4 - strategy mapsnote: editable powerpoint templates for all of the strategy maps shown in this...
TRANSCRIPT
![Page 1: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/1.jpg)
ANOTHERHELPFULGUIDEFROMINTRAFOCUSStrategyMaps
![Page 2: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/2.jpg)
1|P a g e
TableofContents
TableofContents................................................................................................1
WhatisaStrategyMap?.....................................................................................2
HowtoBuildaStrategyMap..............................................................................4
MissionandVision...........................................................................................4
Perspectives.....................................................................................................5
StrategicThemes..............................................................................................5
StrategicObjectives.........................................................................................7
Software...........................................................................................................9
Appendix–SampleStrategyMaps....................................................................11
Publicsectorexample....................................................................................11
Basicemptytemplate....................................................................................12
Focusoninternalthemes...............................................................................12
Withprominentmissionandvision...............................................................13
![Page 3: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/3.jpg)
2|P a g e
WhatisaStrategyMap?
In2001KaplanandNorton1published“TheStrategyFocusedOrganisation”whichintroducedtheStrategyMapasanintegralpartoftheBalancedScorecardperformancemanagementsystemthustransformingitintoastrategicmanagementsystem.
AStrategyMapisadiagramthatdescribeshowacompanyororganisationcancreatevaluebylinkingstrategicobjectivesinacauseandeffectrelationshipbasedonthefourBalancedScorecardPerspectives:Financial,Customer,InternalProcessesandLearning&Growth.ThekeyelementoftheStrategyMapisthatitislinkedto‘scorecards’thatmonitorprogresstowardstheStrategicObjectives.The‘scorecards’willinclude:metrics,targetsforthemetricsandstrategicinitiativestodriveperformancetowardsachievingthemetrics.Anexampleofagenericstrategymapcanbeseenbelow:
Note:editablePowerPointtemplatesforalloftheStrategyMapsshowninthisdocumentcanbefoundinthe‘Resources’sectionoftheIntrafocuswebsite.
1DrRobertKaplanandDrDavidNortonarealsotheauthorsofTheBalancedScorecard–TranslatingStrategyintoAction,HarvardBusinessSchoolPress1996
![Page 4: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/4.jpg)
3|P a g e
ClearlyfortheabovediagramtobeusefulthegenericneedstobespecifictothecompanyororganisationthattheStrategyMapisbeingproducedfor.However,asaframeworkand‘strawman’theaboveisveryuseful.Thefirstinsighttobegainedisthatanentirecompanyororganisation’sstrategycanbeplacedonasinglesheetofpaper(orsinglescreen).
ThisisoneofthemostinvaluableaspectsofaStrategyMap,itprovidesatalkingpoint,somethingthattheexecutive,managementandinfacteveryoneinacompanycanlookat,examineandrelateto.Inaninstant,themeanstocommunicateacompanystrategyhasbeencreated.
Overall,therearefourmajorreasonswhyaStrategyMapshouldbecreated:
1. Itprovidesaclearandconcisemeanstocommunicateacompanystrategy.Researchhasshownthatlessthan10%ofemployeeshaveaclearunderstandingoftheircompany’sstrategy2.Thesameresearchhasalsoshownthat50%ofexecutivesspendlittleornotimeonstrategicdiscussion.
2. Itfocussesattentiononkeystrategicobjectivesandconsequentlykeystrategicmetrics.EarlyuseofBalancedScorecardshadalowsuccessrateasthemetricswerechosenfromoperationalmetricsalreadyinuseratherthanmetricstodrivestrategy.
3. Itprovidesagoodmodelforwhatisactuallydrivingthestrategy.Withthefocusonmeasurableobjectivesandstrategicinitiativescomesfeedbackonwhatworksandwhatdoesnotandthereforechangescanquicklybemadetoreinforcethestrategy.
4. Clearstrategicobjectivesdriveclearstrategicinitiatives.Atatimewhenbudgetshavetobemanagedcarefully,theStrategyMapprovidesthemeanstoidentifyexactlywherestrategicfundingshouldbeappliedforthebestresults.
2KaplanandNorton,TheExecutionPremium:LinkingStrategytoOperationsforCompetitiveAdvantage,HarvardBusinessPress,2008
![Page 5: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/5.jpg)
4|P a g e
HowtoBuildaStrategyMapMissionandVisionAStrategyMapcannotbecreatedwithoutmeaningfulmissionandvisionstatements.TheybecomethefoundationoftheStrategyMap;theyaretheover-archingstatementsofpurposethatencapsulatetheultimategoal(s)ofthecompanyororganisation.Traditionallya‘Mission’describeswhatacompanydoesbesteverydayanda‘Vision’iswhatthefuturelookslikebecausethemissionisdonesowell.
ForMissionthink:Managingwithgreatnessandstrength,improvingeverythingdaily.
ForVisionthink:Leadingwithinspirationandcourage,obsessedwithfuturepossibility
Thesetwostatementssuggestthatboththemissionandvisionshouldbeinspiring,theyshouldbesomethingthateveryoneinacompanywantstogetbehindandbelievestobetrue.Alltoooftenmissionandvisionstatementsaregenericanduninspiringorworselongandlaborious.AnexampleofagoodmissionstatementcomesfromNike:
• “TobringinspirationandinnovationtoeveryathleteintheWorld”
TheNikevisionstatementhoweverleavesalottobedesired:
• “Tobethenumberoneathleticcompanyintheworld”
Interestingly,theNikevisionstatementofthe60’swassomewhatmoreinspiringifnotalittleaggressive:
• “CrushAdidas”
Therearemanygoodbooksonhowtodevelopastrategicfoundationincludingmissionandvisionstatements.Althoughtheymaydifferinmethodology,withoutexception,allagreethattheseniormanagementteammustbeactivelyinvolvedintheactivity.ThisisalsotrueoftheStrategyMap.Thisisnotanactivitythatshouldbedevolvedtomiddlemanagementoranexternalconsultantandthen‘signedoff’bytheexecutive.Justastheseniorexecutivesownthestrategy,theymustalsoowntheStrategyMapanddiscussandagreeitscontent.
![Page 6: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/6.jpg)
5|P a g e
PerspectivesThelinkbetweentheBalancedScorecardandtheStrategyMapbecomesimmediatelyapparentupontheintroductionoftheKaplan/Nortonfourperspectives.Itisthis‘balance’thathasproventobesosuccessfulinthemethodologyoverthepastdecadeorso.Relyingonfinancialmeasurescanonlytakeabusinesssofar,whilefinancialmeasuresareessential,theycanonlymeasureresults,i.e.whathashappenedinthepast.Theyarenotpredictiveandthereforecannothelpdriveabusinessstrategy.
TheclassicBalancedScorecardincludesfourperspectives:Financial,Customer,InternalProcessesandLearning&Growth.Strategically,forprofitorientedbusinesseswecanseethatthisorderisimportantbyaskingaseriesofquestions:
• Whatdoourfinancialresultshavetobetosatisfyourstakeholders?
• Whatmustweachievewithourcustomersandthemarketplacetosuccessfullyreachourfinancialresults?
• Whatmustweachievewithourinternaloperationsforsuccesswithourcustomersandmarketplace?
• Whatmustourpeople,culture,intellectualcapitalandITbetosucceedwithourinternaloperations?
Inthiswaywecanseethatstrategicobjectivesinthelowerlayersoften(butnotalways)feedintotheupperlayers.Fornon-profitorganisationsthismaynotbethecase,itmakessenseforsomenon-profitorganisationswithfixedbudgetstoputthefinancialperspectiveatthebottom.
Thenamesoftheperspectivesmaynotfitacompanyculture;againthisismoreoftenthecasewithnon-profitorganisations.Itisperfectlyacceptabletore-nametheperspectiveorindeedtoaddperspectiveswhereaspecificareaisofgreatimportancetoacompany.Inrecentyearstheadditionofan‘Environment’perspectivehasfrequentlybeenseen.
StrategicThemesThesubjectofStrategicThemesisoftenhotlydebated.WehavetobeverycarefulnottoaddunnecessarycomplexitytotheStrategyMapbyaddinglayersofnon-actionableinformationwhileatthesametimeprovidingameans
![Page 7: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/7.jpg)
6|P a g e
forallpartsofanorganisationtoidentifywithandbepartofthecompanystrategy.
ThefocusoftheStrategyMapistohighlightthevitalfewstrategicobjectives,thethingsthatwhenimplementedwillcontributetothestrategy.Theseobjectiveswillalmostcertainlyberelatedandthereforecanbecombinedintostrategicthemes,thequestionisdoesthishappenbeforeoraftertheevent?
Thepuristwouldarguethatthestrategicthemesarethemain,highlevelbusinessstrategiesthatformthebasisforanorganisation’sbusinessmodel.ThereforethethemeshavetobedefinedbasedontheVisionandbeforestrategicobjectivesareputinplace.However,itiscanbearguedthatstrategicthemesarebytheirverynatureall-encompassingandvaguethattheyactuallyaddlittlevaluetotheprocessofdefiningstrategicobjectives.Examplesoftypicalstrategicthemesinclude;businessgrowth,operationalexcellence,customerservice,innovation,sustainability,serviceexcellence,productdevelopmentleadershipandcontinuousimprovement.Ascanbeseenfromtheseexamples,withoutstrategicobjectivesandaccompanyingmetricsthestrategicthemesarealldesirableandcouldbeappliedtoanybusiness.Theydonothowevergiveusaclueastowhatshouldbedonespecificallytoimproveabusiness.
Astrategicthemedoesprovidethemeanstobundleandmanagestrategicobjectives.Thiscanbeausefultooltolimitthenumberofstrategicobjectivesthatappearaspartofastrategy.Duringstrategicplanningsessionsthedesireto‘addanotherproject’isalwayshighandstrategymapsoftenendupwiththirty,fortyoreventfiftyobjectives.
Itisworthnotingatthispointhistoryhasshownitisbettertofocusonasmallnumberofthingswhereastructurecanbeputinplacetoinfluence/changebehavioursandoutcomesratherthantospreadtheworkloadsothinlythatnothinggetsachievedatall.Thereisanoldbusinessstrategyadagethatstates–ifyourstrategyhas3objectivesyouwillsucceedinall3,ifithas4-10objectivesyouwillsucceedin1-2,ifitcontainsmorethan10objectivesyouwillsucceedinnone–asimplecaseofthelawofdiminishingreturns.
Afirstcullcanbemadebyaskingthequestion“doesthisobjectivecontributetoourVision?”Thesecondcullcanbemadebyaskingthequestion“doesthisobjectivecontributetoourStrategicTheme?”.
![Page 8: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/8.jpg)
7|P a g e
ItisdowntoindividualpreferenceastowhetherornotstrategicthemesareincludedinaStrategyMapandiftheyare,shouldtheybedefinedbeforeoraftertheevent.Whateverthechoice,keepthestrategicthemestoaminimum,donotspendtoomuchtimeonthemandfocusyourattentiononstrategicobjectives.
StrategicObjectivesAstrategicobjectivemustcontributetothevisionandthereforethestrategy.Anorganisationwillhavelotsofactivitybeingundertakenaspartofitson-goingoperations,caremustbetakenavoidreflectingtheoperationalmapintheStrategyMap.RemembertheStrategyMapisaboutfulfillingthevision;thevisionisastatementofwherethecompany/organisationwantstobeinthefuture.
ThebasicruleisthattheStrategyMapshouldcontainthecriticalfewfinancialandnon-financialobjectives,whichcanbemeasuredandwilldeliverthesuccessofthecompany/organisation.Lookingatsomesuccessfulcompany’sStrategyMapswecanseethattheyhavekeptthenumberofobjectiveslow.Forexample,oneoftheUK’slargestretailershas20objectives,AUKhighstreetbankhas12andaglobaladvertisingagencyhas12aswell.
AnotherkeystrengthofaStrategyMapistheabilitytovisualisethe‘causal’relationshipbetweenstrategicobjectives,thatis,howonestrategicobjectivenotonlyinfluencesthevisionbutexertsinfluenceoveranotherstrategicobjectives.Typicallywefindthattheinfluenceflowsfromthebottomofthemaptothetopbutoftenitcanflowfromsidetosideandoccasionallyinbothdirections.Anexampleofacompletedstrategymapwithcausalarrowscanbeseenbelow.
![Page 9: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/9.jpg)
8|P a g e
AlthoughtheStrategymapshouldbeableto‘standup’byitself,asacompany/organisationcommunication,itisofutmostimportancethateachofthestrategicinitiativeshasanassociatedcompletedescriptionthatincludes:
• Afullandconcisedescriptionoftheobjective
• Exactlywhatistobeachievedi.e.theexpectedoutcome
• Whentheobjectiveshouldbecomplete
• Howprogresswillbemeasuredi.e.theassociatedmetric(s)
• Whoownstheobjectiveandthereforeassociatedinitiative(s)
ThekeyquestionsaroundtheassociatedmetricsandownershipwillturntheStrategyMapintoaliving,breathingstrategyratherthananacademicexercisedestinedtotheshelfuntilthesametimenextyear.
Itisforthisreasonthatwestronglyrecommendthatcompanies/organisationslookatperformancemanagementsoftwaretohelpensuretheon-goingmanagementoftheprocess
![Page 10: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/10.jpg)
9|P a g e
SoftwareTheproductionandmanagementofaStrategy(andaStrategyMap)canbeundertakenthroughthenormalmanagementprocessofreviewsandaidedthroughtheuseofdocuments,presentationsandspreadsheets.However,overthepastfewyearsseveralsoftwarepackageshaveemergedthatnotonlyremovetheburdenofcreatingtemplatesinthefirstplacebutprovidethemeanstocreateStrategyMaps,collectandtrackmetrics,collatestrategicobjectives,managestrategicinitiativesandgeneratereports.Mostsystemsalsoincludealertingmechanismstoensureownershipisassignedandinformationiskeptuptodate.AnexampleofaStrategyMapcreatedbyasoftwareproductfollows:
SomeinterestingthingstonoteaboutStrategyMapscreated/generatedbysoftware:
• Theobjectivesarecolour(R/A/G)coded,thisstatusindicatorwillchangeautomaticallywhenthemetricsassociatedwiththeinitiativesareupdated.
![Page 11: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/11.jpg)
10|P a g e
• Thereare‘trend’arrowswhichindicatethestatusoftheobjectiveduringthepreviousreportingperiod;thesoftwarewillretainausefulhistory.
• EachitemintheStrategyMapcanbe‘clicked’ontotaketheviewertothenextlevelofinformationandusuallyallthewaythroughtoassociatedmetrics,initiativesandreports.
Theautomatedstrategicmanagementprocesscanbeeasilyintegratedintoexistingmanagementprocessesthereforekeepingthe‘strategy’aliveandontheexecutiveagendathroughoutthebusinessyear.
![Page 12: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/12.jpg)
11|P a g e
Appendix–SampleStrategyMapsThefollowingexamples(andmore)canbefoundontheIntrafocusresourceswebsite
Publicsectorexample
![Page 13: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/13.jpg)
12|P a g e
Basicemptytemplate
Focusoninternalthemes
![Page 14: 4 - Strategy MapsNote: editable PowerPoint templates for all of the Strategy Maps shown in this document can be found in the ‘Resources’ section of the Intrafocus website. 1 Dr](https://reader036.vdocuments.site/reader036/viewer/2022081617/6024dd702ac14039525e7677/html5/thumbnails/14.jpg)
13|P a g e
Withprominentmissionandvision