Converting intangible assets into tangible outcomes, robert s kaplan and david p norton, boston. In this first of two articles on strategy development, adapted from kaplan and nortons. This system provides feedback on internal business processes and external outcomes to continually improve organizational performance and results. Kaplan is a professor at harvard university and david p. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Norton is the founder and president of the balanced scorecard collaborative. Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed. The strategy map introduced by kaplan and norton 2001. Strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Strategy maps describe how organisations create value by building on strategic.
The management dictionary covers over 2500 business concepts from 6 categories. Soon, norton readopted golds idea and went into print in cio insight 2004. Figure 1 on the following page provides an overview of a strategy map. Pdf purpose the purpose of this paper is to show how the use of strategy maps. Thesemeasuresshowhowthefinancialperspectivecontributestolong. Commentary transforming the balanced scorecard from. Then, in the strategyfocused organization, kaplan and norton showed how organizations achieved breakthrough performance with a. Kaplan and norton offer their consulting services, training, and conferences on. David norton and i introduced the balanced scorecard in a 1992 harvard business.
The purpose of this study is to investigate the integration of strategic management and quality assurance in higher education. Many strategy maps show the interconnections of elements within a balanced scorecard similar to flowcharts that show relationships between their own entities. The limits of nonprofit impact harvard business school. Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. One increasingly popular framework to combine these qualities is the balanced scorecard. Browse the definition and meaning of more terms similar to strategy map kaplan norton.
Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. Strategic alignment determines the value of intangible assets. The strategy map allows managers to align investments in people, tech nology and. A proposed heuristic for a computer chess program john l. Converting intangible assets into tangible outcomes robert s. 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. This is achieve by the development of an enterprise scorecard. 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. Their combined citations are counted only for the first article. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning.
Linking the balanced scorecard to strategy robert s. Kaplan and norton 2004 formally named this approach as strategy map, and have proposed it as a strategic management tool. The life strategy map helps the students focus on whats truly. This is absolutely chock full of example and sample strategy maps. These and other research findings help to explain why kaplan and norton believe so strongly in the power of the balanced scorecard. The objectives on the strategy map are arrayed across two or more horizontal bands, and each band is known as a perspective. Strategy maps converting intangible assets into trangible outcomes by robert s. Kaplan and norton argue that the most critical aspect of strategyimplementing it in a way that ensures sustained value creationdepends on managing four key internal processes.
Kaplan and norton 2006 say that strategy can be defined as a unit of detailed specific objectives and actions. Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer. Kaplanandnorton 2004 soughttoshowhowtoapplythebsctostrategyby usingstrategy maps. The financial perspective describes the tangible outcomes. Strategy is a means of attaining vision and strategic goals. Balanced scorecard academic dictionaries and encyclopedias. When kaplan and norton first introduced the concept, in 1992, companies were busy. At the time, they believed that knowledgebased assets. The strategy map provides a framework for linking intangible assets to shareholder value creation through four interrelated perspectives. The balanced scorecard bsc is a performance management tool which began as a concept for measuring whether the smaller scale operational activities of a company are aligned with its larger scale objectives in terms of vision and strategy. Organization, which, in turn, results from strategy maps and balanced scorecards. Balanced scorecard characterization balanced scorecard bsc was first introduced by robert kaplan and david norton in an article published in harvard. Video real player microsoft excel spreadsheet xml zip file.
However, strategic management is a mature and wellresearched discipline. Turku university of applied sciences, turku, finland. This work in turn was again mentioned again by symons 2005 of forrester research. Converting intangible assets into tangible outcomes harvard business school press, 2004 is a sequel to their classic the balanced scorecard hbsp, 1996. The strategy map and selection of measures in the scorecard. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Deming, 1986, the strategy maps introduced by kaplan and norton 2004 and the concept of the quality map. A n effective business strategy is a complex series of interconnections a set of causeandeffect relationships. Kaplan and norton recently published strategy maps, the third book in their series. 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. A balanced scorecard approach to strategic planning. Creating an excelbased balanced scorecard to measure the. Strategy maps by conceptualizing the it organization ito scorecard strategy maps. Converting intangible assets into tangible outcomes, by robert s.
Finally the book from nortonkaplan that links scorecarding to intangible assets management and. The strategy map was developed by kaplan and norton in 2004 based on the bsc, to help firms develop a. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps. Other types of diagrams are inherently less permissive regarding ambiguity in the expression of the. A strategy map is a diagram that is used to document the primary strategic goals. Norton introduced the balanced scorecard, a revolutionary performa. The strategy maps value becomes evident when it is used as a tool that enables people to express and share strategic priorities. Norton 2000 cite mobil as an example, where they used both a revenue growth strategy and a productivity improvement strategy, kaplan and norton 2000, p170 say that balancing the two strategies helps to ensure. Merged 2003, now incorporated as strategy management group, inc. Strategy maps combine with balanced scorecards to provide a new framework for describing and implementing strategy. How to understand a strategy map and the causeandeffect relation. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced scorecards to develop performance. Balanced scorecard is a management system that enables organizations to translate vision and strategy into action.
Reviewed in the united states on february 23, 2004. How value gets created from the organizations internal and learning and growth perspectives. It is a great read after you have read balanced scorecard and strategy focused organization. It provides the foundation for designing a balanced scorecard that is the cornerstone of a strategic management system. Find materials for this course in the pages linked along the left. Robert kaplan and david norton created the balanced scorecard approach in the early. Strategic management, balanced scorecard, strategy maps, innovation. In 2012, telinotecs bsc team also developed a performance measurement causeandeffect matrix and a. At mc were the leading european experts in developing strategy maps with charities and public bodies.
Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships. Use features like bookmarks, note taking and highlighting while reading strategy maps. Norton, the balanced scorecard boston, harvard business school press, 1996 robert s. Conceptual foundations of the balanced scorecard 3. The study presents how the value chain can be described in the strategy and quality maps, which are. Kaplan has 71 books on goodreads with 35509 ratings. The balanced scorecard as a performance management tool.
Kaplan and norton recently published strategy maps. The third principle implies that strategy maps of line business units and staff units should be aligned with corporate strategy. Convert ing intangible assets into tangible outcomes. Measuring the strategic readiness of intangible assets.
The life strategy map envelops and involves the student in a deep introspection. Norton, alignment boston, harvard business school press, 2006. Norton four years ago, kaplan and norton introduced the concept of a new enterprise functionthe office of strategy management osm to coordinate and integrate all strategy management processes. Converting intangible assets into tangible outcomes book is not really ordinary book, you have it then the world is in.
Strategy map pdf the material contained in the management accounting guideline using strategy maps to drive performance is designed to provide illustrative information with. Then, in the strategyfocused organization, kaplan and norton showed how. Strategy maps, they explain, pinpoint which of those key internal processes are having the greatest impact on value creation. Jerz problem solving and the gathering of diagnostic information john l. Put differently, strategy maps help managers describe and manage strategy at an operational level because they show. Then, in the strategyfocused organization, kaplan and norton showed how organizations achieved. Membership desk, especially those coauthored by keynote speaker robert kaplan. To integrate the bsc and strategies, kaplan and norton 2004 introduced the strategy map. Kaplans most popular book is the balanced scorecard.
The kaplannorton kn strategy maps are perhaps the most popular, featuring some exibility in the representation of strategy kaplan and norton,2000, 2004. A few of the best practitioners of strategy are already doing what theorists and authors are attempting to describe and formalize. Kaplan rs and norton dp 2004a strategy maps converting. According to kaplan and norton, a strategy map is a logical comprehensive architecture for describing strategy.
Read strategy maps converting intangible assets into tangible outcomes by robert s. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance. Without theoretical support, the strategy map approach is weak in theorising the phenomena and outcomes. 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 addition, it can help provide information on the chosen strategy more. 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. 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. How to develop a balanced scorecard into a strategy map. A strategy map is a diagram that is used to document the primary strategic goals being pursued by an organization or management team.
Pdf topic maps for representing balanced scorecards. Translating strategy into action, robert s kaplan and david p norton, boston. Norton, strategy maps boston, harvard business school press, 2004 robert s. The balanced scorecard and strategy maps are used in a large number of organisations, in both the public and private sectors, as part of a growing number of management tools that senior executives are using in order to improve. Kaplan is the marvin bower professor of leadership development at harvard business school and chairman of the balanced scorecard collaborative. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. Converting intangible assets into tangible outcomes. Kaplan and norton have authored a book on strategy maps titled strategy maps. The impact of the strategy maps on balanced scorecard performance, int. Strategy maps 2004 alignment 2006 the execution premium 2008 his books have sold more than one million copies in 23 different languages. Beyond the balanced scorecard should strategy maps be a part of the management accountants tool kit.
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