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For customer intimacy, an organization must stress the quality of its relationships with customers, including exceptional service and the completeness of the solutions it offers. A strategy map enables an organization to describe and illustrate, in clear and general language, its objectives, initiatives, and targets; the measures used to assess its performance such as market share and customer surveys ; and the linkages that are the foundation for strategic direction. Revenue: Sell more premium brands to increase customer profitability. He came up with the concept of a device that could automatically handle the entire purchasing transaction. The internal process perspective captures these critical organizational activities, which fall into four high-level processes: build the franchise by innovating with new products and services and by penetrating new markets and customer segments; increase customer value by deepening relationships with existing customers; achieve operational excellence by improving supply chain management, the cost, quality, and cycle time of internal processes, asset utilization, and capacity management; and become a good corporate citizen by establishing effective relationships with external stakeholders. To understand how a strategy map is built, we will study Mobil North American Marketing and Refining, which executed a new strategy to reconstruct itself from a centrally controlled manufacturer of commodity products to a decentralized, customer-driven organization. This has become increasingly difficult in the new economy where the tangible has given way to the intangible. The power of doing so is amply demonstrated by the story of how Mobil developed Speedpass, a small device carried on a keychain that, when waved in front of a photocell on a gasoline pump, identifies the consumer and charges the appropriate credit or debit card for the purchase. Organizations need tools for communicating both their strategy and the processes and systems that will help them implement that strategy. Satisfied customers gladly paid more. The paper analyzed Medicare costs for beneficiaries undergoing lower extremity joint replacement between April 1, , through December 31, And increased innovation can produce long-term revenue and margin improvements. These consumers would buy products and services at premium prices, increasing profits for both Mobil and its dealers, who would then continue to be motivated to offer the great buying experience.

Kaplan and Norton introduced the scorecard concept in See Summary. But none of these, alone, would be enough to implement that strategy. Specifically, companies that pursue a strategy of operational excellence need to excel at competitive pricing, product quality and selection, speedy order fulfillment, and on-time delivery.

the balanced scorecard translating strategy into action pdf

Specifically, the organization must determine how it will satisfy the requirements from critical internal processes, the differentiated value proposition, and customer relationships.

When attempting to implement their business strategies, they give employees only limited descriptions of what they should do and why those tasks are important.

Strategy mapping process

The plan was that if dealers could capture increased revenues and profits from products other than gasoline, they could then rely less on gasoline sales, allowing Mobil to capture a larger profit share of its sales of gasoline to dealers. We have developed strategy maps for companies in various industries, including insurance, banking, retail, health care, chemicals, energy, telecommunications, and e-commerce. And companies that pursue a product leadership strategy must concentrate on the functionality, features, and overall performance of its products or services. The power of doing so is amply demonstrated by the story of how Mobil developed Speedpass, a small device carried on a keychain that, when waved in front of a photocell on a gasoline pump, identifies the consumer and charges the appropriate credit or debit card for the purchase. An important caveat to remember here is that while many companies espouse a strategy that calls for innovation or for developing value-adding customer relationships, they mistakenly choose to measure only the cost and quality of their operations—and not their innovations or their customer management processes. Revenue: Sell more premium brands to increase customer profitability. Employees get a visual representation of how their jobs are tied to the company's overall goals, while managers get a clearer understanding of their strategies and a means to detect and correct any flaws in those plans. Another business unit had no measure for quality. The core of any business strategy is the customer value proposition, which describes the unique mix of product and service attributes, customer relations, and corporate image that a company offers. Specifically, the organization must determine how it will satisfy the requirements from critical internal processes, the differentiated value proposition, and customer relationships. To understand how a strategy map is built, we will study Mobil North American Marketing and Refining, which executed a new strategy to reconstruct itself from a centrally controlled manufacturer of commodity products to a decentralized, customer-driven organization. Strategy maps are essential in the information age, when intangible assets—customer relationships, employee skills, the ability to innovate—are competitive advantages. Companies have two basic levers for their financial strategy: revenue growth and productivity.

Two basic levels must be addressed here: revenue growth and productivity. He worked with a gasoline-pump manufacturer and a semiconductor company to turn that idea into reality. Had the unit achieved perfection? Alee Hernandez, Robert S.

strategy map kaplan norton pdf

Until now, there haven't been many tools that can communicate both an organization's strategy and the processes and systems needed to implement that strategy. And companies that pursue a product leadership strategy must concentrate on the functionality, features, and overall performance of its products or services.

We offer several observations on the elements that were key to the success of the project, explore challenges and opportunities, and suggest that the pilot described here could be taken to greater scale in the Military Health System and elsewhere.

Speedy purchases this was the catalyst for the Mobile speed pass, now used by millions.

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Trouble with your Strategy?