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Strategy Maps: Converting Intangible Assets into Tangible Outcomes

Robert S. Kaplan, David P. Norton

Implementing new business strategies for successful competitive advantage in today's market involves a deep understanding of a number of intangible assets such as customers, information and relationships. These assets, authors Kaplan & Norton argue, are considered far more valuable than the tangible assets such as capital, plant or buildings.

It was Kaplan & Norton together who, over a decade ago, introduced the 'Balanced Scorecard'. This performance management framework enables companies to accurately quantify intangible assets, along with other financial metrics to provide a more 'balanced' view of the company, in order for it then to be strategically aligned.

Since this revolutionary work, the two authors continued working with balanced scorecard adopters with their follow-up book The Strategy-Focused Organisation. They have now produced Strategy Maps, updating and refining the Balanced Scorecard framework and bringing together numerous examples of successful adaptations of their ideas. The authors have drawn upon 12 years of research into 300 organisations using this method and provide the motives and processes employed by senior executives in the driving seat. 

The strategy map is explained here with illuminating examples from widely varying businesses such as Saatchi & Saatchi, Bank of Tokyo-Mitsubishi and Thornton Oil. The strength of the strategy map is that it clearly and succinctly describes how these companies manage intangible assets to positively affect company performance and deliver value to key stakeholders. The book then guides the reader through ideas, examples and implementation instructions, finishing with case studies. The five main sections are:
 

• Overview and introduction to Strategy maps
• Value Creating Processes
• Intangible Assets
• Building Strategies and Strategy Maps
• The Case Files

This book is for executives in every company, big and small, who want to get maximum results from the Balanced Scorecard method, or those wondering why their company strategy isn't working. Strategy Maps shows how to align relationships, processes and information to achieve breakthrough strategic business success.