The use of system dynamics and systems thinking in organizations is in
creasing dramatically. However, little is known about the efficacy of
these interventions in enhancing organizational effectiveness or produ
ctivity. With few exceptions, the relationship between the use of syst
ems thinking and organizational performance remains the province of an
ecdote rather than rigorous follow-up research. Evaluation helps ident
ify the tools and techniques that can be used successfully, the situat
ions in which they work, and their limitations. This article reports a
follow-up evaluation of a well known systems thinking intervention de
signed to improve quality and performance in the claims adjusting unit
of a U.S. insurance firm. Through a questionnaire, interviews, and ex
tensive review of company records, it has been established that the in
tervention succeeded in changing the mental models and behavior of key
managers. New policies consistent with model recommendations were imp
lemented. Evidence of performance improvement is mixed, however. A num
ber of confounding variables limit the possibility of assessing the bu
siness impact of the intervention. These limitations could have been l
essened if the original intervention had been designed with rigious ev
aluations as a goal. (C) 1997 by John Wiley & Sons, Ltd. Syst. Dyn. Re
v. 13, 171-186, 1997.