Introduction to Strategy Maps 3 levels

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This article discusses the relationship existing between strategy maps levels and balanced score card. The implementation of one is impossible without the other, both of them have worked together to change the entire organizational structure of several of the renowned companies all around the world. Check additional information about stratgy map 3 levels.

Strategy Map 3 levels like the name suggests is a map showing the strategy company uses in 3 different levels. Strategy Map 3 levels is incomplete without Balance Scorecard. A balance scorecard shows whether the strategy applied by the company is giving them profitable results or not. It highlights the share per market segment and average cost per customer. With time it has been proved that strategy map 3 levels and balanced score card cannot work without each other in fact they are quite interchangeable.

However the managers first decide the strategy map 3 levels and then move on to implementing them on the balanced scorecard. Let's learn how strategy maps 3 levels works in a company:

Let's consider that the top managers of your company are establishing a strategy which will not only maximize profit but will also minimize expenses. To attain this they basically create strategies which will help them in attaining revenue from several places and will reduce the overhead per customer. This is mainly how managers set strategies for financial aspects of the business.

But the strategy will not work till the customers purchase the product or service they are offering. Thus the company needs to establish customer perspective strategies which will help them in attaining financial perspective strategies. In this regard, the managers took out three more strategies namely making more products/services available to the customers, a broad product line to ensure multiple revenue generation and low costing repair costs. When the managers put these three strategies in a strategy map 3 levels they will automatically link givng the managers a much clearer idea as to how they can achieve their targets.

While implementing these strategies in a strategy map 3 levels the managers will always have a question in their mind as to how will we know that these strategies are being executed the right way. This is where the work of balanced scorecards start. It will tell the managers the level of performance upon implementation of these strategies on different aspects of the business. It is through the score cards that the strategy map 3 levels objectives are met accurately. The major function of the score card is to show the data collection, publish it and then use to make it further analysis and decision as to how the business is doing. A good balance score card will easily implement the strategy map 3 levels and will also show the performance of the company in a glance.

It is not necessary that the strategies made in strategy map 3 levels give profitable results to the company. If the strategies set are not right they might not give any revenue to the company at all. Also, at times some external factors affect the revenue stream of the company such a natural disaster or a recession or some competitor pulling a move you were unable to assume.

Strategy maps are simpler than balanced score cards. They are more easy to implement and reading results on them become easier however a balanced score card is something which your company cannot ignore because it tells the actual state of company's performance.

If you are interested in stratgy map 3 levels, check this link to find out more about strategy. Also, you can check other articles in Strategic Planning category.

Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about BSC Toolkit.