Service Strategy Map

[dimpy.handa]

Building your strategy map begins with the financial strategy of the organization. This perspective should answer the question, "to financially sustain our mission, what must we focus on?" For public companies, building shareholder value is typically seen here. For public or private companies, there are two basic levers for their financial strategies: growing revenues and increasing productivity. From the example above, the macro financial objective was to grow net income 25% per year for the next five years. This growth was enabled by two supporting strategies of growing revenues 15% while reducing costs 10%.

 

[swatiraohnlu]

The creation of the strategy map for an organisation is the key first step in the balanced scorecard methodology. It involves a clear definition of business strategies and is typically achieved after a number of highly intensive brainstorming sessions in which key business heads representing all functions and processes are required to participate.

A vital prerequisite to building a coherent and realistic strategy map is a proper understanding of the hierarchical inter-dependencies between the perspectives used. Each perspective contains one or more objectives that each in turn is associated with one or more performance measures and target values. It follows that the arrangement of objectives on the strategy map needs to be devised keeping in mind the dependencies implied by the choice of perspective headings.