Strategy MapsCreating coherence in strategy, telling the story in one page and building truly balanced scorecards. -- The strategy map is critical if we are to build a logical and truly balanced scorecard. Why? Because scorecards are measurement systems that help us to implement the strategy. If the strategy is not cohesive or properly aligned across the organisation, we will never have a good scorecard. The implication is that we will implement on incoherent actions that deliver a totally different result.Hence, define the vision and the overarching goals for the organisation before creating a map of the strategy. Following which, we can proceed to measures and programs for the developed strategy of the organisation.Tayo GbenroTG_25545c26-b7f0-11e6-9d4a-ec94f7e90587Send enquiries to tayo.gbenro@me.comDesired outcomes are achieved_25545d48-b7f0-11e6-9d4a-ec94f7e90587To show the course of action, including outcomes_25545dfc-b7f0-11e6-9d4a-ec94f7e90587ActionsThe idea of map is that of connected actions that are coherent and deliver on the vision.ConnectionsCoherencyVisionResultsStrategyStrategy is about actions and outcomes that are relevant to the situation of the organisation.CompetitionStrategy is a set of competitive moves that are targeted towards the realisation of goal(s). It is the game plan of the military or businesses for conquering or becoming the top business respectively.GoalsAlternativesSeveral pathways are open to an organisation. Strategy is all about making choices of which way(s) to go.ChoicesQuestionsIt works by asking the right question. Hence proper thought has to be given to the type of question before the right answers can be provided. AnswersMappingWhether created before or later in the life of a business, strategy is critical to success, but it may be difficult to understand the coherence of a strategy unless it is ...mapped.VisualizationStrategy maps tell the story of the strategy in a single page -- Like nails and harmers are tools to the carpenter, so is strategy map in the hands of a strategist. Strategy maps help to visualise the logic behind a strategy.ImplementationThe map is not the result in itself, it drives to a goal, which is ability to implement the strategy.ObjectivesIn physical terms, that refers to the scorecard. Strategy Maps are created after defining an organisation's objectives.LinkagesThe objectives are then linked in a cause-effect relationship ...RelationshipsCausesEffectsDriversThe linking helps to ensure that one objective is truly a driver for another.MetricsOnce done, it is time to define measurement metrics for each objective. Each metric carries a target and in turn a project initiative to drive implementation.BalanceThe assemblage of this later architecture is termed the Balanced Scorecard.PerspectiveStrategy Maps in Big Picture.Strategic AlignmentThe strategy map is all about alignment, it is a check-n-balance to ascertain that the strategy is in order and that it makes sense for the company to now implement.Mission & VisionDefine the purpose and goal of the company_25545fdc-b7f0-11e6-9d4a-ec94f7e905871NikeAn example of a good mission statement comes from Nike: "To bring inspiration and innovation to every athlete in the World". The Nike vision statement however leaves a lot to be desired: "To be the number one athletic company in the world". Interestingly, the Nike vision statement of the 60's was somewhat more inspiring if not a little aggressive: "Crush Adidas"A Strategy Map cannot be created without meaningful mission and vision statements. They become the foundation of the Strategy Map; they are the over-arching statements of purpose that encapsulate the ultimate goal(s) of the company or organisation. Traditionally a 'Mission' describes what a company does best every day and a 'Vision' is what the future looks like because the mission is done so well.* For Mission, think: Managing with greatness and strength, improving everything daily.* For Vision, think:Leading with inspiration and courage, obsessed with future possibilityThese two statements suggest that both the mission and vision should be inspiring, they should be something that everyone in a company wants to get behind and believes to be true. All too often mission and vision statements are generic and uninspiring or worse, long and laborious. MissionDescribe what the company does best every day._255460cc-b7f0-11e6-9d4a-ec94f7e905871.1VisionDescribe what the future looks like because the mission is done so well._2554618a-b7f0-11e6-9d4a-ec94f7e905871.2ThemesDefine the strategic themes, which are arrow-head activities (of the strategy)._25546248-b7f0-11e6-9d4a-ec94f7e905872Strategic themes are broad action-packed activities that can be broken into further sub-activities and outcomes.They are also referred to as the Pillars of Strategy or guiding policies -- Strategy Themes are also referred to as beams or the Pillars of strategy, because they are the key part of a company's strategy out of which other strategies emerge. Those 'mini-strategies' are the objectives that together make the themes. [Editor's Note: In the StratML standard, what are called "Themes" here are simply called longer-term "Goals" -- each of which may have multiple near-term Objectives.]Themes are generally between 2 and 4, it all depends on what is necessary to make the strategy happen.QuestionsAsk key questions about the vision._255462fc-b7f0-11e6-9d4a-ec94f7e905872.1To define a strategic theme it is important to be able to imagine the future state of the company. This refers to the situation when the vision is realized. One way to achieve this is to ask important questions. When asking such questions, imagine that you are already in the future...Asking important questions about the future state is to actually question the Vision as well.ResultsDetermine what results can been measured in pursuit of the vision._255463ba-b7f0-11e6-9d4a-ec94f7e905872.1.1What results can I see as we achieve our vision?Brand ImageDetermine how the company is viewed by customers and other stakeholders._25546482-b7f0-11e6-9d4a-ec94f7e905872.1.2How are people seeing the company?ActivitiesDetermine what activities lead to success._25546536-b7f0-11e6-9d4a-ec94f7e905872.1.3What activities are we undertaking that made us successful?CustomersDetermine how close the company is to its customers._255465f4-b7f0-11e6-9d4a-ec94f7e905872.1.4How close are we to the customers?SolutionsDetermine whether customers' problems are being solved._25546716-b7f0-11e6-9d4a-ec94f7e905872.1.5And, how are we truly solving their problems?Learning & ChangeDetermine what has been learned that has resulted in positive changes._25546806-b7f0-11e6-9d4a-ec94f7e905872.1.6What have we learnt in the last few years that has made a lot changes for us?ThemesDescribe the (future) situation and then reword or capture it in a succinct way (or reduce to a 3/5-word phrase)._255468f6-b7f0-11e6-9d4a-ec94f7e905872.2To arrive at the strategic themes, describe the future successful situation. Describe as many situation as can be observed imaginatively. Merge similar situations together until three or four distinct situations emerge. Each situation can then be captured succinctly using an action-packed phrase. Each phrase becomes the strategic theme for the organisation. The themes may look similar across various organisations, but the situations will definitely differ...The resultant phrases form the strategic themes. [Goals]ObjectivesBreak each theme into Strategic Objectives that cohesively deliver on the theme._25546a04-b7f0-11e6-9d4a-ec94f7e905872.3Break down each theme to various objectives or goals, which are either results or activity based. Result or outcome objectives are goals that are achieved dependent on external factors e.g. customers, revenue. Activity based objectives are those results that are achieved based on intrinsic factors e.g. staff strength, learning improvement, core competencies, processes etc.Cause/Effect LinkagesLink the objectives together in a cause-effect relationship to result into a strategic theme._25546b08-b7f0-11e6-9d4a-ec94f7e905872.3.1So, a strategic theme could be made of various objectives, say 10. These 10 objectives all link together in a cause-effect relationship to result into a strategic theme.[Editor's Note: The Relationship elements can be used to build out the full Value Chain, from Inputs to Outcomes.] PerspectivesCategorize each objective under one of the perspectives of the Balanced Scorecard._25546c02-b7f0-11e6-9d4a-ec94f7e905872.3.2Each Strategic Objective must be Financial, Customer, Internal Process or Growth & Learning perspective.Financial ObjectivesStart with an ultimate financial objective._25546d06-b7f0-11e6-9d4a-ec94f7e905872.3.2.1In most cases for private and public companies it is Shareholders Value or Return. Thereafter create either or all of two kinds of financial objectives.RevenueIncrease revenue._25546df6-b7f0-11e6-9d4a-ec94f7e905872.3.2.1.1Revenue growing objectives such as revenues from new customers and from management of existing relationship.AssetsImprove cost structure and/or asset utilisation._25546efa-b7f0-11e6-9d4a-ec94f7e905872.3.2.1.2Asset management objectives, which are for the purpose of cost containment or management. Example objectives include "improve cost structure" and "improve asset utilisation"Value PropositionDefine the value proposition._25547062-b7f0-11e6-9d4a-ec94f7e905872.4Then define the value proposition i.e. customer-focused objectives or outcomes.The Customer Perspective -- Value proposition is the starting point for defining customer objectives. It is the core of the business strategy itself and is therefore it is critical. It shows the mix of price, quality, lead time, service, relationship and image. So, how a company blends the mix together to arrive at a value proposition is an indication of the of the specific customer group it targets. Three strategies that are align with most value propositions are: Product Leadership strategy, Operational Excellence strategy and Customer Intimacy strategy. Objectives are created along the lead strategy, while a balance is struck in the other two...One of the above three must be the lead strategy while the company maintains balance in the other two.ProductsPursue a product leadership strategy._2554717a-b7f0-11e6-9d4a-ec94f7e905872.4.1OperationsPursue an operational excellence strategy._2554730a-b7f0-11e6-9d4a-ec94f7e905872.4.2CustomersPursue a customer intimacy strategy._25547440-b7f0-11e6-9d4a-ec94f7e905872.4.3ProcessesCreate process objectives._25547562-b7f0-11e6-9d4a-ec94f7e905872.5Next, create Process Objectives which drive the customer outcomes in turn.[Editor's note: In the StratML standard, these are called Performance Indicators of the Input_Processing and Output_Processing types.]Strategic AlignmentIdentify internal business processes and match the process objectives with the respective customer strategy._25547666-b7f0-11e6-9d4a-ec94f7e905872.5.1But the Process Objectives must each match the respective customer strategy...Identifying strategic internal business processes.ProductsPursue product leadership._25547792-b7f0-11e6-9d4a-ec94f7e905872.5.1InventionInvent new products._255478aa-b7f0-11e6-9d4a-ec94f7e905872.5.1.1DevelopmentAchieve superior product development._255479c2-b7f0-11e6-9d4a-ec94f7e905872.5.1.2ExploitationAchieve speed to market._25547af8-b7f0-11e6-9d4a-ec94f7e905872.5.1.3CustomersPursue customer intimacy._25547c38-b7f0-11e6-9d4a-ec94f7e905872.5.2SolutionsDevelop solutions._255483ea-b7f0-11e6-9d4a-ec94f7e905872.5.2.1ServiceProvide superior customer service._255484f8-b7f0-11e6-9d4a-ec94f7e905872.5.2.2RelationshipsManage customer relations effectively._255484f9-b7f0-11e6-9d4a-ec94f7e905872.5.2.3AdviceProvide advisory services._255484fa-b7f0-11e6-9d4a-ec94f7e905872.5.2.4OperationsPursue operational excellence._255484fb-b7f0-11e6-9d4a-ec94f7e905872.5.3Supply ChainManage the supply chain effectively._255484fc-b7f0-11e6-9d4a-ec94f7e905872.5.3.1OperationsAchieve efficiencies in operations: cost, quality, cycle time._255484fd-b7f0-11e6-9d4a-ec94f7e905872.5.3.2CapacityManage capacity effectively._255485ac-b7f0-11e6-9d4a-ec94f7e905872.5.3.3Strategic AlignmentBase process objectives on the choice of strategy _255486c4-b7f0-11e6-9d4a-ec94f7e905872.6Choice of Process Objectives must be influenced by the choice of strategy ...carefully choose process objectives that align and promote the selected strategy.Features & TimelinessImplement leading-edge innovation process with the best features and on-time delivery._255487f0-b7f0-11e6-9d4a-ec94f7e905872.6.1A company pursuing product leadership strategy must focus on leading-edge innovation process with the best features and deliver it on-time.Customer Problems, Happiness & RelationshipsImplement processes to solve customer problems, make them happy and deepen relationship with them._2554893a-b7f0-11e6-9d4a-ec94f7e905872.6.2Similarly, a company in pursuit of customer intimacy strategy must focus on processes that will help it solve customer problems, make them happy and deepen relationship with them.Efficiency, Capacity & ImplementationImplement processes to produce efficiently, build capacity for core competencies, and implement a flawless supply chain process. _25548a98-b7f0-11e6-9d4a-ec94f7e905872.6.3And finally, when a company focuses on operational excellence strategy, it must think about processes that will help it be produce efficiently, build capacity for core competencies and implement a flawless supply chain process. Lower-Priority ObjectivesDefine the objectives for the other three perspectives._25548bba-b7f0-11e6-9d4a-ec94f7e905872.7Finally, define the objectives that drive excellent outcomes in the other three perspectives.Learning & Growth_25548d36-b7f0-11e6-9d4a-ec94f7e905872.7.1This perspective is often regarded as unimportant among amateur professionals. Why? Because of its intangibility. However, experts all agree that it is the bedrock of strategy, one without which successful implementation would be impossible. In general, we can classify objectives from this perspective into: Organisational, Information and Human Capital.HumanCapitalStrengthen human capital._25548e62-b7f0-11e6-9d4a-ec94f7e905872.7.1.1This could be the single most important competitive advantage of a firm. Without the adequacy of this capital no company can survive. It is also essential since it a profound driver for the value proposition. This capital will refer to people, know-how, skills, coaching & mentoring activities and various programmes that deepen knowledge for the employees.Information CapitalBuild informational capital._25548fa2-b7f0-11e6-9d4a-ec94f7e905872.7.1.2This is a critical resource that helps organisation function efficiently. It can be in the form of networks, databases, systems, infrastructure, equipment etc. Most organisations are able to build on this capital by using it as a fundamental to their value proposition. It could be the distinguishing factor in original company in which other competitors are striving to copy.Organisational CapitalBuild organisational capital._25549146-b7f0-11e6-9d4a-ec94f7e905872.7.1.3This is the thread that weaves it all together for the company. It is the link between potential and actual performance among teams and individuals. That is why key objectives here are those like leadership and culture, motivation, empowerment and alignment. Essentially everyone is a rough diamond within the company. This capital turns that into admirable shining talents. Therefore, every company must look to build this capital which is typically displayed by the senior management.2016-12-01https://www.dropbox.com/s/np4h6czu7qxb2h9/Doc%20101%20-%20Strategy%20Maps%203.0.%20Pubic%20Version%202.0.pdf?dl=0OwenAmburOwen.Ambur@verizon.net