Strategy Map

Abstract

This research paper entails the strategy map for the organization that has terminated their employees due to the economic crisis. The paper has reported detailed strategies that organization should undertake to complete its present quota. It has analyzed four imperative perspectives of balance scorecard to formulate a strategy map for the assistance of the organization.

Table of Content

Abstract2

Introduction4

Discussion6

Financial Perspective7

Customer Perspective7

Employee Growth and Learning Perspective8

Internal Process Perspective8

Conclusion9

References10

Strategy Map

Introduction

Today, the business world, undergoes a crisis in implementation of strategies, it is not because that managers are unable to formulate aligned strategy; however, it is because of the proper and in-time execution of formulated strategies (Niven, 2002). It was claimed by Fortune magazine in 1999, that poor execution is the reason for the 70% of strategic failure (Charan & Colvin, 1999). It was however, claimed in 2003 that only 10% of formulated strategies are effectively executed. It is documented that proper execution of the strategies are setback due to reason that (1) organization's strategies are not comprehended by 95% of the organization's workforce; less than an hour is spend on discussing strategies every month by 86% of the executive teams of an organization; strategies are not correlated by 65% of the organizations; and incentives of middle management are not interlined with strategies by 70% of the organizations.

An organization, for creating values for its stakeholders, customers, and shareholders formulates strategies, where abundant approaches have been formulated in past for best catering and enhancing value creation (Hoque & James, 2000). Ability of an organization to create value for if driven by four major perspectives, described in balance score card, which are as followed:

The financial perspective: this prospective discusses the results and measures that are required by the firm to produce or undertake for appearing successful to shareholders. It creates balance between the cost cutting for short term benefits, and investments for growth in long run (Hoque & James, 2000).

The customer perspective: it entails the diverse and distinguished value proposition provided to customers by the organization, which revolves around four key value propositions:

Superior quality of services or products

Creating difficulty in switching by system lock-in

Absolute customer solution offering

Lowest total cost of ownership.

The internal perspectives: it contains numerous internal processes, by which product or services are delivered to customers. It is divided amongst four key groups:

Innovation: producing product or services of next generation

Operations management: production and delivery of products and services

Social and regulatory: abiding with laws and regulations

Customer management: building relationships.

The learning and growth perspectives: it ensures the utilization of intangible assets like culture, people, and technology, for value addition. Intangible are divided in to three groups:

Organizational capital: it deals with the operation of business

Human capital: people in the organization

Information capital: what is known by organization (Hoque & James, 2000).

Strategies maps are build after the formulation of balance score card around the four perspectives. Strategy map ensures that objectives of organizations described in these perspectives are aligned and consistent. The alignment is focused primarily in strategy map, for the reason to make organization perform at the optimal, ...