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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.
- Sales Rank: #95647 in Books
- Brand: Brand: Harvard Business Review Press
- Published on: 2004-02-02
- Original language: English
- Number of items: 1
- Dimensions: 9.25" h x 6.25" w x 1.25" l, 2.18 pounds
- Binding: Hardcover
- 454 pages
- Used Book in Good Condition
Review
"...a useful resource for any manager who is or will be leading a balanced scorecard initiative." -- Strategic Finance, March 2004
About the Author
Robert S. Kaplan is the Marvin Bower Professor of Leadership Development at Harvard Business School. David P. Norton serves as a Director with the Balanced Scorecard Collaborative.
Most helpful customer reviews
1 of 1 people found the following review helpful.
Perhaps the Key Illustration of the Kaplan and Norton Series
By Fred Cheyunski
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.”
The reason this reviewer considers Strategy Maps so valuable is that it so fully exposes this truly dynamic visual tool for describing and communicating an organization’s strategy. While all the books in the series have charts and figures this one has the most by far, 120 within its 438 pages.
The book’s part 1 indicates different ways an organization can create value addressing customer, financial, internal along with learning and growth perspectives. Chapters show customer intimacy, product innovation, operational excellence, and standard platform pathways can be pursued. True to its subtitle, part 2 depicts the manner in which intangible assets including human capital, information technology, and organizational capabilities can be defined, described, measured and linked to value creation. Part 3 and 4 are devoted to giving instances and cases relating the building of strategies and strategy maps just as throughout the previous two sections (both business and non-profit/public examples are provided).
This book clearly depicts the idea of strategy as hypothesis (e.g. the importance of choosing a particular set of capabilities in which to excel as proposed by Michael Porter). One can see the way these “strategy trees” lay out the logic of a business like a McKinsey “decision tree” presents determinations to be made or a Minto Pyramid arranges the supporting elements of an argument. For example, a strategy map on page 314 conveys the case of Ingersoll-Rand (with whom this writer has had some involvement) pictorially representing the then new “customer intimacy” strategy (e.g. like those described by Wiersma and Treacy). That map indicates important areas of financial performance (e.g. accelerate organic growth) and the customer experiences to be emphasized (e.g. provide the best solutions) as well as process excellence (e.g. drive growth through innovation) and people expertise (e.g. leverage cross-business synergies) that will be required to support that achievement.
If the reader needs an explanation of the origins and fundamentals select Kaplan and Norton’s first book, “The Balanced Scorecard.” As one is seeking an overall approach description, choose their second book, “The Strategy Focused Organization.” 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.” 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.”
But if you are concerned with illustrating an organization’s strategy as well as the links and interactions necessary to “bring it to life” pick up “Strategy Maps.”
0 of 0 people found the following review helpful.
Strategy, Alignment, Communication, Clarity
By Alicia Crumpton
One of my earlier bosses required that any idea, process, program, etc. be presented using both words and graphics. He wouldn't review anything that didn't have a picture showing the process or relationships of ideas. So I tend to be an Excel spreadsheet, data kind of person although I really think I need to give this up (laugh)....drawing a picture isn't my strong suit, at least not then. Other reviewers have commented on strengths. I really like this book in the way we are called to imagine our organizations relationally via a graphic (strategy map). I learned that my bosses demand for a picture was because the process of taking words and creating an image required a person to really think through the coherence, relationship, and logic of their ideas. Words in combination with graphics can tell a story that taps into people's imaginations and speaks to differing learning preferences (auditory versus visual). I like this book because it provides a framework for systematically understanding your organization and the relational aspects of how things fit together ultimately in support of your mission.
0 of 0 people found the following review helpful.
Excellent book. Briefly brings structure and sense to many ...
By Nikola Somlev
Excellent book. Briefly brings structure and sense to many concepts.
Aligns almost every aspect of an organization.
I wish there were more details on the human and organizational capital or at least good references.
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