Strategy map financial perspective customer perspective internal perspective learning and growth perspective human capital information capital organization capital operations management processes. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. See more ideas about strategy map, strategic planning and how to plan. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced scorecards to develop performance. Converting intangible assets into tangible outcomes kaplan, robert s. A strategy map is a visual tool that helps with the organizations strategy on different stages. Leading strategic change with strategy maps and scorecards. 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. 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. With strategy maps, kaplan and norton expand the balanced scorecard concept they presented in their first book, called the balanced scorecard. Read strategy maps converting intangible assets into tangible outcomes by robert s. An example of a generic strategy map can be seen below.
Porters work helps managers formulate their strategy. 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. More strategic management and corporate finance models. Converting intangible assets into tangible outcomes harvard business school press, 2004 is a sequel to their classic the balanced scorecard hbsp, 1996. Introduction to strategy maps a book by robert s kaplan and david p norton 1. A strategy map is a diagram that describes how a company or organisation can. This book will help you to stay out ofthe failed troops. Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. 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. Marvin bower professor of leadership development, emeritus.
A strategy map is a diagram that is used to document the primary strategic goals. Many maps include the vision statement at the top of the map as a. They often expose gaps in strategies, enabling executives to take early corrective actions. Leading strategic change with strategy maps and scorecards driving healthcare delivery may 2014. Converting intangible assets into tangible outcomes robert s. Converting intangible assets into tangible outcomes.
Our nk work provides the discipline to ensure that the formulated strategy has specific objectives for shareholders. Oct 25, 2012 introduction to strategy maps a book by robert s kaplan and david p norton 1. Strategy into action 1996 and the strategyfocused organization. A balanced scorecard shows a series of causeandeffect relationships that show how a. With a welldesigned strategy map, every employee can know your overall strategy and where they fit in. Its great for quickly communicating bigpicture objectives to everyone in the company. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps. Peter drucker suggested that knowledge and knowledge workers are important for companies success, yet. Our findings indicate that only 15 studies have dealt with the topic of strategy maps over the past 22 years. 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 describe how organisations create value by building on strategic. Kaplan is a professor at harvard university and david p. Delivering actionable strategy through business architecture. 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.
A strategy map is a diagram that shows your organizations strategy on a single page. Introduction to strategy maps a book by robert s kaplan and. Norton kaplan strategy maps consider the difference between porters five forces model and the norton kaplan nk strategy maps per robert kaplan. The purpose of this paper is to examine the balanced scorecard bsc adoption experience amongst organisations in connection with the strategy map design. Since this first incarnation kaplan and nortons thinking has moved on, and the perspectives are now organised in a sequence hence the map idea. Introduction to strategy maps a book by robert s kaplan. The strategy map idea featured in several books and articles during the late 1990s by robert s. Abstract click on the graph to download a big strategy map template in. Strategy maps converting intangible assets into trangible outcomes by robert s. Converting intangible assets into tangible outcomes ebook written by robert s. Strategy maps is an interesting business book that shows readers how a strategy themes can have impact on other themes.
Use features like bookmarks, note taking and highlighting while reading strategy maps. The strategy map is the table of contents for your strategy. Dec 16, 2003 with strategy maps, kaplan and norton expand the balanced scorecard concept they presented in their first book, called the balanced scorecard. 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. A strategy map is a visual representation of an organizations overall objectives and how they relate to one another. 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. Strategy maps will help organizations view their strategies in a cohesive, integrated, and systematic way. Download for offline reading, highlight, bookmark or take notes while you read strategy maps. We will use the many articles and books written by kaplan and norton on the bsc as frame of reference. 3440 april 2015 with 1,149 reads how we measure reads. Their original book in 1996, the balanced scorecard, translating strategy into action, contained diagrams which are later called strategy maps, but at. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. Then, in the strategyfocused organization, kaplan and norton showed how organizations achieved breakthrough performance with a. Strategic management converting intangible assets into.
Strategy measurement a strategy map for this guideline. Figure 1 on the following page provides an overview of a strategy map. 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. In the introduction to the new book, they explained that their journey began. Organization, which, in turn, results from strategy maps and balanced scorecards. 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 is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. 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. Pioneered by robert kaplan and david norton also the founders of the balanced scorecard movement,strategy mapping is a. Norton introduced the balanced scorecard, a revolutionary performa. An example of themes that are often misaligned with strategy are.
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. 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. In the 2001 book the strategyfocused organization, kaplan and norton transform their balanced scorecard. Commentary transforming the balanced scorecard from.
Using survey data from managers of 91 italian organisations the paper seeks to verify whether. Converting intangible assets into tangible outcomes kindle edition by kaplan, 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. Strategy maps emerged as part of robert kaplans and david nortons seminal work with the balanced scorecard. Nortons book strategy maps shows that many businesses share the same problem. 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. One increasingly popular framework to combine these qualities is the balanced scorecard. Yet, bsc implementations that actually use a sophisticated strategy map appear to be rather successful. Pdf the impact of the strategy maps on balanced scorecard. 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. Strategy maps emerged as part of robert kaplan s and david nortons seminal work with the balanced scorecard. Converting intangible assets into tangible outcomes by robert s. As part of our strategy execution training, we work with business professionals to create a prototype of their balanced scorecard strategy maps. 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. How balanced scorecard companies thrive in the new business environment 2000. Heres some background on the two books before we shift our attention to strategy maps. Converting intangible assets into tangible outcomes, authorrobert steven kaplan and david p. This video provides an example of a balanced scorecard with strategy maps.
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