110x Filetype PPTX File size 0.76 MB Source: static.intrafocus.com
The Strategy Map • A Strategy Map is a diagram that describes how a company or organisation can create value by linking strategic objectives in a cause and effect relationship. • It is based on the four Balanced Scorecard Perspectives: Financial, Customer, Internal Processes and Organisational Capacity. • The key element of the Strategy Map is that it is linked to the ‘scorecards’ that monitor the progress towards the Strategic Objectives. • The ‘scorecards’ will include: metrics, targets for the metrics and strategic initiatives to drive performance towards achieving the objectives. The Balanced Scorecard • The Balanced Scorecard is a strategic planning and management method used to: • align business activities to a vision and strategy of an organisation • improve internal and external communications • monitor organisational performance against strategic goals. • The design of Balanced Scorecard concerns itself with: • the identification of a small number of financial and non-financial measures referred to as Perspectives • setting targets for the measures and then • measuring them on a regular basis to determine success or failure. Strategy Map – Classic Kaplan/Norton Productivity Strategy Growth Strategy Productivity Strategy Growth Strategy Financial Long-Term Perspective Long-Term Shareholder Value Shareholder Value Improve Cost Increase Asset Expand Revenue Enhance Improve Cost Increase Asset Expand Revenue Enhance Structure Utilisation Opportunities Customer Value Structure Utilisation Opportunities Customer Value Customer Customer Value Proposition Perspective Price Quality Availability Selection Function Service Partnership Brand Price Quality Availability Selection Function Service Partnership Brand Product / Service Attributes Relationship Image Internal Operations Management Customer Management Innovative Processes Regulatory and Social Processes Processes Processes Perspective Supply Selection Opportunity Identification Environment Production Acquisition R&D Portfolio Safety and Health Distribution Retention Design / Develop Employment Risk Management Growth Launch Community Learning & Human Capital Human Capital Growth Information Capital Perspective Information Capital Organisational Capital Organisational Capital Culture Leadership Alignment Teamwork Strategy Map - Generic Example Mission: Managing with greatness and strength, improving everything daily Vision: Leading with inspiration and courage, passionate about future possibility and change Financial Sustained Shareholder Value Perspective Productivity Strategy Revenue Growth Strategy Improve Cost Increase Asset Enhance Expand Structure Utilisation Customer Revenue Value Opportunities Customer Customer Value Perspective Proposition Price Quality Availability Selection Function Service Partnership Brand Production Service Attributes Relationship Image Internal Perspective Operations Customer Management Innovative Processes Regulatory and Social Management Processes Processes Processes Processes that produce Processes that enhance Processes that create Processes that improve and deliver products and customer value new products and communities and the services services environment Learning & Growth Perspective Human Capital Information Capital Organisational Capital Skills + Systems + Skills / Training Training Databases Knowledge Knowledge Networks Teamwork Basic Strategy Map Background l a i c n a n i F r e m o t s u C s e s s e c o r P y t i c a p a C
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