Strategy Mapping. September 6, Cam Scholey
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1 Strategy Mapping September 6, 2006 Cam Scholey
2 Cam Scholey Nice Guy Workshop Facilitator Consultant: Strategy, BSC Cam Scholey, CMC, MBA, CMA MBET Design Author Triathlete
3 A Traditional View of Strategy Deployment Mission Why We Exist Values What s Important to Us Vision What We Want to Be Strategy Our Game Plan Targets and Initiatives What We Need to Do Personal Objectives What I Need to Do Strategic Outcomes Satisfied Shareholders Delighted Customers Efficient and Effective Processes Motivated and Prepared Workforce
4 Strategy Deployment Cascading the Corporate Mission/Vision into Actionable Behaviors Is Tough Adapted from: Franklin Covey that achieve Critical Objectives
5 Strategy Deployment Traditional Approach Mission Why We Exist Values What s Important to Us Vision What We Want to Be Strategy Our Game Plan Strategy Map Translate the Strategy Generation 2 Balanced Scorecard Measure and Focus Targets and Initiatives What We Need to Do Personal Objectives What I Need to Do Generation 1 Strategic Outcomes Satisfied Shareholders Delighted Customers Efficient and Effective Processes Motivated and Prepared Workforce
6 Mission, Vision Statements Communicate strategy map, next steps Strategy Map Goals and measures selection Validate strategy Integrate with budget Balanced Scorecard Cascade to divisions, employees Communicate balanced scorecard, next steps Initiatives selection
7 The Strategy Map: What Does It Look Like and How Does it Work?
8 Generic Strategy Map Architecture Financial Customer Internal Renewal Maximize Organizational Value Revenue Growth Strategy Productivity Strategy Asset Utilization Current Migrated New Service Excellence Add/Retain High-Value Customers Create High- Quality Unique Offerings Increase Revenue per Customer New Offerings Process, Project Management Reduce Cost per Customer Customer Activity Analysis Effective Governance & Control Scalability Strategies (e.g. Web) R&D, Skills & Capabilities Development, Key Staff Retention, Benchmarking Optimize Capital Employment
9 Strategy Mapping The Steps 1. Choose the overriding objective 2. Select appropriate value proposition 3. Determine/define general financial strategies to follow 4. Determine customer-focused strategies 5. Decide how internal processes will support execution of strategies chosen 6. Implement the skills/capabilities and employee programs that are required to achieve strategy
10 Step 1: Choose the Overriding Objective
11 Maximize Shareholder Value Financial Customer Internal Renewal
12 Step 2: Choose your Value Proposition
13 Value Propositions The company that tries to achieve everything ultimately achieves LEAD industry in ONE value proposition Meet standards in other two (don t abandon) Competitive advantage results
14 Value Propositions con t The 3 general value propositions: 1. Customer intimacy 2. Product leadership 3. Operational excellence
15 On a strategy map
16 Increase Customers, Maximize Shareholder Reduce Cost Revenue Per Customer Value Per Customer Financial Customer Internal Learning Grow Revenue Maximize Economic Profit Reduce Cost per Customer Product Leadership First to market; Unique attributes; Brand image Customer Intimacy Customer service; Relationship management; Brand image Operational Excellence Price; Quality; Selection; Brand image
17 Step 3: Choose the General Financial Strategies
18 Generic Strategy Map Architecture Financial Customer Internal Renewal Maximize Organizational Value Revenue Growth Strategy Productivity Strategy Asset Utilization
19 Step 4: Determine Customer-Focused Strategies Step 5: Determine Internal Strategy Execution
20 Generic Strategy Map Architecture Financial Customer Internal Renewal Maximize Organizational Value Revenue Growth Strategy Productivity Strategy Asset Utilization Current Migrated New Service Excellence Add/Retain High-Value Customers Create High- Quality Unique Offerings Increase Revenue per Customer New Offerings Process, Project Management Reduce Cost per Customer Customer Activity Analysis Effective Governance & Control Scalability Strategies (e.g. Web) Optimize Capital Employment
21 Step 6: Choose the Renewal and Employee Dimension Initiatives
22 Generic Strategy Map Architecture Financial Customer Internal Renewal Maximize Organizational Value Revenue Growth Strategy Productivity Strategy Asset Utilization Add/Retain Increase High-Value Employee Revenue per Reduce Cost Customers Customer per Customer Current Migrated New New Offerings Scalability Strategies Wellness Customer (e.g. Web) Initiatives Activity Analysis Optimize Capital Create High- Process, Employment Service Quality Unique Project Excellence Offerings Management Effective Governance & Control R&D, Skills & Capabilities Development, Key Staff Retention, Benchmarking
23 Strategy Mapping MAG Due out in November Focus on six steps (rich in examples) Also discusses: Cascading Integrating SM with other initiatives (budgeting, ABC, JIT, etc.) Looks at three real case studies
24 Questions?
25 The MBET Strategy Map
26 MBET Vision: To be an entrepreneurship program of local and international renown, where the exceptional talents of graduates in identifying, developing and commercializing breakthrough opportunities result in market-leading businesses. Customer Financial Attract and enrol high quality entrepreneurial students Offer unique, differentiated program focused on producing tomorrow s innovators Attract and retain venture capitalists interested in funding promising ventures Attract and retain employers interested in hiring innovative and motivated people Set realistic tuition fees Profit generating outreach programs Achieve self-sufficiency Maximize financial and moral support from university, donor groups and government agencies Internal Renewal The MBET Strategy Map Build the program Competencies Enhance as new program unfolds Build the faculty Technology Use as enabler for teaching and program management Build the support system Strategic Themes Research Link to new program Achieve operational excellence
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