System dynamics modeling as a circular process: The smart commons approach to impact management

•System dynamics modeling can provide decision-makers with powerful tools for sense-making, forecasting and decision-making.•However, the potential contribution of system dynamics modeling to sustainability transformations often remains unrealized.•A new performance management approach should address some key fragilities of today's system dynamics modeling processes.•The new proposed Smart Commons approach is based on a set of five principles and a novel, two-level organizational solution.•The new Smart Commons approach can boost the impact of system dynamics modeling on system sustainability and resilience.