Since this first incarnation kaplan and nortons thinking has moved on, and the perspectives are now organised in a sequence hence the map idea. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. Abstract click on the graph to download a big strategy map template in. For each objective on the strategy map, at least one measure or key performance indicator kpi will be identified and tracked over time. Using the balanced scorecard as a strategic management system by robert s. Balanced scorecard basics balanced scorecard institute. Kaplan and norton did not intend the process of designing a strategy map to be linear. It provides the foundation for designing a balanced scorecard that is the cornerstone of a strategic management system. Learning and growth perspective management methods. Strategy maps converting intangible assets into trangible outcomes by robert s. Focusing your organization on strategywith the brilliant. Commentary transforming the balanced scorecard from. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy.
Introduction to strategy maps a book by robert s kaplan. Kaplan and norton introduced three principles that link the bsc of an organization to its own strategy. 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. Kaplan and norton and built on work by art schneiderman at analog devices. Kaplan and norton identify four themes, which they go on to describe as valuecreating. Norton 35 using the balanced scorecard as a strategic management system by robert s. Integration of balanced scorecard bsc, strategy map, and fuzzy.
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. 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 stepbystep volta river authority. Conceptual foundations of the balanced scorecard 3. Developed by robert kaplan and david norton, this deceptively simple. Click on the graph to download a big strategy map template in. Strategy maps kaplan and robert s roger montgomery. A wellthoughtout strategy map is a beautiful thing. 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.
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 describe how organisations create value by building on strategic. 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. Rather, they argue it should come as an iterative interaction between the four perspectives kaplan and. The strategy map simplifies the complexity of strategy by illustrating how few strategic objectives link intangible assets to value creating processes. 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 book strategy maps converting intangible assets into tangible outcomes robert s. The strategy map idea featured in several books and articles during the late 1990s by robert s. 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.
Foreshadowing the subsequent development of strategy maps, anthony. 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. May 20 2020 strategymapskaplanandroberts 33 pdf drive search and download pdf files for free. Using the balanced scorecard as a strategic management. Use features like bookmarks, note taking and highlighting while reading strategy maps. Delivering actionable strategy through business architecture. Norton, have created a powerful new tool based on their ongoing research. Kaplan and norton claim that this generic map reflects a generalization of their work with a large. 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. Strategy maps emerged as part of robert kaplans and david nortons seminal work with the balanced scorecard. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. In this first of two articles on strategy development, adapted from kaplan and nortons. This new approach to strategic management was first detailed in a series of articles and books by drs.
Strategy maps combine with balanced scorecards to provide a new framework for describing and implementing strategy. Kaplan and norton found that companies are using the bsc to. As the saying goes, a picture is worth a thousand words. Norton focusing your organization on strategywith the balanced scorecard, 2nd edition your strategys brilliant. A complete strategy map template including examples. A strategy map is a diagram that is used to document the primary strategic goals.
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. Convert ing intangible assets into tangible outcomes. Sms are a strategic part of the balanced scorecard framework to describe strategies for value. Pioneered by robert kaplan and david norton also the founders of the balanced scorecard movement,strategy mapping is a. Even if the strategy map is a tool for expressing concrete strategy, it is also an instrument of information within the organization. You can click on the graph to download a bigger one in pdf format. Figure 1 on the following page provides an overview of a strategy map. Strategy maps, pioneered by balanced scorecard founders robert kaplan and david norton, allow organisations to describe and communicate their strategies. 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. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps.
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. They argue that success results from a strategyfocused organization, which, in turn, results from strategy maps and balanced scorecards. 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. How to develop a strategy map chartered global management. Another key strength of a strategy map is the ability to visualise the causal. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. A practitioners guide to the balanced scorecard pdf 268kb. The strategyfocused organization servicing companies.
A n effective business strategy is a complex series of interconnections. Norton harvard business school press the third volume of the balanced scorecard methodology. A n effective business strategy is a complex series of interconnections a set of causeandeffect relationships. Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Strategy maps can help chart this difficult terrain. An example of a generic strategy map can be seen below. 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.
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