In order to simplify our strategy map system and integrate it with the 4 Disciplines of Execution we have adjusted the original strategy map format, which contains 4 perspectives, to have 3 perspectives.
The original perspectives are:
Financial perspective; which contains topics like efficiency, asset utilization and turnover.
Customer perspective; which shows the voice of the customer on different perspectives: operations, customer interaction, innovation, compliance…
Process perspective; which shows objectives that lead to meeting to the customer perspective.
Talent & technology perspective; which shows competencies, culture, information systems, organization…
The new strategy format contains 3 perspectives:
Lag; this level shows outcomes which are informed by the mission, vision, value proposition and possible stakeholder priorities (we created a broader view than only the customer and included all stakeholders which have a voice in the priorities).
Lead; this level shows the activities that have to be done to move the needle on lag level.
Capability level; this level shows which competencies, organization and culture has to be developed in order for the lead level to be executed effectively.
Based on the newly created corporate strategy map, which covers 2022, a few core departments that are the most crucial for achieving the strategy have created their department strategy maps. The changes have shown positive results. There is a very clear connection between action and result which leads to a much better understanding on all levels regarding what has to be done.
The focus is on creating value instead of on meeting financial outcomes (eliminating costs and reaching turnover targets), financial gains are a byproduct of the positive impact we create for stakeholders.
The sessions that were done to cascade goals down from corporate to department level were much more lively as there is a direct link between action and outcome. This led to way more input and after that a much more effective focus on what really matters.
Does the fact that the financial perspective has been taken out of the map as separate level that it is not important anymore? Financial outcomes are important to all stakeholders, as profit enables continued ability to operate, investment, improve, and give back to the community.