Cost management of future growth projects includes all the processes necessary in ensuring that all the plans are completed using the set budgets. The cost management processes include planning of resources, cost estimations, budgeting as well as control. Collaboration is key in a competitive business, which can be attained using a strategy map that has elements of a balanced scorecard and value chain analysis. Strategic performance measurement systems such as a balanced scorecard help employees and the management attain all their set goals within the set time. According to Anicic and Anicic (2019), a strategic performance measurement system is important in communicating resources, values, and possibilities to low-level managers. For instance, it helps in keeping track of critical financial and non-financial measures.
A balanced scorecard is one of the most widely used performance measurement systems that help businesses put a strategy into action. According to Lueg (2015), a business model logic is necessary for a balanced scorecard to convey the strategies. Therefore, to curb the problem of a business scorecard being a collection of performance measures, a strategy map is used in explaining its business model. Lueg (2015) asserts that a strategy map helps in developing a better understanding of a balanced scorecard, reduces resistance, creates commitments, cultivates feelings of fair evaluations while communicating better on the way to achieve the strategic goals. According to Radomska (2015), a strategy map is important in formulating and implementing a strategy. Nonetheless, a strategy map helps in evaluating the relevant environments for better discussions between the middle and top managers. Thus, a strategy map works to ensure that future growth and cost management are performed better through building collaboration among stakeholders.
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Hello Miles,
It is amazing how you started by giving the major reason that makes strategy map the best tool for supporting future growth and cost management, which is its ability to show logical cause and effect connection between strategic objectives. From your explanation, one can conclude that a strategy map is the best tool in supporting future growth and cost management because of its capability to align both employees and organization targets to the well-set goals and the desired strategic outcomes. It is important that you also pinpoint the importance of a strategic map in building a collaboration of all stakeholders, which are crucial in growth and cost management. I concur with you also on the aspect of a strategic map compelling the business entity to remove all the unrealistic strategies while implementing measurable ones. Thus, your post is well summarized and informative on the aspects that make strategy map the best tool in supporting a company's future growth and cost management.
References
Anicic, D. & Anicic, J. (2019). Cost Management Concept and Project Evaluation Methods. Journal of Process Management New Technologies, 7(4), 54-59.
Lueg, R. (2015). Strategy Maps: the Essential Link between the Balanced Scorecard and Action. Journal of Business Strategy, 36(2), 34-40.
Radomska, J. (2015). Interrelation between Strategy Maps and other Implementation Tools and Actions. Social and Behavioral Sciences, 210(1), 58-65.
