As tool to create, communicate, monitor, and update strategy we use the Execution Premium Process (XPP), that was developed by the inventors of the Balanced Scorecard.
The system is effective and has provided the company with clear alignment. Strategy maps help to cascade goals to all parts of the organization. A traditional strategy map contains 4 perspectives (finance, customer, process, and talent & technology), and each of those perspectives is filled up with objectives.
An issue we have encountered is that managers tend to take on too many objectives at the same time and get trapped in a stretch between daily operations and the objectives on their strategy map.
Recently we were introduced to a method called the 4 Disciplines of Execution (4DX). This method was developed by FranklinCovey, and is focused on the exact problem we were/are facing; execution of Wildly Important Goals (WIGs) in spite of a storm caused by daily operations (fittingly called the Whirlwind within the 4 Disciplines of Execution).
An important feature of both methods is that the XPP, as well as 4DX, both use driver logic; meaning that there are drivers which cause things to happen, and there are results which are caused by those drivers. Both systems measure the drivers with leading indicators and the results with lagging indicators.
To capitalize on the benefits of both systems, we are now testing with a simplified strategy map that incorporates the concept of a strategy map based on the XPP with the simplicity and focus of the 4DX.
The concept strategy map template contains three levels: 1) Outcomes (measured with a lagging indicator), 2) activities (measured with leading indicators) and criteria (the capabilities and organization needed to execute the activities).
…to be continued!