Balanced scorecards are often used during strategic planning to make sure the company's efforts are aligned with overall strategy and vision. A Balanced Scorecard strategy map is an excellent business tool to do this. The main idea of a strategy map is that each strategic objective in your balanced scorecard is represented by a shape, usually oval. From a Balanced Scorecard perspective, Strategy Maps are communication tools used to tell a story of how value is created for the organization.

A strategy map is typically constructed with a set of 15 to 25 causally linked strategic objectives. That is where the strategy map and its derived balanced scorecard fit in. Their combination is a navigational tool to guide the organisation to execute the strategy formulated by the executive team. "The Balanced Scorecard: Measures that Drive Performance." A balanced scorecard (BSC) is a visual tool used to measure the effectiveness of an activity against the strategic plans of a company.

Harvard Business Review 70, no. Tracking too many will dilute your overall message, making your strategy difficult to communicate. Check out an example of the Safety Strategy Map that we discussed before. It is one of the most powerful elements in the balanced scorecard methodology, as it is used to quickly communicate how value is created by the organization. It has the ability to show the connections between all four perspectives in a one-page picture. They show a logical, step-by-step connection between strategic objectives in the form of a cause-and-effect chain. It integrates financial measures with other objectives and key performance indicators related … 1 (January–February 1992): 71–79.

Strategy elements includes: mission (our purpose), vision (what we aspire for), core values (what we believe in), strategic focus areas (themes, results and/or goals). If you want some examples in your industry, download one of our free ebooks: A strategy map is a simple graphic that shows a logical, cause-and-effect connection between strategic objectives (shown as ovals on the map). Very rarely are there more than 20 objectives. Kaplan, Robert S., and David Norton. Balanced Scorecard (BSC) + Strategy Map – example template Excel spreadsheet The Balanced Scorecard system connects the dots between big picture strategy elements and more operational elements. Strategy Scorecard The Balanced Scorecard is a framework to implement and manage strategy by linking a vision and mission to strategic priorities, objectives, measures, and initiatives. A Balanced Scorecard strategy map is a one-page visual depiction of an organization’s scorecard.