Binding: Digital
Format: Download: PDF
Label: Harvard Business School Press
Manufacturer: Harvard Business School Press
Number Of Pages: 35
Publication Date: 2003-12-16
Publisher: Harvard Business School Press
Release Date: 2008-10-25
Studio: Harvard Business School Press

The Balanced Scorecard strategy map provides a framework to illustrate how strategy links intangible assets to value-creating processes. Building a strategy map forces an organization to clarify the logic of how it will create value and for whom. This chapter describes the principles involved in building a strategy map. An illustrative case study is provided.

Customer Rating:
Summary: A well-written source on mapping strategy
Comment: This is a comprehensive book on the concept of strategy mapping. It deals with strategy maps as a tool for communicating an organization's vision enterprise-wide in order to enable its better implementation. The book covers the subject in a very detailed but well-organized manner. Theoretical and practical coverage is well balanced. I strongly recommend it as a clearly authoritative source on strategy communication and implementation.

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Customer Rating:
Summary: Good introduction but could use more details.
Comment: In their book Strategy Maps, Kaplan and Norton further their discussion on the balanced scorecard as a tool to measure and in turn better manage intangible assets. The book is separated into five sections. The section that I found to be most interesting dealt with intangible assets. Kaplan and Norton state that more than 75% of the average company's market value is derived from intangible assets. Assets such as well-trained employees and a shared vision and corporate culture are almost impossible to measure. Kaplan and Norton believe that without a proper way to measure these assets, managers will forget about them and those assets will not be managed appropriately. While the balanced scorecard is a good way to measure these assets, strategy maps clarifies what these assets are and why they important to firms. By using strategy maps as a tool when implementing the balanced scorecard method of measurement, companies are more likely to focus their attention on the unique assets that will benefit them the most.

I found Strategy Maps to be an interesting read. While I wonder if the cost of time spent to prepare the balanced scorecard method outweighs the benefits of knowing how to measure the immeasurable, I can understand Kaplan and Norton's view that what is not measured cannot be managed. The book was well organized with a vast amount of real-world examples to better explain the content. I felt that some of the ideas were not developed well enough but the book gave a decent introduction to the idea of strategy maps and the balanced scorecard.

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Customer Rating:
Summary: Good information but fails to offer adequate solution to valuation problem
Comment: In today's increasing shift away from traditional business models involving around tangible product, it is becoming more difficult to measure the value of a company. As such, there is an ever increasing need to stay educated on the various valuation methods being used today. As an accountant I see the value in understanding the potential ways for a company to value its assets. However, accountants and management are not the only benefactors of this information, investors too need to be educated on value of their investments, and not just take the market price for granted.
In Strategy Maps, Kaplan and Norton expand on the use of their Balance Scorecard method. The first three sections of this book provides a foundation of the inputs to a strategy map, and provide the reader with an opportunity to think outside the norm of measuring a company by financials alone. An understanding of these sections is crucial to understand the value of a strategy map. The first sections also prove to be most valuable to investors or those wishing to know more about the general focuses of business management today. The actual section of building a strategy map is small relative to the length of the book; however, it is adequate to describe the development of one. The authors provide figures and exhibits throughout the text to illustrate which component of a strategy map is being affected in each discussion. The most valuable aspects of this book however are the numerous case studies presented at the end of each chapter to further illustrate the message. The case studies provide real life application examples of each input and section of a strategy map. Finally the final section provides additional case studies segregated by organization type (public sector, private sector, and nonprofit).
Strategy Maps provide a decent beginning to an alternative view and measure of companies' intangible assets. However, the book is written from a perspective that ignores potential problem areas and neglects to provide adequate comparisons to other methods that would prove the strategy map's superiority. Therefore, this book should not be viewed as an "end all" solution to valuation problems facing today's business, but merely as an informational look at a possible solution whose true output is to spark increasing debates and discussions.

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Customer Rating:
Summary: Good Book!
Comment: Kaplan and Norton introduce a very interesting topic: creating value for intangible assets. . Intangible assets are a very important value to a company, and measuring these assets is important to a company's success. I believe Kaplan and Norton establish a strong base for valuing intangible assets. After reading this book, I feel more competent and educated on the relationship between a company's strategy and intangible assets. It is almost like this book created a base for me. With this base, I can expand my knowledge of intangible assets in my future work experience.

As an accountant, I think reading this book helped prepare me for the future of accounting, and I found this book very insightful. The first part of this book establishes the relation ship between the balance scorecard and strategy maps. The second and third parts describe processes and intangible assets. These parts also explain the alignment and integration system for intangible assets and processes to a company's strategy. The fourth part describes how a company can customize their own strategy to implement intangible assets in the best way. Like I said above these four parts really help explain the relationship between a company's strategy and intangible assets. Furthermore, I do not know if this book gives the true answer to managing and implementing intangible assets to a company's strategy, but I do know it generates questions to be answered. Intangible assets make up a majority of a company's value, and we, accountants, cannot ignore the current value system of intangible assets. I encourage accountants and managers to read this book.

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Customer Rating:
Summary: The bible for strategic planning.
Comment: As a manager who has to establish the strategy for 2008, I found this book very useful. It took me some time to "get-it", as the book is arranged differently than my brain, but once I got it, I used it as the bilble for designing a Strategy and Strategy map as a DIY task.

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