A mapping strategy, often embodied in a strategy map, is a visual tool that illustrates the cause-and-effect relationships between a company's strategic objectives.
Understanding Strategy Maps
A strategy map provides a clear and concise picture of how a company intends to achieve its goals. It moves beyond simple mission statements to show the how behind the what. Think of it as a blueprint for strategic execution. The reference provided states that a strategy map is a simple graphic that shows a logical, cause-and-effect connection between strategic objectives (shown as ovals on the map).
Key Components
A strategy map typically includes the following perspectives:
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Financial Perspective: This outlines the financial goals, such as increasing revenue or improving profitability.
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Customer Perspective: This details how the company will deliver value to its customers.
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Internal Process Perspective: This focuses on the internal processes that are critical for achieving customer and financial objectives.
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Learning and Growth Perspective: This addresses the intangible assets and capabilities needed to support the other three perspectives.
Benefits of Using a Mapping Strategy
Using a strategy map offers several advantages:
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Clarity: It provides a clear and understandable visual representation of the strategy.
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Alignment: It helps align the organization around a common set of goals.
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Communication: It facilitates communication of the strategy to employees at all levels.
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Accountability: It establishes clear accountability for achieving strategic objectives.
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Performance Measurement: It provides a framework for measuring progress towards strategic goals.
Example of a Cause-and-Effect Relationship on a Strategy Map
Here's a simplified example:
- Learning & Growth: Invest in employee training programs.
- Internal Process: Improve the efficiency of key processes.
- Customer: Increase customer satisfaction.
- Financial: Increase revenue growth.
The map would visually connect these objectives, showing how investment in employees (Learning & Growth) leads to process improvements (Internal Process), which then drives customer satisfaction (Customer), ultimately resulting in increased revenue (Financial).
Conclusion
In summary, a mapping strategy, often deployed through a strategy map, is a powerful tool for visualizing, communicating, and executing a company's strategic plan by illustrating the cause-and-effect relationships between various strategic objectives.
