1. Strategy Maps Chapter One: Introduction
品管課 張恩欣
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps:
Converting intangible assets into tangible outcomes,
Harvard Business School Press: Boston,pp.3-pp.28.

2. The Story of Gray-Syracuse
How companies can now focus their human capital investment in all intangible assets to create distinctive and sustainable value
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.3.

3. Increasing focus of intangible assets
From a product-driven economy to a knowledge and service-driven economy
Intangible assets account for more than 75% of a company’s value
Intangible assets drive long-term value creation at both the macroeconomic and microeconomic levels
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.3-pp.4.

4. Strategy
“A general method for achieving specific objectives. It describes the essential resources and their amounts, which are to be committed to achieving those objectives. It describes how resources will be organized, and the policies that will apply for the management and use of those resources”
Source: “Engineering Strategy Development；Definition of Strategy”, Feb ,

5. Findings from Kaplan & Norton’s observation
No two companies thought about the strategy in the same way
Views of strategy were one-dimensional
A generally accepted way to describe strategy did not exist
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp5.

6. Consequences of inexplicitly described strategies
Executives cannot communicate the strategy among themselves or to their employees
Without a shared understanding of the strategy, executives cannot create alignment around it
Without alignment, executives cannot implement their new strategy for the changed environment of global competition, deregulation, customer sovereignty, advanced technology, and competitive advantage derived from intangible assets
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.5-pp.6.

7. Elements of the BSC framework
I. For private-sector organizations:
Financial performance
Customer
Internal processes
Learning and growth
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.7.

8. Elements of the BSC framework cont.
Financial performance
Provides the ultimate definition of an organization’s success
Describes how an organization intends to create sustainable growth ion shareholder value
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.7.

9. Elements of the BSC framework cont.
Customer perspective
To improve financial performance, an organization has to have a success with targeted customer
Defines the value proposition for targeted customer segment. The central element of strategy is choosing the customer value proposition
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.7.

10. Elements of the BSC framework cont.
Internal processes
Create and deliver the value proposition for customers
A leading indicator of the following improvement in customer and financial outcomes
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.7.

11. Elements of the BSC framework cont.
Learning and growth
Describe how the people, technology, and the organization climate combine to support the strategy
A leading indicator of the following improvement in customer and financial outcomes
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.7.

12. Figure 1-2 Strategy Maps: The Simple Model of Value Creation
Private-Sector Organizations
The Strategy
“If we succeed, how will
we look to our
shareholders?”
Financial Perspective
“To achieve our vision,
how must we look to our
customers?”
Customer Perspective
“To satisfy our customers,
which processes must
We excel at?”
Internal Perspective
how must our organization
Learn and improve?”
Learning and Growth
Perspective
Public-Sector and Nonprofit Organizations
The Mission
we look to our taxpayers
(or donors)?”
Fiduciary Perspective
“To satisfy our customers and
financial donors, which
business processes must
we excel at?”
“To achieve our vision, how
must our organization
learn and improve?”
Learning and Growth Perspective
How must we look to
our customers?”
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.3-pp.28.

13. Elements of the BSC framework cont.
II. For public-sector and nonprofit
organizations :
The achievement of mission
The fiduciary perspectives
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.7-pp.9.

14. Strategy maps: Describing how the organization creates value
Advantages
Providing a uniform and consistent way to describe that strategy
Providing the missing link between strategy formulation and strategy execution
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.10.

15. Strategy maps: Describing how the organization creates value cont.
Principles of the strategy map:
Strategy balances contradictory forces
Strategy is based on a differentiated customer value proposition
Value is created through internal business process
- Operations managements
- Customer management
- Innovation
- Regulatory and social
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.10-pp.12.

16. Strategy maps: Describing how the organization creates value cont.
Principles of the strategy map:
4. Strategic alignment determines the
value of intangible assets
- Human capital
  - Information capital
- Organization capital
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.13.

17. Productivity Strategy
Figure A Strategy Map Represents How the Organization Creates Value
Productivity Strategy
Long-Term
Shareholder Value
Growth Strategy
Financial
Perspective
Improve Cost
Structure
Increase Asset
Utilization
Expand Revenue
Opportunities
Enhance
Customer Value
Customer Value Proposition
Customer
Perspective
Price
Quality
Availability
Selection
Functionality
Service
Partnership
Brand
Product / Service Attributes
Relationship
Image
Supply
Production
Distribution
Risk Management
Operational Management
Processes
Selection
Acquisition
Retention
Growth
Customer Management
Processes
Opportunity ID
R&D Portfolio
Design/Develop
Launch
Innovation
Processes
Environment
Safety and Health
Employment
Community
Regulatory and Social
Processes
Internal
Perspective
Human Capital
Learning and
Growth
Perspective
Information Capital
Organization Capital
Culture
Leadership
Alignment
Teamwork
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.3-pp.28.

18. Conclusion
The strategy map template, customized to the organization’s particular strategy, describe how intangible assets drive performance enhancements to the organization’s internal process that have the maximum leverage for delivering value to customers, shareholders, and communities
Source: Kaplan R. S. & Norton D. P.,2004,Strategy Maps: Converting intangible assets into tangible outcomes, Harvard Business School Press: Boston,pp.14.