Introduction of Balanced Scorecard for Sheffield Surgical Ltd

The assignment requires the creation of a business report on the concept of the Balanced Scorecard, analyzing its usefulness for a company like Sheffield Surgical Ltd (SSL). The report should be 1,500 words, structured with subheadings, and address points such as what is the Balanced Scorecard, how it can be introduced into SSL's operations, benefits and drawbacks, and relevant aspects. Academic research supporting the information provided will also be expected.

Accounting Information for Business
REFERRAL COURSEWORK- ASSESSMENT BRIEF
Assessment Instructions
Topic: The Balanced Scorecard
Part 1:
Sheffield Surgical Ltd (SSL) is a SME which manufactures high quality stainless-steel and titanium
surgical instruments for use in general surgery, dental surgery and veterinary surgery. The company
started manufacturing high quality surgical instruments back in Sheffield, in 1967, the home of quality
stainless steel and engineering in the UK. The company originally started manufacturing instruments
for the National Health Service (NHS) in the UK. The business gradually expanded and widened their
markets with the move into dental and veterinary surgical instruments. Due to their reputation of
manufacturing high quality surgical instruments and accessories for use within the modern operating
theatre environment, the company has expanded significantly in the last ten years and are now a
global supplier. In the past ten years turnover has increased from just over £2 million to £10 million in
the last financial year, also staff numbers have grown from 27 in 2005 up to 112 in 2017. However in
the last 2 years sales have stagnated whilst operating costs have continued to increase.
It is now April 2017 and you have recently joined the company after achieving your first class degree
in Business and Management. During your interview you discussed your interest in a number of
management theories including the Balanced Scorecard (BSC). The interview panel, which included
the Managing Director found your discussions both relevant and engaging. This is why the Managing
Director has called you to his office to discuss possible significant future developments for the
organisation.
At the meeting the Managing Director explains that he feels the current performance indicators used
by the company do not meet the requirements of the modern day business environment and are
entirely finance focused. He goes on to explain that he recently attended a conference where
performance measurement systems were discussed, and one of the theories discussed was the BSC,
He then explains the reason for the meeting, he understands that the business needs to adapt and
introduce a new performance measurement system which is relevant to all areas of the business
operations. He feels that a significant part of this process could be achieved through the concept of
‘The Balanced Scorecard’. He therefore tasks you with writing a report which will be presented to the
directors at the next board meeting.

Requirements:
Kaplan and Norton (1996) created the Balanced Scorecard to provide managers with a better
performance measurement system, one that was linked to the organisation’s strategy.
Prepare a business report for the benefit of the directors on the concept of a Balanced Scorecard
that also analyses its usefulness for a business such as SSL.
The report should be a maximum of 1,500 words and written in a style suitable for a General
Manager to read. This is not an essay and therefore we would expect it to have a clear structure with
appropriate sub-headings.
When structuring your business report please address the following points:
 What is the concept of the Balanced Scorecard?
 How could the Balanced Scorecard be introduced into the operations of an organisation such
as SSL?
 What are the benefits and drawbacks of introducing and operating the Balanced Scorecard
for an organisation such as SSL?
 Any other aspect of the Balanced Scorecard which you feel is relevant to an organisation
such as SSL.
You are also expected to make reference to any academic research which may support the
information you provide within your report.
(1,500 words)
Format
All work should be word processed in 12 point font Arial and 1.5 line spacing. Easy marks will be
lost if you do not adhere to these instructions.