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Strategy Maps Putting your strategy Into a picture March 1, 2012
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2 “Figuring out the right things to do isn’t nearly as difficult as continuing to do them over the long term.” Our webinar will begin in a few minutes.
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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4 Our webinar will begin in a few minutes. “Remember: The problem for most of us isn’t knowing what to do… it’s doing it.”
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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6 Our webinar will begin in a few minutes. “The greatest attribute for any business leader is perseverance.”
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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8 Our webinar will begin in a few minutes. “All organizations are perfectly designed to get the results they are now getting. If we want different results, we must change the way we do things.” Tom Northup
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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10 Our webinar will begin in a few minutes. “It’s useful to think of excellence in two broad categories: Customer excellence and business excellence.”
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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12 Our webinar will begin in a few minutes. “Satisfied customers drive business success – and business success enables investment to satisfy customers.”
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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14 Our webinar will begin in a few minutes. “ Excellence is not a destination; it is a continuous journey that never ends.” Brian Tracy
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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16 Our webinar will begin in a few minutes. “ We are what we repeatedly do. Excellence, then, is not an act but a habit.” Aristotle
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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18 Our webinar will begin in a few minutes. “People go in the direction leadership is walking, not pointing.”
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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20 Our webinar will begin in a few minutes. “Every job is a self-portrait of the person who does it. Autograph your work with excellence. “ Unknown
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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22 Our webinar will begin in a few minutes. “Excellence is doing ordinary things extraordinarily well." John W. Gardner
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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24 Our webinar will begin in a few minutes. “Discipline is the bridge between goals and accomplishments.” Jim Rohn
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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26 Our webinar will begin in a few minutes. "Measure is the ability to mesh strategy with reality, align people with goals, and achieve the promised results.“ Larry Bossidy
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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28 Our webinar will begin in a few minutes. “The strategic agenda demands discipline and continuity; its enemies are distraction and compromise.” Michael E. Porter
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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30 Our webinar will begin in a few minutes. “One of the major barriers to achieving lasting excellence is how little formal effort organizations put into learning how to execute strategy.”
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March 1, 2012 Strategy Maps Putting your strategy Into a picture
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32 Your Presenter Matt Lauth Managing Partner Strategy Execution Advisors Certified Business Coach
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Strategy Maps 33 Join me to find out how the Six Disciplines Program supports Strategy Maps and how they can bring your strategy to life. During this webinar you'll learn: 1. What is a Strategy Maps? 2. Where does it fit in the overall strategy formation? 3. Why is it important? 4. How do I go about creating one? 5. How do I use it in the business?
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34 What is a Strategy Map? A strategy map is a diagram that is used to document the primary strategic goals being pursued by an organization or management team. It is an element of the documentation associated with the Balanced Scorecard, and in particular is characteristic of the second generation of Balanced Scorecard designs that first appeared during the mid 1990s. The first diagrams of this type appeared in the early 1990s, and the idea of using this type of diagram to help document Balanced Scorecard was discussed in a paper by Kaplan & Norton in 1996. Source: www.wikipedia.comwww.wikipedia.com
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35 © 2004-2007 Six Disciplines, LLC All Rights Reserved.
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36 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 36 Measurement is the language that gives clarity to vague concepts. Measurement is used to communicate, not to control. Strategy can be described as a series of cause and effect relationships Financial Perspective "To succeed financially, how should we appear to our stakeholders?” Customer Perspective “ To achieve our vision, how should we appear to our customers?” Internal Process Perspective "To satisfy customers, and stakeholders, which internal business processes are critical? People and Knowledge Perspective "To achieve our vision, how will we sustain our ability to change and improve?” Outcomes Drivers The Balanced Scorecard Provides a Framework to Translate the Vision and Strategy into Operational Terms Across Four Business Perspectives …
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37 Balanced Score Card Strategy Map
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38 “Natural Cause and Effect Logic” of Business Performance To Build the Strategic Capabilities… Needed to Deliver Unique Sets of Benefits to Customers... To Drive Financial Success... And Realize the Vision Equip Our People... Financial Results Customer Benefits Internal Capabilities Knowledge, Skills, Systems, and Tools
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39 Illustrative Example: Southwest Airlines The Balanced Scorecard Should Tell the Story of the Strategy Strategic Theme: Operational Excellence Financial Learning & Growth Lowest Prices Flights On Time Align Ground Crew Add More Customers Use Fewer Planes Increase Profitability Provide Fast Ground Turnaround Customer What will drive operating efficiency? More customers on fewer planes How will we do that? Attract targeted customer segments that value price and on-time arrivals What must the internal focus be? Fast ground turnaround Will our people do that? Educate and compensate ground crew regarding how they contribute to the firm’s success Employee stockholder program Internal
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40 Where does it fit in strategic planning? Strategy Formation Strategy Communication Detailed Strategic & Operational Planning Strategy map is a tool to align leadership and effectively communicate to
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41 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 41
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42 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 42
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43 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 43
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44 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 44
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45 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 45
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46 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 46
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47 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 47
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48 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 48
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49 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 49 Six Disciplines is a strategy execution system that manages strategic, operational, and functional plans
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50 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 50 The plans (strategic, operational, functional) are organized into balanced scorecards
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51 © 2004-2007 Six Disciplines, LLC All Rights Reserved. 51 Strategy maps, along with other supporting documents are attached directly to the strategic plan.
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52 © 2004-2007 Six Disciplines, LLC All Rights Reserved. Summary Strategy maps are effective ways to bring a strategy to life It’s an effective tool for align leadership around the strategy It communicates leading and lagging elements of the strategy It’s an effective tool for communicating strategy to the organization It can be used as a conversation tool to get feedback Used during detailed planning activities
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53 www.StrategyExecutionAdvisors.com
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Upcoming Webinars
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55 1.March 1 st : Strategy Maps 2.March 8 th : Value Stream Maps 3.March 15 th : Succession Planning 4.March 22 nd : Benchmarking Performance 5.March 29 th : Quarterly Review Process For more information and to register, visit: www.StrategyExecutionAdvisors.com/webinars
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Thank You ! Matt Lauth mlauth@sxadvisors.com (419) 348-8046
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