<br />
This situation is an important time to ask yourself some questions:<br />
<br />
Are we losing the advantages over our competitors and we are currently engaged in a price war?<br />
<br />
Is the market sees us as one, without any differentiation over our competitors?<br />
<br />
Is the impact of globalization is still important in our industry?<br />
<br />
Are we losing operational efficiency?<br />
<br />
If we are in a productive sector, are we competitive with the current costs?<br />
<br />
Are you in crisis the business model?<br />
<br />
Actually what we find in practice is that managers of organizations usually have difficulty in identifying their strengths and weaknesses because it is often difficult to analyze the situation when you are immersed in it.<br />
<br />
It is difficult to conclude that a company that has achieved remarkable results for 30 years has to change dramatically. It is very difficult for managers and owners to reach that conclusion .But often we are faced with the dilemma of ""change or die.""<br />
<br />
Beyond the major theories on the definition of the strategy, I think the first thing we must be clear on is what is and what is the strategy. The strategy is to do a thorough analysis of both our organization and the environment to define a plan of action that leads us to improve our position on the competitors in the medium to long term. The strategy is to choose a path.<br />
<br />
We often find that organizations define strategies ""continuity"", ie assume that customers and competitors do not change and therefore the strategy will be in the same line as that of the last 30 years. There is great resistance to change and is not a good solution: what worked for 30 years usually does not work today.<br />
<br />
It is very important to note that the strategy should not be ""projected"" numbers along x years but we must bear in mind that a strategy that gets us competitive advantages is a futile strategy and will lead directly to the competition by decreasing prices the profit margin on a daily basis and it becomes a cancer to the company.<br />
<br />
For practical purposes, the process of strategic management are four potential weaknesses:<br />
<br />
1 . Usually found major problems in the initial diagnosis. In many cases, managers are too ""optimistic"" for what is often a tendency to continuity plans are not required action plans ""radical.""<br />
<br />
2 . That the strategy is defined at the level of senior management and has been communicated to the entire organization.<br />
<br />
3 . get the strategy did not run because there is a clear relationship between the strategic level, tactical and operational.<br />
<br />
4 .That the Strategy is ""static"" and is not revised with the agility to a changing environment as the current required.<br />
<br />
Each of these situations has a different solution line. In the first case, one must promote a culture in the organization open to constructive criticism and in which all individuals can make to the company's strategy and that their views are valued.<br />
<br />
To solve the second, third and fourth problems we have a tool called the Balanced Scorecard.<br />
<br />
The Innovation Balanced Scorecard<br />
<br />
The Innovation Balanced Scorecard was created to definitively link the strategy and its implementation using indicators and targets around four perspectives. The benefits of implementing the Balanced Scorecard can be built on four concepts:<br />
<br />
1 . Linking strategy with execution by defining objectives in the short, medium and long term<br />
<br />
2 . Having a tool that allows control decisions swiftly.<br />
<br />
3 . Communicate strategy to all levels of the organization and getting people aligned with the strategy.<br />
<br />
4 . To have a clear view of cause and effect of the strategy.<br />
<br />
To achieve these benefits, Innovation Balanced Scorecard uses a model based on indicators and targets that revolves around four perspectives: financial, customer, internal processes and learning and growth.<br />
<br />
Thus, we define a Innovation balanced scoreboard with goals in each of the perspectives that serve to implement, communicate and control the strategy.<br />
<br />
Besides also used the strategic map is a diagram of the cause-effect of the strategy through the four perspectives and serves to translate a graphic manner the deployment of the strategy to have a clearer vision for making decisions.<br />
<br />
In conclusion, at a time like the present one is a good time for a thorough review of the strategy of the organization with a critical eye and use a scorecard to get it into</p>
<p class="articletext">
</p>
<p class="article-resource">
If you are interested in <a href="http://www.bscdesigner.com/measuring-innovation.htm" target="_blank" rel="nofollow">Balanced Scorecard in practice</a>, check this web-site to learn more about Innovation Balanced Scorecard in Practice.</p>
<!--
