What is the best way to efficiently develop business? First and foremost one needs to set realistic goals and find adequate methods to reach them. This sounds pretty easy, however, in practice it can be rather problematic. Any business organization needs to consider many factors influencing its performance. If you are too focused on the net profit or the ways to decrease expenses you may face serious problems in future. Moreover, if you do not take into account certain development factors or in simple words you do not have a comprehensive development strategy your business has very few chances to survive as the competition is too tough throughout all markets.
Designing an effective and representative strategy map is a must for any business that claims to be successful. This also concerns departments of big business that serve one key purpose – optimize performance and earn more money.
A strategy map is not very easy to design. However, there can be certain difficulties or even problems. Sure, you may use pen and marker to draw a scheme which only you will understand. However, you need this strategy map to be used at sessions of the management board or meeting with head of departments since everybody in the company needs to clearly understand goals and methods used to achieve them.
The traditional model of a strategy maps looks like this: financial perspective, customer perspective, internal processes and learning. Basically, these are the 4 directions in which a company can and should develop. Each direction and own goals and own methods of achieving them.
As said above, a strategy map can be designed for a separate department, for instance for HR department of a major company. HR management is a very important part of any business administration process. Any company is above all the people who work there. If these people are “used” in the improper way the business will hardly yield expected results.
A strategy map for HR department will first of all cover financial issues and internal processes. In fact, internal processes are the focus of any HR manager. Besides, learning and training are among the most important tasks.
So, such a strategy map will focus on decreasing cost per one hired employee, decrease of training costs, reduced learning time for new employees and similar issues. Sure, the company need to try to increase average time an employee works for a company which contributes to employee satisfaction and his loyalty.