In a previous blog, we discussed the building blocks of a strategy map. Now, we'll discuss the various ways in which a strategy map can be structured and read. One way of defining key success factors is building a strategy map: doing the right things right. A strategy map shows how an organization wants to undergo a transition by highlighting some key areas. The strategy map is usually comprised of four levels which enhance each other. By clearly defining a strategy map, it's easier to define the right factors to measure.
A strategy plotted out in a good strategy map can be a lasting competitive advantage, but only if you can make sure that you're doing different things, or doing things differently, than the competition. According to Michael Porter, it's trickier for a competitor to beat a set of connected activities than to simply imitate a certain sales technique or process/product. Market positions that have been achieved thanks to an interplay of activities are much more sustainable than positions based on separate activities. The strategy map can help you become sustainably competitive. In a series of mini-articles, I'll explain how this works.
In a world without information, nothing will really change. We try and take our chances and choose one option or another, just based on what we see, taste, hear, and the emotions we feel. But this wild guessing, based on gut feelings, will lead us nowhere, at least not to a better life, business, or world. Because we have no information, and we don’t know what's good for us or our business. We act like headless chickens and are completely biased. And, believe me, a lot of companies still are run that way.
Performance Management using indicators can have several disadvantages, like increasing production goals without tackling the professional organization behind it. With a strategy map and a balanced scorecard, one might prevent this. In our vision, Business Analytics should also be used to develop the organization (learning and growth perspective, internal processes). Below are some possible disadvantages of performance management.