System Archetype Balancing process with delay

In the model "system achetypes" (https://imodeler.info/ro?key=AWmcYVpCac1lRUJaRxmTz7Q) we have explained different system archetypes, which are describing common patterns of behavior in all kind of organizations or systems. For this, we have used simple examples - mainly based on the work of Peter Senge (Literature: Peter Senge et. al., The Fifth Discipline Fieldbook, 1994).

Peter Senge documented the most common set of patterns of behavior in organizations that have the tendency of reoccurring. These patterns almost always result in negative consequences due to mismanaging complex problems. Maybe, you will catch yourself by studying these patterns :-)

In the overview of the model you will find the most common set of system archetypes structured as clusters in a family tree (see figure above).

Here, we would like to present one of the above mentioned system archetypes. Have fun & happy modeling.
Yours CONSIDEO-Team

System Archetype Balancing process with delay - short description:

This archetype explains the system in which the response to action is delayed. If the decision makers do not perceive the delayed feedback, they might overshoot or underestimate the requisite action in order to reach their goals. This could be avoided by being patient or by accelerating reactions of the system to realized measures.

We often encounter this archetype in macroeconomics, which is why RBI waits for at least four months to evaluate the effectiveness of a monetary policy. Fiscal policies have even a longer time lag.

More examples: cause and effects produced by commodity production systems (Meadows, 1970) or by delayed inventory systems, as simulated with the Beer-Game (Sterman, 1989).

In addition, cyclical behavior in industry is also mostly endogenously generated due this archetype. Exogenous factors only determine the amplitude of the cycles, but they are not responsible for the general cyclical behavior of the system. Therefore, decision makers have to learn that the cyclical behavior of results in their industry are to a good amount caused by their decision rules and not by exogenous factors. Until now, there is a lack of cyclical management strategies in industry to smooth the oscillations and to reduce their negative impact on the whole industry.

Results of our example:

Our example demonstrates the cyclical behavior in the real estate market. The same mechanism of the model can be used for other sectors as well like business cycles in the airline market, transport market (shipping, infrastructure of ports etc.) or tourism (regional density of hotels) etc.

Here you will find some more system archetypes: https://imodeler.info/ro?key=AWmcYVpCac1lRUJaRxmTz7Q

Have fun & happy modeling. Yours CONSIDEO-TEAM