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