A method for generating strategy maps using ANP

• Published in: Journal of manufacturing technology management Vol. 25; no. 8; pp. 1090 - 1104
• Main Authors: Ernesto Quezada and, Luis, Ivan Palominos, Pedro, E. Galleguillos, Rosa, H. Olmedo, Alexis
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 30-09-2014
• Subjects: Advanced manufacturing technologies; Balanced Scorecard; Company structure; Decision making; Estimates; Hierarchies; Indication; Methodology; Networks; Objectives; Performance evaluation; Priorities; Representations; Strategic management; Strategy
• ISSN: 1741-038X; 1758-7786
• DOI: 10.1108/JMTM-06-2014-0081

Purpose – The purpose of this paper is to present a method for identifying causal relationships in a strategy map. Design/methodology/approach – A strategy map is a visual representation of the strategy of a company, which includes the strategic objectives of a company and the cause-effect relationships between them. Its network structure facilitates its representation as an analytic network process (ANP) model. The proposed method starts with a network with all possible relationships and then it deletes those relationships, which are not important. To do this, it uses the techniques of the ANP approach. Findings – It was found that ANP is a good tool for modelling a strategy map and for identifying the important relationships of a strategy map. A study case of a manufacturing is shown to illustrate how the proposed method can be used in practice. Practical implications – Normally, the cause-effect relationships between strategic objectives are generated in a subjective way. Even this way of working is widely accepted in practice, some studied have shown that the declared relationships are not necessarily valid. The proposed method provides a quantitative tool to establish the relationships between strategic objectives, which are obtained using a method (ANP) that has a strong conceptual base. This is an indication that the strategy map obtained represents in a better way the strategy of the company. Originality/value – ANP is a methodology which is used to estimate the priority of nodes with in a network. In this work ANP is used to estimate the priority of the arcs of the network. The results of application in a company represent a good indication that the method may be implemented in other manufacturing companies.