Map Strategy with Balanced Scorecard

Map Strategy with Balanced Scorecard

Effectively developing and communicating high-level business strategy is essential for organizations looking to achieve market leadership. Additionally, creating a results-oriented culture requires a comprehensive management system. Use Demand Metric's downloadable tool as a basis for implementing a proven business performance management methodology.

What is the Balanced Scorecard Approach?

Developed in 1992 by Kaplan & Norton, the balanced scorecard provides: a method for aligning business strategy with vision & mission; a system for developing key performance indicators that drive success; and the ability to measure performance across the four key perspectives:

  • Financial
  • Customer
  • Business Process
  • Learning & Growth
A visual strategy map is created where strategic objectives, measures, targets, and initiatives are developed for each perspective.

Strategy Map Components:

  • Mission- this is the purpose of the business used to guide internal staff.
  • Vision- includes long-term goals that are external and market focused.
  • Financial Perspective- measures that reflect financial performance such as return on assets, liquidity ratios, or return on investment/payback period hurdle rates.
  • Customer Perspective- measures that have a direct impact on customers such as segment growth, acquisition & retention rates, satisfaction, or competitive rankings.
  • Business Process Perspective- these metrics are key performance indicators of key business processes related to sustaining supplier relationships, producing products/services, distribution to customers, and other business operations.
  • Learning & Growth Perspective- measurements associated with the ability to develop human, information, and organization capital.
Action Plan:

Discuss Strategy Mapping with Senior Management- communicate the value of strategy mapping with the Balanced Scorecard approach. Get commitment for formal business planning & performance measurement.

Document Vision & Mission- if not done already, update your corporate vision and mission statements. It is critical that your internal staff understand their purpose and stakeholders have an accurate perception.

Build a Balanced Scorecard- use Demand Metric's downloadable tool to build a customized scorecard for your organization to work from.

Develop Strategic Objectives- analyze each perspective to identify high-level strategic objectives. Determine which departments or cross-functional teams will be responsible for each objective.

Establish Measures & KPIs- for each objective, identify key performance indicators (KPI) and establish metrics to gauge business performance.

Create Attainable Targets- set attainable goals for metric improvement across each KPI. For example, 'improve client retention from 65% to 70%'.

Conduct Business Planning- work with senior management to plan key initiatives for each perspective. Be sure not to take on too much at once.

Adjust Strategy with Results- as results from measured activities come in, adjust your strategic objectives, metrics, targets, and initiatives accordingly. The balanced scorecard was designed to incorporate feedback.


Using Strategy Maps such as a Balanced Scorecard facilitates business planning & prioritization, setting goals and objectives, establishing KPIs & metrics, and selecting initiatives that deliver the most value. A holistic approach to strategy and performance measurement makes it much easier to translate vision into individual tasks and activities.


Jesse Hopps founded Demand Metric in October 2006 and is the active President & CEO, focusing on sales & product development. Prior to Demand Metric, Jesse worked as an independent consultant specializing in Internet Marketing and Business Continuity Planning. He began his career with the Info-Tech Research Group in London, Canada, where he helped contribute to their explosive growth. Jesse holds a business degree...

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