Creating Strategy Map and Objectives  

Creating Strategy Blueprint

The starting point for SPM is to have a strategy. A good strategy takes us half-way to achieve a great SPM. A strategy should which clearly define the priorities, success definitions and horizons. It should answer all possible 'why' questions. Apart from driving actionable objectives and measures, it should also be articulated in a fashion that people can relate to it and internalize it.

Creating Strategy Map and Objectives

A strategy map is a set of interlinked objectives, measures and initiatives to define and achieve success for the given strategic theme. The first step for the MAP is to list out comprehensive set of objectives.

Strategy Map is the last step in creating the Strategy Blueprint and an input into creating a Strategic Business Plan. The process picks-up each Strategic Theme and lays down the strategic objectives for all levels.

Shareholder (Financial) Perspectives

This part covers the strategic objectives related to the shareholders, and obviously sit on top of the food chain.

  • Revenue Targets
  • Profitability Targets
  • Risk thresh-holds
  • Operating margins and net profit targets
  • Cost and expense ration targets

Examples of Shareholder (Financial) Strategic Objectives:

    • Achieve 25% CAGR in revenue over next three years.
    • Achieve 20% support expense/revenue ratio over next three years.
    • Achieve a product mix to ensure minimum 8% profitability as per the expense allowables (during product design) over next two years.

Customer Perspectives

  • Customer Segments to Target
  • Number of customers to acquire and retain
  • Geographical presence
  • For each Customer + Product segment
  • -Price-Value Equation
    -Delivery time and service
    -Product Features
    -Product Range

  • Customer Service
  • -Response time
    -Cost of Service

  • Customer Relationship
  • Contact Channels
    Frequency of contact
    Level of Personalization

  • Brand Image Targets

Examples of Customer Strategic Objectives:

    • Achieve a geographical access to 60% of target customer segment.
    • Achieve top quartile customer service delivery.
    • Achieve re-instatement/re-activation from at least 25% high value attrited customers over last three years.

Internal Perspective

  • Process Perspective – Operations management, customer management, Innovation & change management, risk management, portfolio management, financial management etc.
  • Technology Perspective – Management of technology investments, application and information integration.
  • Product and Channel Targets
  • -Which products to launch and when
    -Which Channels to remove, add OR enhance and when

  • · Operational Targets
  • -Cost, Delivery and Quality Targets
    -Operational number targets (number of service centers..)

Examples of internal capability strategic objectives:

    • Achieve a product capability to launch new investment product within a turn-around time of 3 months.
    • Achieve top quartile operational productivity for retail products.

People and skills perspective

  • Skill inventory Targets
  • Employee satisfaction Targets
  • Leadership, culture, values
  • Career, development planning targets
  • Performance management processes Targets

Example of People and skills strategic objectives:

    • Achieve 70% favorable employee satisfaction feedback over next two years.
    • Reduce the attrition of critical position to less than 30% per annum.
    • Ensure a 100% adherence to performance management process.

PLEASE REFER Execution-MiHPractice Tool Strategy Map for a Strategic Theme to help you build a strategy map.