Strategy mapping & the learning and growth perspective - Essay Example

? Strategy Mapping & the Learning and Growth Perspective Table of Contents Introduction 3 Analysis 5 BAA’s General Approach 6 Traditional Approaches 6 Conclusion 7 References 8 Strategy Mapping & the Learning and Growth Perspective Introduction There has been a significant revolution in the business environment attributed to formulation and implementation of strategy mapping. On the other hand, prosperity in process of formulating and implementing strategy mapping in organizations has been facilitated by application or incorporation of Balance Scorecards (Armitage & Scholey, 2006). Moreover, numerous scholars have explored issues concerning evolution of both strategy mapping and balance scorecards. In this case, strategy mapping has been applied in processes of facilitating learning and growth in various organizations, while balance scorecard is used in implementation and evaluation process (Sharma, 2012). Nevertheless, this paper explains processes involved in formulation and implementation of strategy mapping, its relation to performance management, thereby establishing value propositions; in fact, this discussion will be established theoretically. The ultimate purpose of implementing strategy mapping in an organization is to bridge learning and growth gap. In this case, strategy mapping offers sets of guidelines, which facilitate increased performance management in an organization. Besides, Armitage and Scholey (2006) explain that strategy mapping offers these guidelines in a systematic format. Strategy mapping has also been considered a reference, based on four principle interest groups. Strategy mapping based on learning and growth point of view resonates around employee capabilities and other success factors. In this case, Sharma (2012) explains that employees’ capabilities relate to their levels of skills, access to transactions, continuous training and development programs. In addition, it also focuses on employee satisfaction, which has been regarded as precondition for facilitating employee productivity and level of quality in services offered to customers. Other growth factors facilitated by strategy mapping include information system capabilities, motivation and empowerment of employees in an organization (Sharma, 2012). Numerous organizations have been seeking guidance and directives to supplement effort required in implementation of maps and scorecards. Therefore, strategic mapping and Balance Scorecards has become solutions to organizations’ problems, whereby they serves as a bridge between theories gathered from different literature and processes of implementation. On the other hand, other organizations are seeking certain consultants, which can offer benefits based on framework in strategic mapping guidelines. Furthermore, Armitage and Scholey (2006) assert that other organizations stand chance of benefiting from strategic mapping by becoming consultants. Strategy mapping facilitates communication of strategies in organizations, given that they provide guidelines, which in turn describe model applied in implementation process. The strategy map developed through this model is helpful to managers in organization (National Institute of Standards & Technology [NIST], 2012). In this case, these strategy maps become solutions to problems faced in processes of executing a strategy. Besides, these maps help organizations to attain desired results, through a substantially developed strategy meant to improve and align various functions in an organization. Some of these functions include, strategy planning, budgeting, compensating employees and monitoring their performance (Armitage & Scholey, 2006). In addition, strategic mapping offers ways to improve chances of implementing learning and growth strategies in organizations in order to facilitate effective operating and financial performance. Nonetheless, this paper will also focus on conducting analysis, which presents actual comparison and contrast between BAA’s approach to Balance Scorecard and other traditional approaches. Lastly, this paper will conclude through a synopsis of findings and arguments, thereby focusing on convincing readers about significance of understanding strategy mapping and learning and growth perspective. Analysis Balance Scorecards have made a significant contribution through its perspective of learning and growth, which is applied in processes of adaptability by numerous organizations. Moreover, the other three quadrants are also considered as templates used in implementation of strategy maps (MacKay, 2004). On the other hand, Balance Scorecards invokes initial impression involving measurement metrics and basic indicators of performance. Furthermore, Balance Scorecards are used systematically through a process, which involves correlated steps. Since 1990s, when Balance Scorecard was established by Kaplan and Norton, it has been applied by numerous organizations as a management framework (MacKay, 2004). Balance scorecard has been adopted and implemented through customization suit different needs in various organizations. Organization has focused on understanding processes required in order to implement a Balance Scorecards effectively, thereby making a significant contribution to prosperity and achievement of organization’s objectives (Murby & Gould, 2005). Therefore, unlike other approaches, a scorecard is used in order to translate organization’s objectives and strategies into four distinctive quadrants. Compared to other traditional approaches, Balance Scorecards is more effective due to its clarity in defining and setting guidelines to achieve objectives and missions (Murby & Gould, 2005). In fact, the Balance Scorecard offers strategies to stakeholders, thereby offering ways to communicate roles that should be taken by each of them in order to achieve organizational objectives. BAA’s General Approach On the other hand, BAA’s general approach focus on extension of their performance scheme, thereby surpassing their en-route performance. In this case, these objectives involve airports, which have been significant stakeholders in improving performance (Greenhalgh, 2013). Moreover, BAA’s general approach creates a perception that performance can be evaluated in an organization operating in airport areas (Greenhalgh, 2013). However, these approaches are not considered mature to meet set target or organizational objectives. Greenhalgh (2013) explains that BAA’s approach has a limitation due to unresolved issues concerning their collation and validation of data used in proposed metrics of performance evaluation. Traditional Approaches Conventional approaches to facilitate learning and growth in organizations were focused on specific function (Murby & Gould, 2005). For example, conventional financial accounting methods were focused on both periods and accounting systems. However, these approaches were complicated and created difficulties in informing management on ways to facilitate performance based on set standards and timelines (Murby & Gould, 2005). However, unlike Balance Scorecards, traditional approaches were dependent on evaluation, which emphasized sequential value chain regarding functions of an organization such as supplying products in competitive markets. Moreover, these approaches failed to recognize creation of value, cross-functional capabilities and processes undertaken within different timelines in organizations (Murby & Gould, 2005). Conclusion The paper has explored issues concerning formulation and implementation of strategy mapping, its relation to performance management and establishment of value propositions in organizations. Moreover, this discussion was developed theoretically. The other section of this paper entailed analysis, which focused on comparing Balance Scorecard to BAA’s approaches and other traditional approaches. In this case, the stance of arguments presented in this paper resonate around a notion that strategy mapping and learning growth perspective is facilitated by an integration of Balance Scorecards in the process of performance management. References Armitage, H., Scholey, C. (2006). Using strategy maps to drive performance. Society of Mgt. Accountants of Canada. Retrieved from: http://www.cimaglobal.com/Documents/ImportedDocuments/Tech_MAG_Strategy_Mapping_March07.pdf Greenhalgh, K. (2013). BAA Airports Limited. Retrieved from: http://www.caa.co.uk/docs/5/baaRP2.pdf MacKay, A. (2004). A practitioner’s guide to the balanced scorecard: A practitioners’ report based on: Shareholder and stakeholder approaches to strategic performance measurement using the balanced scorecard. Chartered Institute of Management Accountants. Retrieved from: http://www.cimaglobal.com/Documents/Thought_leadership_docs/tech_resrep_a_practitioners_guide_to_the_balanced_scorecard_2005.pdf Murby, L., Gould, S. (2005). Effective Performance Management with the Balanced Scorecard: Technical Report. Chartered Institute of Management Accountants. Retrieved from: http://www.cimaglobal.com/Documents/ImportedDocuments/Tech_rept_Effective_Performance_Mgt_with_Balanced_Scd_July_2005.pdf National Institute of Standards & Technology [NIST]. (2012). Baldrige Program Strategy Map. Retrieved from: http://www.nist.gov/baldrige/about/strategy_map.cfm Sharma, P. (2012). BSC – learning and growth. Retrieved on April 15 2013 from: http://www.scribd.com/doc/5032774/Balanced-Scorecardlearning-and-growth Information SystemCapabilitMotivation, Empowerment &Alignme Read More