Perspectives the link between the balanced scorecard and the strategy map becomes immediately apparent upon the introduction of the kaplan norton four perspectives. 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. Converting intangible assets into tangible outcomes, authorrobert steven kaplan and david p. Before kaplan and norton, most academic strategy courses were dominated by the thinking of michael porter, who began by emphasizing the five forces model that suggested what external, environmental factors would change an organizations. It provides clear line of sight to employees about the overall objectives in the organization and connected their jobs in a visible way to the companys desired goals. Using the balanced scorecard as a strategic management. Strategy maps book strategy maps converting intangible assets into tangible outcomes robert s. Commentary transforming the balanced scorecard from. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 using the balanced scorecard as a strategic management system. Balanced scorecard basics balanced scorecard institute. Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships.
Abstract click on the graph to download a big strategy map template in. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. The balanced scorecard retains traditional financial measures. This is absolutely chock full of example and sample strategy maps. Convert ing intangible assets into tangible outcomes. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance. Sms are a strategic part of the balanced scorecard framework to describe strategies for value. Using the balanced scorecard as a strategic management system by robert s. 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. It is this balance that has proven to be so successful in the methodology over the past decade or so. Your strategy map is overly academic or needlessly technicaland frankly, not something youre proud of. Pdf strategy map, operational atlas and balanced scorecard. Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Kaplan and norton describe the innovation of the balanced scorecard as follows.
Norton, have created a powerful new tool based on their ongoing research. 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. Finally the book from norton kaplan that links scorecarding to intangible assets management and. Conceptual foundations of the balanced scorecard 3. An example of a generic strategy map can be seen below. He is cofounder and president of the palladium group. This book will help you to stay out ofthe failed troops. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Converting intangible assets into tangible outcomes book is not really ordinary book, you have it then the world is in. Learning and growth perspective management theories. Kaplan is a professor at harvard university and david p. Every company is certain it has a rocksolid strategy see, its right there in the company newsletter.
Strategy maps describe how organisations create value by building on strategic. Norton harvard business school press the third volume of the balanced scorecard methodology. A strategy map is a model of how an organization creates value. The strategic perspective that kaplan and norton have developed is very valuable. Introduction to strategy maps a book by robert s kaplan. A n effective business strategy is a complex series of interconnections a set of causeandeffect relationships. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in longterm capabilities and customer relationships were not critical for. We will use the many articles and books written by kaplan and norton on the bsc as frame of reference. If any of these situations sounds familiar, your strategy map software could be a major part of the problem. You can click on the graph to download a bigger one in pdf format. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. Yet, bsc implementations that actually use a sophisticated strategy map appear to be rather successful.
Browse the definition and meaning of more terms similar to strategy map kaplan norton. They provide a language that executive teams can use to discuss the direction and priorities of their enterprises. The connecting arrows in the map shows cause and effect relationship of the goals. 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 complete strategy map template including examples. Linking the balanced scorecard to strategy robert s. Figure 1 on the following page provides an overview of a strategy map. This article explains the balanced scorecard, developed by robert kaplan and david norton, in a practical way. Kaplan and norton argue that the most critical aspect of strategy implementing it in a way that ensures sustained value creationdepends on managing four key internal processes. Norton to execute your strategy, you must communicate it throughout your. Strategy maps can help chart this difficult terrain. In this first of two articles on strategy development, adapted from kaplan and norton s. Converting intangible assets into tangible outcomes.
After reading you will understand the basics of this powerful strategy and performance management tool. Use features like bookmarks, note taking and highlighting while reading strategy maps. The objectives on the strategy map are arrayed across two or more horizontal bands, and each band is known as a perspective. It provides tons of ideas on how to assemble the various components of the strategy map, as well as revisits the selection of overall strategy themes. Since this first incarnation kaplan and norton s thinking has moved on, and the perspectives are now organised in a sequence hence the map idea. Kaplan and norton, translated bakhtiari, 2005 since the. The strategy map idea featured in several books and articles during the late 1990s by robert s. Our findings indicate that only 15 studies have dealt with the topic of strategy maps over the past 22 years. A complete strategy map template including examples we love strategy maps for their flexibility with various industries and strategies. This article also contains a downloadable and editable balanced scorecard template what is a balanced scorecard.
The strategic thinking that kaplan and norton have done is very valuable. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. Even if the strategy map is a tool for expressing concrete strategy, it is also an instrument of information within the organization. The strategy map was developed by kaplan and norton in 2004 based on the bsc, to help firms develop a strategy. Your actual strategy is solid, but you have no idea how to depict it in an appropriate, visualfriendly way. Using survey data from managers of 91 italian organisations the paper seeks to verify whether. A new management team at vw do brazil develops and deploys a strategy map. Introduction to strategy maps a book by robert s kaplan and david p norton 1. Pdf having trouble with your strategy then map it kate. The first diagrams of this type appeared in the early 1990s, and the idea of using this type of diagram to help document balanced scorecard was discussed in a paper by drs. 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.
Prior to his career at palladium, dr norton cofounded and. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Take a look at these six strategy map examples for inspiration. These and other research findings help to explain why kaplan and norton believe so strongly in the power of the balanced scorecard. How to develop a balanced scorecard into a strategy map. It is a great read after you have read balanced scorecard and strategy focused organization. Organization, which, in turn, results from strategy maps and balanced scorecards. 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 maps converting intangible assets into trangible outcomes by robert s. The purpose of this paper is to examine the balanced scorecard bsc adoption experience amongst organisations in connection with the strategy map design. The strategy map and balanced scorecard public service. Kaplan and norton s strategy map is a tool to illustrate how organisations intend to convert intangible initiatives and resources into tangible outcomes to achieve organisational purpose. Then, in the strategy focused organization, kaplan and norton showed how organizations achieved breakthrough performance with.
1296 297 44 1167 1543 1523 71 6 479 687 680 578 1356 588 177 960 570 296 57 1373 402 1480 432 340 1050 603 792 1406 1378 383 1078 1215 81 571 987 306 284