Strategy Map

STRATEGY MAP

YOUR LOGO

Strategy Map People

What is a Strategy Map? Strategy

The Strategy Map is adequate to
represent entrepreneurial contexts.
The map shows you an exact schedule,
to which the company objectives should
be implemented accordingly.

Customer

Finance Process

Strategy Map

Tasks of a Strategy Map

Strategy maps vividly illustrate business
goals and strategies and clarify
relations.

The clear structure of assignments and
projects to employees allows an easy
and efficient implementation of the
corporate strategy.

Strategy Map

Classification of the Strategy Map within the corporate strategy

The Balanced Scorecard is the most
effective tool for a balanced and
transparent representation of corporate
strategies.

The visual processing with a Strategy
Map supplements the Balanced
Scorecard perfectly - Strategy
development and communication
within the company will be ideally
displayed and supported.

Components

Strategy Map

Components

The basis of a Strategy Map consists of the
following Perspective:

 Financial
 Customer
 Processes
 Learning / Development

Strategy Map

Financial perspective

Financial The profit is the central figure in the company, which reflects the success of entrepreneurial activities. Important
indicators might be the value of the cash flow, the return or the shareholder value.
Customer
The key performance results from two basic strategies:
Processes
Learning / • sales growth
Development • productivity

Sales growth is achieved through the acquisition of new customers, the development of new markets and the
expansion of the product range.
The increase in productivity is achieved by improving the existing processes. This can be accomplished inter alia
by lowering the cost of goods with simultaneous increase of production.

Strategy Map

Customer perspective

Financial The customer is the center of every business strategy. Critical to the success of the own company are products,
services and image. There are three strategic success positions to differentiate yourself from the competition:
Customer
• product leadership
Processes offer the best and most innovative products

• customer loyalty
the company knows the customers' needs and meets them

• operational excellence
good quality, low price and easy processes

Customers can’t all be services in the same way. Every company must specialize in its main target group.

Learning /
Development

Strategy Map

Process perspective

Financial The core processes need to be mastered to provide the customer with exactly what he expects from a company.
Customer
• innovation processes development of products:
Processes product development

• customer management process:
perfect customer service – issues will be resolved fair and quickly

• operative process:
continues improvement of internal processes, no waste, optimal usage of available capacities

• regulated and environmental processes:
the company pays attention to its employees health, especially safety in the workplace

Learning /
Development

Strategy Map

Learning / development perspective

Financial Behind the development perspective are the employees of the company, because only they are able to
implement significant improvement with the given strategies.
Customer
• strategic competencies :
Processes professional knowledge of the employees and the way the know how is passed on

Learning / • strategic technologies:
Development tools and infrastructures which support the employees

• active climate:
motivation of employees to perform more than just the necessities to achieve the corporate objectives

Creativity and a thirst for knowledge of employees are important resources. The company and the employees
should consistently improve in these categories.

Strategy Map

Fundamental structure of a Strategy Map

Financial Mission Strategy

Customer Financial Perspective Financial Perspective
"How should we appear to our taxpayers (or "How do we appear to the
Process shareholders to achieve success?"
Learning & sponsors), to be successful? "
Development Customer Perspective
Customer Perspective "How should we treat our customers
"How should we treat our customers
to achieve our vision?"
to achieve our vision?"
Internal Perspective
Internal Perspective "In which business processes must we exceed, to
"Which business processes must we exceed, to
satisfy our customers?"
satisfy our customers and investors?"
Learning / Development Perspective
Learning / Development Perspective "How does our organization learn and improve in
"How does our organization learn and improve in
order to achieve our vision?"
order to achieve our vision?"
Private organizations
Public and nonprofit organizations

Corporate Objectives

Strategy Map Objectives (Results)

Corporate objectives  This is a placeholder text
 Placeholder
Perspective
 This is a placeholder text
Financial
Expectations of the shareholders or owners in terms of sales or return  This is a placeholder text

Customer  This is a placeholder text
Key requirements and expectations of customers  Placeholder

Processes
Effective and efficient processes in the company

Learning
Further development of our employees to increase competency and
motivation

Strategy Map

Definition of objectives (financial perspective)

Objective Description How to recognize the goal was Factors which determine the
reached objective
Increase of sales This is a placeholder text
Insert your own text here This is a placeholder text

Reduce costs Insert your own text here This is a placeholder text Insert your own text here

Insert your own text here This is a placeholder text Insert your own text here This is a placeholder text

Strategy Map

Definition of objectives (customer perspective)

Objective Description How to recognize the goal was Factors which determine the
This is a placeholder text reached objective
Introduction of new products to the
market Insert your own text here This is a placeholder text

Expand customer service This is a placeholder text Insert your own text here This is a placeholder text

Price reduction This is a placeholder text Insert your own text here This is a placeholder text
for customers This is a placeholder text
Insert your own text here This is a placeholder text
Reduce delivery times for all
customers

Strategy Map

Definition of objectives (process perspective)

Objective Description How to recognize the goal was Factors which determine the
Reducing the This is a placeholder text reached objective
This is a placeholder text
scrap rate This is a placeholder text Insert your own text here This is a placeholder text
Reduce development time This is a placeholder text
This is a placeholder text Insert your own text here This is a placeholder text
Implementation of innovations
Insert your own text here This is a placeholder text
Increase safety
Insert your own text here This is a placeholder text
Development of partnerships
Insert your own text here This is a placeholder text

Strategy Map

Definition of objectives (learning & development perspective)

Objective Description How to recognize the goal was Factors which determine the
Increase employee motivation This is a placeholder text reached objective

Insert your own text here This is a placeholder text

Strengthen employee loyalty to the This is a placeholder text Insert your own text here This is a placeholder text
company
This is a placeholder text
Promoting team spirit This is a placeholder text Insert your own text here
This is a placeholder text
Increase competence This is a placeholder text Insert your own text here
of staff

Strategy Map Examples

Strategy Map

Example

Financial Increase the contribution Increase sales Increase return on
margin per customer investment
Customer
Improve customer Expand recommendations Increase share of new
Processes satisfaction customers
Learning &
Development Improve quality Increasing share of new
Accelerate processes products

Expand technical Improve skills of employees Improve working climate
infrastructure

Strategy Map

Example

Financial Grow Revenue Satisfy Shareholders Improve EBITDA
Product Leaders Customer Intimate
Customer “Gives me highest quality” Efficient Operations “Solves my problems”
“Always a great price”
Processes Improve QC Understand Customers
People & Engineer Tolerances Improve Distribution Segment Market
Knowledge Reduce Waste
Develop Talent Reinforce Culture
Improve IT

Strategy Map Shareholder Value/ROCE

Example Sales growth Productivity

Financial Construction market power Increase customer value Improving cost structure Improve utilization

Customer Customer acquisition Customer care Product leadership Image
Value proposition for customers Customer loyalty
Processes Function Operational excellence Brand
Product-service properties Customer relationship
Learning &
Development Price Quality Time Service Relation

Innovation processes Customer management Production processes Regulated processes
processes
• Market opportunities • Sales • Occupational health and
• Development • Customer Loyalty • Production safety
• Acquisition
Strategic competencies • Responsibility
Motivated and well trained employees
Strategic Activity oriented climate

technologies

Strategy Map Customer

Example Customer Retention

Financial

Increase Revenue

Revenue Expenses ??

Learning & Growth Internal Processes

Growth & Development Criticism

Employee Satisfaction Succession Planning Accident Free Workplace Critical Incidents

Strategy Map

Example

A stronger economy and an enhanced quality of life, while living within our means.

Citizens “Stimulate creation of quality “More people “Provide access to necessary “Provide value for my tax
jobs” working” programs and services” dollars”
Financial
Internal Foster private sector business Focus funding on priorities Achieve sustainable budget
Processes growth
Prioritize, optimize and
Enablers Drive economic development Improve workforce Deliver innovative programs improve processes
efforts readiness and services
Performance Excellence Culture
People Readiness Information Readiness Align department
performance to
Align leadership Access to relevant, corporate strategy.
talent to drive execution timely and quality

of corporate strategy. information.

Strategy Map

Example including a column - RISK

RISK

Financial Increase in non -interest Significantly increase of NOP Improve the net interest
income Result improvement of target customers margin

Customer Improve asset quality Clearly increase market share
& Market target customers

Increasing proportion focus Significantly increase cross Improve customer service
products selling

Processes Improve risk Improve operating efficiency Improve customer service
management process
Improve efficiency of store
management

Staff & Innovation Increase employee satisfaction Improve IT infrastructure & Promote customer oriented
support culture

Increase employee competence Increase innovation

Strategy Map We will be viewed as the national leader in providing solutions that sustain and enrich our customers,
as well as the planet.
Example

VISION

Financial Increase Maintain Achieve Customer Develop Improve
Revenue Market Funding Partnerships Customer
Share Targets Satisfaction

Internal Process Streamline Advise Learning Maintain Develop
Core Customers & Growth High Employee
Effectively Knowledge
Processes Employee
Morale
Document Improve Effectively Understand
Core Effectiveness Assess Client Business Unit
of Processes Operations
Processes Needs

Strategy Map Research and design to Engage more faculty more deeply Improve customer experience with
customer needs on teaching/learning standardization & flexibility
Example
Identify, review, define and use key Innovate with partners and open Align all aspects of
Customers the organization with
internal processes source communities the strategy
Processes
Build up campus commitment to & Ensure funding for innovation Design & implement sustainable
Resources reliance on ETS financial models

Staff Create a staff culture of openness, Align staff roles Provide targeted
innovation, and responsibilities staff development opportunities
impact and collaboration with strategy

Strategy Map

Example

Human Service Water Resource Neighborhood Growth Management Mobility Fiscal Sustainability Economic Development
Strategic Management Preservation
Community
Goals Enhance community health Safeguard the environment Preserve & enhance neighborhoods Promote economic opportunity
Strategic
Themes Proficient workforce Accountable organization Responsible financial management
Create a Positive Work Environment Deliver Competitive Services Control Operational Expenditures &
Objectives
Educate for Future Needs Increase Organizational Capital Costs
Capacity & Productivity
Grow & Diversify Tax Base

Diversify Revenue Sources

Develop Proficient Workforce Promote Community Involvement Utilize Resources Effectively

Strategy Map Perspectives

Example Customer Financial/  Develop a sustainable academic business plan
Services Stakeholder
 Enhance teaching and learning
 Advance research and scholarship Internal Learning &  Align organizational capacity and structure
 Provide productive and engaging library Processes Growth with resources

spaces  Focus staff expertise/work on strategic
priorities/actions
 Apply and assess new subject librarain
framework

 Realign online and print services support
 Review and revise collections and digitization

strategies

Strategy Map – Example

Theme: Ground Turnaround Objective Measure Target Initiative
The cause-and-effect relationships
Statement of what How success in The level of Key action programs
Financial strategy must achieve achieving the strategy performance or required to achieve
improvement needed
Return on Net Assets will be measured targets

Plane Utilization

Customer
Attract and Retain More
Customers

Internal Lowest Prices Fast ground Time on the ground On- 30 minutes Cycle time optimization
Learning turnaround time departure 90%
Fast ground
turnaround

Ground Crew
Alignment

Strategy Map

Example

Financial Improve productivity Sustained shareholder Grow revenue Value Creation Process
value That meets our
Customer Theme 1 Theme 3 shareholder
Theme 2 (stakeholder)
Processes Create growth Generate expectations
through Create demand efficiencies
Learning & through through supply That provide a
Growth innovation customer satisfying customer
chain
3-5 years partnerships improvements experience

2-3 years 1-2 years To deliver the
Interval strategic processes

We will enable
our people

Strategy Map Long term aspiration for the organization
Who, what, where, how the organization will create value for its stakeholders
Example
INTERNAL CUSTOMER FINANCIAL
VISION
 Describes  Describes the  Describes how much
MISION how the organization organisation´s value the
will effectively and customer value organization needs to
LEARNING & efficiently deliver the proposition create for its
GROWTH customer value share/ stakeholders
proposition
 Describes
how the organization
will enable its
employees to
perform the strategic
processes.

Strategy Map Improve cost structure.
Increase Asset Utilization.
Example Using cost-effective IT software.

Financial Customer centric production capacity.
Timely provision of services.
Customer Providing quality after-sale services.

Internal Strive for efficient networking.
Learning & Recruitment of technically skilled workforce.
Control IT standards.
Growth
Enhancing Informational Capital.
Training on fresh software.
Development of computer infrastructure.

Strategy Map

Example

Profit:
(Revenue – Cost)

Low Cost – Reliable Carrier Customer Satisfaction Real time Information accessibility

Widen Distribution Coverage Accessible Order Management Account & Service Secured Risk Handling
Management

People & Organization Competency Information System availability Reliable Infrastructure

FINANCIAL CUSTOMER INTERNAL LEARNING & GROWTH

Strategy Map Mission

Example We provide comprehensive, accessible, quality,
learning-centered educational opportunities that promote success.
Academic
Transfer Institutional Scorecard

External Forces Technical Foundational Lifelong
Development Skills Learning

Resources and Capacity Internal Forces

Strategic Directions

Online Learning and Educational Resources
A Sustainable Learning and Working Environment
A Diverse and Inclusive Learning and Working Environment

A Safe Learning and Working Environment

Strategy Map

Example

Learning & Growth Finances MISSION Customers

 Employee turnover  Revenue VISION  Customer counts
 Number of new employees  Cost  Market share
 Hiring Data  Profit Processes  Number of complaints
 Metrics  Time to Market
 Service error rates
 Quality control measures

Strategy Map

Example

VISION Zero deaths and serious injuries on the roadways

MISION Make the Nation’s roadways safer by

4 Customers,  Advancing the use of scientific methods and data-driven decisions
Stakeholders, and  Fostering a safety culture
Partners
Internal Goals External Goals 4.1 4.2 4.3
3 Program Promote an emphasis on safety performance Embolden a culture within the highway Articulate the benefits of roadway safety
and Service community that embraces safety as a core
Delivery in all aspects of roadway investment and investments
decision-making value 3.3
2 Internal
Processes 3.1 3.2 Develop and promote roadway safety
Improve safety data and expand capabilities Enhance strategic highway safety planning improvements
1 Employee
Learning for analysis and evaluation
and Growth
2.1 2.2 2.3
Employ a strategic planning process to guide Enhance the effectiveness and efficiency of
the safety units and align resource allocation Utilize effective partnerships for the improvement of
highway safety business processes
decisions

1.1 1.2 1.3
Improve the quality of the work environment Improve career and leadership development Enhance safety knowledge

opportunities

Strategy Map OUR VISION

Example Finances Placeholder Text

So we achieve Text
Financial
resumes Placeholder

in order to deliver Processes Customers Placeholder Placeholder Text Placeholder
unique value to our
Text Placeholder Text
clients Text

We enable us to Learning Text Placeholder Text Placeholder Placeholder
execute an & Growth

innovative and
strategic processes

The development of
our team

Strategy Map Sufficient capital for necessary investment

Example Competitiveness High level of service activity New products & projects
Patient satisfaction
Finances
Maintain productivity Protocols & procedures Quality Guarantee Plan
Customers Merger of two hospitals

Processes Personnel motivation & satisfaction Development of intermediate org. units
Learning Personnel training & education
& Growth

Strategy Map

Example

Strategic Theme: Operating Efficiency OBJEKTIVES MEASURMENT TARGET INITIATIVE

Financial Profitability  Profitability  Market Value  30% RDFG  Quality management
 More Customers  Seat Revenue  20% RDFG  Customer loyalty
Fewer Planes More Customers  Plane Lease Cost  5% RDFG
Lowest Prices  Flight is on – time program
Customers  Lowest prices  On Time  #1
Arrival Rating  #1  Cycle time optimization
Flight Is on Time program
 Customer Ranking  30 Minutes
(Market Survey)  90%  ESOP
 Crew training
Processes Fast Ground  Fast ground turnaround  On Ground Time
Learning & Growth Turnaround  On-Time Departure

Ground Crew  Ground crew alignment  % Crew trained  yr. 1 70%
Alignment  % Crew stockholders yr. 3 90%
yr. 5 100%

Strategy Map + Return on Capital Financial: -
Operating
Example Financial: - Expenses Feedback, refinement & improvement
Accounts
FINANCIAL Receivable

 Accounts Receivable increases due to Costumer Satisfaction Internal:
 Operating Expenses are decreased due to changes in employee Rework

satisfaction and production progress External: Internal: Internal:
Customer Employee Production
INTERNAL Satisfaction Satisfaction
Defects
Business Processes Impact Internal
 Identified process malfunction and eliminated rework Service -
Quality
CUSTOMER

Performance Impact
 Customer satisfaction addressed
 Employee satisfaction & Defects changed

LEARNING & GROWTH

Transformation learning impact
 Customer issues are identified
 Employee & production issues are identified

Strategy Map Template

Strategy Map Placeholder

Template Placeholder Placeholder Placeholder Placeholder

Financial Perspective Placeholder Placeholder Placeholder Placeholder Placeholder
Placeholder Placeholder
What are our most important financial Theme 1 Theme 2 Theme 3
outcomes?
Placeholder Placeholder Placeholder
Customer Perspective
Placeholder Placeholder Placeholder Placeholder
How should we appear to customers?

Process Perspective

At what do we need to excel to fulfill
customers expectations?

Organizational Perspective

How will we sustain our ability to
improve?

CustomersStrategy Map Placeholder Placeholder
Placeholder
Learning &Template Placeholder Placeholder
Growth Placeholder
Placeholder Placeholder
Internal Placeholder
Processes Placeholder Placeholder
Placeholder
Finance Placeholder
Placeholder
Placeholder

Strategy Map Placeholder Strategy Placeholder
Placeholder Placeholder Placeholder
Template Placeholder Placeholder Placeholder
Placeholder Placeholder Placeholder
1 Customers Placeholder
2 Learning Goal Goal

and Growth

3 Internal
Processes

4 Finance

Education and growth Internal processesStrategy Map  This is a placeholder text. Customer
 This text can be replaced with your own text.
Template

 This is a placeholder text.
 This text can be replaced with your own text.

 This is a placeholder text. Strategy
 This text can be replaced with your own text.
 This is a placeholder text.
 This text can be replaced with your own text.

Finance

Learning and GrowthStrategy Map  This is a placeholder text. Finance
 This text can be replaced with your own text.
Internal ProcessesTemplate Customer
 This is a placeholder text.
 This is a placeholder text.  This text can be replaced with your own text.
 This text can be replaced with your own text.

 This is a placeholder text.
 This text can be replaced with your own text.

Strategy Map

Template

Company Strategy Objective Measures Initiatives

Customers Objective Measure Initiative
Objective Measure Initiative
Goal Goal Goal Objective Measure Initiative
Goal Objective Measure Initiative
Learning & Goal Goal
Growth Goal Goal

Internal Processes Goal

Goal Goal

Finance

Goal Goal

Strategy Map Placeholder Placeholder Text

Template Placeholder Text
Finance
Text Placeholder Text
Customers
Text Placeholder Placeholder
Processes

Learning & Growth

Strategy Map

Template

Finance

Placeholder Placeholder Placeholder

Customer Internal processes

Placeholder Placeholder Placeholder Placeholder
Placeholder Placeholder

Learning & Growth

Placeholder Placeholder Placeholder Placeholder

Strategy Map Key Goals Key measures  Action 1
and actions  Action 2
Template  Placeholder  Action 3
 Placeholder  Action 1
Strategy  Placeholder  Action 2
 Action 3

 Action 1
 Action 2
 Action 3