Strategy maps: the essential link between the balanced scorecard and action

Abstract

Purpose – The purpose of this paper is to show how the use of Strategy Maps substantially improves the implementation success of balanced scorecards (BSC). The BSC is supposed to translate strategy into action. Strategy maps support this by showing cause-and-effect chains. But what does this mean for strategy execution in practice? To achieve better BSC implementations, the author uncovers pitfalls and names the remedies. Design/methodology/approach – The author summarizes the most important findings from initially over 1,000 studies that have dealt with the BSC from 1992 to 2012. Findings – BSC implementations that use a sophisticated Strategy Map appear to be successful. Strategy maps foster a better understanding of the BSC among employees, create greater commitment and less resistance and are superior to the BSC itself in communicating how to achieve strategic goals. Also, strategy maps facilitate managers’ evaluation of the relevant environment. Nevertheless, the common measure bias is a usual pitfall: top managers have a tendency to use their own strategic targets as a yardstick for lower-level employees. Originality/value – This paper helps managers understand the most recent developments on strategy maps. In particular, the author highlights that causalities do not exist in organizations in the same way as there are “laws” in physics. Instead, organizations need to customize their BSC to their way of doing business.

Application of Selected Methods and Approaches for Improvement of Processes and their Use in Practice in Companies of Wood Processing Industry in Slovakia

“…The BSC has been developed to provide organizations with a comprehensive view of their business model. The BSC features four perspectives (financial, customer, internal processes, learning and growth/innovation), which explains how the strategic objectives of an organization can be attained [10,11]. Six Sigma is a methodology focused on the improvement of manufacturing processes, where product quality is the response variable for all activities.…”

Involvement of Low Level Employees in Organization Strategy Planning and Implementation

“…According to (Liu, Ko, & Chapleo, 2017) communication will help employees to express their ideas about their workplace. Strategy can be transformed to employees level by supported technical system using balanced scored card as example, these systems will help not for employees involvement but also for assigning, monitoring and controlling employees tasks (Lueg, 2015) and it allowed detailed breakdown and control for goals into action items that can be controlled for all employees and units in an organization (Jaakkola, Helkkula, & Aarikka-Stenroos, 2015).…”

The Diffusion and Implementation of the Balanced Scorecard in the Norwegian Municipality Sector: A Descriptive Analysis

“…This suggests that there is an untapped potential to utilize more ambitious versions of the BSC in municipalities. Since researchers point out that strategy maps are important in order to derive utility from BSC use (Lucianetti 2010;Lueg 2015), it is important to increase the level of knowledge and understanding among municipal managers.…”