BALANCED SCORECARD STRATEGY MAPS • 1

BAL ANCED SC OREC ARD

S

TRA

TEGY MAPS

City &

State Government Exa

mples

BALANCED SCORECARD STRATEGY MAPS • 2

Strategy M

ap

s ar

e

used

by ma

ny socia

l

and

public-sector

s organizations to cle

arly communic

ate

thei

r s

trategic pla

n. A good

s

trategy map should identify

k

ey “la

n

dmarks” such

as financia

l

c

o

ns

trai

n

ts and cu

s

tomer

expect

ations. Strategy map

s can a

ls

o highlight

ar

e

as

that, if

n

eglected, may hinder m

i

ssion succ

e

ss.

Using thi

s map, a leadershi

p te

am can explai

n how

they expect

to a

chiev

e

succ

e

ss.

In a Harvard Business Review article titled, “Having Trouble with Your Strategy? Then Map It,” Drs. Kaplan and Norto n s ay this about strategy maps: “The key to executing your strategy is to have people understand it—including the crucial but perplexing processes by which inta ngible assets will be converted into tangible outcomes. Strategy maps can help chart t his dif ficult terrain.” Strategy maps are first and foremost a co mmunication tool, so they should never be overly complicated or perplexing. While this article is not an exhaustive study, it does include a few strategy map best practices as well as a number of useful examples.

BALANCED SCORECARD STRATEGY MAPS • 3

Typically, a strategy map starts with a few bro ad perspectives. Using the Balanced Scorecard methodology, bro ad areas may include the customer’s perspective of success, a financial perspective of success, an internal pro cess perspective, and final perspective, learning and growth, which describes culture and capacity . Each of these perspectives serves as a frame of reference for tangible objective statements.

Strategic

Perspect

iv

e

s

Lea

rning & Growt

h

Vision

&

Mis

sion

Cu

st

omer

Int

ernal Proces

s

es

Financi

al

The next ste p to building a strategy map is to begin identifying the most critical objectives in each perspective. Objectives are short statements that define what an organization must continually do to achieve its mission. Objective statements can be phrases or complete sentences. They can be written as declarative statements (“We must develop new technology”) or in the voice of the customer (“My family received the best care”).

Object

iv

e

St

atement

s

BALANCED SCORECARD STRATEGY MAPS • 4

Building a strategy map is a team effort that requires real time and discussio n, especially at the highest levels of leadership. Each of the example strategy maps below illustrates a strategic plan designed for an organiza tion in a particular situation. Certain maps may have elements tha t resonate with your team; however, it is recommended that a leadership team only adopt a strategy map after thorough discussion of the situation and selection of the few critical pieces tha t will contribute to mission success.

Building Co

nse

nsus

City or Muni

cipal Government

*Strategy Map is Modified for Educational Purposes* To be recognized by citizens and neighbors as a welcoming community that is full of opportunity.

Citizen

s

Safety

Healt

h

Edu

ca

tion

Economi

cs

Culture

Management

and Finances

Culture &

Ca

pacity

“This is a s afe, secure, and health y Community” “There is an abundance of talent and opportunity in this Community” ”Culture and the arts connect our Community”

Promote the Growth & Development of City Staff and Leadership

Cherish the many volunteers wh o donate their time and en ergy to support our city

Maintain a Positive Culture of Respect, Action, And Accountability

Minimize traffic delays and accidents Provide a trusted local police presence Provide safe wate r & reliable sanitation svcs . Ensure each citizen has safe housing

Provide ample area for fitness & recreation

Support local educators as they raise the next generation of leaders Partner to provide in-demand continuing and technical education svcs.

Encourage healthy and locally grown food choices

Ensure EMS and Medical Se rvices meet local demand

Invest in beneficial infrastructure

Understand and support local business needs

Understand and support local workforce needs

Support creative expression and support artistic venues Protect local treasures Lead by example, with respect and s e lfless service

Listen to the Community Act responsibly & provide transparenc y Justify the return for each fee and tax imposed

BALANCED SCORECARD STRATEGY MAPS • 5

City managers and elected leadership typically ju ggle a large number of objectives in their strategy maps. Each objective is related to the quality of life for the area. So while not every objective is completely controlled by a city manage r or elected officials, they are both ultimately responsible for ensuring citizens a r e satisfied with the results. Support agencies such as the Fire D epartment, the School Board, local Department of Transportation officials, and even sanitary services are all funded by and overseen by city level leadership and therefore city managers must be sure they are balancing the interests of the community with acceptable levels of taxes and investment, and that the results satisfy loc a l citizens’ needs and expectatio ns. Using a strategy map such as this one can e nsure that leadership teams are focusing on the important outcomes and remainin g balanced in their approach to funding, resource allocation, and ensuring citizens’ needs and expectations are reasonably met.

Example

Strategy M

ap Te

mplate

for City, County, or Municipal Government

BALANCED SCORECARD STRATEGY MAPS • 6

Pol

i

ce

and

Se

c

urity

Organiza

tion

*Strategy Map is Modified for Educational Purposes*

Mis

sion

Management

E

xcell

ence

Lea

rning & Growt

h

Resource

Management

Streamline administrative and operational processes

Collect Information

Maximize organizational collaboration

Protect civil society from criminal activity

Provide leadership, intell igence, and law enforcement to our partners

Protect the rights of all citizens

Link skills and competencies to strategic needs

Request, align, and utilize resources and ass ets in an efficient manner

Ensure human and scientific capabilities are sufficient to deliver on these strategic objecti ves

Improve recruiting and retention

Train and develop skills of our workforce

Identify, develop and retain leaders through out our organization

C

oll

aboration

& Pa

rtnersh

ips

Crime

Pre

vention

Analysis Information

Disseminate Information

Act on Information

U nderstand partner capabilities and expand relationships Enhance international operations

BALANCED SCORECARD STRATEGY MAPS • 7

Police forces provide invaluable security and stability for lo ca l communities. Policing typically involves collaborating with a lar ge number of partner’s lo cal citizen s groups, elected officials, the press, neighboring police forces, State Troopers, and all the way up to national security units such as the FBI. To manage this complex network of manpower , surveillance, legal, and scientific partnership, with oversight and funding mandates, internal needs, and community expectation s, police and security force leadership may use a strategy map like this to b alance needs and coherently communicate a high level view of the entire organization mission and strategic requirements to maintain law and order.

Example

Strategy M

ap Te

mplate

for Polic

e

or S

ecurity Agency

BALANCED SCORECARD STRATEGY MAPS • 8

Economic As

sistance

Agency

*Strategy Map is Modified for Educational Purposes*

S

takeholders

Pol

i

cy

Leadersh

ip

Organiza

tional E

xcell

ence

Hi

g

h Im

pac

t Investment

Ca

pacity

Citizens Taxpayers Legislative Leadership Cabinet Depts. Executive Leadership

Cu

st

omers

Management

and Finances

Provide technical assistance Maximize higher wage jobs

Maximize our effectiveness

Leverage private sector investments

Job S eekers Employers Investment Partners Local Leaders Communities

Advance the Adminstration’s Agenda

Create and Support Sustainable Job Growth

Make smart investments that support local need s

Expand investment policy

Improve data collection

Leverage technology

Standardize Processes

Establish Performance Culture

Develop Technology Proficiency

Attract Top Talent

Create new partners Emphasize priorities

Conduct timely research

To create sustainable job growth in communities

BALANCED SCORECARD STRATEGY MAPS • 9

Small, medium, and large businesses provide a majority of American citizen s with gainful employment. These businesses collectively produce the goods and services that feed, shelter, educate, and entertain countless numbers of people around the world. But building businesses is a risky venture that requires number of support systems to function. This strategy map highlights the level of collaboration required to make the lo cal environment business friendly. And with a business friendly environment, job opportunities will grow and the standard of living can incr ease for the entire region. This strategy map can be used to bring a diverse group of decision makers into agreement on commo n issues that impact the entire business environment in the region.

Example

Strategy M

ap Te

mplate

for Economic A

ssistance or Development Agency

BALANCED SCORECARD STRATEGY MAPS • 10

Re

g

ional Wo

r

kf

o

rce De

velo

p

ment

C

oal

ition

*Strategy Map is Modified for Education al Pur poses*

S

takeholders

C

ommunity

Em

p

loyers

Resource

Management & Funding

“We are preparing ou r community for growth”

“There is a large poo l of candidates w ith re levant skills”

Ensure financial commitments of local funding bodies

Ensure local business leader participation

Increase region al and national grant based fundi ng

S

taff

and Pa

rtnersh

ips

Increase local and regional participation

Leverage Partnerships

Provide staff tools and training

In

spire Future Leaders

Fo

re

ca

st Economi

c

Grow

t

h

Im

prove Edu

ca

tion

Organiza

tion

s

Mission: To support elected leaders, employers, and instit utions as they implement integrated systems tha t ensure local workers have requisite technical skills to be contributing members of the workforce.

Create awareness of job opportu nities in the region Recruit for emer ging opportun ities

Communicate workforc e skills needs to e ducators Inf luence polic y to support r egional needs

Identify workforce needs Develop a useful d ata management system

BALANCED SCORECARD STRATEGY MAPS • 11

Workforce development is becoming an increasingly important community reso urce as technology requires current and future employees to have an ever-expanding set of skills to compete with. They s ay the “world is getting flatter,” meaning distance is becoming less and less important in terms of buyers ’ option s for goods and services. To compete, this strategy map shows how the development council will work to connect community leaders and lo cal business owners so they can collaborate to en sure there is an understanding of emerging opportunities, educational and training services match needs and, finally, to en sure there is a solid connection between employees and potential employers.

Example

Strategy M

ap Te

mplate

for a R

egional Work

force Development Co

a

lition

Co

n

clusion

Successful strategy maps come in a number of shapes, styles, structures, and complexities. Aside from sector-by-sector differences, varying formats can be found across many languag es, cultures, and strategic environments. The one unifying goal is to make a communication tool that engages the entire team and community behind a shared plan of action to achieve the mission at hand.

Ge

t

St

ar

ted

The Balanced Scorecard has been the subject of four articles in the Ha rvard Business Review (HBR); two best-selling business books that have been tran slated into 19 languages; and numerous case studies and public conferences worldwide. The editors of HBR identified the Balanced Scorecard as o ne of the most significant management ideas of the past 75 years. Learn more about the Balanced Scorecard and get expert information from the ClearPoint blog and subscribe to the biweekly newsletter.

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