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Strategy Maps: Converting Intangible Assets into Tangible Outcomes

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  • Posted April 9, 2013

    Strategy Maps: Converting Intangible Assets into Tangible Outcom

    Strategy Maps: Converting Intangible Assets into Tangible Outcomes by Robert S. Kaplan and David P. Norton reveals how an organization can link performance measures covering the areas of operations, customer relationships, innovation, and regulatory and social processes to its mission and then leverage these `strategy maps' to drive performance improvements.

    I like this reference because it illustrates how an integrated performance measurement system can be leveraged to drive organizational performance toward desired outcomes. This book is thorough in its discussions and provides the visual aids needed to make the concepts real to the reader.

    All the Best,
    Nathan Ives
    StrategyDriven Principal

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  • Anonymous

    Posted January 5, 2005

    Templates for translating strategy into action

    Whether you like Kaplan & Norton's concept of the balanced scorecard or not, we probably can agree that they have had huge adoption of their ideas in many of the biggest firms in the world. Kaplan & Norton's focus on creating easy-to-understand frameworks for implementing strategy is admirable. They have published their ideas in articles and books over they last 10 years. This book - Strategy Maps - is the third book in their campaign for making strategy happen. The first book from 1996 introduced the BALANCED SCORECARD (BSC). A tool that translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. The performance measures were arranged into four PERSPECTIVES. Viewed horizontally, like in a grid, each perspective represents the set of objectives desired by a particular stakeholder (Financial, Customer, Internal Process/Organization, Learning & Growth/Employees). The perspectives, when taken together, permit a complete view of the strategy and 'tell the story of a strategy' in a clearly understandable framework. In 2001, the second book introduced the STRATEGY-FOCUSED ORGANIZATION that places strategy at the centre of its management processes - not only for measurement purposes. Strategy is now central to the firm's agenda. There are five principles to a Strategy-Focused Organization: Mobilize Change through Executive Leadership; Translate the Strategy to Operational Terms [that is, balanced scorecard and strategy map]; Align the Organization to the Strategy; Make Strategy Everyone's Job; Make Strategy a Continual Process. Finally in 2004, this book expands the concept of the STRATEGY MAP, which is a visual representation of an organization's strategy and the processes and systems necessary to implement that strategy. A strategy map is basically a one-page graphical summary, showing employees how their jobs are linked to the organization's overall objectives. This book adds some new contributions to the concept of strategy maps: TEMPLATES. The main benefit of this book may be the (very) many templates that should stimulate most readers to build their own customised strategy map. Being a relatively experienced balanced scorecard practitioner myself, I certainly enjoyed the inspiration from the templates. Most benefit is derived from the templates that describe the basic components of how value gets created in the internal process perspective as well as the learning and growth perspective. I can highly recommend the strategy map templates reflecting the firm's generic competitive strategy - lowest-cost vs. product leader vs. customer intimacy. STRATEGIC THEMES, which are based on a few selected key value-creating processes. The authors introduce a taxonomy that classifies internal value-creating processes into four clusters that each may have literally hundreds of sub-processes that create value in some way: - operations management (i.e. producing and delivering. Also known as supply chain management) - customer management (or CRM) - innovation of products and processes (such as Product-Lifecycle Management etc.) - regulatory and social: conforming to regulations and societal expectations INTANGIBLE ASSETS FRAMEWORK, which attempts to describe, measure, and align the three intangible assets in the learning and growth perspective to the strategic processes and objectives in the internal perspectives. The three types of intangible assets are: - Human capital: employees' skills, talent, and knowledge. - Organization capital: culture, leadership, employee alignment, teamwork, and knowledge management - Information capital: Databases, information systems, network, and technology infrastructure I have worked in practice with the balanced scorecard since 1998. This book is a natural follow-up to the authors' previous work. I fully acknowledge the critical issues mentioned

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