Strategy Maps & Cause-and-Effect Alignment

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Strategy Maps & Cause-and-Effect Alignment within SmartERP.

Strategy Maps & Cause-and-Effect Alignment#

A strategy is not merely a collection of isolated goals; it is a hypothesis about cause and effect. In the Norton-Kaplan Balanced Scorecard methodology, performance flows from the foundation of Learning & Growth, driving Internal Business Processes, delivering superior Customer & Market Satisfaction, which ultimately achieves Financial Success.

Figure 2.5: Interactive Strategy Map displaying balanced objectives, individual weights, cause-and-effect linkages, and live RAG status across all 4 perspectives.

{screenshot:strategy-maps-and-cause-effect-overview-dashboard}

2. Prerequisites & Security Access Groups#

• Required Modules: smarterp_balanced_scorecard, smarterp_strategy
• Security Groups:
  • Strategy Officer (Technical ID: smarterp_balanced_scorecard.group_bsc_user)
  • Strategy Director (Technical ID: smarterp_balanced_scorecard.group_bsc_manager)
  • Executive Committee Member (Technical ID: smarterp_balanced_scorecard.group_bsc_executive)
• Master Data Dependencies: Strategic themes, 4 BSC perspectives (Financial, Customer, Internal Process, Learning & Growth), corporate KPIs, and quarterly appraisal periods.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the Strategic Execution app icon.
4. From the top navigation bar, open Strategic Execution → Perspectives → Strategic Objectives / KPIs / Action Plans.

{screenshot:strategy-maps-and-cause-effect-app-switcher-navigation}

Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Objective / KPI Name (Mandatory): Precise strategic outcome statement
   • Perspective (Mandatory): One of the 4 balanced perspectives with mandated weighting
   • Weight (%) (Mandatory): Percentage allocation contributing to overall perspective score
   • Target Value & Baseline (Mandatory): Quantifiable numerical goal and historical starting point
3. Configure optional operational parameters and localized tags as required:
   • Calculation Formula (Optional): Automated SQL query or module model metric extraction
   • Initiative Champion (Optional): Department head or senior manager accountable for result
   • Review Frequency (Optional): Monthly, quarterly, or annual appraisal cadence
4. Click the Save icon in the control bar to commit the record.

{screenshot:strategy-maps-and-cause-effect-record-creation-form}

Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (Draft → Active Target → Mid-Term Review → Final Appraisal → Locked).
• Ledger & System Impact: Financial perspective KPIs dynamically read General Ledger balances, revenue growth metrics, and cost ratios directly from the accounting engine.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

{screenshot:strategy-maps-and-cause-effect-transaction-processing-state}

1. The Four Standard Perspectives#

SmartERP 19 BSC organizes strategic execution into four core layers:

flowchart BT
    L["1. Learning & Growth\n(People, Culture, Skills, Technology)"] --> P["2. Internal Processes\n(Operational Excellence, Quality, CI/CD)"]
    P --> C["3. Customer & Market\n(CSAT, Retention, Brand Loyalty)"]
    C --> F["4. Financial\n(Revenue Growth, ARR, Margins, Cash Flow)"]

1.1 Financial Perspective (financial)#

Answers: To succeed financially, how should we appear to our shareholders and investors?

• Focus: Revenue expansion, operating margin %, return on capital, operating cash flow, and cost optimization.
• Target Weight: Typically 25% of the total scorecard index.

1.2 Customer & Market Perspective (customer)#

Answers: To achieve our financial vision, how should we appear to our customers?

• Focus: Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), enterprise onboarding turnaround, customer retention %, and pan-African market share.

1.3 Internal Business Processes (process)#

Answers: To satisfy our customers and shareholders, in what business processes must we excel?

• Focus: Software delivery velocity, system uptime SLA (99.99%), ISO 27001 compliance, lead-to-cash cycle time, and automated invoice delivery.

1.4 Learning & Growth Perspective (learning)#

Answers: To achieve our vision, how will we sustain our ability to change, improve, and grow?

• Focus: Core engineering certifications in SmartERP 19, high-performance leadership training, key developer retention (>95%), and psychological safety index.

2. Configuring Cause-and-Effect Linkages (bsc.objective.link)#

To model direct causation between goals, planners connect objectives using Strategy Map Links:

1. Navigate to Balanced Scorecard $\rightarrow$ Execution $\rightarrow$ Objectives.
2. Open any active objective (e.g., F1: Maximize Revenue Growth & ARR).
3. Under the Cause & Effect tab, specify:
   • Driven By (Predecessor Objectives): Select upstream drivers (e.g., C1: Delight Corporate Clients and C3: Expand Pan-African Footprint).
   • Drives (Successor Objectives): Downstream objectives that this goal directly empowers.
   • Strength of Influence: Strong, Moderate, or Emerging.

When viewed in the Strategy Map view (Balanced Scorecard $\rightarrow$ Execution $\rightarrow$ Strategy Map), objectives render dynamically with live RAG status rings and connector arrows showing strategic causality.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • BSC: Calculate quarterly KPI achievements (smarterp_bsc.ir_cron_compute_kpi): Runs quarterly on the 5th to compute composite achievement scores
  • BSC: Issue appraisal cascade reminders (smarterp_bsc.ir_cron_appraisal_alert): Runs monthly to remind objective champions to update progress
• Custom Print Templates & Reports:
  • Institutional Balanced Scorecard Executive Dashboard
  • Departmental Strategic Cascade Matrix
  • KPI Performance Variance & Trend Analysis
  • Corporate Strategy Execution Summary
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#