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.

Citation

Lueg, R. (2015), "Strategy maps: the essential link between the balanced scorecard and action", Journal of Business Strategy, Vol. 36 No. 2, pp. 34-40. https://doi.org/10.1108/JBS-10-2013-0101