The Strategy Map. Presentation Templates

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1 The Strategy Map Presentation Templates

2 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 s:,, Internal and Learning & Growth. 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.

3 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 s setting targets for the measures and then measuring them on a regular basis to determine success or failure.

4 Strategy Map Classic Kaplan/Norton Productivity Strategy Long-Term Shareholder Value Growth Strategy Improve Cost Structure Increase Asset Utilisation Expand Revenue Opportunities Enhance Value Value Proposition Price Quality Availability Selection Function Service Partnership Brand Product / Service Attributes Relationship Image Internal Operations Management Supply Production Distribution Risk Management Management Selection Acquisition Retention Growth Innovative Opportunity Identification R&D Portfolio Design / Develop Launch Regulatory and Social Environment Safety and Health Employment Community Learning & Growth Human Capital Information Capital Organisational Capital Culture Leadership Alignment Teamwork

5 Strategy Map - Generic example Mission: Vision: Managing with greatness and strength, improving everything daily Leading with inspiration and courage, passionate about future possibility and change Sustained Shareholder Value Productivity Strategy Revenue Growth Strategy Improve Cost Structure Increase Asset Utilisation Enhance Value Expand Revenue Opportunities Value Proposition Price Quality Availability Selection Function Service Partnership Brand Production Service Attributes Relationship Image Internal Operations Management Management Innovative Regulatory and Social that produce and deliver products and services that enhance customer value that create new products and services that improve communities and the environment Learning & Growth Human Capital Skills Training Knowledge + Information Capital Systems Databases + Networks Organisational Capital Skills / Training Knowledge Teamwork

6 Example with Strategic Themes Increase Shareholder Value Leader in defined Markets Add New Revenue Stream Achieve profitability Intimacy Technology Driven Operational Excellence Trusted Advisor Deliver Added Value Satisfy All Needs Flexible Solutions Deliver Complete Solutions Frequent Repeat Business Consistently Exceed Expectations Internal Build Lifelong Relationships Capture and Utilise Knowledge Build 3 rd Party Relationships Create Enterprise Solutions Integrate Business Improve Resourcing Services Improve Solution Effective Cost Mgmt Learning & Growth Develop Relationship Skills Improve Solution Management Improve Operational Mgmt Skills Improve Industry Knowledge Engender Innovation More Successful Career Planning

7 Public sector example Stakeholder Value to Taxpayer Safe Convenient Bus Services Clear and Accurate Timetables On Time as Promised Support Business and Commerce Create Business Cases and Secure Funding Balance Budget Lower Cost of Bus Transportation Services Internal Relationship Management Streamline Regulatory Approval Easy to do Business With Improve Sustainability of Communities Open and Frequent Communication to Impacted s Optimise Planning of Bus Stop Position and Construction Innovation Accelerate Economic Development through Route Investment Drive Innovation in New Transport Systems Develop and Introduce New Transport Technology Understand New Route Needs (and Old) Operational Excellence Provide Cost Effective Solutions Deliver World Class Bus Services Improve All Aspects of Bus Safety Optimise Availability of Busses Learning & Growth Highly Skilled Bus Drivers Empowered Service Agents Integrated Knowledge Management Systems

8 Empty template What are our most important financial outcomes? How should we appear to customers? Process At what do we need to excel to fulfill customer expectations? Learning & Growth How will we sustain our ability to improve?

9 Focus on Internal Themes Internal Theme one Theme Two Theme Three Learning and Growth

10 Internal Themes + Vision and Mission Company VISON Statement Company MISSION Statement Internal Theme one Theme Two Theme Three Company Core Value Statement Learning and Growth

11 Template with Mission, Vision and Themes Mission: Company Name Vision: Strategic Themes Theme One Theme Two Theme Three Strategic Objective 1 Strategic Objective 2 Strategic Objective 3 Internal Learning

12 A Less Colourful Version Mission: Company Name Vision: Strategic Themes Theme One Theme Two Theme Three Strategic Objective 1 Strategic Objective 2 Strategic Objective 3 Internal Learning

13 A Slightly Different Approach Vision: Mission: Internal Learning

14 A More Radical Approach Mission Mission Vision Internal This circular version is occasionally used to focus everything towards the mission and strategy, as a rally-call it works well. However it lacks in its ability to present causal linkages Tesco used this approach during their Every Little Helps campaign Learning

15 The Quickscore Application Software is not required to implement a Strategy Map or Balanced Scorecard, but it does help. A good software tool will allow user to: create meaningful Strategy Maps with minimum fuss organise key metrics in a meaningful way display data and combinations of data provide management teams with a clear business overview allow users to input data easily and frequently Provide the means to drill down to the underlying data should the need arise to question a specific activity Intrafocus recommends the Quickscore product to those companies that want to take a structured approach to rolling out Strategy Maps and Balanced Scorecards

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