Can strategy maps be used to assess the value of R&D initiatives? Read On...
"The use of the latest strategic management is very critical to sustain and grow research and development in a fast changing economy. This paper shows how strategy maps of Balanced Scorecard can be used in describing and aligning the research and development initiatives with the overall mission and the financial objectives of an organization. The strategy map framework used is based on a simple but effective model of value creation for research and development. The framework used is for both for-profit and non-profit perspectives. The stakeholders of the research and development define the source of value. Cause-and-effect relationships of strategy map define the logic that converts intangible outcomes of research and development to tangible outcomes. Budget performance of the research and development initiatives provides the tangible definition of value. The strategy map shows the key priorities in managing research and development, the relationships among the research and development performance drivers and the outcomes. The strategy map also describes the need to balance the opportunities and the risks and communicates the key elements of the research and development strategy."