Strategy Maps : The Essential Link between the Balanced Scorecard and Action

The Balanced Scorecard (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, I uncover pitfalls and name the remedies. I summarize the most important findings from initially over 1,000 studies that have dealt with the Balanced Scorecard from 1992 to 2012. 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. This paper helps managers understand the most recent developments on Strategy Maps. In particular, I highlight 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