If you were a military general on the march, you'd want your troops to have
plenty of maps - detailed information about the mission they were on, the
roads they would travel, the campaigns they would undertake, and the weapon
s at their disposal. The same holds true in business: a workforce needs cle
ar and detailed information to execute a business strategy successfully.
Until now, there haven't been many tools that can communicate both an organ
ization's strategy and the processes and systems needed to implement that s
trategy, But authors Robert Kaplan and David Norton, cocreators of the bala
nced scorecard, have adapted that seminal tool to create strategy maps. Str
ategy maps let an organization describe and illustrate-in clear and general
language-its objectives, initiatives, targets markets, performance measure
s, and the links between all the pieces of its strategy. Employees get a vi
sual representation of how their jobs are tied to the company's overall goa
ls, while managers get a clearer understanding of their strategies and a me
ans to detect and correct any flaws in those plans.
Using Mobil North American Marketing and Refining Company as an example, Ka
plan and Norton walk through the creation of a strategy map and its four di
stinct regions - financial, customer, internal process, and learning and gr
owth-which correspond to the four perspectives of the balanced scorecard. T
he authors show step by step how the Mobil division used the map to transfo
rm itself from a centrally controlled manufacturer of commodity products to
a decentralized, customer-driven organization.