Explain the process of strategy mapping and how it relates to performance management and establishing value propositions. You may discuss this theoretically or use the Glacier Inn case study presented in the Armitage and Scholey (2009) document in your readings to serve as an example for integrating these ideas. Alternatively, you can use the Hazard Action Zone case study presented in Murby & Gold document (see background readings) if you'd prefer.
Armitage, H., Scholey, C., (2006). Using strategy maps to drive performance. Society of Mgt. Accountants of Canada. Retrieved from: http://www.cimaglobal.com/Documents/ImportedDocuments/Tech_MAG_Strategy_Mapping_March07.pdf
Explain the process of strategy mapping and how it relates to performance management and establishing value propositions.
Performance management can make or break a firm. While firms have wanted the advantages of a balanced scorecard to monitor performance in areas wider than just financial outcomes to better diagnose and track leading indicators of financial outcomes, connecting the scorecard to the strategy is not obvious. A strategy map can guide firms in creating a link between the overall strategy and the measures needed to support that strategy. By creating a strategy map, your scorecard becomes a communication tool of what is needed at the actionable level as well as a way to monitor if the relevant actions needed for the critical success factors to materialize.
Before you begin thinking about measures, firms and consultants that assist them, must first be very clear about their strategy. The generic "excellent service, customer is first, and biggest market share" are desired by most, but are not revealing of the strategy used to attain the goal. There are generally three strategies and firms must identify the one that applies to them prior to starting on a map:
This strategy is also called cost leadership and this strategy is about lowering total costs so that the firm competes on price. An example of a firm with this strategy is Costco.
This strategy is also called differentiation and is about having unique features and services that are not easy to ...
Your draft is 904 words and gives examples from Costco, WalMart, Apple, Netflix and Amazon to illustrate the value proposition, the way to use it to map strategy to the scorecard and why this leads to a superior outcome.