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About Strategy Maps

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Create a Strategy Map for Your Organization - how Think Leadership Ideas can help
Get on the Same Page with a Strat-Map - THINK! leadership article


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What is a Strat-Map?
A strat-map, or strategy map, is a one page document that shows how specific high level objectives link strategically in accomplishing the organization’s mission and vision. A typical strat-map includes objectives from four perspectives:

customer perspective - the value that is delivered to the people those served by the organization
  • who are our customers? what market do we serve?
  • what is our value proposition?
  • what differentiates us from competitors?
operations perspective - the key actions and inputs needed to meet the customer objectives
  • what are our sales/distribution channels?
  • how do we use technology?
  • what are the critical operations that deliver customer value?
  • how do we relate to the community in which we exist?
financial perspective - critical financial objectives that must be met for the organization to work
  • what are the organizations financial goals?
  • how do we manage resources?
learning and leading perspective - what people need to know and how they need to work (often intangible qualities) in order to effectively meet the operations objectives
  • how do we hire, retain, and develop our people?
  • how do we gain and manage information?
  • how does leadership and culture influence the organization?
Strat-mapping originated as a key part of the balanced scorecard process, developed by Norton and Kaplan (Harvard Business School) in the 1990s, and is widely used in business, non-profit, and public organizations.

Why are strat-maps important?
While deceptively simple, a well-constructed strat-map reflects the “DNA” of an organization, and becomes the source of an organization’s planning, budgeting, and decision making at both a strategic and tactical level.
The benefits of strat-mapping are twofold:
  • The product created gives the organization a simple tool for communicating and implementing “getting on the same page”;
  • The process of developing the map gives participants a structured way to discuss and explore key issues in a way likely to move the organization forward.

How are strat-maps different for businesses and non-profits?
All strat-maps are structured such that RESULTS are produced by key organizational ACTIONS, and these actions are supported by intangible KNOWLEDGE and THINKING. Both businesses and social sector organizations typically map key objectives in the same four perspectives, however they follow different structures.



The fundamental driver for every business is achieving a financial result, which is achieved by providing some specific value to customers. Providing that value to customers is gained through the operations of the business, which in turn is supported by knowledge and leadership. (While financial results are the driver for business, that does not preclude businesses being established or committed to higher purposes other than making money.)

For social sector organizations, the primary driver is the organization’s mission, achieved by providing some specific value to customers. Providing that value to customers is likewise gained through the organization’s operations. Unlike businesses, financial results are not an end in themselves, and often derive from sources other than the customer. Therefore social sector knowledge and leadership must serve stakeholders who provide financial and resource support for the organization, as well as operations that provide value to customers.

How do organizations create strat-maps?
Strat-maps are best created in a collaborative process that includes:
  • educating the organization’s leadership about strat maps;
  • facilitating structured discussions for determining objectives for the various perspectives that are most relevant to the organization;
  • active integration of the strat-map into the organization’s action plans, performance management processes, and operations.

Links
Leadership article - One Page Plans
Strat-map for town of Hillsborough
Strategy Maps - Wikipedia
Think Leadership Ideas - facilitation services

Tom Stevens helps both businesses and non-profits create strat-maps and use them to create and sustain exceptional organizations - click here to contact Tom and discuss ways the people in your organization can get on the same page.
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