TY - JOUR

T1 - Strategy maps

T2 - The essential link between the balanced scorecard and action

AU - Lueg, Rainer

PY - 2015/4/20

Y1 - 2015/4/20

N2 - 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.

AB - 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.

KW - Balanced scorecard

KW - BSC

KW - Construct causality

KW - Integration

KW - Literature review

KW - Performance measurement system

KW - Pragmatic constructivism

KW - Strategy implementation

KW - Strategy map

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=84928253917&partnerID=8YFLogxK

U2 - 10.1108/JBS-10-2013-0101

DO - 10.1108/JBS-10-2013-0101

M3 - Other (editorial matter etc.)

AN - SCOPUS:84928253917

VL - 36

SP - 34

EP - 40

JO - Journal of Business Strategy

JF - Journal of Business Strategy

SN - 0275-6668

IS - 2

ER -