Kaplan and Norton describe a six-stage management system. Operational and strategy reviews remain separate; learning changes assumptions, initiatives, or strategy.

1. 1

   Develop

   Develop

   

   Goal

   Produce strategy so the core question “How do we close the loop from strategy through operations to learning and adaptation?” can be answered with stronger support.

   Inputs for this step

   • Strategy and strategy map
   • initiatives and operating plans
   • performance and environmental data

   Actions

   • Set strategic assumptions, positioning, and goals.
   • Record source, rationale, and open uncertainty directly in strategy.

   Output

   strategy

   strategy · source · uncertainty · next decision

   Quality check

   Are assumptions explicit?

   Pitfall

   Operational variances dominate the strategy review and strategic assumptions remain untested. Separate review purposes and cadences, keep strategy hypotheses visible, and record adaptation decisions.

   Timing: 10–20 minutes

2. 2

   Translate/plan

   Translate/plan

   

   Goal

   Produce execution plan so the core question “How do we close the loop from strategy through operations to learning and adaptation?” can be answered with stronger support.

   Inputs for this step

   • strategy
   • initiatives and operating plans
   • performance and environmental data

   Actions

   • Connect strategy map, measures, initiatives, and operating resources.
   • Record source, rationale, and open uncertainty directly in execution plan.

   Output

   execution plan

   execution plan · source · uncertainty · next decision

   Quality check

   Are resources and owners assigned?

   Pitfall

   Operational variances dominate the strategy review and strategic assumptions remain untested. Separate review purposes and cadences, keep strategy hypotheses visible, and record adaptation decisions.

   Timing: 10–20 minutes

3. 3

   Monitor/learn

   Monitor/learn

   

   Goal

   Produce review evidence so the core question “How do we close the loop from strategy through operations to learning and adaptation?” can be answered with stronger support.

   Inputs for this step

   • execution plan
   • initiatives and operating plans
   • performance and environmental data

   Actions

   • Review operational performance and strategic hypotheses separately.
   • Record source, rationale, and open uncertainty directly in review evidence.

   Output

   review evidence

   review evidence · source · uncertainty · next decision

   Quality check

   Does review fit the decision type?

   Pitfall

   Operational variances dominate the strategy review and strategic assumptions remain untested. Separate review purposes and cadences, keep strategy hypotheses visible, and record adaptation decisions.

   Timing: 10–20 minutes

4. 4

   Adapt

   Adapt

   

   Goal

   Produce adaptation decision so the core question “How do we close the loop from strategy through operations to learning and adaptation?” can be answered with stronger support.

   Inputs for this step

   • review evidence
   • initiatives and operating plans
   • performance and environmental data

   Actions

   • Change strategy, initiative, or operations from evidence.
   • Record source, rationale, and open uncertainty directly in adaptation decision.

   Output

   adaptation decision

   adaptation decision · source · uncertainty · next decision

   Quality check

   Is change and rationale recorded?

   Pitfall

   Operational variances dominate the strategy review and strategic assumptions remain untested. Separate review purposes and cadences, keep strategy hypotheses visible, and record adaptation decisions.

   Timing: 10–20 minutes