Abstract:

The article deals with the topic of system dynamics application in strategic management. After several years of reducing of the Czech defence budget there is a reversal and the Czech Ministry of Defence begins to manage the increased budget. This represents a new challenge and opportunity. One of the instruments, how to reach new capabilities, is application of system dynamics. The application of systemic dynamics to the problem of military capabilities is given by the very nature of the process of building military capabilities. Some aspects of capability and equipment life cycles and human resources or personnel development are discussed. Application of system dynamics to military personnel career policy is demonstrated by means of simulation in Vensim application.