Strategy maps robert kaplan pdf the strategy map provides the specificity needed to translate. Kaplan and norton claim that this generic map reflects a generalization of their work with a large. Pdf a practitioners guide to the design of strategy map. See more ideas about strategy map, strategic planning and how to plan. A strategy map is a diagram that describes how a company or organisation can. How strategy maps frame an organizations objectives.
The internal perspective of the map identifies the critical few processes that create desired outcomes for customers and shareholders. 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. As it was illustrated by the case study of the biggest life sciences university in poland the strategy map could be a helpful technique for communicating the strategic intent of such a public organization. Kaplan and nortons future vision of the balanced scorecard. A complete strategy map template including examples. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance.
From the originators of the balanced scorecard system, strategy maps. Strategy maps, pioneered by balanced scorecard founders robert kaplan and david norton, allow organisations to describe and communicate their strategies. Part introduction to strategy 1 mapping w e start part one with a brief discussion of what strategic planning and strategy are. 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. The creators of the strategy map and balanced scorecard concept, professors robert s. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Read strategy maps converting intangible assets into tangible outcomes by robert s. According to kaplan and norton, a strategy map is a logical comprehensive architecture for describing strategy. Click on the graph to download a big strategy map template in. A strategy map is a visual framework for the corporate objectives within those four areas. Strategy maps is an interesting business book that shows readers how a strategy themes can have impact on other themes.
Value of strategy maps according to kaplan and norton. The authors created strategy map templates for various industries, including retail, telecommunications. 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 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Norton, which explains the balanced scorecard strategy map. Figure 1 on the following page provides an overview of a strategy map. If your company is made up of only five people or is an enterprise of 5,000 people, first and foremost you want them to know exactly what the company is about and what it is trying to achieve. Since this first incarnation kaplan and nortons thinking has moved on, and the perspectives are now organised in a sequence hence the map idea.
Webster university is the only inclusive, private, nonprofit u. Another key strength of a strategy map is the ability to visualise the causal. Executive summarythe strategy map at least described in the introductionsection of the book is a powerful tool tocapture, develop and communicate organization strategyinternally. Strategy comparison chart strategy map leadership offsite. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. Strategy maps we can see that they have kept the number of objectives low. We will use the many articles and books written by kaplan and norton on the bsc as frame of reference. Our findings indicate that only 15 studies have dealt with the topic of strategy maps over the past 22 years. 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. Value of strategy maps according to kaplan and norton, strategy maps give employees a clear line of sight into how their jobs are linked to the overall objectives of the organisation, enabling them to work in a coordinated, collaborative fashion toward the companys desired goals. 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 transformed their balanced scorecard, in 1992 introduced in the. Linking the balanced scorecard to strategy robert s. It could be also useful as an input for the performance measurement and subsequently for the strategy execution system.
Its great for quickly communicating bigpicture objectives to everyone in the company. Strategy mapping tool strategy maps allow organisations to describe and communicate their strategies succinctly to close the gap between creation and successful implementation of strategy. A lot of this transformation was done by further emphasizing the so called strategy map. Norton, have created a powerful new tool based on their ongoing research. Th en we show how visual strategy mapping vism is an extremely powerful method to support strategic planning. Modeling strategy maps and balanced scorecards using istar. An example of themes that are often misaligned with strategy are. How to develop a strategy map chartered global management. How to develop a balanced scorecard into a strategy map. My name is glenn kaplan and this is my digital, but evergrowing, portfolio. Mapping your corporate strategy harvard business school.
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. The article is an adapted excerpt from strategy maps. Strategy maps combine with balanced scorecards to provide a new framework for describing and implementing strategy. Using the strategy map as a strategic communication tool in. Norton introduced the balanced scorecard, a revolutionary performa. They argue that success results from a strategy focused organization, which, in turn, results from strategy maps and balanced scorecards. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. To help nonprofit and social sector leaders better understand the purpose and value of a strategy map, we have compiled and posted a number of real nonprofit, educational, medical, government, and professional examples in our library of white papers. What is more, your employees want to know that your.
Introduction to strategy maps a book by robert s kaplan and. 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. In 2001 kaplan and norton1 published the strategy focused organisation which introduced the strategy map as an integral part of the balanced. For example, a strategy map on page 314 conveys the case of ingersollrand with whom this writer has had some involvement pictorially representing the then new customer intimacy strategy e. Strategy maps describe how organisations create value by building on strategic. It provides the foundation for designing a balanced scorecard that is the cornerstone of a strategic management system. A diagram of aphl s 20142014 strategic map showing its priorities. Yet, bsc implementations that actually use a sophisticated strategy map appear to be rather successful. It is only appropriate that i welcome you to everything that has come together to this point from a professional standpoint, but to show everything i hope to achieve and where i want to be when the future comes. The balanced scorecard provides a relevant range of financial and nonfinancial information that supports effective business.
Converting intangible assets into tangible outcomes, by robert s. Each stage is designed to answer a key question before moving to the next. The strategy map approach as a strategic management system helps the company identify and combine a tangible, b intangible resources and c capabilities to create distinctive competence. 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 converting intangible assets into. The balanced scorecard concept with robert kaplan and coauthor with him of. Jun 01, 2011 strategy maps can help chart this difficult terrain. Start studying accounting chapter 2 balanced scorecard and strategy map. A strategy map is a diagram that shows your organizations strategy on a single page. In this first of two articles on strategy development, adapted from.
A strategy map is a diagram that is used to document the primary strategic goals being pursued by an organization or management team. Abstract click on the graph to download a big strategy map template in. Proposition 1d the resourcebased views vrio framework is an effective management tool to assess the. Converting intangible assets into tangible outcomes. For more information about strategy maps design, check out this article. The aim of the balanced scorecard was to align business activities to the vision and strategy of the business, improve internal and external communications, and monitor business performance against strategic goals. Strategy maps can help chart this difficult terrain. Balanced scorecard strategy map templates and examples. In effect, a strategy map captures the organizations strategy in. On the toolbar there is a drop list with all of the strategy maps available in your scorecard.
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 the goal of a strategic planning process should not be to make strategy but to build prepared minds that are capable of making sound strategic. Strategy maps are diagrams that describes how an organization can create value. With a welldesigned strategy map, every employee can know your overall strategy and where they fit in. Palladium strategy management training calendar 2018. Convert ing intangible assets into tangible outcomes. Balanced scorecard, organizations create a common understandable point of reference for all their units and employees. There are little risk of failure in creating the strategymap so long as managers are equipped with accuratedata and information, analytical skills and. The strategy map visualizes the strategy and puts a companys critical activities and goals into one coherent context. The strategy of a company is its proposed value proposition that is supported by a distinctive value chain. As you can see the strategy map begins with an exploration of the strategic context for. Th roughout part one and subsequent parts of the workbook, icons are included that cross. Palladium strategy management training is built on the foundations of our thought leadership dr kaplan and dr norton and the management frameworks developed by them balanced scorecard, strategy maps and the xpp. The customer value proposition which will be needed.
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