All companies have a strategy, more or less formalized, some with 3-5 year strategic plans, others with management plans and others with operating budgets. In any case, there has been a construction process (formulation) of the strategy, where, probably, more than one person has been involved. Furthermore, the strategy must be communicated to many more persons and from top to bottom, so that it becomes a feasible strategy.

Whether in the strategy formulation process or in the process of communication to the company, a very simple conceptual tool exists to assist in both cases: strategy maps. They are very simple to understand diagrams that draw the strategic objectives and the causal relationships between them, in other words, which objectives we must first promote to then be able to promote other objectives. They are diagrams that effectively communicate the structure of a strategy and furthermore force the team defining the strategy to find answers that prove that the strategy is consistent and realistic.

The strategy map shows strategic objectives such as:

1- Increase sales

2- Increase distributors

3- Efficient visit plan execution

4- Keep target clients

5- Reduce order processing time

6- Efficient execution of the strategic system plan

And these objectives classified in 4 big areas or perspectives on the diagram:

1- At the top, we have the Financial perspective, with the objectives related to the economic results we want to obtain, EBITDAs, Sales, Expenses ... and in some way reflects the economic value we offer the company’s shareholders.

2- Just underneath, we have the Customer perspective, with all the objectives related to client winning, retention, cross-selling, satisfaction,... and furthermore clearly defines the value proposal to the client, in other words, why are they going to buy from us or continue to buy (we have already talked about the value proposal in another bulletin).

3- Underneath, we find the Internal Business Processes perspective, with all the objectives that when attained will realize the client’s perspective. They are internal process objectives such as operations, commercial processes, marketing, R&D…

4- Finally, we have the Learning and Growth perspective that expresses if we have sufficient human capital, information and technology capital, and organizational capital to carry out the previous three perspectives.

Finally, we must add that the strategy map has become one of the most important tools to detail and execute a strategy, and it often forms part of a Balance Scorecard project, where the map is defined first and then its tracking is automated with indicators.