A strategy map is a diagram that describes how a company or organisation can. 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. 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. Pdf a practitioners guide to the design of strategy map. A good strategy map should communicate everything a company is striving to achieve on a single page. To view or edit a strategy map you need to open an existing scorecard or create a new one, and then go to the strategy map tab.
Figure 1 on the following page provides an overview of a strategy map. Convert ing intangible assets into tangible outcomes. From the originators of the balanced scorecard system, strategy maps. 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. Pioneered by balanced scorecard founders robert kaplan and david norton, strategy mapping is an effective and powerful initiative that can help keep a. The strategy map visualizes the strategy and puts a companys critical activities and goals into one coherent context. Executive summarythe strategy map at least described in the introductionsection of the book is a powerful tool tocapture, develop and communicate organization strategyinternally. 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.
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. 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. Value of strategy maps according to kaplan and norton. 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. They argue that success results from a strategyfocused organization, which, in turn, results from strategy maps and balanced scorecards.
Norton introduced the balanced scorecard, a revolutionary performa. Our findings indicate that only 15 studies have dealt with the topic of strategy maps over the past 22 years. The article is an adapted excerpt from strategy maps. An example of themes that are often misaligned with strategy are. Strategy maps are diagrams that describes how an organization can create value. In effect, a strategy map captures the organizations strategy in. A diagram of aphl s 20142014 strategic map showing its priorities. Click on the graph to download a big strategy map template in. The strategy of a company is its proposed value proposition that is supported by a distinctive value chain. The customer value proposition which will be needed.
Linking the balanced scorecard to strategy robert s. Strategic management converting intangible assets into. The internal perspective of the map identifies the critical few processes that create desired outcomes for customers and shareholders. A wellthoughtout strategy map is a beautiful thing. Balanced scorecard, organizations create a common understandable point of reference for all their units and employees. Start studying accounting chapter 2 balanced scorecard and strategy map. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. Palladium strategy management training calendar 2018. How to develop a strategy map chartered global management. 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. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. 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.
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. It provides the foundation for designing a balanced scorecard that is the cornerstone of a strategic management system. Another key strength of a strategy map is the ability to visualise the causal. Since this first incarnation kaplan and nortons thinking has moved on, and the perspectives are now organised in a sequence hence the map idea. Proposition 1d the resourcebased views vrio framework is an effective management tool to assess the. What is more, your employees want to know that your. Converting intangible assets into tangible outcomes. Th en we show how visual strategy mapping vism is an extremely powerful method to support strategic planning. According to kaplan and norton, a strategy map is a logical comprehensive architecture for describing strategy. A strategy map is a diagram that is used to document the primary strategic goals being pursued by an organization or management team. A complete strategy map template including examples. In 2001 kaplan and norton1 published the strategy focused organisation which introduced the strategy map as an integral part of the balanced. Strategy maps combine with balanced scorecards to provide a new framework for describing and implementing strategy.
There are little risk of failure in creating the strategymap so long as managers are equipped with accuratedata and information, analytical skills and. Modeling strategy maps and balanced scorecards using istar. 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. Read strategy maps converting intangible assets into tangible outcomes by robert s.
Strategy maps help managers understand unit strategies and synergies between units. 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. Strategy maps robert kaplan pdf the strategy map provides the specificity needed to translate. 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. The last one, strategy execution, relies on strategy maps, strategic scorecards with kpis, and operational dashboards with pis. How to develop a balanced scorecard into a strategy map. Mapping your corporate strategy harvard business school. The creators of the strategy map and balanced scorecard concept, professors robert s. They argue that success results from a strategy focused organization, which, in turn, results from strategy maps and balanced scorecards. Abstract click on the graph to download a big strategy map template in. 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. In this first of two articles on strategy development, adapted from. With a welldesigned strategy map, every employee can know your overall strategy and where they fit in. The authors created strategy map templates for various industries, including retail, telecommunications.
Jun 01, 2011 strategy maps can help chart this difficult terrain. On the toolbar there is a drop list with all of the strategy maps available in your scorecard. Webster university is the only inclusive, private, nonprofit u. Using the strategy map as a strategic communication tool in. As you can see the strategy map begins with an exploration of the strategic context for. 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.
Yet, bsc implementations that actually use a sophisticated strategy map appear to be rather successful. 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. Its great for quickly communicating bigpicture objectives to everyone in the company. 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. Strategy maps describe how organisations create value by building on strategic. We will use the many articles and books written by kaplan and norton on the bsc as frame of reference. 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. A strategy map is a visual framework for the corporate objectives within those four areas. Converting intangible assets into tangible outcomes, by robert s. We think this should be the sample for ericsson in their future business to develop their strategy map. A lot of this transformation was done by further emphasizing the so called strategy map. 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. Strategy maps, pioneered by balanced scorecard founders robert kaplan and david norton, allow organisations to describe and communicate their strategies.
The balanced scorecard provides a relevant range of financial and nonfinancial information that supports effective business. Accounting chapter 2 balanced scorecard and strategy map. Each stage is designed to answer a key question before moving to the next. Norton, which explains the balanced scorecard strategy map. Strategy maps can help chart this difficult terrain. For more information about strategy maps design, check out this article. Strategy maps is an interesting business book that shows readers how a strategy themes can have impact on other themes. Balanced scorecard strategy map templates and examples. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance. Introduction to strategy maps a book by robert s kaplan and. My name is glenn kaplan and this is my digital, but evergrowing, portfolio.
Learn vocabulary, terms, and more with flashcards, games, and other study tools. Th roughout part one and subsequent parts of the workbook, icons are included that cross. 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. Kaplan and nortons future vision of the balanced scorecard. The balanced scorecard concept with robert kaplan and coauthor with him of. A strategy map is a diagram that shows your organizations strategy on a single page. Strategy comparison chart strategy map leadership offsite. Strategy maps we can see that they have kept the number of objectives low. 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. Kaplan and norton transformed their balanced scorecard, in 1992 introduced in the. How strategy maps frame an organizations objectives.
539 186 344 1537 79 1106 1305 1006 918 1510 1431 324 33 1575 372 827 317 1117 1335 1485 995 824 178 510 861 1615 117 672 387 1565 1660 1638 385 393 1229 1365 772 584 154 326 988 546 1390 340 1379 781