to distinguish between traditional and systemic modes of thinking about issues, and to identify the underlying systems that generate observed behavior. They will be able to construct causal loop diagrams consisting of positive/reinforcing and negative/balancing feedback loops, as well as identifying the polarity of the relationships to capture the main feedback relationships and to identify potential intervention points. Students will construct, test, and use system dynamics computer models to analyse the intended and unintended effects of proposed policy initiatives in order to support managerial decision making."