Performance measurement scenarios with fuzzy cognitive strategic maps

This paper presents the application of a fuzzy cognitive map (FCM) based theoretical framework and its associated modeling and simulation tool to strategy maps (SMs). Existing limitations of SMs are presented in a literature survey. The need for scenario based SMs with inherited ability to change scenarios dynamically as well as the missing element of time are highlighted and discussed upon. FCMs are presented as an alternative to overcome these shortfalls with the introduction of fuzziness in their weights and the robust calculation mechanism. An FCM tool is presented that allows simulation of SMs as well as interconnection of nodes (performance measures) in different SMs which enables the creation of SM hierarchies. An augmented FCM calculation mechanism that allows this type of interlinking is also presented. The resulting methodology and tool are applied to two Banks and the results of these case studies are presented.