A balanced scorecard strategy map describes in detail the general and most critical objectives of a company based on the four key perspectives: customer, business process, financials, and internal growth. A strategy map takes into consideration the overall mission of a company and how the strategic plan corresponds to this mission.
A balanced scorecard strategy map should be simple and easy to comprehend. The head of the management team must create a diagram that can capture the whole business processes of the company. It is also essential that the strategy map can look into the different sub-areas that answer the needs of the four balanced scorecard perspectives. For example, the financial perspective must incorporate financial values that will be created when it improves customer and business process management. It should also take into account the costs and resources that will be required in implementing the plan.
A good balanced scorecard strategy map should clearly describe and show the cause and effect of every connected steps and plans. It would be best that the boxes in the strategy map diagram should be connected to clearly define the causes and probable effects of those connections.
Creating balanced scorecard strategy map is very important because the diagram can simplify the whole operation of the company. In this way, executives and managers can easily communicate the plans to employees. It is also a good tool to situate the responsibilities of everyone in the company so that they can perform better because strategies, missions, goals, and specific plans are clearly defined.