Strategy map
is a visual representation of a company’s overall objectives and how they relate to one another on a single page.
it’s great for quickly communicating big-picture objectives to everyone in the company.
describes your strategy and tells your story of your strategy.
shows, visually, how you expect to create value in the organization for your customers.
describes what you believe will drive change by providing a simple visual representation of the strategic objectives to be focused on in the form of the perspectives and causal arrows.
The strategy map has been found useful in enabling discussion within a management team about what objectives to choose, and subsequently to support discussion of the actual performance achieved.
You can develop the four perspectives by deriving the answers for the following questions:
Financial: The Financial Results And Survival
Question: To Satisfy Stakeholders, What Financial Objectives Must Be Accomplished?
Customer: What The Customers Want Or Need
Question: To Achieve The Financial Objectives, What Customer Need Must Be Met?
Internal Processes: The Internal Organization And Processes That Deliver The Customer Needs
Question: To Satisfy Customers, And Stakeholders, Which Internal Organizational Process Are Critical?
Learning And Growth: The Training, Technology And Knowledge Needed To Operate The Processes Or Procedures Successfully
Question: To Achieve Goals, How Must The Individuals Be Enabled?
There are several guidelines that need to be taken into consideration when designing a Strategy Map:
Choose the right template
Start from the top down
Ask the questions in a cause and effect chain repeatedly
Until you have reached the lowest level perspective
A Strategy Map does not contain measures, it contains objectives
Of cause, we can combine the power of both tools by using a strategy map as a part of the Balanced Scorecard.
Strategy maps provide the means of linking the objectives to the balanced scorecard which provides a roadmap giving direction and linking the performance indicators and initiatives to the strategy of the company.
We can place your measures on the strategy map, alongside the objectives they correspond wit
A clear direction is necessary for everyone to know what they are working on and what goals to accomplish to increase their productivity.
When you have identify your strategic objectives or goals on a strategy map and associated a link between them through arrows, you will see a cause-and-effect relationship between those goals.
At that point, you can gauge the importance of one goal in attaining the other goals.
This will help you in devising your action plan, and consequently developing your overall strategy according to your organization’s targets.
You will also be able to monitor and control the implementation of your strategy.