What is the Strategy Map
A strategy map represents how the organization creates value by connecting strategic objectives in explicit cause-and-effect relationship with each other in the four BSC objectives (financial, customer, processes, learning and growth).
The basis of a Strategy map consists of the following perspectives:
FOUR COMPONENTS OF STRATEGY MAP THAT CAN BE APPLICABLE
- THE FINANCIAL PERSPECTIVE
The profit is the central figure in the company, which reflects the success of entrepreneur activities. important indicators might be the value of the cash flow, the return of the shareholder value.
- Sales growth
Sale growth is achieved through the acquisition of new customers, the development of new markets and the expansion of the product range.
The increase in productivity is achieved by improving the existing processes. This can be accomplished by lowering the cost of goods with a simultaneous increase in production.
2. THE CUSTOMER PERSPECTIVE
The customer is the centre of every business strategy. Critical to the success of the own company are products, service and image. There is three success position to differentiate yourself from the competition.
- Product leadership: offer the best and most innovative products
- Customer loyalty: the company knows the customer’s need and meet them.
- Operational excellence: good quality low price and easy processes
Customer can’t all be services in the same way. Every company must specialize in its main target group.
3. THE PROCESS PERSPECTIVE
The core processes need to be mastered to provide the customer with exactly what he expects from a company.
- Innovation processes development of products: product development
- Customer management process: perfect customer service-issue will be resolved fair and quickly
- Operative process: continuous improvement of internal processes, no waste, optimal usage of available capacities
- Regulated and environmental process: the company pays attention to its employee’s health, especially safety in the workplace.
4. LEARNING/DEVELOPMENT PERSPECTIVE
Behind the development, perspective is the employees of the company, because only they are able to implement significant improvement with the given strategies.
- Strategic competencies: professional knowledge of the employees, and the way the know-how is passed on.
- Strategic technologies: tools and infrastructure which support the employees
- Active climate: motivation of employees to perform more than just the necessities to achieve the corporate objectives
Creativity and a thirst for knowledge of employees are important resources. The company and the employees should consistently improve in these categories.
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