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Strategy Map Weighting

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Definition of the weight of each objective in the Strategy Map, based on the strength of the cause-effect relationship between the BSC objectives.

Published in: Business, Economy & Finance

Strategy Map Weighting

  1. 1. Strategy Map Weighting (1) Rating the cause-effect relationships between the Strategy Map Objectives 50% 50% F1 IncreaseFINANCIAL Company Value F2 Safely Achieve 20% F3 Safely Increase Revenue Growth Profitability 20% 20% 50% 30% 50% 10%CUSTOMERS C3 Improve Commercial C1 Increase Value Risk Management for Customer C2 Improve Customer C4 Achieve Full 100% 45% 55% Relationship Regulatory Compliance © 2011 – Balanced Scorecard Romania 100% 100%INTERNAL I3 Increase I1 Reduce R&D Productivity & Quality Cycle Time I2 Achieve Excellence I4 Improve Operational in Customer-Focus 50% 50% 70% 30% Risk Management 100% 100%ENABLERS (L&D) E2 Improve IT E1 Attract & Retain Functions & Availability E3 Achieve Performance the Required Skill-Set vs. Risk Balance 70% Strength of cause-effect relationship between two objectives
  2. 2. Strategy Map Weighting (2) 100% Determining the weight of each Strategy Map Objective 45% + 5% + 45% 50% 50% F1 IncreaseFINANCIAL 20% + 12% + 5% + 8% Company Value 8% + 8% + 5% + 20% + 4% F2 Safely Achieve 20% F3 Safely Increase 16% Revenue Growth Profitability 20% 20% 50% 30% 20% 50% 10% 4% + 12% 6% + 7% + 7%CUSTOMERS 10% + 10% C3 Improve Commercial C1 Increase Value Risk Management for Customer C2 Improve Customer C4 Achieve Full 100% 45% 55% Relationship Regulatory Compliance 17% © 2011 – Balanced Scorecard Romania 100% 100% 2% + 2% + 2% 10% + 7%INTERNAL I3 Increase I1 Reduce R&D Productivity & Quality Cycle Time I2 Achieve Excellence I4 Improve Operational in Customer-Focus 50% 50% 70% 30% Risk Management 9% 100% 100%ENABLERS 9% (L&D) E2 Improve IT E1 Attract & Retain Functions & Availability E3 Achieve Performance the Required Skill-Set vs. Risk Balance 4% Weight retained by the objective 2% Weight distributed along the cause-effect relationship, according to its strength 9% Weight cumulated from two or more objectives, along the cause-effect relationships

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