A strategy map is a diagram that is used to document the primary strategic goals being pursued by an organization or management team. It is an element of the documentation associated with the Balanced Scorecard, and in particular is characteristic of the second generation of Balanced Scorecard designs that first appeared during the mid-1990s. The first diagrams of this type appeared in the early 1990s, and the idea of using this type of diagram to help document Balanced Scorecard was discussed in a paper by Drs. Robert S. Kaplan and David P. Norton in 1996.
The strategy map idea featured in several books and articles during the late 1990s by Robert S. Kaplan and David P. Norton. Their original book in 1996, "The Balanced Scorecard, Translating strategy into action", contained diagrams which are later called strategy maps, but at this time they did nor refer to them as such. Kaplan & Norton's second book, The Strategy Focused Organization, explicitly refers to strategy maps and includes a chapter on how to build them. At this time, they said that "the relationship between the drivers and the desired outcomes constitute the hypotheses that define the strategy". Their Third book, Strategy Maps, goes into further detail about how to describe and visualise the strategy using strategy maps.
The Kaplan and Norton approach to strategy maps has:
Across a broader range of published sources [citation needed], a looser approach is sometimes used. In these approaches, there are only a few common attributes. Some approaches use a more broad causal relationships between objectives shown with arrows that either join objectives together, or placed in a way not linked with specific objectives but to provide general euphemistic indications of where causality lies. For instance, Olve and Wetter, in their 1999 book Performance Drivers, also describe early performance driver models, but do not refer to them as strategy maps.
The purpose of the strategy map in Balanced Scorecard design, and its emergence as a design aid, is discussed in some detail in a research paper on the evolution of Balanced Scorecard designs during the 1990s by Lawrie & Cobbold.
The Balanced Scorecard is a framework that is used to help in the design and implementation of strategic performance management tools within organizations. The Balanced Scorecard provides a simple structure for representing the strategy to be implemented, and has become associated with a wide selection of design tools that facilitate the identification of measures and targets that can inform on the progress the organization is making in implementing the strategy selected ("activities"), and also provide feedback on whether the strategy is having the kind of impact on organizational performance that was hoped for ("outcomes"). By providing managers with this direct feedback on whether the required actions are being carried out, and whether they are working, the Balanced Scorecard is thought to help managers focus their attention more closely on the interventions necessary to ensure the strategy is effectively and efficiently executed.