Essay Example | Topics and Well Written Essays - 1000 words - 140

Essay Example It fills the gap by giving a set of frameworks that outlines how to execute strategy mapping in a systematic and practical format. Strategy maps serve as a reference to the four primary interest groups. Many companies are searching for directions and guidance that will allow them implements their own scorecards and maps (Armitage & Scholey, 2003, p. 76). The business world is faced with calamities in strategy from but not because the managers cannot come up with useful strategies but because there is a deficiency in the execution of this strategy. Research shows that seventy percent of the strategy failures arise due to poor performance but not because of poor vision or lack of smarts. Strategy maps refer to diagrams that are used to document the primary strategic goals followed by a management team or organization. Strategy maps are essential elements of the documentation related to the balanced scorecard. Additionally it is a feature of the second generation of balanced scorecard models that initially started in the mid-1990s (Armitage, 2004, p. 104). The initial diagrams were used early 1990s, and Drs discussed the concept of using this map in Balanced Scorecard. Robert Kaplan with David Norton. Strategy map gives out the visual guidelines for integrating a company’s objectives in the four perceptions of a Balanced Scoreca rd. It represents the cause and effect relationships that connect specific abilities in human, organization capital and information with desired outcomes in financial and customer perspective (Scholey & Arnitage, 2004, p. 569). It is worth mentioning that Norton and Kaplan based their work on Michael Porter’s expression of strategy. They chose a set of activities that a company would prosper to create a sustainable difference in the market, and therefore creating a lasting value for the shareholders. Arrows on strategy map indicate cause and effect of a period, and each of this perspective is scrutinized in more detail giving