How to develop a balanced scorecard into a strategy map. May 03, 2014 the balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. An introduction to game theory third edition 9780393918380 by watson, joel and a great selection of similar new, used and collectible books available now at great prices. Read strategy maps converting intangible assets into tangible outcomes by robert s. Kaplan the managers and constituents of nonprofits are increasingly concerned about measuring and managing organizational performance. Pdf the impact of the strategy maps on balanced scorecard. Figure 1 the balanced scorecard strategy map model. Finally the book from norton kaplan that links scorecarding to intangible assets management and. The application of the balanced scorecard bsc semantic scholar. The development of bsc as a strategic management tool page 2 of 9. Conceptual foundations of the balanced scorecard harvard. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. Norton david p financial executive mar\apr 2004 20 2 abi\inform complete pg.
Six stage strategy execution approach of robert kaplan and. 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. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. 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. 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. Robert kaplan and david nortons balanced scorecard bsc and. For both countries and companies, intangible assets drive. The competitiveness and balanced the competitiveness. Figure 1 on the following page provides an overview of a strategy map. More than providing information on whether or not business targets are achieved, balanced scorecard also clarifies the impact on corporate strategy. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Strategic performance measurement and management in nonpro. Kaplan and norton identify four themes, which they go on to describe as valuecreating.
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. Plan wilderness travel routes using various types of maps. Financial, customer, internal process, learning and growth. Conceptual foundations of the balanced scorecard 3. Due to its large file size, this book may take longer to download. 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. Norton introduced the balanced scorecard, a revolutionary performance.
Converting intangible assets into tangible outcomes harvard business school press, 2004 is a sequel to their classic the balanced scorecard hbsp, 1996. Then, in the strategyfocused organization, kaplan and norton showed. Strategy maps allow organisations to describe and communicate their strategies succinctly to close the gap between creation and successful implementation of strategy. The balanced scorecard measures that drive performance. 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. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Robert kaplan and david nortons balanced scorecard bsc definition of balanced scorecard b alanced scorecard is not a simple measuring tool. Introduction to strategy maps a book by robert s kaplan and. Foreshadowing the subsequent development of strategy maps, anthony claimed that. 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. The strategy map approach is used by many of the fastest growing uk and international charities. Convert ing intangible assets into tangible outcomes. 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. Interrelation between strategy maps and other implementation.
The balanced scorecard translates a companys vision and strategy into a coherent set of performance measures. 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. Strategy maps converting intangible assets into trangible outcomes by robert s. This collection highlights the most important ideas and concepts from robert s. Converting intangible assets into tangible outcomes 1 september 2004 strategy maps. Mr kaplan is known in his own right for introducing the world to activitybased costing abc in the 1980s. Understand and employ techniques for wilderness navigation with and without electronic devices. 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. The development of the balanced scorecard as a strategic. These and other research findings help to explain why kaplan and norton believe so strongly in the power of the balanced scorecard. Norton school of public policy georgia institute of technology atlanta, georgia 303320345, usa abstract. Economists, who adopt the principle of consumer sovereignty, treat preferences as unquestioned for the purposes of their analysis. Kaplan accounting, harvard and norton, president of renaissance solutions inc.
It is, according to authors robert kaplan and david norton, a management system that ensures clarification and formalization of the strategy. Converting intangible assets into tangible outcomes, robert s kaplan and david p norton, boston. 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. 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. Kaplan and nortons original work makes no specific observations concerning how the balanced scorecard might improve the performance of organisations. The balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and. Norton, the inventor of the first american door closer. A n effective business strategy is a complex series of interconnections a set of causeandeffect relationships. Norton introduced the balanced scorecard, a revolutionary. Strategic performance measurement and management in.
Converting intangible assets into tangible outcomes, harvard business school publishing, boston. The balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and global scale. Norton introduced the balanced scorecard, a revolutionary performa. Fa strategy maps af robert kaplan som hardback bog pa engelsk. Reviewed in the united states on february 23, 2004. They also represent preferences for future outcomes as having value in the present. 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. Pdf purpose the purpose of this paper is to show how the use of strategy maps. The strategic thinking that kaplan and norton have done is very valuable. Kaplan and norton s balanced scorecard carl lehmann.
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. 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. In addition, it can help provide information on the chosen strategy more. Alignment applies the balanced scorecard to corporate strategy, aligning business units often poorlycoordinated with headquar. 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. The strategy map was developed by kaplan and norton in 2004 based on the bsc, to help firms develop a. Kaplans most popular book is the balanced scorecard. 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.
The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. 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. Strategy maps offers a powerful new visual tool for aligning processes, people and it with desired outcomes. Organization, which, in turn, results from strategy maps and balanced scorecards. The strategy map allows managers to align investments in people, tech nology and. Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships. Converting intangible assets into tangible outcomes. Use topographic maps in wilderness navigation situations 2. Download limit exceeded you have exceeded your daily download allowance. The four perspectives of the robert kaplan and david nortons. Use various tools and techniques to determine position in a wilderness setting.
Focusing on the barriers obstructing successful strategy implementation, i will try to identify whether there is a connection between the balanced scorecard as a. When the retail division had to change their non anticipated strategies, the system reject this change and measurement result no longer reflected the reality. Balanced scorecard is a strategic management tool, used in both strategy formulation, organisational alignment and performance management brudan, 2010. With this paper, we show how organizations use their scorecards to align. Strategy maps, converting intangible assets into tangible outcomes. Mr kaplan is known in his own right for introducing the world to. Interchangeability is essential to the central idea of mainstream economics. Commentary transforming the balanced scorecard from. 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.
In this first of two articles on strategy development, adapted from. 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 authors show how companies can use strategy maps to link those processes to. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage.
Use features like bookmarks, note taking and highlighting while reading strategy maps. Financial measures alone, or even supplemented with a collection of ad hoc nonfinancial measures, are not. In 1880, he organized the norton door check company to manufacture and market his product. 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. Translating strategy into action, robert s kaplan and david p norton, boston. Strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Strategic management, balanced scorecard, strategy maps, innovation. Strategy maps and balanced scorecards constitute the. Kaplan and norton offer their consulting services, training, and conferences on. Scan til mail urllink pdf 300 dpi handelshoyskolen bi.
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