What is the function of strategy maps in strategic planning?

• A. They illustrate cause-and-effect relationships between strategic objectives.
• B. They provide detailed financial accounting entries.
• C. They predict stock prices.
• D. They schedule daily meetings.

Answer: (A)

Strategy maps show how strategic objectives are connected through cause-and-effect relationships. They lay out the sequence from what an organization does to learn and improve, to how those improvements affect internal processes, then customer impact, and finally financial results. This visual linkage helps leaders see how investing in things like employee skills or process excellence can ripple through the organization to boost customer value and profitability. The map provides a shared view of how different objectives reinforce each other and where to focus resources and initiatives. It’s not about recording detailed financial entries, predicting stock prices, or scheduling daily meetings, which are separate activities. For example, strengthening capabilities in learning and growth can lead to more efficient processes, which enhances customer satisfaction and retention, driving better financial performance.