Creating a Strategy Map: Visual Strategy Planning with OKRs

What Is a Strategy Map? Definition and Historical Background

A Strategy Map is a visual representation of company strategy that shows how different strategic goals are causally connected. It makes visible which goals contribute to which overarching outcomes -- and thus creates a shared understanding of the strategy at all levels of the organization.

The Origin: Kaplan and Norton

The Strategy Map concept was developed in the early 2000s by Robert S. Kaplan and David P. Norton -- the inventors of the Balanced Scorecard (BSC). Their core thesis: Most strategies fail not in formulation but in execution. The main reason? Employees do not understand the strategy -- or do not see how their daily work contributes to it.

Kaplan and Norton found that traditional financial metrics alone are insufficient to steer a strategy. They therefore defined four perspectives that are represented in a Strategy Map:

1. Financial perspective: What financial results do we want to achieve? 2. Customer perspective: What value do we create for our customers? 3. Process perspective: Which internal processes must be excellent? 4. Learning and growth perspective: What capabilities and infrastructure do we need?

The Strategy Map connects these perspectives through cause-and-effect relationships: Investments in employee development (Perspective 4) improve internal processes (Perspective 3), which increases customer satisfaction (Perspective 2) and ultimately boosts revenue (Perspective 1).

From BSC to the Modern Strategy Map

While the classic Balanced Scorecard focuses heavily on KPIs, the Strategy Map has evolved as a standalone tool. In modern strategy work -- especially in the OKR context -- the Strategy Map is used more flexibly: The four BSC perspectives can be replaced by company-specific perspectives, and the linking happens not only through metrics but through Objectives and Key Results.

"A Strategy Map is the bridge between what an organization wants to be and what it does every day."

Why Visual Strategy Planning Is Critical for OKR Alignment

Strategy is abstract. OKRs are concrete. The Strategy Map connects both worlds -- and thereby solves one of the biggest problems in OKR practice: missing alignment.

The Alignment Problem

Studies show that in many organizations, only 5-10% of employees know and understand the company strategy. At the same time, research from Harvard Business Review shows that strategically aligned companies have a 65% higher success rate in strategy execution.

Without a visual representation of strategy, the following happens in OKR practice:

• Teams set goals that seem sensible in isolation but do not contribute to the overall strategy
• Duplication of work between departments remains undetected
• Strategic gaps -- areas where no team is working on relevant goals -- are overlooked
• The cascading of company OKRs to team OKRs happens mechanically rather than strategically

How the Strategy Map Creates Alignment

A well-designed Strategy Map makes visible at a glance:

• Strategic priorities: Which goals are most important?
• Causal relationships: Why are we pursuing this goal? What does it enable?
• Dependencies between teams: Where must Team A deliver so that Team B can succeed?
• Strategic gaps: Are there important strategic goals that no team is addressing?

The visual representation has a decisive psychological advantage: People process visual information 60,000 times faster than text. A Strategy Map on the meeting room wall -- or as an interactive dashboard -- makes strategy tangible and accessible in daily work.

The Difference from a Pure OKR Hierarchy

An OKR hierarchy shows which team OKRs belong to which company OKRs. A Strategy Map goes one step further: It also shows the lateral connections -- how different goals at the same level interact. This is critical for cross-functional collaboration, which represents the greatest challenge in most organizations. More on the topic of alignment between departments can be found in our article about OKRs in mid-sized companies.

The Elements of a Strategy Map: Perspectives, Goals, and Cause-and-Effect Chains

Before you create a Strategy Map, you need to understand its building blocks. Every Strategy Map consists of three core elements.

1. Perspectives (Levels)

The perspectives form the horizontal levels of the Strategy Map. In the classic BSC variant, these are the four Kaplan/Norton perspectives. In the OKR context, you can adapt them:

Classic BSC Perspectives: - Finance - Customers - Internal Processes - Learning & Growth

OKR-Adapted Perspectives (Example): - Company Vision & Mission - Strategic Pillars / Company OKRs - Team/Department OKRs - Initiatives & Projects

Industry-Specific Perspectives (SaaS Example): - Growth & Revenue - Customer Success - Product & Technology - Team & Culture

2. Strategic Goals (Nodes)

The goals are the nodes on the map. Each node represents a strategic goal or an Objective. Important design rules:

• Formulate goals actively and outcome-oriented: "Strengthen customer retention" instead of "Customer retention"
• Limit the total number to 12-20 goals for a clear map
• Use color codes for status: Green (on track), Yellow (at risk), Red (off track)
• Assign goals to their respective perspective

3. Cause-and-Effect Relationships (Arrows)

The arrows between goals show how the goals are causally connected. They are the heart of the Strategy Map and distinguish it from a simple goal list.

Example of a cause-and-effect chain:

Build employee skills -> Improve product quality -> Increase customer satisfaction -> Increase revenue

When drawing arrows:

• Arrows flow from bottom to top (from the learning perspective to the financial perspective)
• Every goal should have at least one incoming or outgoing arrow
• Avoid circular dependencies (A -> B -> C -> A)
• A goal can have multiple causes and effects
• Visually highlight particularly strong connections

Additional Elements

Advanced Strategy Maps additionally contain:

• Metrics (KPIs) per goal that measure progress
• Responsibilities: Which team or person is responsible for the goal?
• Temporal classification: Short-term vs. long-term goals
• Weighting: Which connections are particularly critical?

Creating a Strategy Map: Step-by-Step Guide

Creating a Strategy Map is a structured process that is ideally carried out jointly by the leadership team. Plan 2-4 hours for the initial creation.

Step 1: Clarify Strategic Foundations (30 Minutes)

Before starting the map, ensure the following elements are defined:

• Vision: Where do we want to be in 3-5 years?
• Mission: Why do we exist as an organization?
• Strategic pillars: Which 3-5 focus areas are we pursuing?

If these elements are missing or outdated, they must be developed first. The Strategy Map cannot replace a missing strategy -- it makes an existing strategy visible.

Step 2: Define Perspectives (15 Minutes)

Choose the 3-5 perspectives that are relevant for your company. Start with the classic BSC perspectives and adapt them as needed.

Step 3: Gather Strategic Goals (45 Minutes)

Have each member of the leadership team write the most important strategic goals on cards -- one per card. Then group the goals by perspectives. Consolidate duplicates and remove goals that are not strategically relevant.

Typical number per perspective: - Financial perspective: 2-4 goals - Customer perspective: 3-5 goals - Process perspective: 4-6 goals - Learning/growth perspective: 2-4 goals

Step 4: Identify Cause-and-Effect Chains (45 Minutes)

This is the most demanding step. Proceed systematically:

1. Start with the financial goals (top) and ask: "What needs to happen for us to achieve this goal?" 2. Draw arrows from causes to effects 3. Work your way down perspective by perspective 4. Test each connection: "If we achieve A, does it really contribute to B?" 5. Look for missing connections: Are there goals without a cause or without an effect?

Step 5: Assign OKRs (30 Minutes)

Link the strategic goals with concrete OKRs. Every goal on the map should be assigned to at least one OKR. If there are goals without an OKR, you have identified a strategic gap -- a valuable find.

Step 6: Validate and Refine (30 Minutes)

Review the finished map against this checklist:

• Does the map tell a coherent strategic story from bottom to top?
• Are all strategic pillars covered?
• Are there isolated goals without connections?
• Is the map understandable for someone who was not in the room?
• Does the map contain no more than 20 goals?

When you introduce OKRs in your company, creating a Strategy Map is an excellent first step to clarify strategic alignment.

Strategy Maps in the OKR Context: How the Link Works

The connection between Strategy Maps and OKRs creates a powerful framework for strategy execution. Here you learn how this integration works in practice -- and how Northly supports it digitally.

Three Levels of Linking

Level 1: Strategic Goals -> Company OKRs

The top goals of the Strategy Map are directly translated into company Objectives. Each strategic goal becomes an Objective; the associated Key Results measure progress.

Example: - Strategic goal: "Become market leader in Europe" - Objective: "Achieve the leading position in the European market for OKR software" - KR1: "Increase market share from 12% to 18%" - KR2: "Increase Net Promoter Score from 45 to 60" - KR3: "Be listed as number 1 in 3 out of 5 industry comparisons"

Level 2: Cause-and-Effect Chains -> Team OKRs

The arrows on the Strategy Map show which subordinate goals contribute to company goals. These become team OKRs. The alignment arises organically from the map structure.

Level 3: Initiatives -> Key Results and Projects

The lowest level of the Strategy Map contains concrete initiatives that are assigned to Key Results.

Northly's Strategy Map Feature

Northly's integrated Strategy Map feature makes this linking interactive and dynamic:

• Drag-and-drop editor: Create your Strategy Map visually, directly in the tool
• Live status updates: Node colors change automatically based on OKR progress
• Drill-down: Click on a strategic goal and immediately see the assigned OKRs, their scoring status, and current check-ins
• Alignment detection: The system automatically identifies strategic gaps -- goals on the map with no active OKR assigned
• Export: Create management presentations with one click

The Strategy Map as a Living Document

A Strategy Map is not a static poster that is created once and then forgotten. In the OKR context, it becomes a living document:

• Quarterly: Review the cause-and-effect chains. Have assumptions been confirmed?
• At every OKR planning: Use the map to strategically place new OKRs
• In reviews: Show the map with updated status colors
• Annually: Fundamentally revise the map based on strategic changes

The difference between KPIs and OKRs becomes particularly clear on the Strategy Map: KPIs measure ongoing operations (health metrics), while OKRs drive strategic progress.

Strategy Map Examples for Different Company Sizes

The structure of a Strategy Map varies significantly depending on company size and complexity. Here you will find examples for three typical scenarios.

Example 1: Startup (10-50 Employees)

Startups need a lean Strategy Map with a maximum of 8-12 goals. Perspectives can be simplified:

For startups, the Strategy Map is especially valuable because resources are scarce and every strategic misstep hurts. More in our article about OKRs for startups.

Example 2: Mid-Sized Company (100-500 Employees)

Mid-sized companies need a more differentiated map with 15-20 goals and clear cause-and-effect chains:

The cause-and-effect chain could look like this:

Leadership development -> Innovation pipeline -> New industry segments -> New business area -> Revenue growth

Example 3: Enterprise (1,000+ Employees)

Large organizations work with nested Strategy Maps:

• A corporate Strategy Map at the top level (10-15 goals)
• Division maps that detail one goal each from the corporate map
• Department maps that further break down division goals

Here the Strategy Map becomes the central tool for cascading: Each level can see how its goals fit into the overall context.

Industry-Specific Adaptations

• Manufacturing: Additional perspective "Sustainability & ESG"
• Service providers: Split customer perspective into "Existing customers" and "New customers"
• Non-profit: Replace finance with "Social Impact"
• Public sector: "Citizen satisfaction" perspective instead of "Customers"

Digital vs. Physical: The Right Medium for Your Strategy Map

Strategy Maps can be created on different media. Each has advantages and disadvantages.

Physical Strategy Maps

Advantages: - High visibility in the office (poster, whiteboard) - Hands-on work promotes creative thinking - No technology barrier for participants - Ideal for workshops and initial creation

Disadvantages: - Not updatable without reprinting - No live OKR status - Not accessible for remote teams - No drill-down capability into details

Recommendation: Use physical maps for the creation phase (workshop with sticky notes and whiteboard) and then transfer the result to digital.

Digital Strategy Maps -- Tool Categories

1. General visualization tools (Miro, Mural, Lucidchart) - Flexible and creatively usable - No automatic linking with OKR data - Manual update required - Good for the conceptual phase

2. Specialized BSC/Strategy Map tools (ClearPoint, Cascade) - Structured templates for Strategy Maps - Often BSC-focused, not OKR-native - Additional tool in the tool landscape

3. Integrated OKR platforms with Strategy Map functionality - Strategy Map directly linked to OKR data - Live status updates based on OKR progress - No media break between strategy and execution - Northly offers such an integrated solution where your Strategy Map automatically reflects the current status of all assigned OKRs

Hybrid Approach: Best Practice

The most successful organizations use a hybrid approach:

1. Creation: Physical workshop with the leadership team (sticky notes, whiteboard) 2. Digitization: Transfer to a digital tool with OKR linking 3. Communication: Printed poster for the hallway and interactive dashboard for daily use 4. Updates: Quarterly in the digital tool, annually as a new workshop

For a comprehensive comparison of available tools, we recommend our OKR software comparison, where we evaluate various platforms regarding their Strategy Map features.

Common Mistakes When Creating Strategy Maps -- and How to Avoid Them

There are also typical pitfalls when creating Strategy Maps. Here are the most common mistakes and proven countermeasures.

Mistake 1: Too Many Goals on the Map

The problem: The Strategy Map contains 30, 40, or more goals and becomes unreadable. Instead of clarity, confusion arises.

The solution: Limit the number to 12-20 strategic goals. If you have more goals, work with nested maps (an overview map and detail maps per area). Ask yourself for each goal: "Is this really strategic -- or is it operational?"

Mistake 2: No Real Cause-and-Effect Chains

The problem: Arrows are drawn arbitrarily. Everything is somehow connected to everything, without clear causal relationships being recognizable.

The solution: Test each connection with the formulation "If we improve A, then B will be positively influenced, because..." If you cannot convincingly answer the "because," the connection is questionable.

Mistake 3: The Map Is Created Once and Never Updated

The problem: The Strategy Map is created in an elaborate workshop and then hangs unchanged on the wall -- while reality moves on.

The solution: Anchor fixed review dates for the Strategy Map: - Quarterly: Status update (update colors) - Semi-annually: Validation of cause-and-effect chains - Annually: Fundamental revision

Mistake 4: The Map Reflects Wishful Thinking Instead of Reality

The problem: The Strategy Map shows how the world should be -- not how the organization actually works. Goals appear on the map for which there are neither resources nor commitment.

The solution: Reconcile the map with actually active OKRs. Every goal on the map must be assigned to at least one active OKR. Goals without an OKR are either not yet prioritized (then mark transparently) or unrealistic (then remove).

Mistake 5: Lack of Team Involvement

The problem: The Strategy Map is created solely by the board or executive management. Teams learn about it only after the fact and do not feel involved.

The solution: Involve representatives from all relevant teams in the creation process. At minimum, the validation phase should take place with the teams. This increases not only the quality of the map but also buy-in.

Mistake 6: Confusing Strategy Map with Org Chart

The problem: The map is structured by departments instead of strategic perspectives. The result is a disguised org chart.

The solution: Consistently organize the map by perspectives, not by organizational units. A goal like "Increase customer satisfaction" belongs in the customer perspective -- regardless of which department works on it.

If you avoid these mistakes and consistently link the Strategy Map with your OKR process, you create a powerful tool for strategy execution. More common mistakes in the overall OKR process and how to avoid them can be found in our article Avoiding OKR Mistakes.