Strategy Map

A strategy map is a visual representation of an organization’s overall objectives and how

they relate to one another. The map is created during the strategic planning process and is used as
a primary reference material during periodic strategy check-in and review meetings.

A typical strategy map organizes objectives into four categories, or perspectives. These
perspectives were developed by Doctors Robert S. Kaplan and David P. Norton as part of their
Balanced Scorecard framework for strategic planning and management. The four perspectives
for for-profit organizations include:

 Finance

 Customer

 Internal Processes

 People/Learning & Growth

The first two perspectives can be characterized as “what we’re getting,” while the latter
two are more about “what we’re doing.” To properly understand a strategy map, you should read
the “story” from the bottom perspective upward because what you do directly influences what
you get.

Building A Strategy Map

While you might read a strategy map from the bottom up, you build it from the top down.
You should create your map in this order:

1. Finances

It’s standard to use two measures of financial strategy: revenue growth and

productivity. For nonprofits and municipalities, your mission would be at the top of your
strategy map, not financials.
 2. Customers

The customer value proposition should be at the core of your strategy, which is why it
comes directly after the financials (or mission). For-profit companies typically focus on
achieving one of these three value propositions:

 Product leadership

 Customer intimacy

 Operational excellence

To effectively map your strategy, you have to decide which of those three is the priority
—it’s unrealistic to weigh them all equally. Making this choice is a big piece of your strategy.

For nonprofits and governments, your beneficiaries or citizens would replace customers
and your three value propositions would more likely revolve around serving the needs of those
citizens.

3. Processes

Once your financial and customer perspectives are established, you’ll focus on HOW
(through what processes) to achieve your financial and customer goals. Most companies are
working to improve (if not perfect) internal processes that support these areas of the business:

 Fostering growth through innovation and new-market expansion.

 Enhancing customer value by improving relationships with existing customers.

 Working toward operational excellence.

 Creating productive relationships with external stakeholders.

 4. Learning & Growth

Here lies the foundation of the strategy. This perspective outlines the employee skills
and knowledge required to make the processes run smoothly, which in turn…

provides value to customers, which in turn...

improves company financials. The specifics of this perspective can vary widely from
company to company—what you define as learning and growth is entirely dependent on your
goals as outlined in the preceding perspectives.