During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. 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 maps, pioneered by balanced scorecard founders robert kaplan and david norton, allow organisations to describe and communicate their strategies. A strategy map is a diagram that is used to document the primary strategic goals. 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. Use features like bookmarks, note taking and highlighting while reading strategy maps. Even if the strategy map is a tool for expressing concrete strategy, it is also an instrument of information within the organization.
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. Introduction to strategy maps a book by robert s kaplan. A practitioners guide to the balanced scorecard pdf 268kb. The strategy map idea featured in several books and articles during the late 1990s by robert s. Focusing your organization on strategywith the brilliant. Kaplan and norton identify four themes, which they go on to describe as valuecreating.
A recent approach to improving strategy implementation and execution is called strategy mapping. Since this first incarnation kaplan and nortons thinking has moved on, and the perspectives are now organised in a sequence hence the map idea. Addressing both strategy and service delivery models this paper describes the overall approach to using strategy maps in the public sector, based upon 4th generation balanced scorecard thinking. Norton, have created a powerful new tool based on their ongoing research. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Developed by robert kaplan and david norton, this deceptively simple. Outcomes by robert s kaplan and david p norton a summary of the original text a n effective business strategy is a complex series of. 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. Delivering actionable strategy through business architecture. 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. Strategy maps combine with balanced scorecards to provide a new framework for describing and implementing strategy. They argue that success results from a strategyfocused organization, which, in turn, results from strategy maps and balanced scorecards. Abstract click on the graph to download a big strategy map template in.
Kaplan and norton introduced three principles that link the bsc of an organization to its own strategy. 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. Conceptual foundations of the balanced scorecard 3. You can click on the graph to download a bigger one in pdf format. 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. A complete strategy map template including examples. 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. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy.
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. Strategy maps converting intangible assets into trangible outcomes by robert s. For each objective on the strategy map, at least one measure or key performance indicator kpi will be identified and tracked over time. Figure 1 on the following page provides an overview of a strategy map. Another key strength of a strategy map is the ability to visualise the causal. Converting intangible assets into tangible outcomes. According to kaplan and norton, a strategy map is a logical comprehensive architecture for describing strategy. In this first of two articles on strategy development, adapted from kaplan and nortons. Integration of balanced scorecard bsc, strategy map, and fuzzy. Foreshadowing the subsequent development of strategy maps, anthony.
Strategy maps describe how organisations create value by building on strategic. Strategy maps emerged as part of robert kaplans and david nortons seminal work with the balanced scorecard. Using the balanced scorecard as a strategic management. The strategyfocused organization servicing companies. An example of a generic strategy map can be seen below. 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. Balanced scorecard basics balanced scorecard institute.
For example, one of the uks largest retailers has 20 objectives, a uk high street bank has 12 and a global advertising agency has 12 as well. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps. Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Pioneered by robert kaplan and david norton also the founders of the balanced scorecard movement,strategy mapping is a. Click on the graph to download a big strategy map template in. Strategy maps can help chart this difficult terrain. Kaplan and norton did not intend the process of designing a strategy map to be linear. Balanced scorecard stepbystep volta river authority.
Kaplan and norton found that companies are using the bsc to. Using the balanced scorecard as a strategic management system by robert s. Commentary transforming the balanced scorecard from. Rather, they argue it should come as an iterative interaction between the four perspectives kaplan and. 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. Norton 35 using the balanced scorecard as a strategic management system by robert s. A wellthoughtout strategy map is a beautiful thing. 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. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. A n effective business strategy is a complex series of interconnections. The strategy map simplifies the complexity of strategy by illustrating how few strategic objectives link intangible assets to value creating processes.
Convert ing intangible assets into tangible outcomes. Learning and growth perspective management methods. A n effective business strategy is a complex series of interconnections a set of causeandeffect relationships. How to develop a strategy map chartered global management. Strategy maps book strategy maps converting intangible assets into tangible outcomes robert s. Strategy maps kaplan and robert s roger montgomery.
Norton harvard business school press the third volume of the balanced scorecard methodology. It provides the foundation for designing a balanced scorecard that is the cornerstone of a strategic management system. May 20 2020 strategymapskaplanandroberts 33 pdf drive search and download pdf files for free. This new approach to strategic management was first detailed in a series of articles and books by drs. Kaplan and norton and built on work by art schneiderman at analog devices.