How to Create a Strategy Map

Summarize all your goals on one sheet of paper with a strategy map.

Business owners use strategy maps to create a visual representation of their goals. You can use a strategy map for the goals of your organization as a whole or you can make a map for each department to help managers visualize their specific goals. The strategy map doesn't replace a detailed plan of action; it serves as a summary of goals to remind employees where they stand in relation to meeting their goals. Periodically reviewing the strategy maps in your organization will help keep progress on track.

Instructions

1. Write the goals for your organization. You can do this for the entire business or for each department. Strategy maps are based on the balanced scorecard approach so consider the financial, customer, internal and growth aspects of your business.

2. Think about how to link each objective. Coming up with intermediate steps will help you determine how best to achieve your goals. For example, learning a new inventory technique (growth aspect) will improve your employees' efficiency (internal aspect), could allow you to lower your prices and lead to higher demand (customer aspect) and result in higher profits (financial aspect).

3. Draw a diagram based on your goals and the intermediate steps you have come up with. List each aspect down the left column of the page and briefly write your specific goals in the rows to the right. For visual interest, you can put circles and squares around each goal and add color to differentiate between each manager's responsibilities, for example.

4. Add arrows to connect each step. You can have multiple arrows going to and from different items. Review the strategy map with your managers and give them copies to use as guides during their work days. Also give them copies of the detailed list you made earlier in case they need to refresh their memories.

Tips & Warnings

• Using computer software will make your strategy map look more professional.

References

• Growth Strategy Partners: Build Your Strategy Map and Balanced Scorecard
• Value-Based Management: Strategy Maps