BSC-3 Strategy Map Development Guide

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BSC-3 Strategy Map Development Guide Powered By Docstoc
					BSC-3 Strategy Map Development Guide
What should business center? Different people have different answers, some people
say that marketing is the customer; Some people say that research and development of
technology; Some people say that manufacturing is the product; also said that human
resources, the staff; and so on, do not 1 and foot.
Or middle-level cadres and the general staff, different people standing in different
positions have different understanding and perspective is natural, the above answers
are not wrong. But the top leadership is not, they should be established as a business
strategy and objectives of the center, because the essence of business is the full
realization of the strategic goals, not just for customers, technology, products or staff.
First, strategy and communication strategy map is a description of an effective carrier
In reality, there are many enterprises attach great importance to develop strategies, but
it is difficult to effectively implement the established strategies. According to expert
studies, the most important reason is: the strategic implementation of the
strategy-makers and strategic understanding of those inconsistencies, the available
information asymmetry. Lack of effective communication, strategy development and
strategy implementation are difficult to empathy between, resulting in strategy away
from the business practice, can not perform, or have a good strategy is the
implementation of hack away.
Kaplan has said that "strategic bothering you, it painted map."
Strategy Map (Strategy Map) is to achieve strategic makers and implementers of
effective communication carrier. Through the strategic map to describe and
communicate strategy, is the traditional Balanced Scorecard theory a major
breakthrough in management thinking, it gives us a measure of strategy, the basis and
premise, it can effectively communicate to achieve a performance is what the key
success factors , and how the customer service, internal operations, learning and
growth concerns to ensure the realization of corporate long-term value. It has changed
the traditional formulation of corporate strategy, strategic objectives and the abstract
plan into a vivid image of them, through a causal link between strategic objectives,
the operations and functions will be unified in theory, thus weakening the functions of
the fragmentation of the business operations management system negative effects of
management strategies to help companies reach a consensus and establish a common
language, so that all departments and business units may be among the strategic
objectives of the enterprise to achieve consistency of understanding.
Second, develop a clear corporate strategy map needs of the mission and vision
Enterprises must first solve their own problems to any clear meaning and value of
existence of the business, that business mission; then have to be the question of what
to depict the blueprint for the future development of enterprises, both corporate vision;
This is the enterprise development strategy map the basis and premise.
A clear vision should be a point in time in the future, enterprises a full range of
operating conditions. Vision through a clear business objectives for all members of the
paint companies a blueprint for future development, we have solved the question of
what business to be. For example, an aviation enterprise groups "have
become a fast growing, creating great company, among the forest of the
world's aviation industry strong," is a clearer corporate vision.
Third, development of five basic steps in the strategic map
In Kaplan's classics, the map shows many examples of corporate strategy,
is not how to develop strategic map, nor on the corporate strategy map, map of sector
strategies and business unit strategy map for the similarities and differences between
the full set. Chinese companies face the cultural diversity and uniqueness, we must
establish their own methods with reality. The author believes that the development of
a corporate strategy map, probably requires strategic environmental scanning,
strategic comprehensive analysis, evaluation of strategic goals, strategic objectives
and the causal connection defines five steps.
1, strategic environmental scanning
Strategic Environmental scanning requires the integrated use of various analytical
tools, such as PESTEL analysis model, five forces model and value chain analysis.
PESTEL model is to analyze the macroeconomic environment, an effective tool to
investigate the impact of factors outside the enterprise approach, in which each letter
represents a factor of six factors: (1) politics (Political) refers to the practical business
activities and the potential impact of political forces and relevant policies, laws and
regulations and other factors; (2) economic factors (Economic) is outside the
enterprise's economic structure, industrial layout, resources, economic
development and future economic trends, etc.; ( 3) social factors (Social) is the
corporate members of the society in the historical development, cultural traditions,
values, education, and customs and other factors; (4) technical factors (Technological),
including those caused revolutionary changes in both the invention of also includes
production of the new technologies, new processes, new materials, trends and
prospects; (5) environmental factors (Environmental) is an enterprise's
activities, products or services in the interaction with the environment elements; (6)
legal considerations (Legal) is outside the enterprise laws, regulations, judicial status
and civic awareness of the law by an integrated system. PESTEL is based on PEST
analysis with environmental factors (Environmental) and legal factors (Legal)
formation. Through the analysis of these six factors, we can more fully grasp the
external environment in which an enterprise.
Five Forces Analysis model for the analysis of competitive strategy, can effectively
analyze the competitive environment. Five Forces are: bargaining power of suppliers,
the bargaining power of buyers, potential competitors to enter the ability to substitute
alternative capacity, industry competitors Xianzai competitiveness. Five forces model
will be a lot of different factors together in a simple model to determine the
industry's fundamental competitive situation. A viable strategy must first
identify and evaluate the five forces, the characteristics and importance of different
forces due to the different industries and companies change. The significance of the
model, the five competitive forces of resistance in the success of the strategy contains
three ideas: cost leadership, differentiation strategy, focus strategy.
Value chain analysis is a method for determining competitive advantage tool. If the
enterprise as a whole to consider and can not identify the resource, Nenglishangde
competitive advantage; if companies Huodongjinhang Fen Jie, by considering the
individual activities and their relationship, the 可 以 easier to determine the
enterprise's competitive advantage. Qi Ye Di production and business
activities can be divided into a activities and support activities in two categories:
Zhuti activities referred to as production operations of substantive activities, Yi Ban
can be divided into Jishukaifa, raw material supply, production processing, storage
and transportation Chengpin, market, marketing, and Shouhoufuwu 5 kinds of
activities. These activities and the processing flow of physical goods directly related
to the basic value-added activities in the enterprise. Support activities is to support the
main activities and mutual support between and within activities, including business
investment in financial management, human resource management, public relations
and corporate changes, etc..
2, a comprehensive analysis strategy
Through strategic environmental scanning, we acquired outside chance of business
survival (Opportunity) and threat (Threat) (PESTEL results of the analysis), the
internal strength (Strength) and weaknesses (Weakness) (value chain analysis of the
results) as well as the basic strategic thinking ( Five Forces analysis of the results),
SWOT analysis can be used by advantage / disadvantage and the opportunities /
threats analysis of the match, forcing managers also concerned about the external
environment and focus on positive and negative, and will not lose the opportunity in
front of reason, ignore the potential crisis.
First, we have to face as much as possible inside and outside the company exhausted
all aspects of the environment description, and then follow the internal strengths,
internal weaknesses, external opportunities and external threats into four categories.
Description must have a clear tendency to judge, can not use the description of the
form of questions or ambiguities.
Second, a careful description of all environmental audits, omitted important
information, removing unnecessary redundant information to ensure clear, concise,
accurate description of internal and external environment facing enterprises. In
general, the advantages include: What good company; have any new technology; have
any unique capabilities; recent critical success factors. Disadvantages include: not do
certain things; the lack of key technologies; well as other aspects; not meet the needs
of customers; recent failures such as the main reason. Opportunities include: Suitable
for our business opportunities; can reach the technical cooperation; the
Government's industrial protection policies; supply providers and
customers lead to decentralized bargaining power Xia Xiang Deng. Threats, including
from new industry entrants, the threat of competitors; concentration of suppliers and
customers lead to increased bargaining power, the government abolished the industry
protection policies, technical developments have led to lower trade barriers so. Final
results are as follows.
SWOT Classification Code Description
A low-grade production equipment, depreciation has been completed, cost
competitive S
2 downstream industries increased production capacity, will increase the demand for
our products O
3 of the European economy as a whole improved, could boost the market demand for
4 We are a technology leader in the industry S
High reliability and quality control of 5 S
6 competitors will slow pace of development of patented W
W 7 customer service poor
8 second-tier vendors cut prices grab a single T
... ... ... ... ... ...

Third, in accordance with the above classification results, the description of the table
were included in the corresponding cell, the start factor cross analysis.
 ?O2 downstream industries increased production capacity, will increase the demand
for our products T8 grab one second-tier makers cut prices
 ?3 of the European economy as a whole improved, could boost the market demand
 ?Different combinations of cross-portfolio strategic objectives of the strategic
S1 low-grade production equipment, depreciation has been completed, cost
competitive and increase market share SOS1-O2 ST
4 We are a technology leader in the industry
5, high reliability and quality control
W6 competitors will slow pace of development of the patent WO WT
7, poor customer service

In the above analysis process, the need to pay attention to the basic principles of
strategic objectives identified. Combination of SO-oriented, "Use the
opportunity to play to our strengths," such as S1-O2 combination can
produce the "increase market share" of the strategic objectives;
ST combination of orientation is "play to our strengths, resolve
threats"; WO combination of orientation is "Use the opportunity
to turn the tide"; WT combination of orientation is "to avoid
threats, turning the tide." Also note that not all factors can be obtained after
the cross-analysis of certain strategic objectives.
3, evaluation of strategic objectives
From the above table, we can get many of the strategic orientation and business are
closely related to specific strategic goals, according to the strategic position, we can
determine the appropriate strategic objectives. If the company is positioned to lead the
market, we should enhance the market share on the company's strategic
objectives as one of the; if the company's strategic direction is to create
first-class brand, then we must improve customer service and public level relations as
strategic goals.
Evaluation of strategic objectives, there are many ways, we recommend that
companies use a number of experts rate the sort of structured approach, both to
eliminate the subjectivity of decision-making leading personal racking our brains, not
that bad too complex. From the expected return (or not implemented will bring the
loss) and difficult to implement (or level of resources required to prepare) two aspects,
namely, to evaluate by 1-10 points, and then sorted according to determine the two
fractions. In order, they can be a way to focus on fine-tuning.
4, the definition of strategic objectives
Identify key strategic objectives of the process is a range of strategic communication
session, to take an oral explanation of the way enough. If the face full of strategic
communication must be accompanied by precise instructions, which should be in
accordance with the "under the premise of the ... ... to carry out business
activities ... ... and implement ... ... goal" 结 构 defined to full
Zhunquezhangwo , a prerequisite for the strategic focus, the specific content and
target, which is not ambiguous.
5, causality link
When we put all the focus on strategic objectives are all according to enterprise value,
Kehu service, internal operations and learning and growth of four Cengmian classified
Hou, we need to in-depth analysis of Yinguoguanxi Qizhongneizai. From top to
bottom to form a "need" the support of relations, from the
bottom of a "for" the purpose of relationship. Namely: the order
from top to bottom, to achieve ... ... the need ... ... the support; from bottom to top
were, well ... ... is to ... ....
In this way all the strategic objectives of the relationship between the comprehensive
analysis, we can conclude that the strategic objectives of all causal support
relationships. Just follow the relationship due to the fruit, using lines with arrows
connecting them, showing all the causal relationship, it formed a corporate strategy
In this process requires attention, analysis of the causal relationship between the
strategic objectives, you may find that the strategic objectives of the previous contents
of overlapping or omissions, which need to return to do some adjustments to ensure a
clear relationship between the various objectives , combined to form a complete
system, not weight not leak.

Enterprise Strategy Map Example

In short, companies need a strategic map for the carrier, on the strategic objectives of
all staff for effective communication strategies to achieve the visual management,
which is the description of the strategy is to achieve effective measurement strategy.
At this stage, 需要 comprehensive use of various analysis tools to the enterprise
all-round scanning the external environment, be Chongfenrenshi and Shenrulijie,
based on its advantages and disadvantages and external Ji Hui and threats to
Quedingyingdui the Zhanlue. In describing the strategic map, should not have a
comprehensive and balanced, we must filter the next few years, companies need to
focus on strategic priorities, to form a strategic map.
As a business leader, according to the strategic map to be able to clearly understand
the business the next 3-5 years to set the strategic intent and planning the path that the
causal connection with a strategic way about the story, to all employees paint a
beautiful blueprint for achieving a strategic map for the carrier, communication
strategies, to reach a consensus, unite the goals.

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