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Case study: creating a balanced scorecard strategy map - the case of Saatchi & Saatchi

Since its launch the balanced scorecard has been popular with both profit and not-for-profit organisations and there have been numerous examples of quite stunning successes. This case study looks at the New York headquartered communications agency Saatchi & Saatchi Worldwide.

Saatchi & Saatchi used the balanced scorecard system as its strategic management framework for transforming the firm from the brink of bankruptcy in 1995 to being purchased by the Paris France headquartered Publicis Groupe SA in September 2000 for close on $2.5 billion (indeed it is still a scorecard user today). This represented a multiple of about five times the company’s then market worth and is powerful evidence of the agency’s strategy implementation success.

The first step in any balanced scorecard system implementation is to create a strategy map outlining the strategic objectives of the business before translating them into a balanced set of business metrics. The strategy map used by Saatchi & Saatchi in the late 1990s identifies a number of value drivers of the organisation.