Flevy Management Insights Q&A

How to create an effective strategy map?

     Joseph Robinson    |    Balanced Scorecard


This article provides a detailed response to: How to create an effective strategy map? For a comprehensive understanding of Balanced Scorecard, we also include relevant case studies for further reading and links to Balanced Scorecard best practice resources.

TLDR An effective strategy map visually aligns strategic objectives across Financial, Customer, Internal Processes, and Learning and Growth perspectives, ensuring organizational alignment and actionable goals.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they relate to this question.

What does Strategic Alignment mean?
What does Performance Management System mean?
What does Stakeholder Engagement mean?


Creating an effective strategy map is a critical step for organizations aiming to translate their strategic vision into actionable goals. This process involves developing a visual representation that outlines the primary objectives and the pathways to achieve them. A well-crafted strategy map enables organizations to communicate their strategy across the organization, ensuring alignment and focus on the key drivers of success. In the realm of strategic planning, the importance of clarity, communication, and alignment cannot be overstated. A strategy map acts as a bridge between the formulation of strategy and its execution, making it an indispensable tool for C-level executives.

To start, the foundation of a successful strategy map lies in understanding the organization's value proposition and core competencies. This requires a deep dive into the organization's mission, vision, and strategic objectives. The strategy map should then articulate how the organization plans to create and deliver value. This involves identifying the financial goals, customer value propositions, internal processes that need to be excelled at, and the learning and growth initiatives required to support these processes. The traditional framework for a strategy map encompasses four perspectives: Financial, Customer, Internal Processes, and Learning and Growth. Each perspective should contain specific, measurable objectives that are interconnected and mutually reinforcing.

Developing a strategy map requires a collaborative effort. It's not a task to be siloed in the strategic planning department but rather involves input from across the organization. Engaging leaders and teams from various functions ensures a comprehensive understanding of the organization's capabilities and challenges. This collaborative approach also fosters buy-in and commitment to the strategic plan, as stakeholders see their input reflected in the strategy map. Consulting firms like McKinsey and BCG emphasize the importance of stakeholder engagement in strategic planning, noting that strategies are more likely to succeed when they are developed with cross-functional insights and alignment.

Key Components of a Strategy Map

At its core, a strategy map is comprised of several key components that articulate the organization's strategic objectives. The Financial Perspective focuses on the financial outcomes the organization aims to achieve, such as revenue growth or cost reduction. The Customer Perspective outlines the value propositions that will attract and retain customers. The Internal Process Perspective identifies the critical processes that need to be optimized to deliver on the customer value propositions and financial objectives. Lastly, the Learning and Growth Perspective highlights the capabilities, culture, and information systems that support the internal processes.

Each of these perspectives should not be viewed in isolation. Instead, they are interconnected, with objectives in the Learning and Growth perspective enabling improvements in Internal Processes, which in turn drive better Customer outcomes and ultimately lead to the desired Financial results. This cause-and-effect logic is a critical aspect of the strategy map, illustrating how various elements of the strategy are interdependent.

Creating a strategy map also involves setting specific, actionable objectives within each perspective. For example, under the Financial Perspective, an objective might be "Increase revenue from new products by 20% within two years." For the Customer Perspective, an objective could be "Achieve a customer satisfaction score of 90%." These objectives should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. They serve as the building blocks of the strategy map, guiding the organization's strategic efforts and resource allocation.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Implementing and Utilizing a Strategy Map

Once developed, the strategy map must be integrated into the organization's Performance Management system. This ensures that the strategic objectives are translated into individual and team goals, aligning efforts across the organization. Regular reviews of the strategy map are essential to monitor progress, adapt to changes in the external environment, and make necessary adjustments to the strategy. This dynamic approach to strategy management allows organizations to remain agile and responsive to new opportunities and challenges.

Moreover, the strategy map should be communicated widely within the organization. It's a powerful tool for creating a shared understanding of the strategic direction and priorities. Effective communication involves not just sharing the strategy map itself but also engaging in ongoing dialogue about its implications for different parts of the organization. This can involve workshops, town hall meetings, and regular updates on progress towards the strategic objectives.

Finally, leveraging technology can enhance the effectiveness of a strategy map. Digital tools and software solutions enable organizations to create more dynamic, interactive strategy maps that can be easily updated and shared. These tools can also facilitate the tracking of key performance indicators (KPIs) linked to the strategic objectives, providing real-time insights into progress and performance. In conclusion, an effective strategy map is a vital tool for any organization aiming to achieve its strategic goals. It provides a clear, visual representation of the strategy, aligning and mobilizing the organization towards its objectives. By following the steps outlined above and incorporating the key components, organizations can create a powerful framework for strategic execution. With a well-crafted strategy map, organizations can navigate the complexities of today's business environment, driving performance and achieving sustainable success.

Best Practices in Balanced Scorecard

Here are best practices relevant to Balanced Scorecard from the Flevy Marketplace. View all our Balanced Scorecard materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Balanced Scorecard

Balanced Scorecard Case Studies

For a practical understanding of Balanced Scorecard, take a look at these case studies.

Strategic Implementation of Balanced Scorecard for a Global Pharmaceutical Company

Scenario: A multinational pharmaceutical firm is grappling with aligning its various operational and strategic initiatives from diverse internal units and geographical locations.

Read Full Case Study

Balanced Scorecard Implementation for Professional Services Firm

Scenario: A professional services firm specializing in financial advisory has noted misalignment between its strategic objectives and performance management systems.

Read Full Case Study

Implementation of a Balanced Scorecard for a Technology Startup

Scenario: A rapidly-growing technology startup is facing challenges in effectively aligning its organizational vision with the team's operational activities.

Read Full Case Study

Implementation of Balanced Scorecard for Operational Efficiency in a Global Technology Firm

Scenario: A multinational technology firm has been struggling with operational efficiency, despite having a Balanced Scorecard in place.

Read Full Case Study

Strategic Balanced Scorecard Reform in Automotive Sector

Scenario: A firm in the automotive industry is struggling to align its performance management systems with its strategic objectives.

Read Full Case Study

Balanced Scorecard Implementation in Chemical Industry

Scenario: The organization, a global player in the chemicals sector, is grappling with aligning its varied business units towards common strategic goals.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How can the Balanced Scorecard be leveraged to support an organization's resilience and adaptability in facing global crises, such as pandemics or climate change?
Leveraging the Balanced Scorecard enhances organizational resilience and adaptability amid global crises through Strategic Planning, Risk Management, and Innovation, ensuring proactive and dynamic strategy evolution. [Read full explanation]
How can the Balanced Scorecard framework be adapted to accommodate the increasing importance of remote work and virtual teams?
Adapting the Balanced Scorecard for remote work involves adding a Technology and Digital Transformation perspective, integrating metrics for Communication and Collaboration, and revising the Learning and Growth perspective to support digital learning and remote corporate culture, ensuring alignment with strategic goals in a remote work environment. [Read full explanation]
What are the critical factors for integrating ESG (Environmental, Social, Governance) criteria into the Balanced Scorecard framework?
Integrating ESG criteria into the Balanced Scorecard involves recognizing ESG's strategic importance, aligning ESG with organizational goals, and ensuring robust data collection and reporting. [Read full explanation]
How can the Balanced Scorecard be adapted to support remote and hybrid work environments effectively?
Adapting the Balanced Scorecard for remote and hybrid work involves revising performance metrics, integrating new communication and collaboration tools, and prioritizing employee well-being and engagement to align with modern work dynamics. [Read full explanation]
How can organizations effectively link Balanced Scorecard outcomes to compensation and incentive structures to drive performance?
Implementing a well-designed Balanced Scorecard aligned with Compensation and Incentive Structures enhances Organizational Performance by ensuring employee efforts directly contribute to Strategic Objectives. [Read full explanation]
How can organizations integrate artificial intelligence and machine learning technologies with the Balanced Scorecard to enhance predictive analytics?
Integrating AI and ML with the Balanced Scorecard enhances Predictive Analytics, informs Strategic Decisions, and achieves Operational Excellence by processing vast data for real-time insights. [Read full explanation]

 
Joseph Robinson, New York

Operational Excellence, Management Consulting

This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: "How to create an effective strategy map?," Flevy Management Insights, Joseph Robinson, 2025




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

 
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
 
"I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

– Trevor Booth, Partner, Fast Forward Consulting
 
"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The "

– Roderick Cameron, Founding Partner at SGFE Ltd
 
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group
 
"My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me "

– Bill Branson, Founder at Strategic Business Architects
 
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

– Roberto Pelliccia, Senior Executive in International Hospitality
 
"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

– M. E., Chief Commercial Officer, International Logistics Service Provider
 
"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory



Receive our FREE Primer on Change Management

This deck explains a "practical" approach to Change Management, as developed by Ron Leeman, winner of the Change Leader award by the HRD Congress in 2012.