Hbr strategy maps pdf

With a welldesigned strategy map, every employee can know your overall strategy and where they fit in. They identify entirely new processes that are critical for achieving strategic objectives. Foreshadowing the subsequent development of strategy maps, anthony claimed that strategic planning depends on an estimate of a causeandeffect relationship between a course of action and a desired outcome, but concluded that, because of the difficulty of predicting such a. Before kaplan and norton, most academic strategy courses were dominated by. Download it once and read it on your kindle device, pc, phones or tablets. Another key strength of a strategy map is the ability to visualise the causal. Converting intangible assets into tangible outcomes.

Authors jeffrey cohn and rakesh khurana argue that the very tool that has helped organizations become strategy focused can be used to identify and cultivate people best suited to lead an organization. Find all the books, read about the author, and more. Scanning across on the strategy map in figure 1, the themes are operations management processes supply chain management, customer management. They establish targets beyond existing best practices. After analyzing ericssons strategy, we felt it was necessary for ericsson to use a strategy map. Those especially interested in strategy maps, or those who want to read a lot of specific case studies, may find this book a useful adjunct. Strategy maps describe how organisations create value by building on strategic. Value innovation strategy competes in an uncontested market space. How to design a strategy map api white paper research with 157 companies conducted by the usbased wharton school found that only 23% of companies consistently built, analyzed, and tested causal models. Strategic management converting intangible assets into.

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. Mapping your corporate strategy harvard business school. A strategy map is a simple and effective way to communicate with employees about how to achieve the companies strategic goals and wont miss any value drivers in the management process. The authors created strategy map templates for various industries, including retail, telecommunications. A strategy map is a diagram that shows your organizations strategy on a single page.

We have seen strategy maps work extremely effectively in organizations. Experience augmented reality as you explore the novemberdecember 2017 hbr article why every organization needs an augmented reality strategy, by michael porter and james heppelmann. Companies innovate faster than peoples lives change. Mapping your corporate strategy, hbr working knowledge interview with robert kaplan strategy map offers a framework for articulating strategy in a variety of contexts strategy maps, in some cases, try to frame implied solutions by introducing processes into the framework e. Strategy is based on a differentiated customer value proposition. Pdf having trouble with your strategy then map it kate. From this discussion it will become clear that concepts relating to strategy should always be situated within broader paradigms of organisation. Conceptual foundations of the balanced scorecard 3.

Although the previous book of kaplan and norton already spent 64 pages on strategy maps, you can find the best and most. Click on the graph to download a big strategy map template in. Kaplan and norton introduced the balanced scorecard, a. Alignment between strategy and execution unclear impact of organizational dynamics. Otherwise, wed suggest that kaplan and nortons two earlier books have more meat. About me adjunct lecturer at hks two decades experience in the nonprofit and philanthropic sector, designing and leading large global and national initiatives and organizations board experience on boards and advisory boards. All organizations have offices that manage finances, human resources, information technology, marketing, strategic planning, and quality.

From the originators of the balanced scorecard system, strategy maps. They must benchmark continuously to achieve best prac tice. At the core of the disruptive innovation theory developed by harvard business school professor clayton christensen is a simple principle. This article explains how to move from a broad corporate vision to an outline of a strategy. Leaders of firms are mystified when what they thought was a beautifully crafted strategy is never implemented. Strategy maps can provide significant value to companies using other quality programs in these four ways. Strategy maps, pioneered by balanced scorecard founders robert kaplan and david norton, allow organisations to describe and communicate their strategies concisely and succinctly and close the gap between formulation and successful implementation of strategy.

This paper examines three forms of strategy based on the different ways in which that term is used in the business world. Generic strategy map this tool provides an integrated view of the development of a strategy map. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 the customercentered innovation map. Strategy maps for ceo succession planning hbr store. As a result, japanese manufacturers enjoyed substantial cost and quality advantages for many years. They often expose gaps in strategies, enabling executives to take early corrective actions. Converting intangible assets into tangible outcomes kaplan, robert s. Balanced scorecard strategy maps are a powerful tool for describing and ultimately implementing a business strategy. However, in our experience strategy maps are often extrapolations of past performance and are seldom sufficiently linked to possible future states. It covers a period of thinking about strategy from roughly the 90s up until today. We believe that companies that implement the bsc should also implement strategy map in order to achieve the organizations desired goal effectively. By translating their strategy into the logical architecture of a strategy map and balanced scorecard, organizations create a common understandable point of reference for all their units and employees. A complete strategy map template including examples. To clearly achieve your objectives, a unified strategy is a mustand strategy mapping is one of the best ways to achieve that goal.

A look at how businesses should respond to evolving, unpredictable threats. And fund the project conservatively at first, to force your innovation team to learn and adapt as it moves forward. Read strategy maps converting intangible assets into tangible outcomes by robert s. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. Strategy maps will help organizations view their strategies in a cohesive, integrated, and systematic way. Necessary but not sufficient operational effectiveness and strategy are both essential to superior performance, which, after all, is the primary goal of any enterprise. Strategy maps harvard business publishing education. For example, one of the uks largest retailers has 20 objectives, a uk high street bank has 12 and a global advertising agency has 12 as well. A strategy map is a visual framework for the corporate objectives within those four areas. They provide explicit and testable causal linkages between strategy and reality. Norton introduced the balanced scorecard, a revolutionary performa.

Use strategy maps to communicate your strategy hbr store. The strategic perspective that kaplan and norton have developed is very valuable. Its great for quickly communicating bigpicture objectives to everyone in the company. From the originators of the balanced scorecard system, strategy maps how. In this ebook, youll find five balanced scorecard strategy maps for these forprofit organizations. Organization, which, in turn, results from strategy maps and balanced scorecards. Hbrs 10 must reads on strategy including featured article what is strategy. Foreshadowing the subsequent development of strategy maps, anthony. Figure 1 on the following page provides an overview of a strategy map. One increasingly popular framework to combine these qualities is the balanced scorecard. Introduction to strategy maps a book by robert s kaplan and.

Strategy maps are designed to help execute strategy and bring predictive qualities to key performance indicators by linking them according to perceived causeandeffect relationships. Operational effectiveness is not strategy for almost two dec des, managers have been learning to play by a new set of rules. Management white paper how to design a strategy map. It maintains a solid structure while allowing for a great deal of flexibility, so it can represent virtually any segment you operate in and your unique strategy if youre just getting started with your strategy mapping initiative and are looking for some templates and examples, youre in the right spot. Companies must be flexible to respond rapidly to compet itive and market changes. Completed generic strategy map asset utilisation figure 2. T ool k it the customercentered innovation map by lance a. Thus, as a contribution to our work, we build a strategy map for ericsson. However, the study also finds that those organizations which used strategy maps had a 2. How to develop a balanced scorecard into a strategy map. And, how often can or should the map evolve at a single organization.

Creating value through hr hr strategy deloitte united states. Strategy maps provide a disciplined way of linking hypotheses about your. First, the book is very repetitive and while there are many examples of the strategy maps the distinctions between them are not always very apprent so if you have seen a strategy map. After publication of the 1992 hbr article, several companies quickly adopted the. Strategy maps we can see that they have kept the number of objectives low. Value is created through internal business processes. I dont know if we would be better off win ning the deal at a lower price or just losing the business.

Pdf you need an innovation strategy its the only way to. Achieved via the delivery of features that have a highest marginal benefit to customer needs. Positioning creating a unique and distinctive image for a brand relative to the competition brand should be perceived as different from competitors by consumers. Introduction the strategy map as a visual representation of organizational strategy. Develop a strategy for ensuring that your project meets those criteria. The balanced scorecard strategy map provides a framework to illustrate how strategy links intangible assets to valuecreating processes. 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. Simply open the magazine to the articles arenabled illustrations, point your mobile device.

The impact of the strategy maps on balanced scorecard performance 35 finally, we acknowledge that other perceiv ed bsc benefits could also be considered in the paper in order to be more i nformative. Strategy maps let an organization describe and illustratein clear and general languageits objectives, initiatives, targets markets. See more ideas about strategy map, strategic planning and change management. Kaplan and norton are gungho about the power of strategy maps to provide a conceptual framework for understanding any corporation, public institution or nonprofit organization, but general readers are likely to shake their head at jargonheavy reformulations of the obvious like the ideal customer experience is a product that meets customer. Strategy as the basis for competition brings us to another harvard business school professor, michael porter, the undisputed guru of competitive strategy. T ool k it by thoroughly mapping the the customer done, a. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. Use features like bookmarks, note taking and highlighting while reading strategy maps. The balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and global scale.

Strategy maps emerged as part of robert kaplans and david nortons seminal work with the balanced scorecard. 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. Use features like bookmarks, note taking and highlighting while reading hbrs 10 must reads on strategy including featured article what is strategy. Strategy maps pages 2, 3 valuecreating processes pages 3, 4, 5 manage risk page 3 innovation through operations page 4 intangible assets pages 5, 6, 7 triple bottomline strategy map page 5 building strategies and strategy maps pages 7, 8 ibms complete customer solution page 8 by robert s. Focusing your organization your strategys on strategywith the brilliantbut can you execute it. Linking strategy to operations for competitive advantage hbs press shows managers how to weave organizational principles into a more effective management system that respects the differences between strategy and operations yet integrates them in a powerful way. Objectives keep one ear open in almost any business environment and the term strategy is sure to crop up on a regular basis. Delivering actionable strategy through business architecture. Hbrs 10 must reads on strategy mp3 cd audiobook, mp3 audio, unabridged. A wellthoughtout strategy map is a beautiful thing. The emergence of this new office made us aware of a gap in most organizations management structures.