Strategic planning is a complex process involving many factors, which can make it difficult to get a comprehensive view of all the elements involved. However, using a strategy map based on the Balanced Scorecard (BSC) can be an ideal tool to help you with this task.
With this in mind, we have created this blog. Read on and learn how to use the Balanced Scorecard strategy map to identify the right objectives and connect all the pieces of the puzzle. In addition, avoid failures, set priorities and achieve your goals with excellence. Happy reading!
But what is a strategy map for?
A strategy map is an essential tool for directing and implementing plans clearly and efficiently. To help you understand it better, think about the definition of the two words that make up the term: "map", which represents guidance and direction, and "strategy", which involves planning and the decisions that will be made. In other words, in general, a strategy map is a visual representation that shows the path to be followed in developing strategies.
In addition, this tool also plays a key role in communication, since everyone involved needs to be aware of the objectives, strategies and how they align with the company's mission, vision and values. This is why the strategy map provides a clear and integrated picture of these elements.
In general, a strategy map can be used for:
- Organize strategies;
- Structuring a company's action plans;
- Visualize objectives and plans clearly;
- Represent the role of each sector in the organizational objectives;
- Direct efforts in a synchronized manner;
- Present the strategic plan and measures to improve processes to everyone.
After all, now that you've understood the uses of a strategy map, it's time to apply it to the Balanced Scorecard (BSC) methodology.
What is the BS strategy map?C?
For a better understanding, it's important to refresh the concept and purpose of the Balanced Scorecard (BSC).
The BSC was developed by Robert Kaplan and David Norton, renowned professors at Harvard Business School, and since its inception it has revolutionized traditional evaluation systems by focusing above all on the financial perspective.
In creating this important analysis tool, Kaplan and Norton devised four main perspectives:
- Financial: analyzes how strategic decisions affect the company's financial performance.
- Customers: evaluates market performance and customer satisfaction.
- Internal Processes: focuses on the quality and innovation of the processes carried out by the organization.
- Learning and Growth: evaluates the internal satisfaction of employees and investment in their development.
Check out the image below to see how the BSC Strategy Map works:
It's worth pointing out that the main purpose of the BSC is, above all, to help companies implement their strategies, using a strategic map that structures the entire action plan based on the business's mission, vision, values and strategic objectives. In addition, this map provides a visual representation that simplifies the communication of the company's planning to employees, highlighting the impact of each individual's work on the success of the organization.
To create a strategy map, you need to use the four perspectives of the BSC. However, in order to apply them effectively, we advise you to follow a few steps.
5 essential steps to create an effective strategy map
To draw up an effective strategy map, you need to follow five essential steps. These steps are based on the top-down approach, which starts from a macro view to a more specific view. Here are the steps:
Define your vision for the future:
First of all, start by establishing three essential foundations for the company: mission, vision and values. The mission should clearly describe the company's purpose and how it adds value to customers. While the vision establishes a long-term goal that motivates employees, the values define the characteristics and the way the company presents itself to the market in order to achieve the vision and fulfill the objectives.
Establish strategic themes:
Determine the strategic themes that summarize the broad dimensions that the company will follow. These themes represent the company's main strategies, such as internationalization, geographical expansion, customer focus or operational excellence. It is recommended to work with 2 to 4 strategic themes to maintain focus and clarity.
Choose the business prospects:
Selecione as perspectivas do negócio que serão adotadas. O Balanced Scorecard sugere quatro perspectivas principais: financeira, cliente, processos internos e aprendizado e desenvolvimento. Essas perspectivas funcionam bem para empresas privadas e com fins lucrativos, mas podem ser adaptadas para outros tipos de organizações, considerando as necessidades específicas, como órgãos públicos.
Define strategic objectives:
Outline the strategic objectives that fit into each business perspective. Strategic objectives are guidelines that demonstrate the changes the company wants to achieve, such as optimizing logistics, building a skilled team or improving internal processes. In addition, it is important to distribute these strategic objectives in the relevant perspectives.
Indicate the cause and effect relationships between the objectives:
Finally, identify the cause and effect relationships between the strategic objectives. Often, the achievement of one objective is fundamental to the achievement of others. The BSC emphasizes that the objectives associated with the lower perspectives are essential for achieving the objectives in the higher perspectives.
By following these five steps, you can create your strategy map. Remember to adapt the model according to the specific activities and needs of your company, whether it's in commerce, services or any other line of business.
In addition, it is important to use the map as a guide during the journey and to carry out the planned actions to achieve the established indicators. Stay committed to executing the established strategies and adjust them as necessary along the way. With determination and focus, you'll be on your way to achieving the success you want.
Improve your strategic management tools with a multi-methodological platform
Si tienes dificultades para centralizar todos los resultados de tu empresa en un solo lugar debido al uso de hojas de cálculo y a la utilización de diferentes metodologías de gestión en cada área, es hora de considerar la contratación de un software de gestión especializado, como Actio Strategy Management
The Actio Strategy Management é um software completo, da ActioThis is a tool that centralizes all the company's needs, both in terms of development and in terms of monitoring performance and results. It offers different methodologies, such as BSC, OKR, PDCA, ESG and others, so you can choose the one that best suits your organization's needs.
With Actio Strategy Management, é possível impulsionar a performance de todas as equipes, buscando a excelência, o sucesso e a qualidade nos processos. Afinal, a plataforma permite elevar os resultados com base em dados e métodos que tornam a gestão mais estratégica.Além disso, agora com a integração com o ChatGPT nas nossas soluções, o Actio Strategy Management conta com um consultor virtual por meio de inteligência artificial para te orientar na identificação de causas, garantindo resultados e a coerência metodológica em seus processos.Não se esqueça de seguir a Actio no Instagram, Linkedin and Facebook.
