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Can Strategy Maps Improve Performance Evaluation Decisions?

February 3rd, 2013

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Can strategy maps affect decisions made using a common strategic performance measurement system, the balanced scorecard? Strategy maps are causal diagrams depicting temporally-separate and non-linear relations between scorecard performance measures and overriding strategic objectives.  A distinguishing feature of the balanced scorecard (BSC) is the number and diversity of its metrics. To effectively formulate a decision from such a complex information set, managers must view these measures within their strategic context. As predicted, performance evaluation decisions are improved by achieving better alignment with strategic objectives when participants are provided with well-designed strategy maps.  This line of research will be of interest to the many managers who use balanced scorecards, as well as consultants who help implement them.

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