I believe that creating value is one of the complex but without a doubt

one of the most important and transcendental processes that an

effective manager can develop. The reason is because if a manager
creates value not only on the value chain related factors but also on
the relationships with his subordinates and higher level directives then
the company reaches a new level in which all the components develop
integrally. A manager can develop this process by implementing
certain strategies that foment the clear and effective communication
between all the levels in the company. Communication will be the most
important factor in this process because it will let the people know with
whom they are collaborating and it will teach them how to relate with
others effectively and in this way all the components that make the
company will be affected in a good way.
The balanced scorecard is a strategic planning and management
system that is used extensively in business and industry, government,
and nonprofit organizations worldwide to align business activities to
the vision and strategy of the organization, improve internal and
external communications, and monitor organization performance
against strategic goals. One of the key points of this model is that it
analyzes the situation of a process or a company on a daily basis as it
provides a framework that not only provides performance
measurements, but helps planners identify what should be done and
measured. It enables executives to truly execute their strategies. A
major advantage of the implementation of this method is that fact that
it provides feedback around both the internal business processes and
external outcomes in order to continuously improve strategic
performance and results. When fully developed, the balanced
scorecard transforms strategic planning from an academic exercise
into the nerve center of an enterprise.
In order to create and achieve competitive advantage, a resource
should focus on developing the following attributes:
o Valuable A resource must enable a firm to employ a valuecreating strategy by either outperforming its competitors or
reducing its own weaknesses. The value factor requires that the
costs invested in the resource remain lower than the future rents
demanded by the value-creating strategy.
o Rare To be of value, a resource must be rare by definition. In a
perfectly competitive strategic factor market for a resource, the
price of the resource will reflect expected future above-average
returns.
o Inimitable If a valuable resource is controlled by only one firm,
it can be a source of competitive advantage. This advantage can

be sustained if competitors are not able to duplicate this

strategic asset perfectly. Knowledge-based resources are "the
essence of the resource-based perspective."
o Non-substitutable Even if a resource is rare, potentially valuecreating and imperfectly imitable, of equal importance is a lack
of substitutability. If competitors are able to counter the firm's
value-creating strategy with a substitute, prices are driven down
to the point that the price equals the discounted future rents,
resulting in zero economic profits.
Reference
Boundless.
(2014).
The
Resource-Based
View.
Retrieved
from: https://www.boundless.com/management/textbooks/boundlessmanagement-textbook/strategic-management-12/internal-analysis-inputs-tostrategy-88/the-resource-based-view-429-4023/
Balanced Scorecard Institute. (2015). Balanced Scorecard Basics. Retrieved
from: http://balancedscorecard.org/Resources/About-the-Balanced-Scorecard