How to put the strategy in action?

Defining an overall strategy for a company is usually a conceptual activity developed by business owners. Meanwhile, after clearly defining what the strategy is, the big question arises:

How to successfully implement, measure and communicate strategy through the company?

More than just having a strategy, companies must be able to implement and measure performance. Kaplan and Norton developed a holistic management system called BALANCED SCORECARD which is based on four major perspectives:

• Finance
• Clients
• Internal process
• Learning and growth

Since traditionally strategy is measured through past results and intangible assets are not reflected directly in the financial reports, balanced scorecard is a powerful tool to help managers translate strategy in to performance indicators that reflect operations activities in to a dashboard of results. However, it is not an easy process to translate strategy and design the balanced scorecard. The video shows the fundamentals, but in practice business must be well planned and organized so that the potential of the tools can be exploited.