A strategy map is a powerful visualization tool that shows how an organization will create value and achieve strategic objectives. It connects mission, vision, core values, goals and initiatives across key perspectives.
This article provides a step-by-step guide on how to develop an effective strategy map for your organization
What is a Strategy Map?
A strategy map is a diagram that outlines the primary strategic goals and objectives that will drive an organization forward It shows the cause-and-effect relationships between objectives across four perspectives
- Financial
- Customer
- Internal Process
- Learning and Growth
By linking objectives that build on each other, a strategy map shows how investing in learning and growth impacts internal processes, which further impacts the customer experience, ultimately driving financial growth.
Why Create a Strategy Map?
Here are some key benefits of developing a strategy map
-
Communicates strategy – Concisely articulates the organization’s objectives and strategic priorities in one page.
-
Aligns organization – Connects all departments to shared goals so everyone understands how they contribute.
-
Identifies gaps – Reveals gaps between where you are and want to be.
-
Enables execution – Focuses efforts and resources on critical activities.
-
Measures progress – Strategic measures show if you are on track.
-
Adapts strategy – Can flex as priorities and external factors evolve.
How to Create a Strategy Map
Follow these steps to develop a strategy map for your organization:
1. Define Mission, Vision and Values
-
Mission – Your organization’s core purpose and reason for existing.
-
Vision – Your aspiring view of the future.
-
Values – Guiding principles that shape organizational culture.
These elements establish the foundation for your strategy map.
2. Identify Strategic Goals
-
Hold workshops with leaders across the organization to identify 3-5 year strategic goals.
-
Goals should align to mission and vision.
-
Include financial and non-financial goals.
-
Goals will become the main objectives on the strategy map.
3. Map Goals to 4 Perspectives
-
Arrange goals into the four strategy map perspectives.
-
Financial – Goals to drive growth, profitability, assets etc.
-
Customer – Goals around satisfaction, retention, market share etc.
-
Internal Processes – Goals to improve key processes and competencies.
-
Learning and Growth – Goals around people, technology, culture etc.
4. Define Objective Relationships
-
Map cause-and-effect relationships between objectives across perspectives.
-
Learning and growth objectives enable internal process objectives.
-
Internal process objectives enable customer objectives.
-
Customer objectives drive financial objectives.
5. Identify Strategic Initiatives
-
Determine 3-5 initiatives under each objective needed to achieve the goals.
-
Initiatives should have clear owners and milestones.
-
They will form the basis for execution.
6. Add Key Performance Measures
-
Identify quantifiable outcome measures for objectives.
-
Measures track achievement of goals.
-
Example measures: Customer retention rate, production cycle time, employee turnover rate etc.
7. Finalize and Communicate Map
-
Review and finalize the strategy map with leaders.
-
Make any revisions based on feedback.
-
Formally communicate the strategy map across the organization.
-
Publish on intranet, posters, emails, town halls etc. to drive alignment.
Strategy Map Templates and Examples
Here are some strategy map templates and examples to give you ideas on how to visualize your own:
Basic Strategy Map Template
![Basic Strategy Map Template][]
Healthcare Strategy Map Example ![Healthcare Strategy Map Example][]
Nonprofit Strategy Map Example![Nonprofit Strategy Map][]
Corporate Strategy Map Example![Corporate Strategy Map][]
Review examples from your industry for ideas on structuring your own strategic objectives.
Best Practices for Effective Strategy Maps
Follow these best practices when developing your strategy map:
- Keep it simple – Limit to 1 page with around 20 objectives. Too much detail dilutes the focus.
- Show connectivity – Use arrows, colors and symbols to show how objectives link together.
- Make it visual – Use an engaging and visual layout. Avoid dense text and bullet points.
- Focus on outcomes – Have objectives state an outcome, not just actions or enablers.
- Limit measures – Pick 1-2 vital measures per objective to track performance.
- Make it accessible – Use accessible language for a broad audience. Avoid jargon.
- Validate assumptions – Reality test cause-and-effect relationships between objectives.
- Keep it current – Review the map regularly and adjust as internal/external events evolve.
Creating an Agile Strategy Map
In today’s highly uncertain environment, a purely static strategy map has limitations. Markets shift rapidly. New technologies disrupt business models. Competitors come out of nowhere.
In this turbulent context, organizations need to take an agile approach to their strategy maps by:
- Building multiple alternate scenarios into the map.
- Planning strategic objectives in shorter time horizons.
- Updating measures and initiatives more frequently.
- Testing cause-and-effect assumptions through experiments.
- Getting regular input from customers and frontline staff.
- Adapting the map based on real-time results and learnings.
Agile strategy maps have built-in flexibility to respond to change and uncertainty.
A strategy map is an invaluable tool for visually communicating your strategic plan and showing how objectives across perspectives are aligned.
By following the step-by-step guide in this article, you can develop a compelling strategy map that mobilizes your entire organization towards achieving your most important goals.
Keep the map vibrant and current by reviewing it quarterly and adjusting as needed based on internal learnings and external conditions. With an agile mindset, your evolving strategy map will continue propelling your organization to new heights.
Your CartYour Shopping Cart is empty.
How does Mobil make sure that every gas station owner understands the company’s strategy—and implements it each time a customer drives up to his pumps? How did Mobil become the industry’s profit leader and boost its cash flow by $1 billion+ per year? By using a strategy map—a powerful new tool built on the balanced scorecard.
The balanced scorecard measures your company’s performance from four perspectives—financial, customer, internal processes, and learning and growth. A strategy map is a visual framework for the corporate objectives within those four areas. The authors created strategy map templates for various industries, including retail, telecommunications, and e-commerce.
Strategy maps put into focus the often-blurry line of sight between your corporate strategy and what your employees do every day—significantly enhancing collaboration and coordination.
The Idea in Practice
Strategy maps are essential in the information age, when intangible assets—customer relationships, employee skills, the ability to innovate—are competitive advantages. But these assets have value only within the context of a strategy.
For example, a growth-oriented strategy might require in-depth customer knowledge, sales training, and incentive-based compensation. But none of these, alone, would be enough to implement that strategy. Strategy maps quantify the value of tangible and intangible assets—linking them all to your overarching strategy.
Strategy Maps explained in 3 minutes
How do you create a strategy map?
Here are key steps to creating a professional strategy map: Step 1. Define Mission, Vision, Values That’s the direction to the “north” for your organization. If you face uncertainty, these three will help you to make the best decisions. Step 2. Define Four Perspectives Finance, Customers, Internal, Innovations.
What is a strategy map used for?
A strategy map is a diagram used in strategic planning to map out an organization’s objectives and how they interact with one another. Strategy mapping goes hand in hand with creating a balanced scorecard, a one-page graphic used to analyze a group’s performance by highlighting financial and non-financial measures. Why use strategy maps?
What should a strategy map look like?
Your strategy map should touch on the four perspectives a balanced scorecard typically tracks, which are: In Strategy Execution, Simons recommends establishing goals from the bottom (learning and growth) to the top (financial). Doing so helps you reflect on how perspectives build on each other to create value for your business.
How do you integrate strategy maps into your organization?
Successfully integrating strategy maps into the organization involves several key strategies: Engage Leadership and Key Stakeholders: The active involvement of leadership and key stakeholders is vital for crafting a strategy map that reflects the organization’s vision and goals.
