Question

What are the characteristics of strategy mapping which contributed to its popularity in business practice?

Answer 1

Subject - Operations Management

Q- What are the characteristics of strategy mapping which contributed to its popularity in business practice?

Strategy mapping is a tool created by Balanced Scorecard (BSC) pioneers Robert S Kaplan and David P Norton. It allows organisations to describe and communicate their strategies.The main idea of a strategy map is that each strategic objective in your balanced scorecard is represented by a shape, usually oval. Very rarely are there more than 20 objectives. Tracking too many will dilute your overall message, making your strategy difficult to communicate.

*Characteristics of a Strategy Map

Finances
It’s standard to use two measures of financial strategy: revenue growth and productivity. For nonprofits and municipalities, your mission would be at the top of your strategy map, not financials.

Customers
The customer value proposition should be at the core of your strategy, which is why it comes directly after the financials. For-profit companies typically focus on achieving one of these three value propositions:

Product leadership
Customer intimacy
Operational excellence

Processes
Once your financial and customer perspectives are established, you’ll focus on how to achieve your financial and customer goals. Most companies are working to improve internal processes that support these areas of the business:

Fostering growth through innovation and new-market expansion.
Enhancing customer value by improving relationships with existing customers.
Working toward operational excellence.
Creating productive relationships with external stakeholders.

Learning and Growth
Here lies the foundation of the strategy. This perspective outlines the employee skills and knowledge required to make the processes run smoothly,provides value to customers, which in turn improves company financials. The specifics of this perspective can vary widely from company to company what you define as learning and growth is entirely dependent on your goals as outlined in the preceding perspectives.

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