Strategy Map Kaplan And Norton Pdf

strategy map kaplan and norton pdf

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They provide a language that executive teams can use to discuss the direction and priorities of their enterprises. This article also presents a case study of Crown Castle International, Inc. Kaplan, R.

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The strategy map: guide to aligning intangible assets

By using a strategy map —a powerful new tool built on the balanced scorecard. A strategy map is a visual framework for the corporate objectives within those four areas.

The authors created strategy map templates for various industries, including retail, telecommunications, and e-commerce. Strategy maps put into focus the often-blurry line of sight between your corporate strategy and what your employees do every day—significantly enhancing collaboration and coordination. Strategy maps are essential in the information age, when intangible assets—customer relationships, employee skills, the ability to innovate—are competitive advantages. But these assets have value only within the context of a strategy.

For example, a growth-oriented strategy might require in-depth customer knowledge, sales training, and incentive-based compensation. But none of these, alone, would be enough to implement that strategy. Strategy maps quantify the value of tangible and intangible assets—linking them all to your overarching strategy. Step 1. Clarify your mission and strategic vision. Step 2. Balance revenue growth and productivity improvement. Mobil grew revenue by selling more non-gasoline products and services and more premium gas.

It improved productivity by slashing operating expenses e. Differentiate your firm from competitors. Choose one of these value propositions: operational excellence, customer intimacy, or product leadership.

Mobil emphasized customer intimacy, targeting premium customers by offering fast, friendly, and safe service. Satisfied customers gladly paid more. Internal processes. Identify operational, customer-relationship, and innovation processes to support your customer and financial goals.

Mobil reduced environmental and safety incidents operational , built best-in-class franchise teams customer relationships , and developed non-gasoline services innovation. Learning and growth. Define the skills, technologies, and corporate culture needed to support your strategy. Imagine that you are a general taking your troops into foreign territory.

Obviously, you would need detailed maps showing the important towns and villages, the surrounding landscape, key structures like bridges and tunnels, and the roads and highways that traverse the region.

Unfortunately, many top executives are trying to do just that. When attempting to implement their business strategies, they give employees only limited descriptions of what they should do and why those tasks are important.

Organizations need tools for communicating both their strategy and the processes and systems that will help them implement that strategy. Strategy maps provide such a tool. Strategy maps can depict objectives for revenue growth; targeted customer markets in which profitable growth will occur; value propositions that will lead to customers doing more business and at higher margins; the key role of innovation and excellence in products, services, and processes; and the investments required in people and systems to generate and sustain the projected growth.

From a larger perspective, strategy maps show how an organization will convert its initiatives and resources—including intangible assets such as corporate culture and employee knowledge—into tangible outcomes. In the industrial age, companies created value by transforming raw materials into finished products. The economy was primarily based on tangible assets—inventory, land, factories, and equipment—and an organization could describe and document its business strategy by using financial tools such as general ledgers, income statements, and balance sheets.

In the information age, businesses must increasingly create and deploy intangible assets—for instance, customer relationships; employee skills and knowledge; information technologies; and a corporate culture that encourages innovation, problem solving, and general organizational improvements. Even though intangible assets have become major sources of competitive advantage, no tools existed to describe them and the value they can create.

For example, a growth-oriented sales strategy might require knowledge about customers, additional training for salespeople, new databases and information systems, a different organizational structure, and an incentive-based compensation program. Investing in just one of those items—or in a few of them but not all—would cause the strategy to fail.

The value of an intangible asset such as a customer database cannot be considered separately from the organizational processes that will transform it and other assets—both intangible and tangible—into customer and financial outcomes. The value does not reside in any individual intangible asset. It arises from the entire set of assets and the strategy that links them together. Since we introduced the concept in , we have worked with hundreds of executive teams from various organizations, in both the private and public sectors.

We have developed strategy maps for companies in various industries, including insurance, banking, retail, health care, chemicals, energy, telecommunications, and e-commerce. The maps have also been useful for nonprofit organizations and government units.

From this experience, we have developed a standard template that executives can use to develop their own strategy maps. Strategy maps show how an organization plans to convert its various assets into desired outcomes. Companies can use the template here to develop their own strategy maps, which are based on the balanced scorecard.

At far left, from bottom to top, the template shows how employees need certain knowledge, skills, and systems learning and growth perspective to innovate and build the right strategic capabilities and efficiencies internal process perspective so that they can deliver specific value to the market customer perspective , which will lead to higher shareholder value financial perspective.

For the customer perspective, companies typically select one of three strategies: operational excellence, customer intimacy, or product leadership. The template provides a common framework and language that can be used to describe any strategy, much like financial statements provide a generally accepted structure for describing financial performance. A strategy map enables an organization to describe and illustrate, in clear and general language, its objectives, initiatives, and targets; the measures used to assess its performance such as market share and customer surveys ; and the linkages that are the foundation for strategic direction.

To understand how a strategy map is built, we will study Mobil North American Marketing and Refining, which executed a new strategy to reconstruct itself from a centrally controlled manufacturer of commodity products to a decentralized, customer-driven organization.

The best way to build strategy maps is from the top down, starting with the destination and then charting the routes that will lead there. Corporate executives should first review their mission statement and their core values—why their company exists and what it believes in.

With that information, managers can develop a strategic vision, or what the company wants to become. A strategy must then define the logic of how to arrive at that destination. Building a strategy map typically starts with a financial strategy for increasing shareholder value.

Nonprofit and government units often place their customers or constituents—not the financials—at the top of their strategy maps. Companies have two basic levers for their financial strategy: revenue growth and productivity. The former generally has two components: build the franchise with revenue from new markets, new products, and new customers; and increase value to existing customers by deepening relationships with them through expanded sales—for example, cross-selling products or offering bundled products instead of single products.

In general, the productivity strategy yields results sooner than the growth strategy. But one of the principal contributions of a strategy map is to highlight the opportunities for enhancing financial performance through revenue growth, not just by cost reduction and improved asset utilization.

To achieve that, executives used all four of the drivers of a financial strategy that we break out in the strategy map—two for revenue growth and two for productivity. Shown here is a map for the strategy that Mobil North American Marketing and Refining used to transform itself from a centrally controlled manufacturer of commodity products to a decentralized customer-driven organization.

A major part of the strategy was to target consumers who were willing to pay price premiums for gasoline if they could buy at fast, friendly stations that were outfitted with excellent convenience stores. Their purchases enabled Mobil to increase its profit margins and its revenue from nongasoline products. The revenue growth strategy called for Mobil to expand sales outside of gasoline by offering convenience store products and services, ancillary automotive services car washes, oil changes, and minor repairs , automotive products oil, antifreeze, and wiper fluid , and common replacement parts tires and wiper blades.

Also, the company would sell more premium brands to customers, and it would increase sales faster than the industry average. In terms of productivity, Mobil wanted to slash operating expenses per gallon sold to the lowest level in the industry and extract more from existing assets—for example, by reducing the downtime at its oil refineries and increasing their yields.

The core of any business strategy is the customer value proposition, which describes the unique mix of product and service attributes, customer relations, and corporate image that a company offers. It defines how the organization will differentiate itself from competitors to attract, retain, and deepen relationships with targeted customers. The value proposition is crucial because it helps an organization connect its internal processes to improved outcomes with its customers.

By identifying its customer value proposition, a company will then know which classes and types of customers to target.

In our research, we have found that although a clear definition of the value proposition is the single most important step in developing a strategy, approximately three-quarters of executive teams do not have consensus about this basic information.

Specifically, companies that pursue a strategy of operational excellence need to excel at competitive pricing, product quality and selection, speedy order fulfillment, and on-time delivery. For customer intimacy, an organization must stress the quality of its relationships with customers, including exceptional service and the completeness of the solutions it offers.

And companies that pursue a product leadership strategy must concentrate on the functionality, features, and overall performance of its products or services. Mobil, in the past, had attempted to sell a full range of products and services to all consumers, while still matching the low prices of nearby discount stations.

Thus, Mobil could use a fairly simple set of metrics share of targeted customer segments and a summary score from the mystery shoppers for its consumer objectives. But Mobil does not sell directly to consumers. These franchised retailers purchase gasoline and other products from Mobil and sell them to consumers in Mobil-branded stations. Because dealers were such a critical part of the new strategy, Mobil included two additional metrics to its customer perspective: dealer profitability and dealer satisfaction.

These consumers would buy products and services at premium prices, increasing profits for both Mobil and its dealers, who would then continue to be motivated to offer the great buying experience. Once an organization has a clear picture of its customer and financial perspectives, it can then determine the means by which it will achieve the differentiated value proposition for customers and the productivity improvements to reach its financial objectives.

The internal process perspective captures these critical organizational activities, which fall into four high-level processes: build the franchise by innovating with new products and services and by penetrating new markets and customer segments; increase customer value by deepening relationships with existing customers; achieve operational excellence by improving supply chain management, the cost, quality, and cycle time of internal processes, asset utilization, and capacity management; and become a good corporate citizen by establishing effective relationships with external stakeholders.

An important caveat to remember here is that while many companies espouse a strategy that calls for innovation or for developing value-adding customer relationships, they mistakenly choose to measure only the cost and quality of their operations—and not their innovations or their customer management processes. These companies have a complete disconnect between their strategy and how they measure it. Not surprisingly, these organizations typically have great difficulty implementing their growth strategies.

The financial benefits from improved business processes typically reveal themselves in stages. Cost savings from increased operational efficiencies and process improvements create short-term benefits. Revenue growth from enhanced customer relationships accrues in the intermediate term. And increased innovation can produce long-term revenue and margin improvements. Thus, a complete strategy should involve generating returns from all three of these internal processes.

The plan was that if dealers could capture increased revenues and profits from products other than gasoline, they could then rely less on gasoline sales, allowing Mobil to capture a larger profit share of its sales of gasoline to dealers.

For its customer intimacy strategy, Mobil had to excel at understanding its consumer segments. Interestingly, Mobil placed a heavy emphasis on objectives to improve its basic refining and distribution operations, such as lowering operating costs, reducing the downtime of equipment, and improving product quality and the number of on-time deliveries.

When a company such as Mobil adopts a customer intimacy strategy, it usually focuses on its customer management processes. So Mobil could not charge its dealers higher prices to make up for any higher costs incurred in its basic manufacturing and distribution operations.

Consequently, the company had to focus heavily on achieving operational excellence throughout its value chain of operations.

Strategy map

All about Strategy Maps and business administration. Completely free. Log in. Get access now to all 12manage knowledge centers and discussion forums, including Strategy Maps. In they introduced the Balanced Scorecard in the Harvard Business Review as system to measure performance; now they change it to a strategic management system.

 Вот тут-то вы и рассмотрели его кольцо. Глаза Клушара расширились. - Так полицейский сказал вам, что это я взял кольцо. Беккер смущенно подвинулся. Клушар вдруг разбушевался.

Having Trouble with Your Strategy? Then Map It

Нуматака почти ничего не замечал. Мысли его были. Он ждал, когда зазвонит прямой телефон, но звонка все не .

Strategy Maps: Converting Intangible Assets into Tangible Outcomes

 У него было больное сердце, - сказал Фонтейн. Смит поднял брови. - Выходит, выбор оружия был идеальным. Сьюзан смотрела, как Танкадо повалился на бок и, наконец, на спину.

 - Что он ищет? - Мгновение он испытывал неловкость, всматриваясь в экран, а потом принял решение. Хейл достаточно понимал язык программирования Лимбо, чтобы знать, что он очень похож на языки Си и Паскаль, которые были его стихией. Убедившись еще раз, что Сьюзан и Стратмор продолжают разговаривать, Хейл начал импровизировать. Введя несколько модифицированных команд на языке Паскаль, он нажал команду ВОЗВРАТ. Окно местоположения Следопыта откликнулось именно так, как он рассчитывал. ОТОЗВАТЬ СЛЕДОПЫТА. Он быстро нажал Да.

Еще в автобусе Беккер смирился с мыслью, что его миссия провалилась. Пора звонить Стратмору и выкладывать плохую новость: поиски зашли в тупик. Он сделал все, что мог, теперь пора ехать домой. Но сейчас, глядя на толпу завсегдатаев, пытающихся попасть в клуб, Беккер не был уверен, что сможет отказаться от дальнейших поисков. Он смотрел на огромную толпу панков, какую ему еще никогда не доводилось видеть. Повсюду мелькали красно-бело-синие прически.

Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Pages · · MB Downloads· English. by Robert S. Kaplan & David P. Norton.

Having Trouble with Your Strategy? Then Map It

 Нуда, конечно… С удовольствием. Беккер достал блокнот. - Итак, начнем с утра. Расскажите мне, что произошло. Старик вздохнул.

 Почему бы не сказать - мы выиграли. Насколько мне известно, ты сотрудник АНБ.

 - Дамы и господа, - он опять тяжело вздохнул, - перед вами компьютерный агрессор-камикадзе… червь. - Червь? - с недоумением переспросил Бринкерхофф. Название показалось ему чересчур земным для такого агрессора. - Червь, - недовольно сказал Джабба.  - Никакой усложненной структуры, один лишь инстинкт: жри, опорожняйся и ползи.

Strategy Maps (Kaplan Norton)

Судьба в это утро не была благосклонна к Беккеру.


Juventino L.


The Strategy Map extends the Balanced Scorecard approach in order to clarify corporate strategy, using four perspectives and their 'cause and effect' relationship.

Dalmazio C.


A strategy map is a diagram that is used to document the primary strategic goals being pursued by an organization or management team.

Jason S.


Scorecard, Robert S. Kaplan and David P. Norton, have created a powerful new tool based on their ongoing research. The strategy map allows compa-.

Jill F.


DPI in order to achieve the objective of becoming an international organization or world class company.



By using a strategy map —a powerful new tool built on the balanced scorecard.