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Oct 2016

Strategy mapping: An examination of a homebuilder's performance measurement and incentive systems

The last decade has seen marked growth in the building of ‘strategy maps’ (a.k.a. ‘business models’) that link non-financial and financial performance measures. Then managers focus considerable attention on improving the non-financial performance ‘drivers’ that are included in these models. Many companies base portions of their managers’ incentives on the key non-financial elements of these business models.

This report observes the development, implementation and evaluation of a strategy map and the associated performance measurement and incentive systems at a major US homebuilder.

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Strategy mapping: An examination of a homebuilder's performance measurement and incentive systems

Evidence presented in this study challenges the idea of measuring customer satisfaction with a single ‘key measure’ as well as the idea of measuring customer satisfaction with a generic survey across diverse industries.