Strategy making always starts with a goal, but is not limited into it. You may have a goal, but without the proper strategy tools, you’ll go nowhere. Throughout the different strategy gurus that have truly contributed on how to make the proper strategy, not only a broader understanding of what strategy is developed, but also the underlying tools for its success. BCG Matrix, SWOT Analysis, PEST Analysis, McKinsey 7s, Porter’s 5 forces are just some of the tools that are needed not for strategy making but merely for strategy interpretation.
These strategic tools do not really make the strategy. They are just a helping ‘tool’ to make the strategy fit into the ‘missing puzzle piece’. Thanks to Porter, Drucker, Mintzberg, Prahlad and many more, the view of strategy and strategy making turned 360 degrees for us as they have widened our thoughts to it. Porter’s statement of operational effectiveness is not a strategy widened our eyes that not everything you do will always turn out to be the same.
Drucker’s theory of business told us what theory of business is and how it is relevant in making decisions trough setting yourself different from the rest. Indeed these gurus have made us believe how strategy works. But in reality, how does it really work? We often ask ourselves that “after knowing strategy, what comes next?” Well, the next step is to apply these strategies through the strategic tools. These tools are like the pathway for you to know if your strategy is viable.
One way to know if you are able to execute your strategy correctly is through the Balanced Scorecard. “It is like the dials in an airplane cockpit: it gives managers complex information at a glance.” The balance scorecard allows the managers to look at the business from our important perspectives as it answers the questions: How do the customers see us? What must we excel at? Can we continue to improve and create value? And how do we look to shareholders? These questions, if answered positively determine a good strategy move. The balance scorecard itself will tell you if the whole process is right.
The balance scorecard may not be a strategy, but a very powerful tool that sums up what your strategy might be. Similar to all the strategic tools, it helps you to straighten your pathway through success. Always remember that the missing puzzle piece in a puzzle set completes a portrait if and only if it has been placed correctly, and the balance scorecard tells you which fits which.