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  • Building Balanced Scorecard Strategy Maps

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    Raviram Naidu
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    This document discusses building balanced scorecard strategy maps as a strategic communication tool. It explains that a strategy map visually links an organization's strategic objectives and initiatives across four perspectives: financial, customer, internal business processes, and learning and growth. An interactive example is provided to illustrate how a package delivery company can create a strategy map by identifying objectives, metrics, targets and initiatives in each perspective to achieve its goal of profitable growth. Completing the strategy map provides a way to communicate strategy and ensure initiatives are aligned to strategic priorities.

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    Stratergy maps

    Original Title

    Stratergy Maps

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    This document discusses building balanced scorecard strategy maps as a strategic communication tool. It explains that a strategy map visually links an organization's strategic objectives and initiatives across four perspectives: financial, customer, internal business processes, and learning and growth. An interactive example is provided to illustrate how a package delivery company can create a strategy map by identifying objectives, metrics, targets and initiatives in each perspective to achieve its goal of profitable growth. Completing the strategy map provides a way to communicate strategy and ensure initiatives are aligned to strategic priorities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    43 views18 pages

    Building Balanced Scorecard Strategy Maps

    Uploaded by

    Raviram Naidu
    This document discusses building balanced scorecard strategy maps as a strategic communication tool. It explains that a strategy map visually links an organization's strategic objectives and initiatives across four perspectives: financial, customer, internal business processes, and learning and growth. An interactive example is provided to illustrate how a package delivery company can create a strategy map by identifying objectives, metrics, targets and initiatives in each perspective to achieve its goal of profitable growth. Completing the strategy map provides a way to communicate strategy and ensure initiatives are aligned to strategic priorities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 18

    Building Balanced Scorecard Strategy Maps

    A Strategic Communication Tool


    Memphis Area Engineering and Sciences Conference May 11, 2001 Paul Babin & Doug Geyer

    BSC - Management Trend


    Popular (Bestselling) book by Norton &

    Kaplan published by Harvard Business Organization on the must read list

    Latest book The Strategy Focused

    Useful tool for Strategy Deployment Useful also for the rest of us to understand

    the strategy and where we fit in.

    What is the BSC ?


    The Balanced Scorecard

    A strategic management tool Enhances traditional company performance system with four perspectives:
    Financial Customer Internal Business Process Learning & Growth

    II. Strategy
    Hypothesis of cause and effect

    If we improve our on time delivery - then the customer will come to depend on us - and become a loyal customer. Customer loyalty will help improve our profitability.

    The Strategy Map


    BSC Perspectives
    Financial

    Improve Improve Profitability Profitability Customer Customer Loyalty Loyalty On OnTime Time Delivery Delivery

    Customer

    Internal Business Process

    Learning & Growth

    BSC Strategy Map


    Strategy Measurements Targets Initiatives

    Interactive Illustration
    Strategy Maps look complicated - unless

    you created them - then they look clear!

    Lets create one together: Company : A growing publicly held

    overnight package delivery service - with big plans

    Financial Perspective
    Brainstorm : 1 minute What are the important Financial

    Perspective Objectives for this service company ?

    Customer Perspective
    Brainstorm - 1 minute What are the important strategies we need

    in place to achieve our financial goal of profitability growth ?

    Internal Business Process Perspective


    Brainstorm - 2 minutes What are the Internal Business Processes

    at which we need to excel to be able to build Customer Loyalty through On-time Delivery ?

    Learning & Growth Perspective


    Brainstorm - 2 minutes What are the Learning and Growth

    objectives we need to be able to improve process quality and process cycle time (to allow on-time delivery to build customer loyalty and profitable growth) ?

    Finished Strategy Map


    simplified Profitable Growth Customer Loyalty On-time Delivery Process Cycle Time Process Quality

    Employee Skills

    Completing the BSC Strategy Map


    Take the strategy Identify Measures & Targets Organize Improvement Initiatives to drive

    improvements that will be visible in the measures.

    Developing Measures
    For each important strategic piece Identify measures

    Lead & Lag


    This will require analysis Cycle Time Queue Speed Interferences VA/NVA Study

    Developing Initiatives
    Pick projects with high leverage - high

    impact to the strategic initiative


    Cycle Time

    Operator Training

    Interference Study

    Capital Equipment

    BSC Strategy Map


    Strategy Measurements Targets Initiatives

    Cycle Cycle Time Time

    Queue Size (Lag) Speed (Lag) Interferences (Lead)

    Interference Study Operator Training

    What have we got with the completed Strategy Map ?


    A way to tie initiatives to whats important

    to the company. strategy.

    A clear way to understand the context of the

    A clear way to communicate the impact of

    this initiative.

    BSC Strategy Map Conclusion


    A simple graphical tool Appeal to engineers Cause and effect Understand and communicate the strategy Show how what were doing fits in Fun and easy!

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