Ariel Gani's Blog: Balance Scorecard Framework

Ariel Gani's Blog: Balance Scorecard Framework: The balanced scorecard is a strategic planning and management system that is used extensively in business, industry and non-profit organizat...

Strategos: The Art of Generals

The word strategy is derived from the Greek strategos — literally, “the art of the general”. Today strategy planning has become a common process in most organizations. In one form or the other every business seems to be struggling to find that “ONE” winning formula that helps take it flight to the next level of success. Sometimes a formal strategy statement is defined and all processes and elements of business start following the same as a tag line of success; whereas in few organizations merely a mission statement or a vision statement with all its vagueness qualifies for a business strategy.  

It is important to note here that it is hardly necessary that all those elements of organization that are working on this corporate strategy are referring to the same thing. In practice, it is very well possible that a vague understanding of the overall company’s direction exits in most intangible forms. In this regard strategy is sometimes taken as an imaginative or situational act and is not definite in its forms and hence execution.   

Another viewpoint of Strategy researchers takes strategy as a mechanism which helps in chartering new directions for the company and has direct effect on the performance and structure of the business.  This school of thought refers Strategy as “the determination of the basic long-term goals and objectives of the enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. This definition clearly views strategy from the point of both objectives and goals (long term or short term) and execution of the strategy to achieve them allocation appropriate resources.

In practice however, Strategy is viewed in two clear forms: Strategy Formulation & Strategy Implementation. Most organizations spend good hours and efforts in formulating the strategy which seems very gigantic and ready to take the leap at the competitors but in effect the implementation of strategy is neither well planned nor well thought out. As a result the gap between “here” and “there” is never closed.

To me the actual process of strategy remains an intuitive art and rightfully the art of general. Now the general who wins a battle makes many calculations in his temple ere the battle is fought. The general who loses a battle makes but few calculations beforehand. It is by attention to this point that expresses a need for a systematic process that defines the organization’s directions, goals, set parameters for internal and external challenges and helps in viewing the actual implementation of the same.  

I have enlisted few steps which if done well can help companies in balancing the focus between both phases. I divide them in two phases

Phase I.            Envisioning & Crafting

Phase II.          Execution & Evaluation

The first phase typically deals with visioning and analyzing the current situation and planning of What WHY and WHERE parts of business; whereas execution phase helps in designing a framework or internal procedures to execute and continuously monitor the implementation and setting and redirecting the efforts required to achieve various goals, the most important “WHO” and “HOW” part of the business.

In later posts I will take each phase in detail and explore the tools that can be used in each.In exploring both phases of this intuitive art I would certainly like your comments, suggestions and experiences to make this journey worthwhile.

Let your plans be dark and as impenetrable as night, and when you move, fall like a thunderbolt!"Sun tzu: The Art of War"