a strategy tree basing Balanced Scorecard methodology
this article we show how to create and describe your strategy with Strategy2Act
software. We describe a sample strategy. In this sample we describe only one,
Customer perspective, but following Balanced
Scorecard ideology you can create up to four perspectives that will
describe the strategy of your company.
We want strategy
to be something that shows us our global goals. But our job is doing some local
tasks and achieving local goals.
is ideology connects global strategy and local goals. Strategy2Act program is
supporting this ideology.
When describing your
strategy you should clarify:
- What are your strategic perspectives and
- How do you measure the success, if the goal
- What are your target values;
Create a strategy
Now, let's create a
strategy with Strategy2Act program. Assume, we have a Customer perspective and
we have some goals related to this perspective;
goals of your company:
- On-time delivery;
- To become a preferred supplier;
- Create a partnership with customers;
- Sale new products to
Also we should
specify how we do measure goal progress:
- "On-time delivery". Measure: The
time needed for order processing and delivery;
- "To become a preferred supplier".
Measure: Monthly focus groups statistic data;
- "Create a partnership with
customers". Measure: The number of cooperative efforts per month;
new products to existent customers". Measure: % of sales to existent
Now, let's create
an actual Strategy Tree!
- Run Strategy2Act program.
- Select File > Strategy Tree > New.
Select "Create your own tree" and click OK.
- Enter the name of your strategy. Note: it many
the Company Vision, Company Mission or My Personal Strategy:
- Put "Customer" in a Perspective box, put all related goals in a "Related
goals" box. One goal per line:
- Click "Add" button. Then click
- On the Balance tag, you can balance
your goals. Select goal in the "Index balance" list and set
necessary score. Please note: the sum of all scores must be 10:
- Click "Finish" button.
- You have built a Customer perspective for your
- Now you should describe each goal and put a
measure description. Click on the goal, put the description, measure and
target text in the "Strategy tree edit" box. Click
"Modify" button to save changes and modify strategy tree:
- You can add more perspectives in the same way:
This is the way
you can create a Strategy Tree. The idea is that you create some Strategy Tree
and then integrate it into your business process.
To integrate this
strategy tree into your business process you should use two features of
Strategy Tree creating
you can easily create a Strategy Tree. You can create your own Strategy Tree or
use some template as a beginning. Also, Strategy2Act allows you to describe
your measure methodology and target values for your goals.