A strategy map is a diagram that describes how a company or organisation can. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Value is created through internal business processes. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts.
Its updated for 2020, and tells you all the basics in plain english. Managers like to have pagesize diagrams in powerpoint that are proudly called strategy maps. 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. Converting intangible assets into tangible outcomes pdf. 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.
Figure 1 on the following page provides an overview of a strategy map. Strategy maps emerged as part of robert kaplans and david nortons seminal work with the balanced scorecard. Organization, which, in turn, results from strategy maps and balanced scorecards. The strategic perspective that kaplan and norton have developed is very valuable. 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. Converting intangible assets into tangible outcomes kaplan, robert s. Converting intangible assets into tangible outcomes. Norton, have created a powerful new tool based on their ongoing research. An example of a generic strategy map can be seen below. Before kaplan and norton, most academic strategy courses were dominated by the thinking of michael porter, who. The objectives on the strategy map are arrayed across two or more horizontal bands, and each band is known as a perspective. Strategy map financial perspective customer perspective internal perspective learning and growth perspective human capital information capital organization capital operations management.
The purpose of this paper is to examine the balanced scorecard bsc adoption experience amongst organisations in connection with the strategy map design. 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. The strategy map outlines the fundamental business logic of the plan, demonstrates the implications for internal and external stakeholders, codifies the organisational competencies needed, explores what kind of skills and knowledge staff need, and identifies what resources need to be invested. There are, however, several industry standard templates that can be used, not least of which is the kaplannorton balanced scorecard approach. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced. Strategy map balanced scorecard free download tucows. A balanced scorecard shows a series of causeandeffect relationships that show how a companys focus on. Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify. Converting intangible assets into tangible outcomes book is not really ordinary book, you have it then the world is in your hands. Strategy is based on a differentiated customer value proposition. Take a look at these six strategy map examples for inspiration.
Norton introduced the balanced scorecard, a revolutionary performance. The measures from an organisations balanced scorecard are based upon the strategy map, which connects the desired outcomes of the strategy with the measures which will drive. 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. Commentary transforming the balanced scorecard from. A complete strategy map template including examples.
The software allows additional layers to be inserted between the objectives and measures, thereby ensuring that it can suit almost any. This video provides an example of a balanced scorecard with strategy maps. Create local versions of the strategy maps with more specific goals and indicators. Pdf purpose the purpose of this paper is to show how the use of. How to develop a balanced scorecard into a strategy map. Before kaplan and norton, most academic strategy courses were dominated by the thinking of. Linking the balanced scorecard to strategy robert s. Delivering actionable strategy through business architecture. The strategy map is a tool especially relevant to document the primary strategic goals of an. Strategy maps converting intangible assets into trangible outcomes by robert s. Explore and explain how the balanced scorecard is implemented into a strategy map. Click on the graph to download a big strategy map template in.
Strategy maps can help chart this difficult terrain. By translating their strategy into the logical architecture of a strategy map. Use features like bookmarks, note taking and highlighting while reading strategy maps. Today, strategy map has an image similar to a business treasure map, a kind of a business road map that is supposed to lead any organization to imminent success. Learning and growth perspective management theories. In the introduction to the new book, they explained that their journey began in 1990 when they undertook a research project to explore ways organizations measured performance. Even if the strategy map is a tool for expressing concrete strategy, it is also an instrument of information within the organization. Strategy map powerpoint diagram create a strategy map diagram with traditional 4layers of business strategy. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. The strategy map is a device that promotes three stages of conversation during the strategy development, implementation and learning process first to capture a strategy from a management.
Pdf a practitioners guide to the design of strategy map. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit. If you do your first strategy map, these steps might sound like too much to assimilate. The purpose of this paper is to show how the use of strategy maps substantially improves the implementation success of balanced scorecards bsc.
Completed generic strategy map asset utilisation figure 2. Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships. The strategy map is a visual framework of the cause andeffect relationships among the components of an organizations strategy, and it is used to integrate the four perspectives of a bsc financial, customer, inter nal, and learning and growth. The strategic thinking that kaplan and norton have done is very valuable.
For more information on the balanced scorecard, check. In that approach,an organization depicts its key objectives in. This is our short and simple guide to strategy maps. Norton also the founders of the balanced scorecard movement,strategy mapping is a cuttingedge approach to the art of strategy execution. Generic strategy map this tool provides an integrated view of the development of a strategy map.