What if you could communicate your venture's overall strategy to every employee on one single page? Well, you can with our modifiable Strategy Maps deck. Create strategy maps that keep everyone in agreement about the business direction and enable the teams to see where they fit in and how their jobs affect the company's general strategic objectives.
This slide offers you to complete thefour steps on the way to creating your strategy map. These include specifying objectives, listing your financial and customer strategies and identifying your venture's value propositions.
Use this slide to communicate your strategy forfinancial value improvement. This can be achieved by talking to your customers, quantifying your value, finding different channels to offer value and sharing your success stories.
With this slide, demonstrate your completed strategy map to the team and stakeholders. One important thing to be mindful of is that the best practice is to keep your objectives number under 20 for clarity and easier strategy implementation.
Per Spider Strategies, a strategy map is a diagram that shows an organization's strategy on a single page, which helps to quickly communicate big-picture objectives to everyone in the company. A strategy map demonstrates strategic objectives in a balanced scorecard represented by a shape (typically, an oval) with arrows that show the objectives' cause and effect chain. Keep in mind that tracking too many objectives will complicate the delivery of your overall message by making your strategy difficult to follow and implement.
Strategy maps have four areas of objectives: financial, customer-oriented, internal business processes and learning and growth. And according to Soren Kaplan, author of "The Invisible Advantage" and strategy consultant for Disney, Visa and Colgate, the following categories should be incorporated in a strategy map:
- Vision – what's the world you want to create in the future?
- Strategic focus – how does your strategy need to shift over time?
- Strategic goals – what specific goals support your strategy?
- Target markets and customers – what markets or customers will you tackle over time?
- Solutions – what offerings will you provide and how will these change over time?
- Key risks and barriers – what risks or barriers might you encounter?
- Key performance indicators (KPIs) – how will you measure success?
Cgma.org provides a detailed step-by-step guide for creating a strong and effective strategy map.
Step 1. Specify an overriding objective
Many mission and vision statements are often mistakenly portrayed as the ultimate objective to be achieved, for example, satisfied customers, service excellence, best-in-field, market leader, low-cost provider. These are, of course, critical outcomes and are highly desired by all organizations, but for profit-making organizations, the overriding objective must be economic, the experts say.
Step 2. Identify the value proposition
The second step in strategy mapping is to choose the value proposition that will help the organization win the market. Choose one dominant value proposition and provide breakthrough customer value in it.
Step 3. List the financial strategies
After the value proposition is established, organizations next formalize their plans and strategies around revenues and costs. Financial strategies can be categorized into three key areas: revenue growth, productivity and resources and asset utilization.
Step 4. Choose customer strategies
Formalize your plans and strategies to win the marketplace. In other words, clearly establish and articulate your customer strategies. Customer strategies can be categorized into three key areas: customer retention and growth, revenue per customer growth and cost per customer reduction.
Step 5. Strategy execution through the internal perspective
The internal perspective is all about choosing and executing the right processes to achieve the desired customer and financial goals the organization believes will lead to the accomplishment of the overriding objective. "Consequently, organizations must consciously choose internal business processes that link directly to the earlier steps," the experts say.
WikiGear Inc. (WG) is a sportswear and casual apparel manufacturer and seller operating mainly in North America with a focus on hockey, baseball and running. To improve its operations and growth, WG hired a strategy consulting firm to study and provide insights on the company's strategic plans. The consultancy presented a comprehensive strategy map to the senior management team and highlighted two major areas that needed immediate action, namely, structure and communication. Taken together, the strategy map demonstrated both the resilient and adaptive drivers in the company's long-term strategy, which will enable WG to withstand and adapt to the disruptive and ever-changing demands of the marketplace.
"The culture has always been very positive at WG. The plan is to exploit this through better communication of the strategy and, more specifically, of the seven strategic directives. The longer-term plan is to link bonuses to the Balanced Scorecard," the company's website states.