Strategy map

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Strategy
Major dimensions Strategy • Strategic management Military strategy Strategic planning • Game theory Strategic studies • Strategic thinking
Major thinkers Michael Porter  • Rita Gunther McGrath Bruce Henderson  • Gary Hamel Candace A. Yano  • C. K. Prahalad Jim Collins  • Liddell Hart Carl von Clausewitz  • Sun Tzu Julian Corbett  • Alfred Thayer Mahan J.C. Wylie  • Adrian Slywotzky Sharon Oster  • Chris Zook Henry Mintzberg
Concepts Business model  • Competitive advantage Value chain  • Performance effects Core competency • Generic strategies Mission statement
Frameworks and tools SWOT • Five forces Balanced scorecard • Ansoff matrix OGSM • Managerial grid model PEST analysis • Growth–share matrix STP • MECE principle Business Model Canvas • Kraljic matrix Strategic Grid Model • Strategy map • VRIO
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A strategy map is a diagram that documents the 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 Robert S. Kaplan and David P. Norton in 1996.^[1]

The strategy map idea featured in several books and articles during the late 1990s by Robert S. Kaplan and David P. Norton. Their original book in 1996, "The Balanced Scorecard, Translating strategy into action", contained diagrams which are later called strategy maps, but at this time they did not refer to them as such.^[2] Kaplan & Norton's second book, The Strategy Focused Organization, explicitly refers to strategy maps and includes a chapter on how to build them.^[3] At this time, they said that "the relationship between the drivers and the desired outcomes constitute the hypotheses that define the strategy". Their Third book, Strategy Maps, goes into further detail about how to describe and visualise the strategy using strategy maps.^[4]

The Kaplan and Norton approach to strategy maps has:

• An underlying framework of horizontal perspectives arranged in a cause and effect relationship, typically Financial, Customer, Process and Learning & Growth
• Objectives within those perspectives. Each objective as text appearing within a shape (usually an oval or rectangle). Relatively few objectives (usually fewer than 20)
• Vertical sets of linked objectives that span the perspectives. These are called strategic themes.
• Clear cause-and-effect relationships between these objectives, across the perspectives. The strategic themes represent hypotheses about how the strategy will bring about change to the outcomes of the organisation.

Across a broader range of published sources,^{[citation needed]} a looser approach is sometimes used. In these approaches, there are only a few common attributes. Some approaches use a more broad causal relationships between objectives shown with arrows that either join objectives together, or placed in a way not linked with specific objectives but to provide general euphemistic indications of where causality lies. For instance, Olve and Wetter, in their 1999 book Performance Drivers, also describe early performance driver models, but do not refer to them as strategy maps.^[5]

The purpose of the strategy map in Balanced Scorecard design, and its emergence as a design aid, is discussed in some detail in a research paper on the evolution of Balanced Scorecard designs during the 1990s by Lawrie & Cobbold.^[6]