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About Strategy Mapping - Balanced Scorecard Insti

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13 views1 page

About Strategy Mapping - Balanced Scorecard Insti

Uploaded by

yemijemilusi19
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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 (919) 460-8180

U a

What is a
Strategy Map?

Free 5-Minute Assessment

What is a Strategy Map?


A strategy map is a simple graphic that shows a logical, caus
and-eXect connection between strategic objectives (shown
ovals on the map). It is one of the most powerful elements in
balanced scorecard methodology, as it is used to quickly
communicate how value is created by the organization.

How Does Strategy Mapping Hel


an Organization?
Strategy mapping can vastly improve any strategy
communication eXort. Most people are visual learners and s
picture of your strategy will be understood by many more
employees than a written narrative. Plus the process of
developing a strategy map forces the team to agree on wha
they are trying to accomplish in simple, easy-to-understand
terms. With a well-designed strategy map, every employee
see how they contribute to the achievement of the
organization’s objectives.

What Does a Strategy Map Look


Like?
The example below demonstrates how a business might
organize their strategic objectives across the four perspectiv
of the balanced scorecard. Arrows are used to illustrate the
cause-and-eXect relationship between the objectives. By
following the path of the arrows, you can see how the object
in the lower perspectives drive the success of the higher one
These causal relationships are central to the idea of strategic
planning and management with a balanced scorecard. If you
Improve Knowledge and Skills and Improve Tools and Technol
(in the Organizational Capacity perspective), you will more ea
Increase Process E:ciency and Lower Cycle Time (in the Inter
Process Perspective). If you do those things, you will more ea
Lower Wait Time, and so on.

Financial

Lower
COst Profitability Revenue

Leading
ouestion.

How?
Customer
Lower Improve
Custon
Retention

Frocess Increase Lower


Process
Efficiency

Leading
Question
Then
Organizational
Capacity Improve Improve
Knowledgeand Toolsand
Skills rentorou)

Reference:TheInstituteWay:SimplifyStrategicPlanning&
ManagementwiththeBalancedScorecard.

This example is a simple teaching example, but a real map w


look the same. A typical strategy map will have four
perspectives and between 12 and 18 strategic objectives. Lik
the example above, most for-pro`t companies put the `nanc
perspective on top because their end goal is to make more
money. For public sector organizations, however, `nances are
more of a means to an end. Since a government or nonpro`t
`nal goal is to provide the best services it can, it is common f
them to switch the top perspectives so that
Customer/Stakeholder is on top. Their funding and cost
eXectiveness (Financial Stewardship) allows them to drive
mission-driven success.

How Do You Develop a Strategy


Map?
Strategy Map development happens during Step Four of the
Nine Steps to Success™. At this point, the organization should
have completed a full strategy assessment and developed h
level strategy elements like Mission, Vision and Themes/Go
The organization’s business model will help them choose the
right perspective names and order. The mapping process be
when the organization identi`es continuous improvement
objectives needed to achieve its vision and goals. We
recommend objectives that are simple, easy to understand,
that imply continuous improvement. Objectives are identi`ed
all four perspectives and then cause-eXect arrows are drawn
indicate the eow of value creation.

Who Develops the Strategy Map


We highly recommend that cross-functional teams develop
elements of strategy, especially the strategy map. Inclusion
the development process expands the set of viewpoints
informing strategy formulation and encourages buy in by the
team members that will be responsible for executing the
strategy.

How Do I Learn More About


Strategy Mapping?
Check out our Balanced Scorecard Professional Certi`cation
Program to learn more about Strategy Mapping or the Balan
Scorecard or Contact Us with questions.

Balanced Scorecard Professional


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