Strategy Map: How to Build It Step by Step
A strategy map is a single page that explains why your strategy should work: which prerequisites drive which processes, which drive the customer experience, and ultimately the financial results. Here you'll find the four perspectives, a template with cause-and-effect arrows, and six steps to build the map for a Danish SME.
Published · Updated · 8 min read
In short
- The strategy map shows strategic goals in four perspectives connected by cause-and-effect arrows.
- Read it from the bottom up: learning drives processes, processes drive customers, customers drive financial results.
- 8-15 goals in total are sufficient — goals without an arrow to the top should be cut.
- Each goal should have 1-3 KPIs, a named owner, and the projects that move it.
What is a Strategy Map?
A strategy map is a single page that displays your strategic goals across four perspectives, connected by cause-and-effect arrows. It answers one question: if we succeed with this at the bottom, what does it lead to at the top? The model originates from the balanced scorecard and is its visual component.
The value lies in the arrows, not in the boxes. A strategy map without connections is merely a pretty list of goals. With the connections, the leadership team can see why a competence project at the bottom is a prerequisite for a growth goal at the top — and what therefore happens if it is delayed.
The Four Perspectives — Bottom-Up
Read the map from the bottom up: learning drives processes, processes drive customer experience, customer experience drives financial performance.
4. Learning and Growth
The Foundation
Competencies, systems, data, and culture. What needs to be in place before processes can be changed.
Examples: Trained service team, new ERP in operation, data access to production figures, management reporting in place.
3. Internal Processes
How We Deliver
The workflows that create the customer experience. This is typically where the most tangible improvements lie.
Examples: Service response time, delivery precision, production waste, quotation process.
2. Customers
How the Customer Experiences Us
The value proposition and what customers actually choose you for — price, reliability, speed, or advice.
Examples: Repurchase rate, customer satisfaction, percentage of customers with service agreements, sales loss reasons.
1. Financial
The Result
The top of the map: what customers and processes lead to on the bottom line and in the balance sheet.
Examples: Revenue growth, gross margin, percentage of recurring revenue, liquidity.
What the Map Looks Like
FINANCIAL │ Growth in service revenue Higher gross margin
│ ▲ ▲
CUSTOMERS │ More service agreements ───── Higher operational reliability
│ ▲ ▲
PROCESSES │ Shorter response time ─────── Fewer incorrect deliveries
│ ▲ ▲
LEARNING │ Trained service team ─────── Data from new ERPThe arrows are the point: each goal must have an explained path up to the financial perspective. Goals without any arrow are candidates for being cut.
How to Build the Strategy Map in Six Steps
1. Start at the top with 2-3 financial goals
What should the strategy yield financially — growth, margin, recurring revenue? More than three goals at the top make the map unreadable.
2. Describe what customers should choose you for
Formulate 2-3 customer goals that explain why the financial goals are realistic. If there's no change in customer experience, growth rarely comes.
3. Identify the processes that determine customer experience
Select the 2-4 workflows that actually control whether customer goals are met. Not all processes in the company belong on a strategy map.
4. Uncover the prerequisites at the bottom
Which competencies, systems, and data need to be in place before processes can be changed? This is where most strategies truly stall.
5. Draw the arrows and remove what doesn't connect
Connect the goals from bottom to top. Goals without an explained path to the top should either be reformulated or cut — this frees up capacity.
6. Link KPIs, owners, and projects to each goal
1-3 KPIs per goal with thresholds and frequency, a named owner, and the projects that will move the goal. This turns the map into a management tool.
Five Mistakes on the Strategy Map
- There are 25 goals on the map — then it's only used for presentations.
- No arrows, so the map is a list and not a cause-and-effect model.
- All goals are in the financial and customer perspectives, while the prerequisites at the bottom are missing.
- Goals have no KPIs, so progress cannot be read.
- The map is drawn once and never updated, even when projects are completed or delayed.
Drawing Program vs. Plandura
A strategy map in PowerPoint looks good but quickly becomes outdated because it doesn't know the status of the goals.
| Area | PowerPoint / Drawing Program | Plandura |
|---|---|---|
| Status | Colors are set manually before the meeting. | The goal's status is calculated based on linked KPIs and project progress. |
| Coherence | Arrows are lines without data behind them. | Goals are real objects with KPIs, projects, owners, and history. |
| Maintenance | New version every time something changes. | The map automatically reflects the current strategy. |
| Follow-up | The map is shown, but the discussion lacks figures. | Strategy review with agenda based on actual status and decision log. |
Frequently asked questions
What is a strategy map?
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A strategy map is a visual representation of a company's strategic goals across four perspectives — financial, customer, internal processes, and learning & growth — where goals are connected by cause-and-effect arrows. The map shows how efforts at the bottom of the model lead to financial results at the top.
What is the difference between a strategy map and a balanced scorecard?
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A balanced scorecard is the complete management system with perspectives, goals, KPIs, and targets. The strategy map is the visual part: one page showing the goals within the perspectives and the connections between them. They are usually used together — the map explains the logic, the scorecard measures it.
How many goals should be on a strategy map?
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8-15 goals in total across the four perspectives works for most SMEs. More goals make the map unreadable, and each goal should be able to support 1-3 KPIs and at least one project. If there are many more, some of them are likely activities rather than strategic goals.
Why are the arrows important?
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The arrows express the hypothesis of the strategy: that better competencies lead to better processes, which lead to a better customer experience, which leads to financial results. Without arrows, the leadership team cannot assess the cost of delaying a project at the bottom of the map — and a goal without any arrow is often superfluous.
Can a strategy map be used in a smaller company?
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Yes. For a company with 20-250 employees, the value is especially that the map forces prioritization and makes the connection between daily improvements and financial goals visible. If kept to 8-12 goals, it can be used directly as an agenda for the quarterly strategy review.
Can you create the strategy map in Plandura?
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Yes. Plandura has a built-in strategy map where strategic goals are displayed in the perspectives with status calculated from linked KPIs and project progress. From there, you can click through to individual goals to see KPIs, projects, owners, and history.
Related guides
These guides are closely connected to strategy map and are natural next steps in your strategy work.
- Balanced scorecard explainedThe four perspectives and the path from strategy to measurable goals.
- OKR vs KPI: when to use whichThe difference between ambitious quarterly goals and ongoing metrics.
- Strategy process for SMEs in 6 stepsFrom analysis to an agreed strategy — without a six-month project.
- SWOT analysis: guide and templateStrengths, weaknesses, opportunities and threats — with TOWS to turn insight into action.
More strategy guides
Analysis and environment
Goals, KPIs and performance
Strategy process and planning
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