Strategic Mapping

Presented By:
Pratik Chordiya
Mansi Shah
Vikas Dadhich
Shachee Tripathi
“Less than 10% of the strategies
formulated are effectively
executed”
“The real problem is not bad
strategy…
Its bad execution”

WHY ?

They can’t They don’t They don't make

DESCRIBE their MANAGE their strategy execution
strategy strategy their major goal.
 Pathway of Strategic Map….
• The Balanced Scorecard is a framework that is used to help in the design and
implementation of strategic performance management tools within
organizations.

• Simple structure for representing the strategy to be implemented.

• Challenges faced in the design of Balanced Scorecard based performance

management systems is deciding what activities and outcomes to monitor.

• Simple visual representation of the strategic objectives to be focused on, the

strategy map has been found useful.

• The first diagrams of this type appeared in the early 1990s

“Having Trouble With Your Strategy?
Then MAP It”
-Kaplan & Norton
Strategic Mapping
• A Strategy Map is a diagram that describes how an
organization creates value by connecting strategic objectives
in explicit cause-and-effect relationship with each other in the
four BSC objectives (financial, customer, processes, learning
and growth).

• It is an element of the documentation associated with the

Balanced Scorecard.
Characteristics
• A simple, visual depiction of key parts of current strategic
plan.

• A way of grouping your highest-level objectives by areas, or

"perspectives“.

• Comprised of objectives that indicate your desired outcomes.

• An explanation of cause and effect relationships.

• What creates the foundation for good scorecards and

effective strategy execution.
Main Principles behind Strategy Maps
• Strategy balances contradictory forces.

• Strategy is based on a differentiated customer value

proposition.

• Value is created through internal business processes.

• Strategy consists of simultaneous, complementary themes.

• Strategic alignment determines the value of intangible assets.

Strategic Map helps the Organization to:
• Align the organization leaders around a single interpretation of the
strategy.

• Communicate the strategy to employees.

• Identify leading indicators of strategic success.

• Validate and test assumptions about what core capabilities that drive
bottom-line performance.

• Structure a core set of strategic performance metrics.

• Accelerate strategy execution

Action Checklist

• Ensure that everyone within the organization appreciates that

strategy mapping is a technique which aims to align individuals’
actions with the strategic objective.

• As improvements are likely to be incremental, ensure that the

benefits are recognized and built on through an emphasis on
the feedback/learning input.
Steps involved in Strategy Mapping:
1. Review the existing strategy for completeness and focus.
2. Identify difference in individual leaders' interpretation of the
strategy and ideas about the causal links among different
strategic components.
3. Review existing data or information pertinent to resolving
these differences in perspective.
4. Work with the organizational leaders to resolve differences
in perspective and build a prototype Strategy Map with
associated behavioral definitions.
5. Validate the map with key stakeholders and agree on ways to
evaluate its successful implementation.
6. Establish mechanisms for using the strategy map to guide
strategy execution.
 Dos and Don’ts
Dos

• Aim to align personal performance improvement goals with those of the company.

• Base remuneration on goals related to improvements in the performance of the

overall business. Setting individual performance objectives with related incentive
payouts could be counter-productive if individuals shift their focus from delivering
collective benefits to the pursuit of personal objectives.

Don’ts

• Don’t expect giant and immediate leaps forward in terms of operational efficiency,
finances or customer experiences. Strategic mapping is more likely to generate
numerous, gradual, incremental improvements across the organization.

• Don’t set remuneration based on individual targets. Agree only on personal

performance goals when you are confident that achieving them will contribute to
overall performance improvement across the business.
 Advantages
• Strategy mapping demonstrates to employees how seemingly minute
improvements to operational activities can, cumulatively, contribute towards
major efficiency and strategic objectives.

• Strategy mapping provides a clear, visual demonstration as to how short-

term operational and medium- to long-term strategic objectives are closely
aligned, helping to ensure greater “buy-in” from employees at all levels.

• Strategy mapping helps to demonstrate how a company’s intangible assets

can improve stockholder value.

• Strategy mapping provides a potential solution for managers unable to

identify why certain strategies are not delivering tangible performance
improvements.
Disadvantages
• Strategy mapping requires “buy in” from individuals across all
levels of the organization. If management fails to convince the
workforce of the potential benefits of a successful medium- to
long-term outcome, employees may feel disenfranchised from
the potential benefits of improved corporate performance.

• Though strategic in its macro focus, strategy mapping is

unlikely to deliver a single, massive leap forward in any single
aspect. Rather, the considerable ultimate benefits of strategic
mapping are often comprised of many, seemingly minor,
single aspects.
 References
• Robert S. Kaplan and David P. Norton’s
“Strategy Maps: Converting Intangible Assets
into Tangible Outcomes”.

• http://www.valuebasedmanagement.net

• http://www.balancedscorecard.org
Thank You…