To maximise their value, however, they need to be seen and used as core building blocks in an aligned strategy initiative. A strategy map is a diagram that describes how a company or organisation can. 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. This document is an input for the creation of the organizations balanced scorecard bsc in addition to the main purpose of strategy communication. Cancel or move limit orders if the limit order is at a distance of m or less ticks from the best price and the total size of the first n price levels at the limit orders side is less than x% of the size of the opposite side the escape strategy attempts to cancel move a limit order away from the market if there is an order book imbalance disadvantaging the orders side of the book. Balanced scorecard, organizations create a common understandable point of. Within the departments and offices, it means aligning a division, section, unit or team to a higherlevel strategy. Kaplan and nortons books, which relative with the balanced scorecard and strategy map.
Strategic planning defined strategic planning is a process of looking into the future and identifying trends and issues against which to align organizational priorities of the department or office. Going further, what one missed in strategy maps is any sense of a value chain. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps. Popular strategy books meet your next favorite book. Strategy is based on a differentiated customer value proposition. Fundamentals of global strategy a business model approach. Pdf the initial steps for building the strategy map are primarily. Click on the graph to download a big strategy map template in. One increasingly popular framework to combine these qualities is the balanced scorecard. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Maps are visual diagrams of the relationship between strategy and business objectives. While they may look impressive, few people read them and even if they are read in the business the strategic objectives are often hidden or lost in extraneous.
Strategy in action lloyds of london and longtailed risk 507 strategy in action responses to the asian economic crisis 511 strategy in action disney and the redistribution of risk 5 risk and diversi. About me adjunct lecturer at hks two decades experience in the nonprofit and philanthropic sector, designing and leading large global and national initiatives and organizations board experience on boards and advisory boards. Goals, priorities and strategies outlines the goals, priorities, and strategies to meet the mission 3 4 overarching goals aligned with mission. A complete strategy map template including examples. Create a strategy map develop a strategy map that illustrates how the company creates customer value essentially a diagram of the value chain. Another key strength of a strategy map is the ability to visualise the causal. Consider a map we produced as a guide to writing this book. Download sample strategy maps for a balanced scorecard. We discuss the connection between strategy and business model and argue that both notions can be clearly separated.
To make it look picturesque, use of different colored tiles will make the entire map look attractive. Sample strategy maps for a balanced scorecard sharepoint server 2010 important. Section v revisits the generic twostage competitive process framework to integrate the three notions. Completed generic strategy map asset utilisation figure 2. When one reads about the royal canadian mounted police, for example, one expects a more engaging outcome than a significant breakthrough in how strategy maps are designed and used in large, matrixed publicsector. That is, a strategic plan is a road map to lead an organization from where it is now to where it would like to be in five or ten years. One strategy map actually places an arrow behind the four themes or sets of processes in the internal perspective, to suggest they somehow fit together to generate a product or service, but the idea isnt. A strategy map template will help you create a holistic view of the entire firm. International management culture strategy and behavior 10th edition by luthans doh solution manual 1 chapters updated apr 04, 2019 01. 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. Do you need to create an it strategy map and you are in need of some expert guidance.
Figure 1 on the following page provides an overview of a strategy map. Strategy maps can be, and often are, used as standalone tools that organisations employ to develop, understand and convey their strategic story. They provide a language that executive teams can use to discuss the direction and priorities of their enterprises. Dec 16, 2003 with strategy maps, kaplan and norton expand the balanced scorecard concept they presented in their first book, called the balanced scorecard. A strategy map is a powerful management tools that describes the key business objectives on a single page. Adigital%marketing% strategy %includes%an%integrative% plan%ofhow%your%business%will%use%social%media,% search%engines,%emails,%and%content%to%promote%. Mapping your corporate strategy, hbr working knowledge interview with robert kaplan strategy map offers a framework for articulating strategy in a variety of contexts strategy maps, in some cases, try to frame implied solutions by introducing processes into the framework e. Transition your executive team from an outdated purpose statement and some disjointed goals to a fullfledged strategy map. Converting intangible assets into tangible outcomes. This is a free strategy cause and effect diagram template that you can edit and customize. Competing in a global worldpage 4assesses how global the world economy has. This sample strategy map is based on a healthcare system that is looking to grow outside of its current geographical boundaries. For those at the point of bringing strategy and operations together in a continuous process for strategy management go with the fifth book, the execution premium.
In section iv, we move on to discussing the first stage, the strategy stage. It is an excellent illustration of how a strategy map is flexible enough to take on the components of your organizations individual strategy and environment. They argue that success results from a strategy focused organization, which, in turn, results from strategy maps and balanced scorecards. For those that need examples, this book is valuable, but for those who want theory, the hbr article is a lot faster read. With strategy maps, kaplan and norton expand the balanced scorecard concept they presented in their first book, called the balanced scorecard. A wellthoughtout strategy map is a beautiful thing. A strategy map is a visual tool that helps with the organizations strategy on different stages. Strategy map powerpoint diagram create a strategy map diagram with traditional 4layers of business strategy. Kaplan and norton claim that this generic map reflects a generalization of their work with a large. Balanced scorecard stepbystep volta river authority.
Each stage is designed to answer a key question before moving to the next. The purpose of this paper is to examine the balanced scorecard bsc adoption experience amongst organisations in connection with the strategy map design. As you can see the strategy map begins with an exploration of the strategic context for. Strategy maps foster a better understanding of the bsc among employees. The strategy map allows companies to describe the links between intangible assets and value creation so all aspects of strategy can be implemented in a manner that ensures sustained value creation. Think of strategy maps as the reasoning behind a plan and the balanced scorecard as the measure of how well that plan is going. Delivering actionable strategy through business architecture. 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. Organization, which, in turn, results from strategy maps and balanced scorecards. This document is an input for the creation of the organizations balanced scorecard bsc in addition to the main purpose. Norton introduced the balanced scorecard, a revolutionary performa. Oct 01, 2004 the balanced scorecard tool and strategy map offer a framework to measure intangible assets and to describe strategies as a series of cause. 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.
Scanning across on the strategy map in figure 1, the themes are operations management processes supply chain management, customer management processes customer relationship management, innovation pro. When looking for a way to devise an enterprise strategy map and cascade that through the portfolio of business units and functions consider the fourth book, alignment. Selecting a language below will dynamically change the. With a welldesigned strategy map, every employee can know your overall strategy and where they fit in. Value chain isnt an entry in the index of the book. 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. Strategic management 7 1 introduction 1 introduction this compendium provides a comprehensive overview of the most important topics covered in a strategy course at the bachelor, master or mba level. North american guide to safe places is an indepth analysis of north americas safest places to live. Read strategy maps converting intangible assets into tangible outcomes by robert s.
Converting intangible assets into tangible outcomes book is not really ordinary book, you have it then the world is in your hands. A strategy map represents how the organization creates value. Linking people, strategy and performance the hr scorecard. Use features like bookmarks, note taking and highlighting while reading strategy maps. This book will help you look ahead for potential threats that most other people fail to see or choose to ignore. In the 2001 book the strategyfocused organization, kaplan and norton transform their balanced scorecard. The main thing the new book adds in hundreds of pages of examples, drawn from a wide variety of different organizations. A strategy map sits in front of its scorecard the balanced scorecard. And though the book is laden with case studies, it doesnt even begin to scratch the surface of their interesting stories. Figure 1 highlights where the strategy map and balanced scorecard fit in the. How to develop a balanced scorecard into a strategy map.
This map demonstrates the unrivaled power of the concept, once understood. Well take you through the process with examples and blank worksheets so youll be the proud owner of a balanced scorecard at the end. An example of themes that are often misaligned with strategy are. We discussed 8 steps that one can follow to create a professional strategy map, as well as typical mistakes that business professional make. Strategy maps we can see that they have kept the number of objectives low. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. Generic strategy map this tool provides an integrated view of the development of a strategy map. A strategy map is developed from the perspective of a single management team.
May 21, 2004 shown on the upper right is an example of a strategy map pdf prepared for a small software startup company in vilnius, lithuania. Introduction the strategy map as a visual representation of organizational strategy. The intention is to supplement renowned strategy textbooks such as johnson and scholes. Strategic management converting intangible assets into. The strategy map is a visual framework of the causeandeffect relationships among the components of an organizations strategy, and it is used to integrate the four perspectives of a bsc financial, customer, internal, and learning and growth.
A more recent entry appears in strategic planning for public and nonprofit or. Well, the template here would be handy for you with its readymade it strategy map that highlights on varied parameters or attributes under different perspectives. There is no great tradition or heritage for strategic thinking in many organizations. Strategy maps is an interesting business book that shows readers how a strategy themes can have impact on other themes. 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. Value is created through internal business processes. A handbook for implementation lxil how to use this handbook. Given our focus on process, we looked rather carefully at the themes, which are. 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. Powerpoint format will help you make graphs using connectors, tiles and boxes. A strategy map is a diagram that shows your organizations strategy on a single page.
This offering is the 3rd and one of the most valuable, perhaps the key to kaplan and nortons 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. Rather, each strategy map has a scorecard behind it. That business case must include a recommendation for the implementation or expansion of a highperformance work system hpws. Competing in a global worldpage 4through global strategy as business model changepage 54make up the first section. Nortons book strategy maps shows that many businesses share the same problem. If you are preparing a strategy map presentation to describe your corporate strategy and define the next strategy to implement in your organization then a cause and effect powerpoint design can help to communicate this strategy within your organization. More strategic management and corporate finance models.
The strategy map allows managers to align investments in people, technology and organizational capital for the greatest impact. A strategy map for a management team, unique to that organisation. 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. The strategy map is a tool especially relevant to document the primary strategic goals of an organization. Its great for quickly communicating bigpicture objectives to everyone in the company. All too often businesses feel compelled to create long strategy documents. 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. Using survey data from managers of 91 italian organisations the paper seeks to verify whether. One strategy map actually places an arrow behind the four themes or sets of processes in the. By translating their strategy into the logical architecture of a strategy map and.