Is there a correlation between strategy map perspectives and the result map in PuMP?
Yes, there is a correlation. Both the strategy map and result map are tools for communicating an organisation’s value-creating story or strategy. An organisation’s value-creating story is nothing but its business model.
A business model describes how an organisation creates, delivers and captures value. It has these components:
- Customer Value Proposition – the unique benefits that the organisation delivers to its customers through its product and services,
- Profit Formula – Shareholder rewards or how an organisation generates value through its revenue model and cost structure,
- Key processes – The processes required to create and deliver the value proposition
- Key Resources – the intangible assets that enable the key processes to deliver value
Note that the balanced scorecard perspectives in a strategy map and the layers in a result map mirror the components of a business model as illustrated in the figure below:
How does the correlation between a Results Map and Strategy Map work?
In a strategy map, the financial perspective reflects desired results for the shareholder. The customer perspective reflects results for the customer. These are mission and vision results categorised as the pink layer results in a result map. The process perspective and organisational capacity (Learning and Growth) perspective results fall under the green layer.
So which map works better?
A corporate strategy map captures outcomes only. It does not include both process and in-process results. If one is using a strategy map to communicate strategy, then they need both the corporate and cascaded strategy maps to get a full picture of an organisation’s value-creating story.
The result map tells a better value creation story as it includes both process results (blue layer) and in-process results (orange layers) which are the real value drivers. It is an enhanced strategy wheel that creates a better picture and understanding of how an organisation is creating unique value for the world.