Strategic Business Management

8

DESIGNING A STRATEGY MAP AND BALANCED SCORECARD

EIGHT STEPS TO CREATE A STRATEGY MAP

The steps for implementing a strategy map and its associated balanced scorecard are like a recipe. The initial steps for building the strategy map are primarily performed by the executive team. After that, the managers and employee teams get involved to identify the projects and initiatives and core processes needing improvement, all of which are intended to achieve the strategic objectives and identify the key performance indicators (KPIs). The steps are as follows:

1. First, agree on the vision, mission and strategic intent of the enterprise. Define the strategy.

The initial step is to define the organisation’s vision and mission statements. These two statements are not the same, and their definitions must precede the construction of the strategy map and its associated scorecard and dashboards because they serve as signposts.

The vision statement answers the question ‘Where do we want to go?’ in terms that describe a highly desirable future state for the organisation. The statement should ideally be very brief, as the following examples demonstrate:

• Former U.S. President John F. Kennedy—‘We will put a man on the moon.’

• Microsoft Corporation (1990s)—‘A computer on every desk top.’

• Microsoft Corporation (21st century)—‘Information anywhere, anytime.’

• The SAS Institute—‘The Power to Know’

The mission statement provides to all employees the answer to the question, ‘Why are we here?’ in ...