Strategy Map

Organizations are challenged develop new organizational skills such as flexibility or expertise in order to quickly respond to changes in technology, competition and customer preferences.Companies cannot be competitive or successful if their business and information systems and technology (IS/IT) strategies are not strategic aligned. Nowadays,the importance of intangible assets is higher than traditional physical assets and performance measurement tools need to capture this new reality. Measuring organizational performance is a continuous challenge for both managers and researchers. Balanced scorecard (BSC) is a powerful tool that gives to managers a fast, but comprehensive view of the business including operational measures on customer satisfaction, organization's innovation, activities improvement, as well as financial measurements.
In this paper the authors address the BSC and promote the discussion about the strengths and the limitations and pointing out new developments to overcome the today´s business trends.

Lingkungan dunia yang mengalami perubahan seperti adanya globalisasi, kontrol masyarakat, perkembangan teknologi, memberikan dampak bagi perkembangan suatu negara maupun bisnis. Kontrol masyarakat terhadap pelaksanaan kegiatan pemerintahan maupun perusahaan, sehingga pemerintah maupun pemimpin perusahaan tidak dapat membuat kebijakan yang mengabaikan kepentingan masyarakat. Oleh sebab itu dalam menjalankan kegiatannya perlu adanya keselarasan antara kompetensi yang dimiliki perusahaan maupun pemerintah dengan lingkungan yang ada di luar organisasi (perusahaan dan pemerintah).
Di era globalisasi sekarang ini, memiliki strategi bisnis yang biasa-biasa saja tidak cukup untuk menghadapi persaingan yang semakin ketat. Persaingan yang memunculkan daya saing erat kaitannya dengan pemahaman mekanisme pasar (standar dan benchmarking), kecepatan dan ketepatan penyampaian produk (barang dan jasa) yang mampu menciptakan nilai tambah. Dibutuhkan suatu keunggulan kompetitif dalam persaingan bisnis sekarang ini. Perusahaan dituntut untuk merumuskan perencanaan strategik dengan memanfaatkan sistem dan teknologi informasi. Strategi yang direncanakan harus dapat beradaptasi terhadap perubahan lingkungan. Keberlangsungan hidup suatu perusahaan dipengaruhi oleh keuntungan / laba dan profit. Keuntungan didapat dari pelanggan. Oleh karena itu pelanggan merupakan salah satu faktor penting untuk kelangsungan hidup perusahaan. Perusahaan harus dapat memenuhi kebutuhan dan permintaan pelanggan dengan harga rendah namun tetap menghasilkan laba bagi perusahaan.
Tujuan utama yang diharapkan oleh suatu perusahaan dalam kegiatan usahanya adalah mencapai laba atau nilai yang optimal dengan menggunakan sumberdaya secara efektif dan efisien untuk kelangsungan hidup perusahaan. Dalam usaha pencapaian tujuan perusahaan, pihak-pihak yang terlibat paling dominan adalah pihak manajemen dan para pemegang saham. Guna mencapai tujuan perusahaan tersebut, pihak manajemen memiliki tujuan untuk mempertahankan keberhasilan yang akan dicapai dengan melihat kelemahan dan kekuatan yang terdapat dalam perusahaan serta menjalankan kebijaksanaan perusahaan dengan baik dan tepat. Kebijaksanaan tersebut meliputi bidang Pemasaran, Keuangan, Sumberdaya Manusia, Produksi dan sebagainya sehingga memerlukan tinjauan manajemen strategi tertentu.
Manajemen  strategi  merupakan  proses  atau  rangkaian  kegiatan  pengambilan keputusan  yang  bersifat  mendasar dan  menyeluruh, disertai  penetapan  cara melaksanakanya, yang dibuat oleh pimpinan dan diimplementasikan oleh  seluruh jajaran  didalam  suatu  organisasi, untuk mencapai tujuan. Menopang manajemen strategis tergantung pada manajer mendapat pengertian mengenai pesaing, pasar, harga, pemasok, distributor, pemerintah, kreditor, pemegang saham dan pelanggan diseluruh dunia. Harga dan mutu dari produk dan jasa perusahaan harus dapat bersaing di seluruh dunia, bukan hanya di pasar lokal.
Oleh karena itu PT Nestle Indonesia membutuhkan perancanaan strategi sistem informasi menggunakan alat bantu seperti analisis BSC, CSF dan SWOT dalam menciptakan rencana strategik yang sesuai visi misi perusahaan agar perusahaan selalu memiliki keunggulan kompetitif.

In today's global landscape organizations are pressured to develop new capabilities such as flexibility or expertise to respond to the ever-changing technology, competition, and customer preferences. Companies cannot be competitive or successful if their business and information systems and technology (IS/IT) strategies are not aligned. Nowadays, with the growing importance of intangible assets, performance measurement tools must be able to capture this new and important reality. Measuring organizational performance is a difficult and ongoing challenge for managers. Balanced Scorecard (BSC) is a powerful tool that gives a fast, but comprehensive view of the business including operational measures on customer satisfaction, organization's innovation, activities improvement, as well as financial measurements. This study empirically examines how the BSC has been applied in practice and whether different BSC designs result in varying performance outcomes. In this paper the authors address the BSC and promote the discussion about the strengths and the limitations, underlining the latest developments and future research.

Investments in information systems and technology (IS/IT) have not always generated the business value or the financial revenue that should be expected. Some authors argue that the result of those studies that related investments in IS/IT to increased organisational performance over the last thirty years were far from true. Others say that the amount spent on IS/IT and business success has no direct connection. The relationship between IS/IT and performance is widely discussed, but is little understood. Organizations today need to deliver more complex products and demanding services in a better, faster, and cheaper way. The challenges that companies address today require enterprise-wide solutions that call for an integrated approach and the effective management of organizational resources in order to achieve business objectives. Benefits Management (BM) approach proposes a continuous mapping of the benefits of IS/IT investments, implementing and monitoring intermediate results. Balanced Scorecard (BSC) is an innovative approach that considers the financial and non-financial perspectives in determining the performance level of an organization. Not only does it represent a measurement tool, but it is also a multi-dimensional system of performance management which focusses on the alignment of all business initiatives with the strategy. In this paper, the authors propose a link between these two approaches to improve the management of business benefits and to ensure that actions taken along the investment life-cycle lead to foreseen benefits realization. The goal of this integration is to propose a framework that combines the " best of " the both methods. A key issue of this combination lies in the fact that all involved stakeholders must understand more clearly what is required, what is realistically expected, and what is possible to achieve from these investments.

The Balanced Scorecard (BSC) has attracted considerable interest among organizations seeking to improve the implementation of their strategy. Some researchers argue that the BSC has its theoretical roots in the MBO. Both techniques seek to provide organizations with a basis for aligning the activities of the organization with their objectives. The difference between the BSC and MBO is that the BSC offers more systematic tools to link an organization's strategic objectives with its activities. However, some researchers are beginning to raise questions about BSC's effectiveness and some of its limitation. Basing their argument on the failure of MBO programs, they argue that the BSC may also encounter similar problems. This paper presents the findings of a study on BSC implementation in a Malaysian telecommunication company. The finding provides some support for the concerns raised about the problems and limitation of the BSC.

Purpose – The purpose of this study is to synthesise the prior literature on strategy maps to develop a practitioner’s guide to the design of strategy map frameworks. Robert Kaplan and David Norton introduced the strategy map in their 2000 Harvard Business review article. A strategy map visually represents how the critical elements of an organisation’s strategies are linked together. In an organisation’s strategy  execution process, a strategy map complements a performance measurement framework such as the balanced scorecard.
Design/methodology/approach – This is a technical paper, which primarily builds on the prior literature on the strategy map design. In particular, this study reviews 41 publications on strategy maps in the period 2000-2015, including observation of 333 strategy map frameworks.
Findings – This study develops 14 design principles across seven features of a strategy map framework. This study also identifies a significant lack of empirical research on strategy map design features and principles.
Research limitations/implications – Future research could examine whether and why various design features and principles could exert different or same effects (e.g. decision-relevance).
Practical implications – The developed design features and principles can be used by practitioners as guidance for developing customised strategy maps for their organisations.
Originality/value – This paper contributes to the literature by serving as a one-stop shop” for both practitioners and researchers seeking a comprehensive understanding of the current state of the strategy map design features and principles.

The aim of this article is to present the application of a strategic map for hospital management. The main hypothesis is, that strategic map for a hospital should differ from the classical one by Kaplan & Norton due to different priorities hospital work specificity as such. The main finding is that financial perspective is fundamental, basic for hospital activity. In hospital " X " strategic map, finance are the resource, not the result.

Organizations’ success depends on planning. Today, this task is
carried out through a multi-stage process such as defining outlook, devising
strategies, implementation, performance evaluation, and data analysis and
planning for improvement. On one hand, defining and devising goals, and on
the other hand, implementation and performance evaluation have become the
main challenges of top managements. For the broadness of such
organizations as Hamshahri newspaper, decreases the flexibility of managers
and makes the consequences of management’s mistakes, heavy and
irremediable. Based on this, by using balanced models such as Balanced
Scorecard (BSC), organizations pursue strategies’ implementation in
different aspects and manage their strategic performance. In doing so, precise
determination of strategies and general goals in further promoting them
throughout an organization is necessary, which could be realized in BSC by
developing a strategy map. Therefore, in this study, using the strategy map as
a basis for performance evaluation, a non-linear and fuzzy algorithm is
defined which was able to design a fully balanced system for performance
evaluation in line with Hamshahri newspaper’s goals. The results showed
that the designed system outputs are more tangible for the organization’s
personnel and the results are accepted by the Hamshari newspaper’s
managers.

Notwithstanding a growing interest towards performance management systems for universities, little is known on their application to academic departments. Being an institution dedicated to research, a department presents specific characteristics: creativity, professional autonomy, low degree of repetitiveness, uncertainty on results, unclear relation between input and output. Such peculiarities make the evaluation and measurement of its performance particularly difficult. The purpose of the paper is the exploration and development of a performance evaluation approach which is suitable for the particular features of an academic department. As this paper is explorative in nature, we use a qualitative methodology, to identify dimensions of performance evaluation suitable for application to an academic department. Data are collected for the case study of a department of the University of Padua, Italy. After identifying the relations between the four perspective of the balanced scorecard ...

Notwithstanding a growing interest towards performance management systems for universities, little is known on their application to academic departments. Being an institution dedicated to research, a department presents specific characteristics: creativity, professional autonomy, low degree of repetitiveness, uncertainty on results, unclear relation between input and output. Such peculiarities make the evaluation and measurement of its performance particularly difficult. The purpose of the paper is the exploration and development of a performance evaluation approach which is suitable for the particular features of an academic department. As this paper is explorative in nature, we use a qualitative methodology, to identify dimensions of performance evaluation suitable for application to an academic department. Data are collected for the case study of a department of the University of Padua, Italy. After identifying the relations between the four perspective of the balanced scorecard ...

espanolEl presente trabajo muestra un estudio estructural dentro de las tecnicas prospectivas realizado en el Instituto Universitario de Tecnologia del Estado Bolivar (IUTEB) como aporte al proceso de transformacion que se desarrolla en las instituciones universitarias venezolanas y en el marco de discusion de una universidad distinta y con mayor pertinencia e inclusion social. La validez cientifica de la propuesta esta fundamentada en la utilizacion del metodo de expertos, la construccion de la matriz directa de influencia/dependencia del MICMAC y el enfoque estrategico. El analisis estructural y la interpretacion de la interrelacion existente permiten descubrir las variables que dinamizan a dicha Institucion, generando el mapa de transformaciones en los niveles de realizacion de poder, enlace y conflicto dandole tejido sistemico al constructo prospectivo, poniendo de relieve las lineas de ruptura estrategica necesarias para alcanzar un nivel de eficiencia, competitividad y sosteni...

The purpose of this article is to use strategy mapping (SM) and balanced scorecard (BSC) in portraying and assessing green entrepreneurial supply chain management (GESCM) performance of a vertically integrated entrepreneurial supply chain in an Egyptian emerging market of organic beverages industry. Based on thematic literature review and qualitative research (in-depth interviews with experts, focus groups, observations, and reports’ analysis), multi-item measurement quantitative BSC scale and strategy map were proposed to measure and communicate the GESCM performance of a hierarchical chain with multiple nodes and cross-functional green practices. This article conceptually contributes to the active debate on contemporary GESCM performance measurement. It integrates the literature of green production and operations management, strategic management and entrepreneurial supply chain management (ESCM) to investigate the unexplored context of GESCM research. It empirically assesses GESCM performance of an attractive network using BSC and maps its strategy with its multidisciplinary environment-friendly practices. The GESCM performance was measured in terms of four integrated perspectives (innovative and proactive processes, learning and growth, financial gains and supply chain stakeholders’ delight). Results showed that BSC and SM are effective and efficient tools in managing the performance of a successful GESC in an emerging market. Royal Herbs’ BSC key performance indicators (KPIs), which were used in assessing a GESCM strategy, indicate improvements along the BSC’s four perspectives. Results give green entrepreneurs/manufacturers in an emerging market as Egypt a comprehensive view on how they can effectively assess/improve their GESCM performance. It draws attention to the importance of investing in GESCM practices for maintaining sustainable development in a clean business environment. It helps practitioners, academics and policymakers in Egypt to bridge the gap between theory and practice regarding GESCM performance. From an interdisciplinary perspective, it provides insights on improving the ESCM performance of the industry without harming its natural environment.

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Although a firm’s strategy map is likely to evolve over time, empirical research on the evolution of strategy maps is largely underexplored. Drawing on fieldwork, this study examines strategy map evolution from a value creation perspective. The findings show that a firm's strategy map evolves in response to delivering new value and/or existing value through new value creation design themes. Furthermore, value creation design themes underlying strategy maps are dynamic in that certain design themes of an existing strategy map continue as part of the new strategy map, whereas others are abandoned. The study also shows that over time, design themes underlying strategy maps can change their role from value creation to value protection. Finally, this study discusses how the use and change of strategy maps can be linked, and how the use of a strategy map can influence its design.

Purpose
The objective of the research study is to analyze and explore the effectiveness of using Balance
Scorecard (BSC) as a management tool in the evaluation of the performance and thereby the
quality services of a University.
Design/methodology/approach
The survey was conducted among the various faculties and departments Sohar University
through a well-defined questionnaire. The collected primary data was compiled, analyzed and a
critical analysis was carried out using a null hypothesis, chi-square, and regression analysis.
Findings
Our empirical result clearly reveals that there is a strong association exists between the strategic
road map and the four perspectives of BSC.
Research Limitations/Implications
The study was carried out in Sohar University, Oman and the same can be extended to all the
higher educational institutions globally.
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Practical Implications
The study reveals that the key performance measures identified under the classification the four
perspectives of BSC, play a crucial role in establishing the framework based on the strategic map
determined by the vision and the mission of the University.
Social Implications
The study demonstrates that the BSC concept can be introduced to an educational institution to
fill up the gap created between the creation of strategy and implementation of the same.
Originality/value
No study has investigated the performance evaluation of a higher education institution in Oman,
using the four perspectives of BSC, and this is a first hand study.