Activity “Diagram”

What is a Strategy Map?

A strategy map is a simple graphic that shows a logical, cause-and-effect connection between
strategic objectives (shown as ovals on the map). It is one of the most powerful elements associated
with the balanced scorecard methodology, as it is used to quickly communicate how value is created
by the organization. Strategy mapping can vastly improve any strategy communication effort. Most
people are visual learners and so a picture of your strategy will be understood by many more
employees than a written narrative. Plus the process of developing a strategy map forces the team
to agree on what they are trying to accomplish in simple, easy-to-understand terms. With a well-
designed strategy map, every employee can see how they contribute to the achievement of the
organization’s objectives.

Benefits of strategic planning

Strategic planning has many benefits. It forces organizations to be aware of future opportunities
and challenges. It also forces organizations to understand what resources will be needed to seize
upon or overcome those opportunities and challenges. Additionally, strategic planning gives
individuals a sense of direction and marshals them around a common mission. It creates standards
and accountability. Strategic planning also helps organizations limit or avoid time spent on crisis
management, where they're reacting to unexpected changes that they failed to anticipate and/or
prepare for.

1. Helps formulate better strategies using a logical, systematic approach

This is often the most important benefit. Some studies show that the strategic planning process
itself makes a significant contribution to improving a company’s overall performance, regardless of
the success of a specific strategy.

2. Enhanced communication between employers and employees

Communication is crucial to the success of the strategic planning process. It is initiated through
participation and dialogue among the managers and employees, which shows their commitment to
achieving organizational goals. Strategic planning also helps managers and employees show
commitment to the organization’s goals.

3. Empowers individuals working in the organization

The increased dialogue and communication across all stages of the process strengthens employees’
sense of effectiveness and importance in the company’s overall success.

Why is it useful to create a strategic plan?

Successful strategic planning advances the focus of an organization in that it generates:

• A clear understanding of the organization's mission, vision and values among key stakeholders

• A road map for action based on what is happening now

• Benchmarks by which we can determine achievement

• Information that can be used to market the organization

Lic. Jorge Ernesto Fernandez Alfaro