BAL
ANCED
SC
OREC
ARD
S
TRA
TEGY MA
PS
FOR-PROFIT EXAMPLES
A good strategy map should
identify key “landmarks” such
as financial constra
ints and
customer expectations. Strategy
maps can also highlight areas
that, if neglected, may hinder
mission succes
s.
Using this map, a leadership team can explain
how they expect to achieve success. In a Harvard
Business Review article titled, “Having Trouble
with Your Strategy? Then Map It,” Drs. Kaplan
and Norton say this about strategy maps:
“The key to executing your strategy is to have people
understand it – including the crucial but perplexing
processes by which
intangible assets will be converted
into tangible outcomes. Strategy maps
can help chart
this difficult
terrain.”
Strategy maps are first and foremost a
communication tool, so they should never be
overly complicated or perplexing. While thi
s
white paper is not an exhaustive study,
it does
include a few strategy map best practices, as well
as a number of useful examples.
Strategic Perspectives
Typ
ically, a strategy map starts with a few broad
perspectives. Using the Balanced Scorecard
methodology, broad areas may include the
financial perspective, customer persp
ective
(sometimes written in the words of
the
customer), the internal process perspective, and
a final perspective, learning and growth, which
describes culture and capacity.
Each of these
perspectives serves as a frame of reference for
tangible goals or objectives.
Strategy maps are used by many for-pro
fit organizations and
corporations to clearly communicate their strategic plan.
Objective Statements
The next step to building a strategy map is to
begin identifying the most critical objecti
ves in
each perspective.
Objectives are short statements that define what
an organization must continually do to achi
eve
its mission. Objective statements can be phrases
or complete sentence
s.
They can be written as declarative statements
(“We must develop new te
chnology”) or in the
voice of the customer (“I believe they make the
most innovative technology”).
Building Conse
nsus
Building a strategy map is a team effort that
requires r
eal time and discussion, especially at
the highest levels of leadership.
Each of the example strategy maps below
illustrates a strategic plan designed for an
organization in a particular situation. Ce
rtai
n
maps may have elements that resonate with
your team; however, it is recommended that
a leadership team only adopt a strategy map
a
fter thorough discussion of the situation and
selection of the few critical pieces that will
contribute to mission succe
ss.
Perspectives Outline the
Major
Goa
ls
of the Organization
Financial Pe
rspective
“If we succeed, how will we lo
ok to our stakeholders?”
Customer Perspective
“What do our customers expect from us?”
Internal Perspective
“To satisfy our customers, at which business
processes must we excel?”
Learning and
Grow
th Pers
pective
“To be successful, how must our organization learn and improve?”
Bank Scorecard
Expand sources of revenue
Increase customer
con
fidence in our
services
Understand and
serve customer
needs
Provide speedy
and
accurate service
Provide valuable
skills training
Collaborative and
high-achieving
environment
Clear communication
and understanding of
organization's strategy
Expand cost ef
ficiency
In order to be seen as trustworthy by
its
customers, banks should not only have t
he
internal capacity to carry out all of their
services efficient
ly a
nd effectively, but should
also understand the nee
ds of the
ir clients.
By displaying their strategy map in a visually
appealing and easily d
igestible format,
this bank is able to increase internal alignment
and identify their goals for improvement acro
ss
the board. This bank puts particular emphasis
to ensure that they can continue to sup
port
their clients and grow business in a fluctuating
modern economy – an effort made easi
er
thanks to the the streamlining effects of
strategic planning.
Leverage
technology to
improve ef
ficiency
Streamline credit
approval process
Productivity
Proactive risk
management and
compliance
Robust plan for
crisis recovery
Risk Management
Identify and
target regional
opportunitie
s
Strengthen critical
partnerships
Revenue
Manufacturing Score
card
Most manufacturing companies a
re concerned
with operational ef
ficiency, as well as the
carbon footprint they emit.
With a strategy map driving their goals and a
heavy emphasis on ef
ficiency at all levels of the
supply chain, this company hopes not o
nly to
reduce their emissions, but also cut costs and
provide their product at a price co
nsumers
will love.
Ef
ficient
distribution
Best product
value for price
Financial
management
Ensure product
obtainability
Ef
ficient
environmental
and safety
management
Consumer
preference for
brand
Ef
ficient
purchasing
process
Appropriate
assortment of
products
Safety at all levels
of supply chain
Internal transparency
and communication of
information
Recruit and retain
top talent
Lower costs of production proce
ss
Head count management
Low-Cost Operation
Optimal product and revenue mix
Optimize channels to maximize
revenue
Volume & Pro
fit
So
ftware Scorecard
Through internal efforts to remain at the
cusp of market knowledge and exter
nal
efforts to build and maintain stro
ng client
relationships, so
ftware companies work
toward making their product an in
extricable
part of modern life.
So
ftware plays a huge role in today's evolving
technological landscape – both in driving
consumer demand (Did y
ou know you wanted
a smartphone 10 years ago? Do you feel like
you
need one now?) and responding to it (That
application might be all the rage now, but what
do they offer that will stay relevant once the
shiny newness wears off?). To succeed in both
regards, this so
ftware company uses strategic
planning to emphasize simple, we
ll-researched
market solutions, a productive company cu
lture,
and strong customer support.
Competitive comp
ensation and benefits
Develop employe
es’ operational
management skills
Attract & Retain Top Talent
Invest in research and develpoment
Collaboration between emplo
yees
Industry Expertise
Leader in strategic
markets
Diversi
fied source
s
of revenue
Grow pro
fitability
Increase Shareho
lder Value
Meet and exceed
expectations
Ease of customer
experience
Operational
Excellence
Deliver
comprehensive and
innovative solutions
Market
Leaders
hip
Proactively deliver
high-quality service
Build lasting relation-
ships with clients
Improve resource
allocation
Provide integrated
business processes
Be seen as an
adviser and partner
Expand and develop
recognition/identi
ty
Effective budget
control
Reduce complexity
Customer
Relationship
Insura
nce Scorecard
Whether they're making a big life change or
dealing with the a
ftermath of an unexpected
incident, people want to know
they can depen
d
on their insura
nce company. This organization
is using the Balanced Scorecard to
help them
achieve that relationship with their cli
ents.
While the map doesn't specify any target
communities, there is an emphasis on
maintaining an ef
ficient and eng
aging internal
environment so that this company's emplo
yees
are best able to serve their clients. This company
is concerned not only with their net pro
fit,
but also offering the best price opti
ons for
their consumers.
Effectively leverage
technology
Continue to deve
lop
appropriate price
structure
Understand and
manage risks
Streamline
business
processes
Recruit and retain
skilled employe
es
Build consistent de
ep
client relationship
s
Improve cost
ef
ficiency
Ensure timely internal
communication
Be seen as a long-term
partner
Grow revenue
Engage employees
with company
strategic plan
Recognize needs
and provide expert
guidance
Maximize investment
return
Manufacturing Score
card
Consumers might not be aware of the inte
rnal
planning that happens at eac
h stage of a supply
chain, but they know what they think of the
end product.
This manufacturing company focu
ses on honing
its image, and target markets, using data and
technology to support its d
ecisions. They know
what they want their customers to think of them
as a brand, and their strategic planning will help
to get them there.
Identify pote
ntial
partners in target
channels
Expand capabilities
with technology
Reinforce brand
image
Strategic
opportuniti
es
for employee
development
Identify and
target markets for
growth
Data-driven
decision making
Sound health,
safety, and
environmental
practices
Recruit and retain
top talent
“Offers me the best
product value”
Minimize op
erating
costs
“Consistently de
livers
excellence”
Increase shareholder
value
“Understands my
needs”
Drive growth through
acquisition
Aside from sector-by-sector di
fferences, varying formats can be
found across many languages, cultures, and strategic enviro
nments.
The one unifying goal is to make a communication tool that
engages the entire team behind a shared plan of action to achieve
sustaina
ble growth and increase shareholder
va
lue.
Successful strategy maps come in a number of shapes,
styles, structures, and complexitie
s.
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