Read Mapas estratégicos: Convirtiendo los activos intangibles en resultados tangibles by Robert S. Kaplan Free Online
Book Title: Mapas estratégicos: Convirtiendo los activos intangibles en resultados tangibles|
Date of issue: January 23rd 2014
ISBN: No data
ISBN 13: No data
The author of the book: Robert S. Kaplan
Format files: PDF
The size of the: 364 KB
Edition: Gestión 2000
Read full description of the books Mapas estratégicos: Convirtiendo los activos intangibles en resultados tangibles:With ''Strategy Maps'', Kaplan and Norton expand the Balanced Scorecard concept they presented in their first book, called ''The Balanced Scorecard''. The main purpose of this book ''Strategy Maps'' is to provide a more visual description of the Balanced Scorecard, which is achieved through literally mapping the strategy. Basically, this comes down to explicitly drawing all the objectives of the 4 perspectives of the Balances Scorecard (Financial, Customer, Internal and Learning & Growth) so that the cause and effect relationships between the objectives of different perspectives become visually clear.
At the same time, Kaplan and Norton use this book to go into much more detail with each perspective, especially the Internal (previously known as Internal Business Process) and Learning & Growth perspectives.
In the FINANCIAL PERSPECTIVE, the focus is again on long-term shareholder value. Kaplan and Norton mention 2 ways of increasing shareholder value: Growth strategies and Productivity strategies. To make a connection to the income statement: You can increase net income by either increasing revenue (growth strategy) or decreasing expenses (productivity strategy).
In the CUSTOMER PERSPECTIVE, Kaplan and Norton dedicate again much time to the customer value proposition, and use the same subdivision as in ''The Balanced Scorecard'': The value proposition is made up of product attributes, customer relationships and image.
In the INTERNAL PERSPECTIVE, 4 different categories of processes are identified:
1. Operation Management processes
2. Customer Management processes
3. Innovation processes
4. Regulatory and Social processes
A separate chapter is dedicated to each of these 4 types of processes. In each case, subcategories of de 4 different categories are analysed and for each subcategory several examples of objectives and indicators (which K&N insist on calling measures) are given.
1. The Operation Management process can be divided in 4 different groups of processes:
- Supply: Develop supplier relations
- Production: Produce products and services
- Distribution: Distribute to customers
- Risk Management.
2. The Customer Management process has the following sub-processes:
- Selection: Decide which customers you want to target
- Acquisition: Acquire the customer
- Retention: Make sure the customer stays a customer
- Growth: Enhance customer value, i.e. get more revenue from each individual customer.
3. The Innovation process category consists of:
- Opportunity ID: Identify the opportunities
- R&D portfolio: Manage the portfolio
- Design and develop.
4. Regulatory and Social process category focuses on:
- Safety and Health
As I mentioned, in each case a comprehensive set of objectives and indicators is presented, which makes it easy to see how this part of the book can be implemented in real life. However, despite the fact that so many examples of objectives and indicators were given, this part is also the most academic. Kaplan and Norton seem to rely less on their own experiences as Balances Scorecard consultants and more inclined to take on the role of academic researchers. One indication of this: This part of the book has the most references to business literature.
In the LEARING & GROWTH PERSPECTIVE, Kaplan and Norton return to their experiences in the field, and contribute many new things and truly expand the concepts of the Balanced Scorecard beyond those presented in their first book.
First, they give the principal categories for the learning & growth perspective:
- Human Capital
- Information Capital
- Organization Capital
This is very similar to the classification they made in ''The Balanced Scorecard''. What is really new are the links they provide between the learning & growth and internal perspectives. In ''The Balanced Scorecard'' Kaplan and Norton remarked that they didn't have many examples of good indicators for the learning and growth perspective. In ''Strategy Maps'' they make up for that.
Most useful are the concepts of Strategic Job Families, Strategic IT Portfolio and Organization Change agenda.
They advise to ask for each internal process objective which jobs are most crucial, which IT application and infrastructure are most important, and which change in skills and behaviour are most urgent. Use the answers to these 3 questions to determine indicators for the learning and growth objectives.
For example, the jobs that are most important for a particular internal process objective form the Strategic Job Families. After establishing what those jobs are, define which competencies and qualifications are most relevant for those jobs. Then, establish how many people with those competencies and qualifications your company needs. Next, evaluate how many people with those competencies and qualifications are currently employed by the company. And finally, determine the Human Capital Readiness (or Strategic Job Family Readiness) by dividing what you have by what you need.
This is a summary of the bulk of the book, of the first 10 chapters. For me, the last 2 chapters were the most interesting: Chapter 11, Customizing your strategy map to your strategy and 12, Planning the campaign.
In chapter 11, Kaplan and Norton expand Michael Porter's well known division of strategies: Cost leadership and Differentiation. K&N give 3 different generic types of differentiation strategies, which, together with cost leadership, results in the following overview of strategies:
1. Best Total Cost: ''Offer products and Services that are consistent, timely and low-cost''. Objectives include being a low-cost supplier and offer consistent high (or at least acceptable) quality.
2. Product Leader: ''Products and services that expand existing performance boundaries into the highly desirable''. Objectives include providing high-performance products and being first to market.
3. Complete Customer Solutions: ''Provide the best total solution for the customers''. Examples of objectives are quality of solutions provided and customer retention.
4. System Lock-in: ''High switching costs for end users + add value to complementors''. Here, often network effects come into play, so having a large customer base is an important objective.
For each of these 4 types of strategies they provide a Strategy Map template. Very useful.
In chapter 12, Kaplan and Norton show, using a detailed example, how to construct a Strategy Map and how to build a Balanced Scorecard using a 7 step methodology. You end up believing that you could do it all yourself.
This book is a very useful addition to ''The Balanced Scorecard'', both from a theoretical and from a practical point of view. The many success stories and case examples make the story lively and practical. Some criticism: I thought that there were too many cases and that many of the cases where a bit superficial. For me, it probably would have worked better to go into decent detail with a more limited amount of cases. Also, it would have been nice to contrast all the success stories with one or two examples of failed Balanced Scorecard implementation. This could result in a useful ''pitfalls to avoid while designing your strategy map and constructing your balanced scorecard''. Well recommended (but probably best to read ''The Balanced Scorecard'' first before you dive into ''Strategy Maps'').
Read information about the authorRobert S. Kaplan (born 1940) is Baker Foundation Professor at Harvard Business School, United States, and co-creator, together with David P. Norton, of the balanced scorecard, a means of linking a company's current actions to its long-term goals. Kaplan and Norton introduced the balanced scorecard method in their 1992 Harvard Business Review article, The Balanced Scorecard: Measures That Drive Performance.
This method has been endorsed by companies such as Mobil and Sears. The balanced scorecard envisages executives as pilots with a range of controls and indicators in front of them, based upon which they make decisions and develop strategies. He has also published in the fields of strategy, cost accounting and management accounting. Prior to Harvard, Kaplan was on the faculty and was Dean of the Tepper School of Business at Carnegie Mellon University.
In 2006, Kaplan received the Lifetime Contribution Award from the Management Accounting Section of the American Accounting Association.
In 2006, Kaplan was named to the Accounting Hall of Fame.
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