In today's corporate environment, it's not enough to just define strategies. The real challenge lies in ensuring they are executed consistently, closely monitored, and adjusted whenever necessary.

It is in this context that management models gain relevance. Tools such as BSC, GPD, VBM, and PDCA emerge precisely to help companies organize their priorities, measure performance, and transform planning into results.

But there's an important point that many organizations still overlook: none of these methodologies, in isolation, solve all management problems. More mature companies have already understood that the most efficient path lies in integrating these models, taking advantage of the best of each.

What are management models and what is their role in strategy

Management models are methodological frameworks that help companies plan, execute, monitor, and improve their operations and strategies. They function as guides that direct decisions, organize processes, and allow for structured tracking of results.

In practice, these models help answer fundamental questions:

• How to turn strategy into action
• How to measure performance consistently
How to ensure everyone is aligned
• How to fix deviations quickly

Without a well-defined management model, the company tends to operate reactively, with little predictability and difficulty in achieving sustainable growth.

What are the types of management models?

Management models can be classified in different ways, depending on the organization's focus. However, in general, they are divided into a few main categories:

• Strategic Modelsfocused on business direction, such as BSC (Balanced Scorecard) and OKRs
• Operational modelsfocused on execution and continuous improvement, such as PDCA and Lean
• Financial Models: value-driven, such as VBM (Value-Based Management)
• Unfolding models: which ensure alignment between strategy and operations, such as MBO (Management by Objectives)
• Agile models: focused on flexibility and speed, such as Scrum and Kanban

In practice, more mature companies combine different types to cover strategy, execution, and results control.

Balanced Scorecard (BSC): Translating Strategy into Indicators

Actio’s Balanced Scorecard (BSC) it is one of the best-known models when it comes to strategic management. Created by Kaplan and Norton, its main objective is to translate strategy into measurable indicators, organized into four perspectives.

Financial: results such as profit, revenue, and profitability
• Clients: satisfaction, retention, and perceived value
Internal Processes: Operational Efficiency and Quality
• Learning and growth: people development and innovation

The great differentiator of the BSC is its ability to connect strategic objectives with clear indicators.

Practical example:
A company that wishes to grow can set “increasing market share” as its objective. In the BSC, this translates into indicators such as increasing customers, improving experience, and operational efficiency.

Although excellent for communicating strategy, the BSC can have limitations in operational execution if not integrated with other methodologies.

Management by Guidelines (MBG): Taking Strategy to Everyday Operations

GPD, also known as Hoshin Kanri, primarily focuses on deploying strategy at all levels of the organization. It ensures that what is defined by senior leadership is communicated clearly and executably down to the operational level.

In practice, GPD functions as an organizational alignment system.

Define annual strategic guidelines
• Breaks down goals by area and team
• Continuous execution monitoring
Promotes discipline in management

Practical example:
If the company sets as a guideline “reduce operational costs by 15%”, the GPD ensures that each area has specific goals to contribute to this objective, such as waste reduction or process improvement.

The GPD's strength lies in execution. It translates strategy into daily operations. On the other hand, it's not as effective in communicating the “why” behind goals, which can limit engagement if used in isolation.

Value-Based Management (VBM): Focus on Generating Financial Value

VBM (Value Based Management) is a model that places shareholder value creation at the center of decision-making. It uses financial indicators to guide strategies and assess performance.

Among the main indicators used are:

Return on Invested Capital (ROIC)
Profit margin
Cash flow
Economic Value Added (EVA)

Practical example:
A company can decide to invest in a new project. Based on VBM, this decision will be evaluated by considering the expected financial return and the impact on the company's value.

VBM is extremely efficient for guiding financial decisions and investment prioritization. However, it doesn't delve into operational or cultural aspects, which can limit its isolated application.

PDCA: Continuous improvement in practice

Actio’s PDCA cycle (Plan, Do, Check, Act) is a methodology focused on continuous improvement. It is widely used for process control and optimization.

The cycle works in four stages:

• Plan: Define objectives and goals
Execute: put the plan into practice
• Verify: analyze obtained results
• Act: Correct deviations and standardize improvements

Practical example:
A company identifies a drop in productivity. With PDCA, it plans improvements, tests changes, measures results, and continuously adjusts the process.

PDCA is simple, but extremely powerful for ensuring consistency in execution and constant evolution.

Comparison of management models

Each of these methodologies has a specific role within strategic management.

OBSC is strong in translating and communicating strategy.
The GPD is efficient in deployment and execution
• VBM guides financially focused decisions
• The PDCA ensures continuous improvement

The problem arises when the company tries to use just one of them to solve everything.

This creates gaps, such as a well-defined strategy that is poorly executed, or efficient execution without clear direction.

Why integrate BSC, GPD, VBM, and PDCA

The integration of these models allows for the construction of a more complete and balanced management system.

In practice, this means:

• Use the BSC to structure and communicate the strategy
Apply GPD to break down goals and ensure execution
• Use VBM to guide financial decisions
Adopt PDCA to continuously improve processes

Integrated example:

A company defines its strategy with BSC, cascades goals with GPD, evaluates investments with VBM, and improves processes with PDCA. This model reduces failures, increases alignment, and improves decision-making.

How to choose the best management model for your company?

The choice of the ideal model depends on factors such as:

Company Size
• Management maturity level
• Complexity of operations
Organizational culture
• Strategic objectives

Companies seeking structured growth generally benefit from integrating models, with technological support.

The role of technology in integrating management models

Integrating different methodologies manually can be complex and inefficient.

Information is scattered, indicators don't talk to each other, and management loses visibility.

With the support of strategic management software, it's possible to centralize everything in a single environment.

Technology enables:

Integrate different methodologies into a single platform
• Monitor real-time indicators
Ensure alignment between strategy and execution
• Automate processes and reduce errors
Facilitate decision-making

If you want to evolve your management and efficiently integrate different models, discover Actio's solutions: