STRATEGY MAPPING

-By

Dileep M (31)
Disha Kashyap (32)
Divya Susan (33)
Kenric D’Souza (34)
Renita Ferreira (35)
12/08/2021 XIME-BP Firdaus Iqbal (36) 1
 People can’t manage what they can’t measure,
and they can’t measure what they can’t
describe.
The strategy map solves this problem by
providing a framework for a simple, one-page
representation of the cause-and-effect
linkages among the objectives for both the
outcomes and the drivers of the strategy.
Robert Kaplan and David Norton

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 Strategy maps and Balance
Scorecard

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A strategy map provides a visual framework for an
organization’s strategy – how it intends to create value.
Specifically, a good strategy map will link together:
1. The desired productivity and growth outcomes.
2. The customer value proposition which will be needed.
3. Outstanding performance in internal processes.
4. The capabilities required from intangible assets.
In effect, a strategy map captures the organization’s
strategy in visual form so that managers can better
execute their desired strategy.

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• Conceptually, a strategy map links the high-level
goals of the organization – its mission, values and
vision – with meaningful and actionable steps each
employee can take.

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 Strategy Maps
 Strategic Maps are the foundation of the Balanced Scorecard.
 You will need 1 strategic map for each strategic theme.
 Maps are constructed over 4 perspectives.
 Strategic objectives are mapped over the four perspectives, linked together.
• Linking
 Strategic objectives need to be placed in the Strategic Map according to which
perspective fits with the objective.
 Objectives may cross over more than one perspective.
 We usually start at the top with outcomes and work our way down, looking at
what enables (drives) the outcome.
• Approval
 From executive management. Does this map accurately tell the “story” of our
strategy?
 If disagrees, go back and redo the maps. We need to get this step right since
it represents the foundation for the entire scorecard.
• Measurements
 For each strategic objective, you need one measurement.
 Provides us with feedback on meeting the strategic objective.
 Most organizations will use many of their existing measurements.
 Organizations requiring major change should include driver type measurements
• Targets
 Set a target for each measurement.
 Push the organization to a required level of performance.
 Put focus on the strategy, expressing the specifics of the strategy.
 When targets are hit, then has successfully implemented its strategy.
• Initiatives
 In order for things to happen in an organization, you must initiate major projects
or programs. For example, improving customer service may require a new
customer management system.
 Once you launch appropriate initiatives, you should be able to meet your
strategic objectives. This closes the loop, everything is now linked and away we
go!
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Linking Strategy Maps with Balance Scorecard

Step 1: Establish and define what the current value

gap is for shareholders
Step 2: Reconcile your current value proposition
Step 3: Establish your projected time line
Step 4: Identify your key strategic themes
Step 5: Identify and align your intangible assets
Step 6: Specify and fund the strategic initiatives
required to execute the strategy
 Principles behind Strategy Maps

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 MAIN PRINCIPLES

1. Strategy balances contradictory forces

2. Strategy is based on a differentiated customer value

proposition

3. Value is created through internal business processes

4. Strategy consists of simultaneous, complementary themes

5. Strategic alignment determines the value of intangible assets

 Strategy Map Creation

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 Financial Perspective

• It is still the ultimate objective for profit

maximizing companies
• Shareholders value can be increased by 2 ways
– Selling more
– Spending less

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 Revenue growth
strategies

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 Productivity
Improvements
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 Customer Perspective

Increase in
Customer Increase in
Shareholder
Satisfaction market share
value

Customer Increase In
Retention Business

Customer as Acquisition of
sales person new customers

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 Value proposition for customers (1/4)

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 Value proposition for customers (2/4)

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 Value proposition for customers (3/4)

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 Value proposition for customers (4/4)

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 Internal Perspective
Customer Management
and deliver the services customers use.
Processes
Operating processes for service companies produce
◆ Manage risk.
Customer management processes expand and
◆ Distribute finished goods to customers, and
deepen
◆ Convert raw materials to finished goods,
relationships with targeted customers.
◆ Select targeted customers,
◆ Acquire raw materials from suppliers,
Processes ◆ Acquire the targeted customers,
Operations Management ◆ Retain customers, and
◆ Grow business with customers.

Internal
Perspective
Innovation Processes ◆ Community investment.

◆ Identify opportunities for new products ◆ Employment practices, and

and services, ◆ Health and safety,
◆ Manage the research and development ◆ Environment,
portfolio, Regulatory and Social Process
◆ Design and develop the new products and
services,

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 Learning and Growth

• The fourth perspective, learning and growth, describes

the organization’s intangible assets and their role in
strategy.
• Divided into 3 categories
– Human capital: The availability of skills, talent, and know-how
required to support the strategy.
– Information capital: The availability of information systems,
networks, and infrastructure required to support the strategy.
– Organization capital: The ability of the organization to
mobilize and sustain the process of change required to
execute the strategy.

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 Examples

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 Mobil NAM&R Strategy Map
Increase ROCE to 12%
Financial Revenue Growth Strategy ROCE Productivity Strategy
Net Margin (vs. industry)
Perspective
Increase Customer
New Sources of Non- Become Industry Maximize Use of
Profitability Through
Gasoline Revenue Cost Leader Existing Assets
Premium Brands
 Non-Gasoline  Volume vs. Industry  Cash Expense (cpg)  Cash Flow
Customer Revenue & Margin  Premium Ratio vs. Industry
Perspective “Delight the Consumer” “Win-Win Dealer Relations”
Basic Differentiators  Dealer Profit
 Share of
Growth
Targeted  Clean More Help Develop  Dealer
Segment  Safe Speedy Friendly Helpful Recognize
Consumer Business Satisfaction
 Mystery  Quality Product Purchase Employees Loyalty
Products Skills
Shopper  Trusted Brand
Score

“Build the Franchise” “Increase Customer Value” “Achieve Operational Excellence” “Be a Good Neighbor”
Understand Improve Improve
Create Non- Consumer Hardware Inventory
Gasoline Segments Performance Management Improve
Products & Environmental,
Internal Services  Yield Gap  Inventory
Health and
 Unplanned Levels
Perspective Downtime  Run-Out Rate Safety
Best-In-Class
 New Product Franchise On-Spec Industry Cost
Acceptance Rate On-Time Leader  Environment
Teams
Incidents
 Dealer Quality  Activity Cost  Safety Incidents
Rating vs. Competition

A Motivated and Prepared Workforce

Climate for Action Competencies Technology
Learning & • Aligned • Functional Excellence • Process Improvement
Growth • Personal Growth • Leadership Skills
• Integrated View
Perspective
 Personal BSC  Strategic Skill  Systems Milestones
 Employee Feedback Coverage Ratio
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 The Datex-Ohmeda Strategy Map

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