Strategy is management's game plan for strengthening the performance of the enterprise. It states how business should be conducted to achieve the desired goals. Without a strategy management has no roadmap to guide them.
With a well-designed strategy map, every employee can know your overall strategy and where they fit in. Each bubble is automatically colored red, yellow, or green based on your actual measures and the goals you set for them.
This article assumes that you know about the general idea of balanced scorecards. The Basics The main idea of a strategy map is that each strategic objective in your balanced scorecard is represented by a shape, usually oval.
Very rarely are there more than 20 objectives. Tracking too many will dilute your overall message, making your strategy difficult to communicate. Adding Arrows Many strategy maps also have arrows between the objectives to show their cause and effect chain.
These causal relationships are central to the idea of the balanced scorecard. Strategy maps show how fuzzy intangible assets, like company culture and employe knowledge, are turned into concrete tangible results.
Your strategy map shows these relationships and encourages strategic thinking that goes far beyond your balance sheet. Themes Some strategy maps have strategic themes.
They represent the three or four big-picture strategic focuses in your organization. Themes vertically group together related objectives across your entire strategy map.
Unlike perspectives, themes are very specific to your organization. For example, themes may be things like: Operational Excellence Sustainability Clinical Leadership Some organizations find it helpful to show themes on their strategy map.
Others think that themes add unnecessary complexity. Showing Performance Some balanced scorecard software packages allow you to build your strategy map directly in the software.
There are many benefits to automating your balanced scorecard, but the ability see your strategy map light up with real performance colors may be the biggest. Your static strategy map becomes a live performance dashboard.
You can see at a glance how your organization is performing, and you can click on a colored bubble to drill down to more information.
For example, most companies put the financial perspective on top because their end goal is to make more money. Public utilities and nonprofits, however, have different motivations.
Their finances are just a means to an end. Their funding Financial allows them to help people Customer. Likewise, some objectives may not fit neatly within a single perspective and it may make more sense for them to straddle the line between two perspectives.
The Wikipedia entry for strategy maps is a great resource, but it can get pretty wordy. Finally, Amazon has some great books available if you really want to get some deep insight. See what it does.A business plan is a written description of your business's future, a document that tells what you plan to do and how you plan to do it.
If you jot down a paragraph on the back of an envelope. A strategy map is a visual summary of what a company plans to do in order to improve its business, gain more customers and improve its financial outlook.
Additionally, many companies find strategy maps valuable because they include intangible factors like culture in the strategic analysis.
A well-thought-out strategy map is a beautiful thing.
It maintains a solid structure while allowing for a great deal of flexibility, so it can represent virtually any segment you operate in and your unique strategy.. If you’re just getting started with your strategy mapping initiative and are looking for some templates and examples, you’re in the right spot!
Jan 30, · Whether you’re starting or growing your business, you need a business plan. Your plan will provide the roadmap to achieve the success you want.
Seeing your whole strategic plan — the relationships and dependencies — can be difficult, but doing so is necessary to make sure that your company sees the big picture. Business Strategy; Strategic Planning: Map Your Strategy; Strategic Planning: Map Your Strategy and cash flow statements, no common or uniform elements exist for.
A strategy map is a diagram that shows your organization's strategy on a single page. It’s great for quickly communicating big-picture objectives to everyone in the company. With a well-designed strategy map, every employee can know your overall strategy and where they fit in.