Strategy Maps: Converting Intangible Assets into Tangible Outcomes

Rating:
Summary: A disappointing and maybe DAMAGING book
Review: "Finally the book from Norton/Kaplan that links Scorecarding to Intangible Assets Management and that focuses on the holistic process (not on a tool) of managing strategically". That's what I thought BEFORE the book was published. That's what I expected. But this book takes a different, a very different turn.
Strategy Maps fails in two critical aspects: First, it presents Strategy Maps as a tool. "As important as the Balanced Scorecard" (citation from the introduction!), the authors claim. This is CRAP. In fact, Strategy Maps are and have always been a critical part of the typical Scorecard-based strategy management process that we might also refer to as "scorecarding". Maps are NOT another tool that we might or might not use. They are simply an ESSENTIAL part of using the Balanced Scorecard. No Strategy Map = No (real) Scorecard. Period. Why? Without a Strategy Map, a Scorecard is just hollow numbers and graphs. (And by the way: I guess 90% of today's Scorecards in practice are just that. Hollow and useless...). So this is not about a new tool really, but on one specific aspect of scorecarding. Too bad that Norton/Kaplan try to hype this as "the next big thing!".
Second problem: Norton/Kaplan seem to be just too narrow-minded nowadays to acknowledge what OTHERS (outside the Balanced Scorecard Collaborative) have been doing lately. They fill plenty of pages this time with examples (the book is in fact very repetitive), and they could have used the pages better connecting the Scorecard concept with fresh ideas. But they don't. They don't make use of valuable accomplishments regarding Intangible Assets Management. They ignore the highly relevant Beyond Budgeting framework.
Instead, as in their previous books, they resort to purely technical issues of scorecarding, this time focussing, you might guess it already, on the "mapping" stuff, without reflecting enough about paradoxes such as how to manage stategy in connection with Uncertainty, Planning, Resources, Innovation etc. You will find many (TOO MANY!) mapping examples in this book, as if the problem nowadays was DESIGNING such maps. I think the problem is more about communications, involving people and excecutives "letting go".
I doubt that this book will contribute much to managing practice. It just answers the wrong questions. A real pity...

Rating:
Summary: Great addition to the trilogy
Review: "Strategy Maps: Converting Intangible Assets into Tangible Outcomes" by Robert S. Kaplan, David P. Norton is a great third addition to the trilogy - "The Balanced Scorecard: Translating Strategy into Action" and "The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment"

The book goes into extraordinary detail of how both private and public organizations have succeeded in today's competetive environment by using the Balanced Scorecard to transform into what Kaplan and Norton call "Strategy-Focused Organizatons."

I particularly like the fact that the authors do not rely on theoretical "what if" examples like many academic theorists do -Kaplan and Norton have tested their ideas with real organizations that now endorse the concenpt (indeed, they created a Balanced Scorecard Hall of Fame to recognize those organizations that achieve exemplary results). The authors provide many examples of how such organizations have achieved breakthrough results through case studies.

This is a must have for all Balanced Scorecard enthusiasts and a great tool for managers to have to help think through the articulation of strategy, a pre-requisite to its actual implementation.

Rating:
Summary: Great addition to the trilogy
Review: "Strategy Maps: Converting Intangible Assets into Tangible Outcomes" by Robert S. Kaplan, David P. Norton is a great third addition to the trilogy - "The Balanced Scorecard: Translating Strategy into Action" and "The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment"

The book goes into extraordinary detail of how both private and public organizations have succeeded in today's competetive environment by using the Balanced Scorecard to transform into what Kaplan and Norton call "Strategy-Focused Organizatons."

I particularly like the fact that the authors do not rely on theoretical "what if" examples like many academic theorists do -Kaplan and Norton have tested their ideas with real organizations that now endorse the concenpt (indeed, they created a Balanced Scorecard Hall of Fame to recognize those organizations that achieve exemplary results). The authors provide many examples of how such organizations have achieved breakthrough results through case studies.

This is a must have for all Balanced Scorecard enthusiasts and a great tool for managers to have to help think through the articulation of strategy, a pre-requisite to its actual implementation.

Rating:
Summary: no value adding book
Review: All topics in this book are already covered in "The Strategy Focused Organisation". "Strategy Maps" says the same, but with five times as many words. A real disapointment. The book is complete crap. Read "The Strategy Focused Organisation" instead, that one is really good.

Theres is a lot about measures in "Strategy Maps", but it won't give you much guidance.

Examples from different kinds of service providers and manufacturing are overrepresented. There are basically no examples from other kinds of businesses.

Rating:
Summary: Linking Strategy Maps and Business Objectives to Scorecards
Review: At first, I also thought that this book is just a deja vu of the Strategy Focused Organization with the intend to make some extra money on a popular topic. But this is not the case!

The book goes into much more detail (450 pages) by answering what Strategy is all about, how to design solid objectives, how to formulate deliveries, and how to develop a scorecard linkage.

Excellent Work on Strategy Development and Implementation!

Rating:
Summary: Símon ÿorleifsson
Review: Great book and lots of good examples.
Gives the reader valuable insight in what to consider in designing Strategy Maps and also ideas for measurements.
Special focus is on internal processes and learning and growth.
Reading the book and looking through the various examples connects the reality to the theory.
When working with Balanced Scorecard this book is a must.
Nice work.

Rating:
Summary: Disappointing and a rehash
Review: I was extremely disappointed by this book.

My most serious concern was the failure of the authors to cite John Thorpe's "The Information Paradox: Realizing the Business Benefits of Information Technology". Results Chains were first developed in the late 80s and early 90s by DMR Consulting and Fujitsu Consulting. Basically, Strategy Maps are simplified Result Chains with a Balance Scorecard flavor. Harvard professors MUST do a review of the literature BEFORE they publish.

This is important because a Results Chain avoids 3 problems that will bedevil Strategy Map users.
1) A Results Chain is more much explicit about the role that assumptions play in achieving business outcomes. Assumptions are either statements about uncertainty (e.g. price is an important criteria for customers) or they are things that are outside of your control (e.g. a competitor will not enter this market). Strategy Maps DO NOT talk about risks or assumptions. This is bizarre.

2) The book continually mixs up inputs, outputs (from internal processes), and outcomes. (Osborne's "Reinventing Government" has a nice appendix about the differences.) It is not clear whether the elements on the Strategy Maps are actions to be taken or the results of these actions.
The failure to understand these distinctions will cause confusion down the road.

3) Results Chains are much more explicit about the contributions that one element plays in achieving business outcomes. In contrast, all the Strategy Maps have many-to-many relationships.
What will happen if the benefits are not achieved? How are you going to do any kind of root-cause analysis with a Strategy Map?

As the other reviewers have noted, the Strategy Maps in the book are very generic. This may provide a starting point for developing your own Results Chain.

Take a look at Thorpe's book.

Rating:
Summary: Disappointing and a rehash
Review: I was extremely disappointed by this book.

My most serious concern was the failure of the authors to cite John Thorpe's "The Information Paradox: Realizing the Business Benefits of Information Technology". Results Chains were first developed in the late 80s and early 90s by DMR Consulting and Fujitsu Consulting. Basically, Strategy Maps are simplified Result Chains with a Balance Scorecard flavor. Harvard professors MUST do a review of the literature BEFORE they publish.

This is important because a Results Chain avoids 3 problems that will bedevil Strategy Map users.
1) A Results Chain is more much explicit about the role that assumptions play in achieving business outcomes. Assumptions are either statements about uncertainty (e.g. price is an important criteria for customers) or they are things that are outside of your control (e.g. a competitor will not enter this market). Strategy Maps DO NOT talk about risks or assumptions. This is bizarre.

2) The book continually mixs up inputs, outputs (from internal processes), and outcomes. (Osborne's "Reinventing Government" has a nice appendix about the differences.) It is not clear whether the elements on the Strategy Maps are actions to be taken or the results of these actions.
The failure to understand these distinctions will cause confusion down the road.

3) Results Chains are much more explicit about the contributions that one element plays in achieving business outcomes. In contrast, all the Strategy Maps have many-to-many relationships.
What will happen if the benefits are not achieved? How are you going to do any kind of root-cause analysis with a Strategy Map?

As the other reviewers have noted, the Strategy Maps in the book are very generic. This may provide a starting point for developing your own Results Chain.

Take a look at Thorpe's book.

Rating:
Summary: Disappointing and a rehash
Review: I was extremely disappointed by this book.

My most serious concern was the failure of the authors to cite John Thorpe's "The Information Paradox: Realizing the Business Benefits of Information Technology". Results Chains were first developed in the late 80s and early 90s by DMR Consulting and Fujitsu Consulting. Basically, Strategy Maps are simplified Result Chains with a Balance Scorecard flavor. Harvard professors MUST do a review of the literature BEFORE they publish.

This is important because a Results Chain avoids 3 problems that will bedevil Strategy Map users.
1) A Results Chain is more much explicit about the role that assumptions play in achieving business outcomes. Assumptions are either statements about uncertainty (e.g. price is an important criteria for customers) or they are things that are outside of your control (e.g. a competitor will not enter this market). Strategy Maps DO NOT talk about risks or assumptions. This is bizarre.

2) The book continually mixs up inputs, outputs (from internal processes), and outcomes. (Osborne's "Reinventing Government" has a nice appendix about the differences.) It is not clear whether the elements on the Strategy Maps are actions to be taken or the results of these actions.
The failure to understand these distinctions will cause confusion down the road.

3) Results Chains are much more explicit about the contributions that one element plays in achieving business outcomes. In contrast, all the Strategy Maps have many-to-many relationships.
What will happen if the benefits are not achieved? How are you going to do any kind of root-cause analysis with a Strategy Map?

As the other reviewers have noted, the Strategy Maps in the book are very generic. This may provide a starting point for developing your own Results Chain.

Take a look at Thorpe's book.

Rating:
Summary: What about IP?
Review: I will confess -- I've only spent a few minutes with this book in a boosktore. I didn't buy it. Here's a big reason why: the index lacked entries not only for "patents" but for "intellectual property".

For lots of companies in my part of the world (Silicon Valley) patents and other intangible rights in technology are the most important kind of intangible asset. You also can't do patent strategy without having some understanding of the constraints (and opportunities) created by patent law. If the book omits those topics, then I don't see how it can do a complete job.

OTOH, if you like lots of consultant-type diagrams with platitudes about "customer value", "long-term value" "meeting customer needs" and the like, all garnished with arrows going all over heck, you might feel very comfortable with this book.