The Strategy Map INTRAFOCUS• A Strategy Map is a diagram that describes how a company or organisation can create value by linking strategic objectives in a cause and effect relationship.• It is based on the four Balanced Scorecard Perspectives: Financial, Customer, Internal Processes and Learning & Growth.• The key element of the Strategy Map is that it is linked to the ‘scorecards’ that monitor the progress towards the Strategic Objectives.• The ‘scorecards’ will include: metrics, targets for the metrics and strategic initiatives to drive performance towards achieving the objectives.
The Balanced Scorecard INTRAFOCUS• The Balanced Scorecard is a strategic planning and management method used to: • align business activities to a vision and strategy of an organisation • improve internal and external communications • monitor organisational performance against strategic goals.• The design of Balanced Scorecard concerns itself with: • the identification of a small number of financial and non-financial measures referred to as Perspectives • setting targets for the measures and then • measuring them on a regular basis to determine success or failure.
Strategy Map – Classic Kaplan/Norton INTRAFOCUS Productivity Strategy Growth StrategyFinancial Long-TermPerspective Shareholder Value Improve Cost Increase Asset Expand Revenue Enhance Structure Utilisation Opportunities Customer ValueCustomer Customer Value PropositionPerspective Price Quality Availability Selection Function Service Partnership Brand Product / Service Attributes Relationship Image Operations Management Customer Management Regulatory and SocialInternal Processes Processes Innovative Processes ProcessesPerspective Supply Selection Opportunity Identification Environment Production Acquisition R&D Portfolio Safety and Health Distribution Retention Design / Develop Employment Risk Management Growth Launch CommunityLearning & Human CapitalGrowth Information CapitalPerspective Organisational Capital Culture Leadership Alignment Teamwork
Strategy Map - Generic example INTRAFOCUS Mission: Managing with greatness and strength, improving everything daily Vision: Leading with inspiration and courage, passionate about future possibility and change Financial Perspective Sustained Shareholder Value Productivity Strategy Revenue Growth Strategy Increase Enhance Expand Improve Cost Asset Customer Revenue Structure Utilisation Value Opportunities Customer Customer Value Perspective Proposition Price Quality Availability Selection Function Service Partnership Brand Production Service Attributes Relationship Image Internal Operations Customer Management Regulatory and Social Perspective Innovative Processes Management Processes Processes Processes Processes that produce Processes that create Processes that improve Processes that enhance and deliver products and new products and communities and the customer value services services environment Learning & Growth Human Capital Information Capital Organisational Capital Perspective Skills Training + Systems Databases + Skills / Training Knowledge Knowledge Networks Teamwork
Example with ‘Strategic Themes’ INTRAFOCUS Financial Increase Shareholder Perspective Value Leader in defined Markets Add New Revenue Achieve profitability Stream Customer Intimacy Technology Driven Operational Excellence Customer Consistently Trusted Flexible Exceed Perspective Advisor Solutions Expectations Deliver Frequent Satisfy All Complete Deliver Repeat Needs Solutions Added Value Business Internal Capture and Create Improve Perspective Utilise Enterprise Resourcing Build Lifelong Knowledge Solutions Services Relationships Effective Cost Build 3rd Party Integrate Improve Mgmt Relationships Business Solution Processes Processes Learning & Growth Develop Improve Solution Improve Operational Perspective Relationship Skills Management Mgmt Skills Improve Industry More Successful Knowledge Engender Innovation Career Planning
Public sector example INTRAFOCUSStakeholder Value to TaxpayerPerspectiveCustomer SupportPerspective Business and Balance Budget Commerce Safe Clear and Convenient Accurate Create Business Cases Lower Cost of Bus Bus Services Timetables and Secure Funding On Time as Transportation Services Promised Relationship Innovation Operational Easy to do Management Drive Innovation in New Excellence Business With Transport Systems Deliver World Class Bus Streamline Services Improve RegulatoryInternal Processes Sustainability of Approval Accelerate Communities Develop and Processes Economic Introduce New Development Provide Cost OptimisePerspective Transport through Route Effective Availability Technology Open and Frequent Investment Solutions of Busses Communication to Impacted Customers Improve All Optimise Planning of Bus Understand New Route Aspects of Bus Stop Position and Needs (and Old) Safety ConstructionLearning &Growth Empowered Customer Service Integrated Knowledge Highly Skilled Bus Drivers Agents Management SystemsPerspective
Empty template INTRAFOCUSFinancialPerspectiveWhat are our mostimportant financialoutcomes?CustomerPerspectiveHow should we appearto customers?ProcessPerspectiveAt what do we needto excel to fulfillcustomerexpectations?Learning &GrowthPerspective How will we sustain our ability to improve?
Focus on Internal Themes INTRAFOCUS Financial Perspective Customer Perspective Internal Perspective Theme one Theme Two Theme Three Learning and Growth Perspective
Focus on Internal Themes INTRAFOCUS Company VISON Statement Company MISSION Statement Financial Perspective Customer Perspective Internal Perspective Theme one Theme Two Theme Three Company Core Value Statement Learning and Growth Perspective
Template with Mission, Vision and Themes INTRAFOCUS Mission: Company Vision: Name Strategic Themes Theme One Theme Two Theme Three Financial Strategic Objective 1 Strategic Objective 2 Strategic Objective 3 Customer Internal Learning
The Quickscore Application INTRAFOCUS• Software is not required to implement a Strategy Map or Balanced Scorecard, but it does help.• A good software tool will allow user to: • create meaningful Strategy Maps with minimum fuss • organise key metrics in a meaningful way • display data and combinations of data • provide management teams with a clear business overview • allow users to input data easily and frequently • Provide the means to ‘drill down’ to the underlying data should the need arise to question a specific activity• Intrafocus recommends the Quickscore product to those companies that want to take a structured approach to rolling out Strategy Maps and Balanced Scorecards