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The Strategy Map
• A Strategy Map is a diagram that describes how a company
or organisation can create value by linking strategic
objectives in a cause and effect relationship.
• It is based on the four Balanced Scorecard Perspectives:
Financial, Customer, Internal Processes and Organisational
Capacity.
• The key element of the Strategy Map is that it is linked to the
‘scorecards’ that monitor the progress towards the Strategic
Objectives.
• The ‘scorecards’ will include: metrics, targets for the metrics
and strategic initiatives to drive performance towards
achieving the objectives.
The Balanced Scorecard
• The Balanced Scorecard is a strategic planning and
management method used to:
• align business activities to a vision and strategy of an organisation
• improve internal and external communications
• monitor organisational performance against strategic goals.
• The design of Balanced Scorecard concerns itself with:
• the identification of a small number of financial and non-financial
measures referred to as Perspectives
• setting targets for the measures and then
• measuring them on a regular basis to determine success or failure.
Strategy Map – Classic Kaplan/Norton
Productivity Strategy Growth Strategy
Productivity Strategy Growth Strategy
Financial Long-Term
Perspective Long-Term
Shareholder Value
Shareholder Value
Improve Cost Increase Asset Expand Revenue Enhance
Improve Cost Increase Asset Expand Revenue Enhance
Structure Utilisation Opportunities Customer Value
Structure Utilisation Opportunities Customer Value
Customer Customer Value Proposition
Perspective
Price Quality Availability Selection Function Service Partnership Brand
Price Quality Availability Selection Function Service Partnership Brand
Product / Service Attributes Relationship Image
Internal Operations Management Customer Management Innovative Processes Regulatory and Social
Processes Processes Processes
Perspective Supply Selection Opportunity Identification Environment
Production Acquisition R&D Portfolio Safety and Health
Distribution Retention Design / Develop Employment
Risk Management Growth Launch Community
Learning & Human Capital
Human Capital
Growth
Information Capital
Perspective Information Capital
Organisational Capital
Organisational Capital
Culture Leadership Alignment Teamwork
Strategy Map - Generic Example
Mission: Managing with greatness and strength, improving everything daily
Vision: Leading with inspiration and courage, passionate about future possibility and change
Financial Sustained Shareholder Value
Perspective
Productivity Strategy Revenue Growth Strategy
Improve Cost Increase Asset Enhance Expand
Structure Utilisation Customer Revenue
Value Opportunities
Customer Customer Value
Perspective Proposition
Price Quality Availability Selection Function Service Partnership Brand
Production Service Attributes Relationship Image
Internal
Perspective Operations Customer Management Innovative Processes Regulatory and Social
Management Processes Processes Processes
Processes that produce Processes that enhance Processes that create Processes that improve
and deliver products and customer value new products and communities and the
services services environment
Learning &
Growth
Perspective Human Capital Information Capital Organisational Capital
Skills + Systems + Skills / Training
Training Databases Knowledge
Knowledge Networks Teamwork
Basic Strategy Map Background
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