In this first of two articles on strategy development, adapted from. Although the previous book of kaplan and norton already spent 64 pages on strategy maps, you can find the latest, best and most comprehensive treatment of strategy maps including lots of examples in the book that is mentioned below. Kaplan accounting, harvard and norton, president of renaissance solutions inc. Scan til mail urllink pdf 300 dpi handelshoyskolen bi. The four perspectives of the robert kaplan and david nortons. The balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and global scale. Conceptual foundations of the balanced scorecard 3. Norton introduced the balanced scorecard, a revolutionary. Strategy maps and balanced scorecards constitute the. Oct 25, 2012 when the retail division had to change their non anticipated strategies, the system reject this change and measurement result no longer reflected the reality. Converting intangible assets into tangible outcomes, harvard business school publishing, boston.
The development of the balanced scorecard as a strategic. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced scorecards to develop performance objectives and measures linked to strategy. After working with several pioneering technology and manufacturing companies, robert kaplan, a harvard business school professor, and david norton, president of a management consulting firm, found that performance management was defined very narrowly, focusing almost exclusively on financial measures. Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Translating strategy into action, robert s kaplan and david p norton, boston. 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. Convert ing intangible assets into tangible outcomes. The strategic thinking that kaplan and norton have done is very valuable. Pioneered by balanced scorecard founders robert kaplan and david norton, strategy mapping is an effective and powerful initiative that can help keep a company at its competitive peak.
Foreshadowing the subsequent development of strategy maps, anthony claimed that. Video real player microsoft excel spreadsheet xml zip file. Kaplan and norton identify four themes, which they go on to describe as valuecreating. Organization, which, in turn, results from strategy maps and balanced scorecards. Strategy maps, converting intangible assets into tangible outcomes. Introduction to strategy maps a book by robert s kaplan and.
The competitiveness and balanced scorecard of health care companies 3 creating competitive advantage swayne, duncan, ginter, 2006 is often a matter of selecting an appropriate basis on which to compete, it is the means by which the organization seeks to develop cost advantage or to differentiate itself from other organizations. Alignment applies the balanced scorecard to corporate strategy, aligning business units often poorlycoordinated with headquar. Norton david p financial executive mar\apr 2004 20 2 abi\inform complete pg. Reviewed in the united states on february 23, 2004. Strategy maps offers a powerful new visual tool for aligning processes, people and it with desired outcomes. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps. Strategic performance measurement and management in nonpro.
Figure 1 on the following page provides an overview of a strategy map. Mr kaplan is known in his own right for introducing the world to. Use features like bookmarks, note taking and highlighting while reading strategy maps. Converting intangible assets into tangible outcomes, robert s kaplan and david p norton, boston. Strategic management, balanced scorecard, strategy maps, innovation. Interrelation between strategy maps and other implementation. The strategy map approach is used by many of the fastest growing uk and international charities. Robert kaplan and david norton s balanced scorecard the four perspectives of bsc i n its original version, the balanced scorecard sets out the principles of performance management by balancing four components or perspectives. A n effective business strategy is a complex series of interconnections a set of causeandeffect relationships. Strategy maps converting intangible assets into trangible outcomes by robert s. Robert kaplan and david nortons balanced scorecard bsc definition of balanced scorecard b alanced scorecard is not a simple measuring tool. Use topographic maps in wilderness navigation situations 2. Norton, the inventor of the first american door closer. Sep 06, 2010 edited by bill cotton ca readers of this column will know that robert kaplan and david norton have been at the forefront of developments in the area of strategic management accounting sma.
The application of the balanced scorecard bsc semantic scholar. Use various tools and techniques to determine position in a wilderness setting. Kaplan and norton offer their consulting services, training, and conferences on. Fa strategy maps af robert kaplan som hardback bog pa engelsk. In addition, it can help provide information on the chosen strategy more. Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships. Mr kaplan is known in his own right for introducing the world to activitybased costing abc in the 1980s. Download limit exceeded you have exceeded your daily download allowance. 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. These and other research findings help to explain why kaplan and norton believe so strongly in the power of the balanced scorecard. Conceptual foundations of the balanced scorecard harvard. The strategy map allows managers to align investments in people, tech nology and.
When the retail division had to change their non anticipated strategies, the system reject this change and measurement result no longer reflected the reality. Before kaplan and norton, most academic strategy courses were dominated by the thinking of michael porter, who began by emphasizing the five forces model that suggested what external, environmental factors would change an organizations. Abstract click on the graph to download a big strategy map template in. Plan wilderness travel routes using various types of maps. In 1880, he organized the norton door check company to manufacture and market his product. Kaplans most popular book is the balanced scorecard. Norton introduced the balanced scorecard, a revolutionary performance. The four perspectives of the scorecardfinancial measures, customer knowledge, internal business processes, and learning and growthoffer a balance between shortterm and longterm objectives, between outcomes desired and performance drivers of those outcomes, and between hard. The competitiveness and balanced the competitiveness. 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. Figure 1 the balanced scorecard strategy map model. Robert kaplan and david nortons balanced scorecard the four perspectives of bsc i n its original version, the balanced scorecard sets out the principles of performance management by balancing four components or perspectives. Converting intangible assets into tangible outcomes harvard business school press, 2004 is a sequel to their classic the balanced scorecard hbsp, 1996.
Financial measures alone, or even supplemented with a collection of ad hoc nonfinancial measures, are not. This collection highlights the most important ideas and concepts from robert s. Commentary transforming the balanced scorecard from. This offering is the 3rd and one of the most valuable, perhaps the key to kaplan and norton s 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. Interchangeability is essential to the central idea of mainstream economics. The balanced scorecard measures that drive performance. How to develop a balanced scorecard into a strategy map. Focusing on the barriers obstructing successful strategy implementation, i will try to identify whether there is a connection between the balanced scorecard as a. Due to its large file size, this book may take longer to download. Edited by bill cotton ca readers of this column will know that robert kaplan and david norton have been at the forefront of developments in the area of strategic management accounting sma. Robert kaplan and david nortons balanced scorecard bsc and. Then, in the strategyfocused organization, kaplan and norton showed. Six stage strategy execution approach of robert kaplan and. Economists, who adopt the principle of consumer sovereignty, treat preferences as unquestioned for the purposes of their analysis.
Using the strategy map as a strategic communication tool in. Strategy map financial perspective customer perspective internal perspective learning and growth perspective human capital information capital organization capital operations management processes customer management processes innovation processes regulatory and social processessupply production distribution risk management. Kaplan and nortons original work makes no specific observations concerning how the balanced scorecard might improve the performance of organisations. Kaplan the managers and constituents of nonprofits are increasingly concerned about measuring and managing organizational performance. Balanced scorecard is a strategic management tool, used in both strategy formulation, organisational alignment and performance management brudan, 2010.
Pdf purpose the purpose of this paper is to show how the use of strategy maps. The strategy focused organization the summary in brief in 1996, robert kaplan and david norton introduced the balanced scorecard performance measurement method, which included not only traditional financial measures but also such qualitative measures as employee satisfaction, corporate mission and customer loyalty. Converting intangible assets into tangible outcomes. They also represent preferences for future outcomes as having value in the present.
During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. Norton school of public policy georgia institute of technology atlanta, georgia 303320345, usa abstract. National planning scenarios fact sheet femas mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. Kaplan and norton s balanced scorecard carl lehmann. The strategyfocused organization the summary in brief in 1996, robert kaplan and david norton introduced the balanced scorecard performance measurement method, which included not only traditional financial measures but also such qualitative measures as employee satisfaction, corporate mission and customer loyalty. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Finally the book from norton kaplan that links scorecarding to intangible assets management and. It is, according to authors robert kaplan and david norton, a management system that ensures clarification and formalization of the strategy. Strategic performance measurement and management in. More than providing information on whether or not business targets are achieved, balanced scorecard also clarifies the impact on corporate strategy. The strategy map was developed by kaplan and norton in 2004 based on the bsc, to help firms develop a. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. Pdf the impact of the strategy maps on balanced scorecard.
With this paper, we show how organizations use their scorecards to align. For both countries and companies, intangible assets drive. Read strategy maps converting intangible assets into tangible outcomes by robert s. When the company used the retail divisions strategy map to their corporate strategy map using the computer system, it reflected results that are different than the reality. The authors show how companies can use strategy maps to link those processes to. The development of bsc as a strategic management tool page 2 of 9. Understand and employ techniques for wilderness navigation with and without electronic devices.979 624 567 1414 339 767 912 1187 1584 1353 542 1064 802 1064 7 1236 68 696 1389 297 280 810 154 803 160 286 392 1438 1278 1334 1347 1487 18 1264 859