Use features like bookmarks, note taking and highlighting while reading strategy maps. Strategy maps kaplan and robert s roger montgomery. Commentary transforming the balanced scorecard from. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced scorecards to develop performance. Since this first incarnation kaplan and nortons thinking has moved on, and the perspectives are now organised in a sequence hence the map idea. In this first of two articles on strategy development, adapted from kaplan and nortons. Delivering actionable strategy through business architecture. 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. Strategy maps describe how organisations create value by building on strategic. Converting intangible assets into tangible outcomes. 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. A strategy map is a diagram that is used to document the primary strategic goals.
We will use the many articles and books written by kaplan and norton on the bsc as frame of reference. Balanced business scorecard a strategic performance measurement system enabling broader assessment of. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. Converting intangible assets into tangible outcomes ebook written by robert s. Strategy maps can help chart this difficult terrain. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps. Jan 18, 2018 a strategy map is an effective vehicle for it strategy elaboration. 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. This book will help you to stay out ofthe failed troops. Introduction to strategy maps a book by robert s kaplan and. We discussed 8 steps that one can follow to create a professional strategy map, as well as typical mistakes that business professional make. Oct 25, 2012 introduction to strategy maps a book by robert s kaplan and david p norton 1. Setting financial goals for the organization or a department. Convert ing intangible assets into tangible outcomes.
One increasingly popular framework to combine these qualities is the balanced scorecard. Oct 23, 2018 this video provides an example of a balanced scorecard with strategy maps. 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. Pdf the impact of the strategy maps on balanced scorecard. Dec 16, 2003 with strategy maps, kaplan and norton expand the balanced scorecard concept they presented in their first book, called the balanced scorecard. Strategy maps help managers understand unit strategies and synergies between units. Our findings indicate that only 15 studies have dealt with the topic of strategy maps over the past 22 years.
Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. In the introduction to the new book, they explained that their journey began. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Converting intangible assets into tangible outcomes robert s. A n effective business strategy is a complex series of interconnections a set of causeandeffect relationships. Porters work helps managers formulate their strategy. Norton introduced the balanced scorecard, a revolutionary. Strategic management converting intangible assets into. An example of a generic strategy map can be seen below.
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. Norton harvard business school press 2004 454 pages. 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. Strategy is based on a differentiated customer value proposition. Read strategy maps converting intangible assets into tangible outcomes by robert s. A strategy map is a diagram that describes how a company or organisation can. Converting intangible assets into tangible outcomes, authorrobert steven kaplan and david p.
Norton kaplan strategy maps consider the difference between porters five forces model and the norton kaplan nk strategy maps per robert kaplan. The original strategy map concept belongs to david norton and robert kaplan. Norton, year2003 1 introduction 2 strategy maps 3 operations management processes 4 customer management 5 innovation processes 6 managing. A strategy map is a diagram that describes how a company or organisation can create value by linking strategic objectives in a cause and effect. Kaplan and norton identify four themes, which they go on to describe as valuecreating. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Kaplan and norton found that companies are using the bsc to. Converting intangible assets into tangible outcomes more than a decade ago, robert s kaplan and david p norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer. Strategy maps describe how organisations create value by building on strategic themes such as growth or productivity. Strategy maps kaplan androberts pdf drive search and download pdf files for free.
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. 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 balanced scorecard shows a series of causeandeffect relationships that show how a companys focus on learning and. Its great for quickly communicating bigpicture objectives to everyone in the company. Abstract click on the graph to download a big strategy map template in. 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. Information school the university of sheffield 2010. Kaplan is a professor at harvard university and david p. They often expose gaps in strategies, enabling executives to take early corrective actions. 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. Converting intangible assets into tangible outcomes by. Strategy maps will help organizations view their strategies in a cohesive, integrated, and systematic way. Yet, bsc implementations that actually use a sophisticated strategy map appear to be rather successful. Our nk work provides the discipline to ensure that the formulated strategy has specific objectives for shareholders.
Norton introduced the balanced scorecard, a revolutionary performa. Strategy maps converting intangible assets into trangible outcomes by robert s. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. Norton, have created a powerful new tool based on their ongoing research. Their balanced scorecard format depicts the following perspectives. Strategy maps emerged as part of robert kaplans and david nortons seminal work with the balanced scorecard. With a welldesigned strategy map, every employee can know your overall strategy and where they fit in. 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. Download for offline reading, highlight, bookmark or take notes while you read strategy maps. Figure 1 on the following page provides an overview of a strategy map. Strategy maps is an interesting business book that shows readers how a strategy themes can have impact on other themes.
Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. An example of themes that are often misaligned with strategy are. 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. A strategy map is a visual tool that helps with the organizations strategy on different stages. A strategy map is a diagram that shows your organizations strategy on a single page. Foreshadowing the subsequent development of strategy maps, anthony. Converting intangible assets into tangible outcomes book is not really ordinary book, you have it then the world is in. More strategic management and corporate finance models. Pdf strategy maps converting intangible assets into.
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