What does a strategy map illustrate?

A strategy map is a visual tool that illustrates how an organization’s intangible assets, such as human capital, information, and processes, contribute to its overall objectives and strategic goals. It highlights the cause-and-effect relationships between different elements of the business strategy, typically organized around four key perspectives: financial, customer, internal processes, and learning and growth. This framework allows management to clearly see how different strategies interconnect and drive the company’s success.

The focus on the four key drivers of a firm's success provides a comprehensive view of how various departments and initiatives align with overarching strategic goals. By mapping these drivers visually, organizations can identify critical areas that require attention, enhance communication regarding strategy, and ensure every team member understands their role in achieving the firm’s objectives. This alignment ultimately aids in better decision-making and strategy execution.

The other options do not capture the primary purpose of a strategy map. Risk management techniques focus specifically on identifying and mitigating risks, while cost-benefit analysis assesses the financial implications of decisions rather than illustrating strategic relationships. Operational efficiency metrics, although important for measuring performance, do not encompass the holistic view that strategy maps provide regarding how various determinants lead to organizational success.