Strategy Maps are diagrammes which assists in making a strategy visible. One map is a component of a Strategic Plan; the other of the Balanced Scorecard (BSC). Many consider the two maps as the most important means for obtaining the full understanding and support by management and staff of the Balanced Scorecard. If you grasp the maps and know a bit about project planning, learning how to use the Balanced Scorecard is easy.
The aim of this page is to provide a brief overview of two types of maps.
Contact ABPLAN for assistance with the development of the two maps.
Strategy Theme Map - the compass
The development of a Strategy Theme Map with three strategic themes assist a team to discuss and decide which direction to take over the next five years. This map is used for showing Wildly Important Goals (WIGs) i.e. strategic goals which describe direction and two or three major operational objectives for each WIG which further clarify and describe the outcomes which the organisation seeks. Everyone in the organisation should know this and the next map and their meaning. Understand your organisation's direction and what it wishes to achieve and what your personal role and contribution should be.
The themes cut across the four perspectives of the Balanced Scorecard (BSC).
Examples of such strategic themes would be:
- grow high-value client relationships
- improve service delivery - "deliver smartly" or "please the client"
- improve operations (quality and efficiency) - "work smart"
- create an execution-driven/client-centric culture - "think smart" or "from informal to formal"
- develop a new product or a new service or a new market - new direction
The BSC Strategy Map - the road map
The BSC Strategy Map will show, with reference to the preceding theme map, the Wildly Important Goals (WIGs) and their objectives which will become the drivers of the Balanced Scorecard (BSC). This map assists in seeing where to focus; in seeing cause-and-effect relationships between the WIGs and the components of the various perspectives. What you do in one perspective affects the other perspectives. Actions have consequences.
This diagramme only shows the headings of the map. (Their meaning is explained under the Balanced Scorecard on the next page.)
Strategic Plan and Strategy Maps to Balanced Scorecard
In a nutshell:
- A Strategic Plan provides long-term (5 years) direction.
- A Strategy Theme Map, through its three strategic themes, pinpoints the themes which a company wishes to further over 5 years. The themes would be strengthened by three strategic direction-giving Wildly Important Goals (WIGs) would also cover 5 years. Their supporting objectives would cover the short to medium term (e.g. 6 - 12 or more months). I recommend placing only three WIGs on a map.
- The BSC Strategy Map would show the same three WIGs. This map differs from the previous one as its focus is the process level. Here the WIGs are placed under the appropriate process headings. Think-through the interaction and cause-and-effect relationships between the various headings.
For instance, prior to introducing a new product, a period of study and research might be needed under Human Capital. Then move over to Innovation Processes. Here the detail of positioning the product, designing it, creating it, launching it, and testing it, would follow. Only afterwards would the new product move over to Operations Management Processes where it becomes part of the company's P&S offering. (Link what is being done under Innovation Processes to Client Management Processes and to marketing. Ensure that all departments and key people are drawn into the process: design, production, marketing and client management.)
- The content of the BSC Strategy Map (the WIGs and their objectives) is worked out in detail on the Balanced Scorecard (BSC).
The two Strategy Maps further strategy development. Their completion stimulates thinking and discussion. The process, which follows the scenario planning workshop, enables you and management to get to grips with what you wish to achieve at the strategic level before you work out the details on a full Balanced Scorecard.
An easy introduction
The Strategy Maps with their three strategic themes and WIGs are linked to the Vision of your company. Completing the maps assists in obtaining clarity about the selection and development of the three strategic themes and three WIGs.
The first map is the compass. The second map, containing the three WIGs, is the road map. The Balanced Scorecard is the city map.
The maps are most useful. They can be as simple or as sophisticated as you would like them to be.
In due course expand and deepen these maps. The first maps are developed immediately. As soon as the client is ready, and against insights gained by my client in using both maps, I facilitate the development of comprehensive Annual Strategy Maps and a comprehensive Annual Balanced Scorecard. (The process of developing maps is started towards the end of the first workshop and continued in a second shorter workshop.)
Now go to Balanced Scorecard, as the BSC Strategy Map is translated into a Balanced Scorecard (BSC).
Last modified: 25-05-2009
Client Quote
“Albert achieved excellent interaction, provided prompt feedback after each session, and showed a personal interest in the performance and success of our company. The ABPLAN approach was highly relevant to our company. We institutionalised a Balanced Scorecard strategic planning approach and habits of execution such as regular, very open and inclusive meetings in which all our team members participate.
We regard the time and money that went into the project, as well spent. Planning and focused execution has become a routine way of running our business.”
Chanda Bailey, CEO - Verhoef ICT Training