Thus, a strategy map outlines the causeandeffect relationship among the factors critical to a companys financial success. Balanced scorecard stepbystep volta river authority. This research aims to compile and designing strategy map and balanced scorecard on pt. 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. Introduction to strategy maps a book by robert s kaplan and david p norton 1.
It is an excellent illustration of how a strategy map is flexible enough to take on the components of your organizations individual strategy and environment. Norton 35 using the balanced scorecard as a strategic management system by robert s. The map takes companies from strategy formulation to strategy execution. This offering is the 3rd and one of the most valuable, perhaps the key to kaplan and norton s 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. Norton introduced the balanced scorecard, a revolutionary performa. Using the balanced scorecard as a strategic management system. A wellthoughtout strategy map is a beautiful thing. Although the previous book of kaplan and norton already spent 64 pages on strategy maps, you can find the latest, best and most comprehensive treatment of strategy maps including lots of examples in the book that is mentioned below. The strategy focused organization the summary in brief in 1996, robert kaplan and david norton introduced the balanced scorecard performance measurement method, which included not only traditional financial measures but also such qualitative measures as employee satisfaction, corporate mission and customer loyalty. Many years ago kaplan and norton created a template to map any strategy of an enterprise onto. Kaplan and norton introduced three principles that link the bsc of an organization to its own strategy. Oct 25, 2012 executive summarythe strategy map at least described in the introductionsection of the book is a powerful tool tocapture, develop and communicate organization strategyinternally. A strategy map is a visual framework for the corporate objectives within those four areas.
With strategy maps, kaplan and norton expand the balanced scorecard concept they presented in their first book, called the balanced scorecard. Traditionally companies used only shortterm financial performance as the measure of success. Balanced scorecard basics balanced scorecard institute. Kaplan and norton identify four themes, which they go on to describe as valuecreating.
The strategyfocused organization the summary in brief in 1996, robert kaplan and david norton introduced the balanced scorecard performance measurement method, which included not only traditional financial measures but also such qualitative measures as employee satisfaction, corporate mission and customer loyalty. Strategy map definition articulates a strategy in such a way that it can be readily interpreted and acted upon a collection of techniques that are used to enable organization to gain visibility into the way that strategic tradeoffs are made between competing objectives strategy defined as the pattern or plan that integrates an. With a welldesigned strategy map, every employee can know your overall strategy and where they fit in. Foreshadowing the subsequent development of strategy maps, anthony. For more information on the balanced scorecard, check out the intrafocus guide to the balanced scorecard. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. A new management team at vw do brazil develops and deploys a strategy map and balanced scorecard to accomplish. Converting intangible assets into tangible outcomes book is not really ordinary book, you have it then the world is in. Strategy maps, pioneered by balanced scorecard founders robert kaplan and david norton, allow organisations to describe and communicate their strategies. Converting intangible assets into tangible outcomes ebook written by robert s.
Our findings indicate that only 15 studies have dealt with the topic of strategy maps over the past 22 years. This sample strategy map is based on a healthcare system that is looking to grow outside of its current geographical boundaries. Using survey data from managers of 91 italian organisations the paper seeks to verify whether. There are little risk of failure in creating the strategymap so long as managers are equipped with accuratedata and information, analytical skills and. If your company is missing even one element, it may have a potentially crippling gap in its strategy. Delivering actionable strategy through business architecture. Dpi in order to achieve the objective of becoming an international organization or world class company. It is a great read after you have read balanced scorecard and strategy focused organization.
Read strategy maps converting intangible assets into tangible outcomes by robert s. Integration of balanced scorecard bsc, strategy map, and fuzzy. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Organization, which, in turn, results from strategy maps and balanced scorecards. Developed by robert kaplan and david norton, this deceptively simple methodology translates an organizations strategy into performance objec tives, measures, targets, and initiatives in four balanced perspectives.
Translate the strategy to operational terms organizations translate their strategy into the logical architecture of a strategy map and balanced scorecard to specify in detail the critical elements for their growth strategies kaplan and norton. Kaplan and norton claim that this generic map reflects a generalization of their work with a large. Download sample strategy maps for a balanced scorecard. Strategy maps converting intangible assets into trangible outcomes by robert s. Focusing your organization on strategywith the brilliant. Mapping your corporate strategy, hbr working knowledge interview with robert kaplan strategy map offers a framework for articulating strategy in a variety of contexts strategy maps, in some cases, try to frame implied solutions by introducing processes into the framework e. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance.
Introduction to strategy maps a book by robert s kaplan. Sms are a strategic part of the balanced scorecard framework to describe strategies for value. In addition, it can help provide information on the chosen strategy more. 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. Pdf strategy map dan rancangan balanced scorecard pt. The strategy focused organization, kaplan and norton note that, according to an abundance of research data, only 5% of the workforce understand their companys strategy, that only 25% of managers have incentives linked to strategy, that 60% of organizations dont link budgets to. The strategyfocused organization servicing companies. 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. Strategy maps describe how organisations create value by building on strategic. You can use this template map for doing strategic planning in your organization. How to develop a strategy map chartered global management.
The text also provides new and updated information on. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. 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. Strategy maps can help chart this difficult terrain. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. As the saying goes, a picture is worth a thousand words. 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. 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 map financial perspective customer perspective internal perspective learning and growth perspective human capital information capital organization capital operations management processes.
You can click on the graph to download a bigger one in pdf format. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced scorecards to develop performance objectives and. A strategy map visually represents how the critical elements of an organisations. Converting intangible assets into tangible outcomes harvard business school press, 2004 is a sequel to their classic the balanced scorecard hbsp, 1996. Using the balanced scorecard as a strategic management system by robert s. May 03, 2014 the balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. Norton focusing your organization on strategy with the balanced scorecard, 2nd edition your strategy s brilliant. It is this balance that has proven to be so successful in the methodology over the past decade or so. Use features like bookmarks, note taking and highlighting while reading strategy maps. An example of a generic strategy map can be seen below. A strategy map is a diagram that describes how a company or organisation can. Focusing your organization on strategywith the brilliantbut. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps.
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. Figure 1 on the following page provides an overview of a strategy map. It provides the foundation for designing a balanced scorecard that is the cornerstone of a strategic management system. A strategy map is a diagram that shows your organizations strategy on a single page. The purpose of this paper is to examine the balanced scorecard bsc adoption experience amongst organisations in connection with the strategy map design. Norton, have created a powerful new tool based on their ongoing research. There are, however, several industry standard templates that can be used, not least of which is the kaplan norton balanced scorecard approach. The balanced scorecard was originally developed by dr. Kaplan and norton found that companies are using the bsc to. Conceptual foundations of the balanced scorecard 3. Strategy maps emerged as part of robert kaplan s and david norton s seminal work with the balanced scorecard.
The strategy map idea featured in several books and articles during the late 1990s by robert s. 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. Using the balanced scorecard as a strategic management. Developed by robert kaplan and david norton, this deceptively simple. It maintains a solid structure while allowing for a great deal of flexibility, so it can represent virtually any segment you operate in and your unique strategy if youre just getting started with your strategy mapping initiative and are looking for some templates and examples, youre in the right spot. Dec 16, 2003 kaplan and norton argue that the most critical aspect of strategyimplementing it in a way that ensures sustained value creationdepends on managing four key internal processes. 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.
In this first of two articles on strategy development, adapted from kaplan and norton s. Norton focusing your organization on strategywith the balanced scorecard, 2nd edition your strategys brilliant. Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Strategic management converting intangible assets into. Linking the balanced scorecard to strategy robert s. They argue that success results from a strategyfocused organization, which, in turn, results from strategy maps and balanced scorecards. David norton as a framework for measuring organizational performance using a more balanced set of performance measures. A complete strategy map template including examples. 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.
Sample strategy maps for a balanced scorecard sharepoint server 2010 important. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced scorecards to develop performance. Strategy maps combine with balanced scorecards to provide a new framework for describing and implementing strategy. 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. Introduction to strategy maps a book by robert s kaplan and. Their original book in 1996, the balanced scorecard, translating strategy into action, contained diagrams which are later called strategy maps, but at this time they did not refer to them as such. 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. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. This book will help you to stay out ofthe failed troops.
Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. Commentary transforming the balanced scorecard from. Its great for quickly communicating bigpicture objectives to everyone in the company. A n effective business strategy is a complex series of interconnections a set of causeandeffect relationships. Abstract click on the graph to download a big strategy map template in. Selecting a language below will dynamically change the complete page content to that language. Download for offline reading, highlight, bookmark or take notes while you read strategy maps. To make the most of a strategy map we would suggest one or two additions to the basic template. Perspectives the link between the balanced scorecard and the strategy map becomes immediately apparent upon the introduction of the kaplan norton four perspectives. According to kaplan and norton, a strategy map is a logical comprehensive architecture for describing strategy. The authors created strategy map templates for various industries, including retail, telecommunications.
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