Strategy Maps: Converting Intangible Assets into Tangible Outcomes

Strategy Maps: Converting Intangible Assets into Tangible Outcomes

4.2 5
by Robert S. Kaplan, David P. Norton
     
 

View All Available Formats & Editions

ISBN-10: 1591391342

ISBN-13: 9781591391340

Pub. Date: 02/02/2004

Publisher: Harvard Business Review Press


More than a decade ago, Robert S. Kaplan and David P. Norton introduced the Balanced Scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships. Then, in The Strategy-Focused Organization, Kaplan and Norton showed how organizations achieved

Overview


More than a decade ago, Robert S. Kaplan and David P. Norton introduced the Balanced Scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships. Then, in The Strategy-Focused Organization, Kaplan and Norton showed how organizations achieved breakthrough performance with a management system that put the Balanced Scorecard into action.

Now, using their ongoing research with hundreds of Balanced Scorecard adopters across the globe, the authors have created a powerful new tool--the "strategy map"--that enables companies to describe the links between intangible assets and value creation with a clarity and precision never before possible. Kaplan and Norton argue that the most critical aspect of strategy--implementing it in a way that ensures sustained value creation--depends on managing four key internal processes: operations, customer relationships, innovation, and regulatory and social processes. The authors show how companies can use strategy maps to link those processes to desired outcomes; evaluate, measure, and improve the processes most critical to success; and target investments in human, informational, and organizational capital. Providing a visual "aha!" for executives everywhere who can't figure out why their strategy isn't working, Strategy Maps is a blueprint any organization can follow to align processes, people, and information technology for superior performance.

Product Details

ISBN-13:
9781591391340
Publisher:
Harvard Business Review Press
Publication date:
02/02/2004
Pages:
480
Sales rank:
500,681
Product dimensions:
6.42(w) x 9.32(h) x 1.61(d)

Table of Contents

Prefaceix
Part IOverview
1.Introduction3
2.Strategy Maps29
Part IIValue-Creating Processes
3.Operations Management Processes65
4.Customer Management Processes105
5.Innovation Processes135
6.Regulatory and Social Processes163
Part IIIIntangible Assets
7.Aligning Intangible Assets to Enterprise Strategy199
8.Human Capital Readiness225
9.Information Capital Readiness249
10.Organization Capital Readiness275
Part IVBuilding Strategies and Strategy Maps
11.Customizing Your Strategy Map to Your Strategy319
12.Planning the Campaign365
Part VThe Case Files
13.Private-Sector Organizations397
14.Public-Sector Organizations411
15.Nonprofit Organizations429
Index439
About the Authors453

Customer Reviews

Average Review:

Write a Review

and post it to your social network

     

Most Helpful Customer Reviews

See all customer reviews >

Strategy Maps: Converting Intangible Assets into Tangible Outcomes 4.2 out of 5 based on 0 ratings. 5 reviews.
NathanIves More than 1 year ago
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
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Guest More than 1 year ago
If this book were a Hollywood film, it might be titled 'Son of Balanced Scorecard' or even 'Balanced Scorecard III.' This book, however, is no mere spin-off or sequel. In two prior works, 'The Balanced Scorecard' (which you may wish to read before reading this book) and 'The Strategy-Focused Organization', authors Robert S. Kaplan and David P. Norton introduced the powerful concept of measuring the elusive intangibles that affect organizations. This information-dense book was born when the authors observed that CEOs instinctively draw arrows to explain their goals. This led to a breakthrough realization: 'Objectives should be linked in cause-and-effect relationships.' The graphic display of these relationships is a 'strategy map.' This book breaks new ground by providing a template so executives can be sure that their strategic planning omits nothing. It expands the concepts of 'strategic themes' and 'value-creating processes,' and explains a system for aligning your organization¿s strategy with its intangible assets. However, the real-world examples may be lost on CEOs who are unfamiliar with MBA-style case studies. If you¿re implementing a 'Balanced Scorecard' initiative or planning your firm¿s future, we say this is a blockbuster you don¿t want to miss.
Guest More than 1 year ago
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