Drawing a Developed Strategy Map in Balanced Scorecard Model in an Iron and Steel Company

Abstract

A strategy map in the balanced scorecard (BSC) model was a method in the strategic management field that helps organizations to map and evaluate their goals and visions and how to achieve them. The purpose of this study was to use the BSC model to develop a strategy map for an iron and steel company in Iran, which is a subsidiary of a holding company in the Middle East. In this strategic map, Iran's political and economic status, the world and domestic market situation, the conditions of the company, and “futures studies” have been taken into account. The main feature of this model was to optimize the aspects of strategic goal realization so that it can be implemented for other organizations. The study was conducted in four phases: 1) presenting the strategic statement of the holding; 2) presenting the strategic statement of the company; 3) determining strategic aspects, and 4) developing the strategy map. The strategy map was developed after defining the “financial,” “customer,” “internal business process,” and “growth and learning” perspectives of the BSC model. In the “financial perspective,” financial strategies for profitability and increased shareholder value were determined. In the “customer perspective,” the customer value proposition was obtained. In the “internal process perspective,” how the customer value proposition was achieved was determined and in the “learning and growth perspective,” the organization's key capabilities were shown to maintain the organization's strategic approach. Following the establishment of the model, the sales, and net profit of the company increased by 30%–96% and 21%–99%, respectively.