EuropeAid/119443/C/SV/HR
EU CARDS 2003
Decentralisation and
Reorganisation of the
Croatian Employment Service
(CES)
“STRATEGY MAPS” FOR DEVELOPING SUCCESS
STRATEGY MAP is a framework through which
the alignment between intangible assets and
strategy is illustrated
The STRATEGY MAP framework integrates the
four perspectives of the Balanced Scorecard
concept: FINANCIAL - CUSTOMER – INTERNAL
– LEARNING & GROWTH.

The financial perspective describes
the tangible outcomes of the strategy in
traditional financial terms.

The customer perspective defines the
value proposition for targeted
customers.

The internal perspective identifies the
critical few processes that are expected
to have the greatest impact on the
strategy.

The learning and growth perspective
identifies the intangible assets that are
most important to the strategy.
The objectives in the four perspectives
linked by cause-and-effect relationships.
are
Starting from the top is the hypothesis
that financial outcomes can be achieved
only if targeted customers are satisfied.
The customer-value proposition describes
how to generate sales and loyalty from
targeted customers.
The internal processes create and deliver
the customer-value proposition.
And intangible assets that support the
internal processes provide the foundation
for the strategy.
Alignment of each of these four perspectives is
the key to value creation and, hence, to a
focused and internally consistent strategy.
“STRATEGY MAPS” EXAMPLES
The Balanced Scorecard Provides a Framework to
Translate the Vision and Strategy Into Operational
Terms
The Strategy
•Measurement is the
language that gives clarity
to vague concepts
•Strategy can be described
as a series of cause-andeffect relationships
•Strategy describes how
intangible assets are
converted to tangible
outcomes
Financial
Perspective
"If we succeed, how will we look
to our shareholders?”
Customer
Perspective
"To achieve my vision, how
must I look to my customers?”
Internal
Perspective
"To satisfy my customer, at
which processes must I excel?”
Organization
Learning
"To achieve my vision, how
must my organization learn and
improve?”
Strategy Maps Describe How the Organization Creates Value
Productivity Strategy
Financial
Perspective
Improve Cost
Structure
Growth Strategy
Long-Term
Shareholder
Value
Improve Asset
Utilization
Increase
Customer
Value
New Revenue
Sources
Customer Value Proposition
Customer
Perspective
Price
Quality
Selection
Functionality
Service
Product / Service Attributes
Operations Management
Processes
Internal
Perspective
Availability
•
•
•
•
Supply
Production
Distribution
Risk Management
Brand
Relationship
Customer Management
Processes
•
•
•
•
Partnership
Innovation
Processes
•
•
•
•
Selection
Acquisition
Retention
Growth
Opportunity ID
R&D Portfolio
Design/Develop
Launch
Image
Regulatory & Social
Processes
•
•
•
•
Environment
Safety & Health
Employment
Community
Human Capital
Learning &
Growth
Perspective
Information Capital
Organization Capital
Culture
Leadership
Alignment
Teamwork
VALUE DYNAMICS FRAMEWORK (VDF)
Is a TOOL to translate strategy into measures.
HOW TO CREATE A VDF : FOUR STEPS
1. Create a List of Assets
a. Physical and financial assets such as office
buildings, desks, computers andcash
2. Explain how the assets in the VDF interrelate to
deliver customer value.
3. Identify the strengths, weaknesses, opportunities,
and threats (SWOT analysis) underlying the VDF.
4. Define the critical success factors underlying the
strategy, and identify particular combinations of
assets as being supportive of each critical
success factor.