We discussed the process of designing a strategy map in our eTraining, “Strategy Maps and the Balanced Scorecard”.
In this bonus mini-lesson, we will discuss how to use the strategy map in the process of designing and implementing the Balanced Scorecard.
Many people seem to think that strategy maps are only for top managers, or that they are not really related to the Balanced Scorecard at all. That is not true!
The Balanced Scorecard is just one of three levels in the business management process:
- Top level: Strategy maps
- Middle Level: Balanced Scorecard
- Bottom Level: Initiatives
Strategy maps are the top level: the first step in the business management process. They describe your strategic goals—that is, what the company wants to achieve in the short term, and in the long term.
How will you achieve those goals? The answers are in the next level: the Balanced Scorecard. The indicators on your scorecard measure your progress toward the goals on your strategy map.
Once you have your Balanced Scorecard with its indicators and categories, the next logical question is, who will improve the value of these indicators, and how? In this case, the answers lie on the lowest level: Initiatives, which link your indicators to line-level actions.
It is important to understand the role of strategy maps. If you design the Balanced Scorecard without a strategy map, you will not be able to link your indicators to your strategic goals!
To learn more about the Balanced Scorecard, please visit www.ScoreCardTrainings.com.