Improving business performance is the key functions of organisation which is related to serving consumer satisfaction and maximizing profits. The report will outline about strategy maps which is an effective management tool that asst the firm in regulating its performance according dynamic market trends.
Strategy maps is an effective management tools as it establishes strategic goals for organisation which are focused on four different elements that is financial, customer, internal business functions and learning and growth. However, in accordance to maps tit is important for an organisation to manage its successful growth in all four elements for mapping improvement in business performance (Rahimnia and Kargozar, 2016). The perspective is strategic maps are interrelated to each other and sets target for firm. Apparently, it is considered as most prominent tools of business, because it aims at gathering of essential and reliable information which relates to cost effectiveness of company and its services. Further, the mapping and its process is based on vision and mission statement f organisation that clearly identified alignment of strategic objective.
Strategy map of enterprise focuses on financial perspective which aims at maximizing shareholder values because these are the key investors of business and share huge interest in profits and losses of firm (Valmohammadi and Sofiyabadi, 2015). On the other hand consume perspective in mapping helps the organisation in innovating products and services as per buyer's expectation in order to meet their demand. In addition, it is an effective management tools because it the entity to inspire loyalty of buyers by increasing expertise and implementing optimize technology. This strategy assists the organisation in gaining consumer trust which helps in raising shareholders value.
Apart from this, internal business functions in mapping approach is related to developing quality partnership with consumers by offering them commodities by matching up with their expectations. Meeting needs and demands of customer is an operational effectiveness which is attained by strategic mapping of buyers preferences (Lueg, 2015). Further, the loyalty concept of approach helps the company in managing quality of products because it is asset of firm which helps in gaining trust of buyers on products and services.
Apparently, the quality partnership aspect of management is concerned with recruitment of quality staff which understands concerns of customers and have knowledge over dynamic market rends which helps the organisation in eating customer needs and wants. Whereas, learning and growth stage of strategic mapping is focused on training of workers in order to promote and mating quality of services. Thus, to attain satisfaction over strategic mapping the company implements the use of key performance indicators in order to analyse business performance and effectiveness of strategic maps as per specified targets. Thus, from the discussion over strategic map it can be stated that it is a tool of balance scorecard which helps in relating over business perspective which are related improvement of organisational performance (Okongwu, Brulhart and Moncef, 2015).
Advantages and disadvantages of Strategy map
An organisation or a management team consists of complex plans and strategies. It is not possible to observe all the sectors separately. So strategy map is developed so that overall performance of an organisation can be assessed at a glance(Suryadi and Tan 2016). Thus, it saves our time. The short term strategies are outlined for long term with the help of this map. Every individual components can be analysed through its mapping.
On the other hand this particular methodologies are needed to understand this map. This may also cause the incomplete informations about our performance.
All the desperate tasks are identified by this map that is very helpful in realising all the strategies including all the sectors. It may be divided into parts for easy study and analysis (Daniela-Neonila and Roxana-Manuela, 2014). On meanwhile it does not allow to asses all the physical activities and environment of organisation. It will be better to visit the sites if new sectors are going to be opened instead of only noticing the map.
This works like strategic management system by which dynamic and collaborative planning is created. This will also help in align the organisation by linking control activities and ownership will be also encouraged. But it has very complex process so it can not be made to understand everyone easily. It always needs a skill full person to operate it. Leadership of the management may be disturbed
All the organisation can be brought together at a single moment. The role of every individuals can be identified and they can be put in. Strategy communication among the business men would be easy. On the other hand there is possibility to loss the personal performance identity and encouragement. Example can be taken if a manager is involved in the strategic formulation process but it is not necessary that they will be made involve in implementation process(Jones,2016.).
Its holistic view is featured by mapping that allows in reducing the risk management. It can easily identify the deficiencies and weakness lie within the organisation so that appropriate solutions can be found out before any harm could happen(Bryson, Ackermann and Eden2014). Get the best assignment helper with chat support.
But it's limitation is that it can not be implemented everywhere because its implementation requires full attention and active participation.
In accordance to decreasing investment by shareholders, the company should implement the use of strategic map. It will assist the firm in deriving lacking areas and improvement measures. However, with the help of analysis the firm can enhance its customer value and loyalty in order to seek interest of shareholders.
Further, in case of decreasing sales and innovation in services, the firm can implement use of map and should derive the need of recruitment or training in order to enhance the value of services as per market trends. This evaluation with the helps of strategic mapping will assist the management in improving customer perspective and attain objectives.
Strategy map is a diagrammatic presentation that is used to pursue the all structural and strategic process of an organisation. It is very effective for the companies that are dealing in the international market. So many reformations can be brought by the use of this mapping.
- Bryson, J. M., Ackermann, F. and Eden, C., 2014. Visual strategy: Strategy mapping for public and nonprofit organizations. John Wiley & Sons.
- Jones, P., 2016. Strategy mapping for learning organizations: building agility into your balanced scorecard. Routledge.
- Lueg, R., 2015. Strategy maps: the essential link between the balanced scorecard and action. Journal of Business Strategy. 36(2). pp.34-40.
- Okongwu, U., Brulhart, F. and Moncef, B., 2015. Causal linkages between supply chain management practices and performance: a balanced scorecard strategy map perspective. Journal of Manufacturing Technology Management, 26(5). pp.678-702.
- Rahimnia, F. and Kargozar, N., 2016. Objectives priority in university strategy map for resource allocation. Benchmarking: An International Journal. 23(2). pp.371-387.
- Roxana-Manuela, D. and Daniela-Neonila, M., 2014. The Need For Srategy In The Training Of Employees: A Condition For Improving The Human Capital In Romania, As Eu Member. Management Strategies Journal.26(4).pp.77-83.
- Suryadi, A. and Tan, Y., 2016. Perancangan Strategy Map dengan Balanced Scorecard (Studi kasus: PT Dian Megah Indo Perkasa, Bandung). Integra.3(2).
- Valmohammadi, C. and Sofiyabadi, J., 2015. Modeling cause and effect relationships of strategy map using fuzzy DEMATEL and fourth generation of balanced scorecard. Benchmarking: An International Journal. 22(6). pp.1175-1191.