A new approach for building a strategy map based on digraph theory

Abstract

The key of the successful implementation of strategies is that people understand them. A strategy map is a simple and effective way to communicate with employees about how to achieve the companies' strategic goals and will not miss any value drivers in the management process. A strategy map can serve as a complement tool to improve the performance measurement tool. The organisations often prepare strategy map using the senior managers and experts' opinions and ideas of organisations during a series of multiple management sessions. In this paper, digraph theory is used to build strategy map and define balanced scorecard's perspective. The method is that after defining the strategy of organisation, objectives are being clarified then relationships between objectives result in adjacency matrix, and after doing matrix calculations minimum-edge adjacency matrix is available. Finally, this matrix converts to a digraph. This digraph is a strategy map and each level of digraph is equal to one perspective of balanced scorecard.