Balanced scorecard stepbystep volta river authority. Learning and growth perspective management methods. How to develop a balanced scorecard into a strategy map. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced scorecards to develop performance. Commentary transforming the balanced scorecard from. Read strategy maps converting intangible assets into tangible outcomes by robert s. Rajiv banker merves chair in accounting and information technology and director of the center for accounting and information technology, fox school of business, temple university verified email at temple. Since then, kaplan and norton have produced several other articles, a series of books, and a consulting company, all committed to elaborating the themes laid down in the initial balanced scorecard article. 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. In addition, it can help provide information on the chosen strategy more. Norton introduced the balanced scorecard, a revolutionary. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton.
Kaplan is the marvin bower professor of leadership development at harvard business school and chairman of the balanced scorecard collaborative. Their combined citations are counted only for the first article. Figure 1 on the following page provides an overview of a strategy map. They often expose gaps in strategies, enabling executives to take early corrective actions. Converting intangible assets into tangible outcomes by robert s. Kaplan is a professor at harvard university and david p. Focusing your organization on strategywith the brilliant. A strategy map is a diagram that is used to document the primary strategic goals. Kaplan and norton identify four themes, which they go on to describe as valuecreating. 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. It is a great read after you have read balanced scorecard and strategy focused organization. Download for offline reading, highlight, bookmark or take notes while you read the balanced scorecard.
The execution premium linking strategy for competition. 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. Strategic management converting intangible assets into. Introduction to strategy maps a book by robert s kaplan and. Converting intangible assets into tangible outcomes, by robert s. Acces pdf strategy maps by robert kaplan strategy maps by robert kaplan this is likewise one of the factors by obtaining the soft documents of this strategy maps by robert kaplan by online.
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. David norton and i introduced the balanced scorecard in a 1992 harvard business. Then, in the strategyfocused organization, kaplan and norton showed how organizations. If youre looking for a free download links of alignment. A strategy map is a diagram that is used to document the primary strategic goals being pursued by an organization or management team. Oct 25, 2012 introduction to strategy maps a book by robert s kaplan and david p norton 1. Kaplan s most popular book is the balanced scorecard. In this first of two articles on strategy development, adapted from kaplan and norton s. Then, in the strategy focused organization, kaplan and norton showed how organizations achieved. Finally the book from norton kaplan that links scorecarding to intangible assets management and. 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. It is an element of the documentation associated with the balanced scorecard, and in particular is characteristic of the second generation of balanced scorecard designs that first appeared during the mid1990s. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning.
Organization, which, in turn, results from strategy maps and balanced scorecards. Strategy maps emerged as part of robert kaplans and david nortons seminal work with the balanced scorecard. Strategy maps, they explain, pinpoint which of those key internal processes are having the greatest impact on value creation. 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. Norton argue that the obligation for this significant alignment lies with company headquarters. It provides clear line of sight to employees about the overall objectives in the organization and connected their jobs in a visible way to the companys desired goals. Introduction to strategy maps a book by robert s kaplan. The text also provides new and updated information on.
According to kaplan and norton, a strategy map is a logical comprehensive architecture for describing strategy. 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. The strategy map idea featured in several books and articles during the late 1990s by robert s. Kaplan and norton 2004 suggest that all strategic objectives in the bsc need to come directly from the strategy map to illustrate how business is conducted to achieve the strategic goals, while. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. Norton introduced the balanced scorecard, a revolutionary performance measurement.
Strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Converting intangible assets into tangible outcomes, harvard business school press, boston 2004. Related content and download information correct at time of download. Linking strategy to operation for competitive advantage. This book will help you to stay out ofthe failed troops.
Kaplans most popular book is the balanced scorecard. Kaplan and norton identify four themes, which they go on to. Strategy maps converting intangible assets into trangible outcomes by robert s. Convert ing intangible assets into tangible outcomes. The strategy map allows managers to align investments in people, tech nology and. How to understand a strategy map and the causeandeffect relation. Strategy maps will help organizations view their strategies in a cohesive, integrated, and systematic way. The strategic thinking that kaplan and norton have done is very valuable. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Strategy maps combine with balanced scorecards to provide a new framework for describing and implementing strategy. Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. The strategy map extends the balanced scorecard approach in order to clarify corporate strategy, using four perspectives and their cause and effect relationship. 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.
A proposed heuristic for a computer chess program john l. Download for offline reading, highlight, bookmark or take notes while you read strategy maps. 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. The strategy map was developed by kaplan and norton in 2004 based on the bsc, to help firms develop a strategy.
Norton is the founder and president of the balanced scorecard collaborative. Use a strategy map a onepage, graphic depiction of the causeandeffect connections among your balanced scorecards four perspectives. On this book, the authors apply their revolutionary balanced scorecard administration system to companydiploma method, revealing how extraordinarily worthwhile enterprises get hold of extremely efficient synergies by. One increasingly popular framework to combine these qualities is the balanced scorecard. Kaplan and norton recently published strategy maps, the third book in their series. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps. 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. Introduction to strategy maps a book by robert s kaplan and david p norton 1. The balanced scorecard implementation, integrated approach. 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. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. 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. Converting intangible assets into tangible outcomes ebook written by robert s.
Kaplan and norton developed the balanced scorecard and the strategy map kaplan and norton, 2004. Converting intangible assets into tangible outcomes book is not really ordinary book, you have it then the world is in. Click on the graph to download a big strategy map template in. 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 are one way to shore up communication about strategy with a visual representation. A strategy map visually represents how the critical elements of an organisations.
These and other research findings help to explain why kaplan and norton believe so strongly in the power of the balanced scorecard. This is absolutely chock full of example and sample strategy maps. It provides the foundation for designing a balanced scorecard that is the cornerstone of a strategic management system. It is based on the four balanced scorecard perspectives. Pdf it is very important to have well developed and realizable strategy. 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. Converting intangible assets into tangible outcomes. A n effective business strategy is a complex series of interconnections a set of causeandeffect relationships. Translating strategy into action ebook written by robert s. More strategic management and corporate finance models. You might not require more get older to spend to go to the book inauguration as well as search for them. Conceptual foundations of the balanced scorecard 3. 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.
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. Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships. Norton introduced the balanced scorecard, a revolutionary performa. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Developed by robert kaplan and david norton, this deceptively simple. With strategy maps, kaplan and norton expand the balanced scorecard concept they presented in their first book, called the balanced scorecard. Converting intangible assets into tangible outcomes harvard business school press, 2004 is a sequel to their classic the balanced scorecard hbsp, 1996. Kaplan has 46 books on goodreads with 35355 ratings.