A strategy map is a diagram that documents the strategic goals being pursued by an organization or management team. It is an element of the documentation associated with the Balanced Scorecard, and in particular is characteristic of the second generation of Balanced Scorecard designs that first appeared during the mid-1990s. The first diagrams of this type appeared in the early 1990s, and the idea of using this type of diagram to help document Balanced Scorecard was discussed in a paper by Robert S. Kaplan and David P. Norton in 1996.[1]
The strategy map idea featured in several books and articles during the late 1990s by Robert S. Kaplan and David P. Norton. Their original book in 1996, "The Balanced Scorecard, Translating strategy into action", contained diagrams which are later called strategy maps, but at this time they did not refer to them as such.[2] Kaplan & Norton's second book, The Strategy Focused Organization, explicitly refers to strategy maps and includes a chapter on how to build them.[3] At this time, they said that "the relationship between the drivers and the desired outcomes constitute the hypotheses that define the strategy". Their Third book, Strategy Maps, goes into further detail about how to describe and visualise the strategy using strategy maps.[4]
The Kaplan and Norton approach to strategy maps has:
An underlying framework of horizontal perspectives arranged in a cause and effect relationship, typically Financial, Customer, Process and Learning & Growth
Objectives within those perspectives. Each objective as text appearing within a shape (usually an oval or rectangle). Relatively few objectives (usually fewer than 20)
Vertical sets of linked objectives that span the perspectives. These are called strategic themes.
Clear cause-and-effect relationships between these objectives, across the perspectives. The strategic themes represent hypotheses about how the strategy will bring about change to the outcomes of the organisation.
Across a broader range of published sources,[citation needed] a looser approach is sometimes used. In these approaches, there are only a few common attributes. Some approaches use a more broad causal relationships between objectives shown with arrows that either join objectives together, or placed in a way not linked with specific objectives but to provide general euphemistic indications of where causality lies. For instance, Olve and Wetter, in their 1999 book Performance Drivers, also describe early performance driver models, but do not refer to them as strategy maps.[5]
The purpose of the strategy map in Balanced Scorecard design, and its emergence as a design aid, is discussed in some detail in a research paper on the evolution of Balanced Scorecard designs during the 1990s by Lawrie & Cobbold.[6]
^Kaplan, Robert S.; Norton, David P. (1996), "Linking the Balanced Scorecard to Strategy.", California Management Review, 39 (1): 53–79, doi:10.2307/41165876, JSTOR 41165876, S2CID 15409777
^Kaplan, Robert S; Norton, David P. (1996). The Balanced Scorecard, Translating Strategy into Action. USA: Harvard Business Press. pp. 30–32 and 148–150. ISBN 0-87584-651-3.
^Kaplan, Robert s.; Norton, David P. (2001). The Strategy Focused Organization. USA: Harvard Business School Publishing. pp. Chapters 3, 4, 5 pp69-160. ISBN 1-57851-250-6.
^Kaplan, Robert p.; Norton, David P. (2004). Strategy Maps, Converting intangible assets into tangible outcomes. USA: Harvard Business School Publishing. ISBN 1-59139-134-2.
^Olve, Nils-Goran; Roy, Jan; Wetter, Magnus (1999), Performance Drivers: A practical guide to using the Balanced Scorecard, John Wiley & Sons
^Lawrie, Gavin J. G.; Cobbold, Ian (2004), "Third-generation Balanced Scorecard: evolution of an effective strategic control tool", International Journal of Productivity and Performance Management, 53 (7): 611–623, doi:10.1108/17410400410561231
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