Strategy Maps: Converting Intangible Assets Into Tangible Outcomes

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E-Book 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.

E-Book Content

Copyright © 2004 Harvard Business School Publishing Corporation All rights reserved. First eBook Edition: December 2003 ISBN 978-1-59139-134-0 No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to [email protected], or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. [CIP TO COME] The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Publications and Documents in Libraries and Archives Z39.48-1992. This book is dedicated to the professionals, clients, and associates of the Balanced Scorecard Collaborative, who provided the wealth of the experience on which this work is based. Contents Copyright Preface PART I: OVERVIEW 1. Introduction 2. Strategy Maps PART II: VALUE-CREATING PROCESSES 3. Operations Management Processes 4. Customer Management Processes 5. Innovation Processes 6. Regulatory and Social Processes PART III: INTANGIBLE ASSETS 7. Aligning Intangible Assets to Enterprise Strategy 8. Human Capital Readiness 9. Information Capital Readiness 10. Organization Capital Readiness PART IV: BUILDING STRATEGIES AND STRATEGY MAPS 11. Customizing Your Strategy Map to Your Strategy 12. Planning the Campaign PART V: THE CASE FILES 13. Private-Sector Organizations 14. Public-Sector Organizations 15. Nonprofit Organizations About the Authors PREFACE THE KAPLAN-NORTON COLLABORATION began in 1990 with a multi-company research project that explored new ways to measure organizational performance. We believed, at the time, that knowledge-based assets—primarily employees and information technology—were becoming increasingly important for companies’ competitive success. But companies’ primary measurement systems remained the financial accounting system, which treated investments in employee capabilities, databases, information systems, customer relationships, quality, responsive processes, and i