Strategy Matrix

In the book “Strategy Maps: Converting Intangible Assets Into Tangible Outcomes,” by Robert S. Kaplan and David P. Norton, the authors write:

While operational excellence alone is not the basis of a sustainable strategy, managing operations remains a priority for all organizations. Without excellent operations, companies will find it difficult to execute strategies, even strategies that are not dependent on having the lowest cost structure in the industry.

Kaplan and Norton describe operations management as the encompassing four important processes:

1. Develop and sustain supplier relationships
2. Produce products and services
3. Distribute and deliver products and services to customers
4. Manage risk

They provide the following strategy map as an overview on how operations (shaded) produces long-term shareholder value. This strategy map, including operations management as well as four pillars of the organization (financial, customer, internal and learning & growth perspectives) is a superb guide to what produces the shareholder value that is crucial to any organization.

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Strategy Maps: Converting Intangible Assets Into Tangible Outcomes. [Robert S. Kaplan & David P. Norton]

Strategy Matrix by Bill Inman