Download for offline reading, highlight, bookmark or take notes while you read strategy maps. An example of themes that are often misaligned with strategy are. By translating their strategy into the logical architecture of a strategy map and balanced scorecard, organizations create a common understandable point of reference for all their units and employees. As part of our strategy execution training, we work with business professionals to create a prototype of their balanced scorecard strategy maps. With a welldesigned strategy map, every employee can know your overall strategy and where they fit in.
Although the previous book of kaplan and norton already spent 64 pages on strategy maps, you can find the best and most comprehensive treatment of them including lots of examples in the book on the right. Converting intangible assets into tangible outcomes, authorrobert steven kaplan and david p. Pioneered by robert kaplan and david norton also the founders of the balanced scorecard movement,strategy mapping is a. Kaplan is a professor at harvard university and david p. We discussed 8 steps that one can follow to create a professional strategy map, as well as typical mistakes that business professional make.
Strategy maps is an interesting business book that shows readers how a strategy themes can have impact on other themes. A n effective business strategy is a complex series of interconnections a set of causeandeffect relationships. Figure 1 on the following page provides an overview of a strategy map. This book will help you to stay out ofthe failed troops. Converting intangible assets into tangible outcomes robert s. This offering is the 3rd and one of the most valuable, perhaps the key to kaplan and nortons five book series on how the balanced scorecard can be used to develop a strategy focused organization through strategy maps to achieve alignment and the execution premium. Their original book in 1996, the balanced scorecard, translating strategy into action, contained diagrams which are later called strategy maps, but at. Introduction to strategy maps a book by robert s kaplan and david p norton 1. This video provides an example of a balanced scorecard with strategy maps. Nortons book strategy maps shows that many businesses share the same problem. Kaplan and norton identify four themes, which they go on to describe as valuecreating. The strategy map is the table of contents for your strategy.
Strategy maps pages 2, 3 valuecreating processes pages 3, 4, 5 manage risk page 3 innovation through operations page 4 intangible assets pages 5, 6, 7 triple bottomline strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships. The purpose of this paper is to examine the balanced scorecard bsc adoption experience amongst organisations in connection with the strategy map design. How balanced scorecard companies thrive in the new business environment 2000.
Strategic management converting intangible assets into. In the 2001 book the strategyfocused organization, kaplan and norton transform their balanced scorecard. We will use the many articles and books written by kaplan and norton on the bsc as frame of reference. An example of a generic strategy map can be seen below. Kaplan and norton are gungho about the power of strategy maps to provide a conceptual framework for understanding any corporation, public institution or nonprofit organization, but general readers are likely to shake their head at jargonheavy reformulations of the obvious like the ideal customer experience is a product that meets customer. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Strategy maps describe how organisations create value by building on strategic. Our nk work provides the discipline to ensure that the formulated strategy has specific objectives for shareholders. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. All content included on our site, such as text, images, digital downloads and other, is the property of its content suppliers and protected by us and international laws. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Introduction to strategy maps a book by robert s kaplan and. Strategy maps will help organizations view their strategies in a cohesive, integrated, and systematic way.
Converting intangible assets into tangible outcomes by robert s. Norton kaplan strategy maps consider the difference between porters five forces model and the norton kaplan nk strategy maps per robert kaplan. Strategy maps converting intangible assets into trangible outcomes by robert s. Commentary transforming the balanced scorecard from. Marvin bower professor of leadership development, emeritus. Then, in the strategyfocused organization, kaplan and norton showed how organizations achieved breakthrough performance with a. Read strategy maps converting intangible assets into tangible outcomes by robert s. Porters work helps managers formulate their strategy. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps. Using survey data from managers of 91 italian organisations the paper seeks to verify whether. The strategy map idea featured in several books and articles during the late 1990s by robert s. Oct 25, 2012 introduction to strategy maps a book by robert s kaplan and david p norton 1. One increasingly popular framework to combine these qualities is the balanced scorecard.
Abstract click on the graph to download a big strategy map template in. Strategy into action 1996 and the strategyfocused organization. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced scorecards to develop performance. While the bsc is best known for enhancing an organizations performance measurement system, strategy maps are the instruments that tie bsc measures directly to strategic objectives and outcomes and,in the process,improve strategy implementation and corporate operating and financial results. With strategy maps, kaplan and norton expand the balanced scorecard concept they presented in their first book, called the balanced scorecard. Delivering actionable strategy through business architecture. Yet, bsc implementations that actually use a sophisticated strategy map appear to be rather successful. A strategy map is a diagram that is used to document the primary strategic goals. Strategy maps emerged as part of robert kaplans and david nortons seminal work with the balanced scorecard. Norton introduced the balanced scorecard, a revolutionary performa.
Dec 16, 2003 with strategy maps, kaplan and norton expand the balanced scorecard concept they presented in their first book, called the balanced scorecard. Kaplan and norton claim that this generic map reflects a generalization of their work with a large number of companies for whom they have developed specific strategy. Introduction to strategy maps a book by robert s kaplan. Developing a strategy map the process below illustrates the four stages in which a contemporary strategy map plus the scorecard and implementation plan are developed. Converting intangible assets into tangible outcomes kaplan, robert s. In 2001 kaplan and norton1 published the strategy focused organisation which introduced the strategy map as an integral part of the balanced scorecard performance management system thus transforming it into a strategic management system.
They often expose gaps in strategies, enabling executives to take early corrective actions. More strategic management and corporate finance models. Kaplan and norton claim that this generic map reflects a generalization of their work with a large number of companies for whom they have developed specific strategy maps. A balanced scorecard shows a series of causeandeffect relationships that show how a. Strategy map financial perspective customer perspective internal perspective learning and growth perspective human capital information capital organization capital operations management processes. Converting intangible assets into tangible outcomes harvard business school press, 2004 is a sequel to their classic the balanced scorecard hbsp, 1996. The impact of the strategy maps on balanced scorecard performance 35 finally, we acknowledge that other perceiv ed bsc benefits could also be considered in the paper in order to be more i nformative. A strategy map is a diagram that shows your organizations strategy on a single page. Strategy maps, pioneered by balanced scorecard founders robert kaplan and david norton, allow organisations to describe and communicate their strategies concisely and succinctly and close the gap between formulation and successful implementation of strategy. The main purpose of this book strategy maps is to provide a more visual description of the balanced scorecard, which is achieved through literally mapping the strategy. Pdf the impact of the strategy maps on balanced scorecard. Converting intangible assets into tangible outcomes.
See more ideas about strategy map, strategic planning and how to plan. Heres some background on the two books before we shift our attention to strategy maps. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. Our findings indicate that only 15 studies have dealt with the topic of strategy maps over the past 22 years. Use features like bookmarks, note taking and highlighting while reading strategy maps. Many maps include the vision statement at the top of the map as a. Peter drucker suggested that knowledge and knowledge workers are important for companies success, yet. Strategy measurement a strategy map for this guideline. In the introduction to the new book, they explained that their journey began. Advice to senior management on how to use the balanced scorecard measurement system and the strategy map, a visual representation of the components of an organizations strategy to leverage a corporations intangible assets. Leading strategic change with strategy maps and scorecards driving healthcare delivery may 2014.
Strategy maps emerged as part of robert kaplan s and david nortons seminal work with the balanced scorecard. Leading strategic change with strategy maps and scorecards. A strategy map is a visual representation of an organizations overall objectives and how they relate to one another. 3440 april 2015 with 1,149 reads how we measure reads. Since this first incarnation kaplan and nortons thinking has moved on, and the perspectives are now organised in a sequence hence the map idea. Organization, which, in turn, results from strategy maps and balanced scorecards. Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Strategy map financial perspective customer perspective internal perspective learning and growth perspective human capital information capital organization capital operations management processes customer management processes innovation processes regulatory and social processessupply production distribution risk management. A strategy map is a diagram that describes how a company or organisation can. Converting intangible assets into tangible outcomes ebook written by robert s. Its great for quickly communicating bigpicture objectives to everyone in the company. A strategy map is a visual tool that helps with the organizations strategy on different stages.
439 1021 1478 464 1249 611 338 100 455 165 1555 165 384 1474 1202 1069 894 364 1285 1090 1362 822 956 1361 1047 430 904 44 1458 309