Strategic planning with the balanced scorecard onstrategy. The balanced scorecard bsc is a strategic planning and management tool used by a wide range of industries and professional around the world. Erica olsen explains the basic concept of the balanced scorecard and how businesses use it to monitor and guide their performance. Apr 21, 2015 the balanced scorecard bsc is supposed to translate strategy into action. It is based on the four balanced scorecard perspectives. A complete strategy map template including examples. The name balanced scorecard comes from the idea of looking at strategic measures in addition to traditional financial measures to get a more balanced view of performance. In 2001 kaplan and norton1 published the strategy focused organisation which introduced the strategy map as an integral part of the balanced. As a result, the customer patient and financial perspectives are equally balanced at the top of the strategy map. Norton, the balanced scorecard boston, harvard business school press, 1996 robert s. Uses strategic performance measures and targets to measure progress.
Clients balancedscorecardinpractice balanced scorecard stepi. Balanced scorecard basics balanced scorecard institute. Linking the balanced scorecard to strategy robert s. A strategy map is a diagram that is used to document the primary strategic goals being pursued by an organization or management team. Balanced scorecard strategic performance management system the main component parts of bsc as strategic performance management system are. How to develop a balanced scorecard into a strategy map a case study of ericsson level. Tracking too many will dilute your overall message, making your strategy difficult to communicate. Ronchetti city of naperville, il over a decade after robert kaplan and david norton introduced the balanced scorecard as a strategic planning model in 1992, documented successes from the private sector can be found in much of todays business literature. Since then, strategy map became a buzzword, a synonym of any visual representation of strategy. How to develop a balanced scorecard into a strategy map. Kaplan and norton 1992 proposed the concept of the bsc. Additionally, creating a resultsoriented culture requires a comprehensive management system. Go on the insert tab and click on table and create a 5 x 5 table.
Strategy map balanced scorecard free download tucows. Epstein and jeanfrancois manzoni insead, the european institute of business administration, bd. Essentially, mapping allows you to put your strategy on one page, in a language that everyone can understand. The basic balanced scorecard template focuses on four areas of business referred to as perspectives. The benefits management and balanced scorecard strategy. Jan 03, 2012 this diagram is representative of kpis that a typical organization would use in a strategy map as part of a balanced scorecard. The balanced scorecard, strategy maps, and okrs gtmhub team. 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.
This glomacs strategic planning using the balanced scorecard training seminar helps organizations to put strategy at the heart of everything they do. Per magnus andersson and rolf larsson seminar date. Mar 06, 2017 balanced scorecards and strategy maps have evolved since the 1990s, and there are now dozens of industry specific interpretations of both the balanced scorecard template and the strategy map. Constructing a strategy map for banking institutions with. In the 5 columns you are going to have theme, objectives, measures, targets, initiatives. Developing a strategy map the process below illustrates the four stages in which a contemporary strategy map plus the scorecard and implementation plan are developed. Strategy map and balanced scorecard ezzy scorecard. The balanced scorecard, strategy maps and dashboards. As you can see the strategy map begins with an exploration of the strategic context for. In that approach, an organization depicts its key objectives in. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy.
It provides a holistic view of the enterprise based on the business objectives. General hospital is an example community, forprofit hospital. You can use this balanced scorecard strategy map tool as a basis for implementing a proven business performance management methodology. Your static strategy map becomes a live performance dashboard. There are many benefits to automating your balanced scorecard, but the ability see your strategy map light up with real performance colors may be the biggest. Strategy maps combine with balanced scorecards to provide a new framework for describing and implementing strategy. See more ideas about strategy map, strategic planning and how to plan. Though this scorecard is used to monitor all the activities, another main purpose that it fulfills is that it even keeps a check whether all the.
Each stage is designed to answer a key question before moving to the next. Part of a system that translates strategy into action. Detailed balanced scorecard results for 20082009 appear on pages 217 through 231. Balanced scorecard strategy map template mr dashboard. The balanced scorecard, strategy maps, and okrs gtmhub. Creating a balanced scorecard for your nonprofit can seem daunting. A balanced scorecard strategy map is the best way to communicate your goals, engage your team, and achieve your objectives. Balanced scorecard strategy map template step by step guide. Maybe this isnt even something youve set out to do, so if youd like to create a strategy map, this is a great time to start. Modeling strategy maps and balanced scorecards using istar constantinos giannoulis, jelena zdravkovic. It provides the foundation for designing a balanced scorecard that is the cornerstone of a strategic management system.
Niven, balanced scorecard stepbystep for government. Effectively developing and communicating highlevel business strategy is essential for organizations looking to achieve market leadership. A global perspective on translating strategy into action by marc j. Their combination is a navigational tool to guide the organisation to execute the strategy formulated by the executive team. According to kaplan and norton, a strategy map is a logical comprehensive architecture for describing strategy. Scorecard movement, strategy mapping is a cuttingedge approach to the art of strategy execution. Under the theme column you are going to have financial, customer, internal and learning. A wellthoughtout strategy map is a beautiful thing. A strategy map is a diagram that describes how a company or organisation can create value by linking strategic objectives in a cause and effect relationship based on the four balanced scorecard perspectives. Master thesis in accounting and management program of business administration department authors. Our software for a balanced scorecard management helps automate the process of strategy design and. Balanced scorecard and strategy map free essay example. See more ideas about strategy map, strategic planning and business dashboard.
How to create a balanced scorecard for digital marketing. Lets see how these principles might fit into a digital strategy. Understanding balanced scorecards and strategy maps. The strategy map can be thought of as a companys road map to strategic goals, whereas the organizations balanced scorecards, which report on metrics related. Your strategy map provides a pictorial look at your perspectives, your objectives and the relationships between them. Under this category you can download editable bsc templates for powerpoint presentations that will help to communicate your corporate strategy. Use these example strategy maps and balanced scorecard templates to get you started. Using strategy map and scorecard measures from previous exercises, map initiatives to objectives 4. Use strategy map for visualization of business goals. A strategy map is a graphical representation of the causeeffect relationships between strategic objectives and indicators of a balanced scorecard. Strategy maps support this by showing cause and effect chains. But what does this mean for strategy execution in practice. Briefly, the balanced scorecard, popularized by robert kaplan and david norton, is a method for monitoring whether a company is meeting or will meet its strategic objectives.
Balanced scorecard powerpoint templates slidemodel. A great communication tools that can give another level of insight, the big picture view. A strategy map is typically constructed with a set of 15 to 25 causally linked strategic objectives. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
This diagram is representative of kpis that a typical organization would use in a strategy map as part of a balanced scorecard. More information is available when building or evaluating the strategy map. The purpose of out study is about how to develop a model from balanced scorecard to strategy map. The balanced scorecard began as a set of performance measures. Can we simply use the balanced scorecard or should we combine strategy maps and bsc what stages of strategy map design we need to pass in order to create a great strategy map.
The benefits management and balanced scorecard strategy map. The term strategy map has its origin in the balanced scorecard bsc concept of the mid1990s. Integration of balanced scorecard bsc, strategy map, and fuzzy. That is where the strategy map and its derived balanced scorecard fit in. A full balanced scorecard example including 6 templates. Some balanced scorecard software packages allow you to build your strategy map directly in the software. Using the balanced scorecard templates you can easily align the day to day work that everyone is doing on an. One increasingly popular framework to combine these qualities is the balanced scorecard bsc, and specifically the more recent incarnation, the strategy map.
Upward airlines reading a balanced scorecard strategy map. The balanced scorecard for nonprofit sample strategy maps. To make the most of a strategy map we would suggest one or two additions to the basic template. The bsc has been widely adopted in the evaluation of organizational performance from four perspectives. Building strategy maps and scorecard in utilities euci. It is essential to be able to view these lists from inside the strategy map work space. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance. To achieve better bsc implementations, i uncover pitfalls and name the remedies. Public service enterprise group dennis ciemniecki will describe how pseg translated its strategy map into a corporate scorecard that served as the foundation for all linesofbusiness and shared services. This 42page guide will help you understand the process you should go through to start and finish a balanced scorecard. Cascading the balanced scorecard to build organizational alignment. In this ebook, youll find five balanced scorecard strategy maps for these forprofit organizations. Modeling strategy maps and balanced scorecards using istar.
Strategy and the balanced scorecard linkedin slideshare. Explore and explain how the balanced scorecard is implemented into a strategy map. A strategy map is a diagram that describes how a company or organisation can create value by linking strategic objectives in a cause and effect relationship. The main idea of a strategy map is that each strategic objective in your balanced scorecard is represented by a shape, usually oval. The four perspectives in the balanced scorecard and strategy map give executives a more balanced view of their organization. We will choose ericsson as our case study, so the situation of. The balanced scorecard is a performance management framework that links strategy with day. The contradicting views of researchers concerning a balanced scorecard and strategy participation constitute an interesting basis for this thesis. Keep staff, customers and stakeholders in the loop with your strategic snapshot. The concept of balanced scorecard has evolved beyond the simple use of perspectives and it is now a holistic system for managing strategy. The strategy map a strategy map is a diagram that describes how a company or organisation can create value by linking strategic objectives in a cause and effect relationship. Definition and concept an approach to the provision of information to the management to assist with. The balanced scorecard translating strategy into action.
Key performance indicators both lagging and leading are broken into 4 areas of focus. Norton, strategy maps boston, harvard business school press, 2004 robert s. Balanced scorecard performance scorecard component part of. To clearly achieve your objectives, a unified strategy is a mustand strategy mapping is one of the best ways to achieve that goal. A balanced scorecard is more than just a strategy map, but the strategy map is an important element. 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 mid1990s.
When you decide to create a strategy map, you are deciding to arrive upon highlevel goals. How they match article pdf available january 20 with 2,226 reads how we measure reads. The effect of balanced scorecard on strategy participation. The balanced scorecard as a management tool for assessing and. Also, gives a balanced view in four perspectives of how well an organization is driving execution and how successful the results are.
Download sample strategy maps for a balanced scorecard. Ready to see strategic success in your organization. By translating strategy into a balanced set of objectives covering finance, customer, internal processes and people the balanced scorecard approach enables organizations to turn their. The first diagrams of this type appeared in the early. Organizational alignment using strategy maps and balanced. Ability to display all balanced scorecard column lists. An integrated balanced scorecard strategic planning model. Pdf the benefits management and balanced scorecard strategy. An integrated balanced scorecard strategic planning model for nonprofit organizations jan l. 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 balanced scorecard approach to strategic planning. Researchers have reported conflicting observations concerning the effect of a balanced scorecard on a strategy process ahn, 2001. At its simplest the strategy map describes how an organisation plans to deliver its strategic goals expressed as a onepage systems diagram. Norton, alignment boston, harvard business school press, 2006 paul r.
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