Balanced Scorecard

BAi Process & BSC Value Creation Construct:
The BAi process and the balanced scorecard fit harmoniously together. The BAi process gives equal weight strategy formulation (idealization), and execution (realization). The BSC primarily focuses on execution.

BAI Process & Strategy Focused Organization Framework:
Kaplan and Norton's strategy focused organization framework focuses primarily on the planning and execution of strategy (realization).

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Reconciling the Strategic Management Framework with Proven Methods such as the Balanced Scorecard

Many effective methods and techniques have been developed to help organizations be more effective strategy developers and executers. The strategic management framework provides a perspective to better understand and integrate existing methods while identifying opportunities for new and improved methods.

Strategy Idealization and Realization

The strategic management process presented here has two complementary halves, idealization and realization. The idealization half formulates the strategy. The realization half executes the strategy. Strategy formulation, for all of the methods and techniques available to business leaders, is a fairly weak area. As a result, the BAi strategic management process goes into some depth to propose an organization for and define the specifics of idealization. Also, a comprehensive view of strategic management is not well developed to facilitate the further development and understanding of a coherent body of knowledge. That is the purpose of the BAi strategic management framework.

On the other hand, the body of knowledge regarding strategy execution is more mature and proven than strategy formulation. As such, it is important for the strategic management framework to integrate and harmonize with those methods and tools which are strong and proven. One example of this is the balanced scorecard.

Balanced Scorecard

One commonly used effective method for strategy execution is the balanced scorecard method for creating value through strategy execution. For an in-depth explanation see Kaplan and Norton's books on the subject and the Balanced Scorecard Collaborative. This method focuses on strategy execution. It presumes a strategy has been developed. The strategy is clarified, the strategy is planned and executed, and the learning is incorporated into the process. The unity between these frameworks is shown in the associated diagrams.

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