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Strategy Maps: Converting Intangible Assets into Tangible Outcomes
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Sales rank 41,000
Customers rating (based on 31 reviews)
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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 epiphany 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.
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| Publisher | Harvard Business Press | | Release date | 02/2004 | | Availability | Usually ships in 24 hours | | Edition | Hardcover |
| | List price | $42.95 | | Our price | $28.35 (you save 33.99%) | | Used price | from $14.29 |
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Whiteboard: Strategy Maps: Is your technology strategy in harmony with business goals? First, be sure that everyone describes the strategy in common terms—or risk breaking the connections that link your information systems to a business payoff (@ CIO Insight)
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 Should Be Condensed to an Article -
In fact, the original formulation of this book was an article, in the "Harvard Business Review." The authors' underlying precept is the old business adage that 'You can't manage what you don't measure.' Second, in some markets as much as 75% of the valued outcome is created by intangible assets that traditional accounting and finance measures don't address. The authors address measure performance using four perspectives and how they relate to the firm's strategy - financial measures, customers, internal processes, and learning and growth. The financial and customer objectives detail the outcomes the firm wants to achieve, internal process measures identify the key processes that produce the desired customer value, and the internal, learning and growth objectives (human resources, IT, and internal culture) describe how those will be achieved. The latter areas, internal, learning and growth, represent a forecast of future capabilities - a means of attaining sustained performance. Linking these objectives promotes greater clarity and coherence throughout the organization. Their use also helps prevent internal silos or programs (eg. TQM) from focusing on professional objectives instead of success of the business. The authors believe their tool can be useful in firms as small as 25 employees. The bulk of the book is taken up with examples, including depicting the graphics utilized.
Connects intangible assets with tangible results
Most finance folks agree that its difficult to monetize a company's intangible assets. Don't believe me? What's the value you would place on the Nike "swoosh"? Would your valuation change if you knew the Phil Knight only paid a graphic designer about $30 to develop that iconic logo in 70's? The point being that it's tough to assign a dollar value to intangible assets such as people, culture and information - but those ethereal business components usually comprise 75 percent of a company's market value. Authors and management consultants, Robert Kaplan and David Norton, have created a tool called the Strategy Map that enables companies to identify connections between value generation and the aforementioned intangible drivers. In their book of the same title, the authors propose that the power of the Strategy Map is its ability to help align organizational capital with the proper people and technology to deliver maximum impact. Soundview recommends this book because of its unique promise to finally link intangible assets with tangible results.
Full of Ideas and Examples
Another fine work by Kaplan and Norton. This is absolutely chock full of example and sample strategy maps. It is a great read AFTER you have read Balanced Scorecard and Strategy Focused Organization. It provides tons of ideas on how to assemble the various components of the strategy map, as well as revisits the selection of overall strategy themes. The BSC system is one of the best developed strategy tools out there, and Kaplan & Norton are the true gurus.
 A well-written source on mapping strategy
This is a comprehensive book on the concept of strategy mapping. It deals with strategy maps as a tool for communicating an organization's vision enterprise-wide in order to enable its better implementation. The book covers the subject in a very detailed but well-organized manner. Theoretical and practical coverage is well balanced. I strongly recommend it as a clearly authoritative source on strategy communication and implementation.
 Good introduction but could use more details.
In their book Strategy Maps, Kaplan and Norton further their discussion on the balanced scorecard as a tool to measure and in turn better manage intangible assets. The book is separated into five sections. The section that I found to be most interesting dealt with intangible assets. Kaplan and Norton state that more than 75% of the average company's market value is derived from intangible assets. Assets such as well-trained employees and a shared vision and corporate culture are almost impossible to measure. Kaplan and Norton believe that without a proper way to measure these assets, managers will forget about them and those assets will not be managed appropriately. While the balanced scorecard is a good way to measure these assets, strategy maps clarifies what these assets are and why they important to firms. By using strategy maps as a tool when implementing the balanced scorecard method of measurement, companies are more likely to focus their attention on the unique assets that will benefit them the most.
I found Strategy Maps to be an interesting read. While I wonder if the cost of time spent to prepare the balanced scorecard method outweighs the benefits of knowing how to measure the immeasurable, I can understand Kaplan and Norton's view that what is not measured cannot be managed. The book was well organized with a vast amount of real-world examples to better explain the content. I felt that some of the ideas were not developed well enough but the book gave a decent introduction to the idea of strategy maps and the balanced scorecard.
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