Designing a Balanced Scorecard Framework for Sheffield Surgical Ltd (SSL)

This assignment aims to help the SSL group monitor its own performance by implementing a Balanced Scorecard (BSC) tool. The BSC is a widely accepted management tool that enables organizations to enhance their performance monitoring by looking at four interrelated perspectives: Financial, Customer, Internal Processes, and Mutual Growth. The Financial Perspective helps track financial improvements, while the Customer Perspective focuses on customer requirements and satisfaction. The Internal Process Perspective monitors internal operational targets. While the BSC has been widely used, it also faces some limitations and gaps for future research.

0Running Head: BALANCE SCORECARD
Balance scorecard: A case study of SSL organization
Name of the student:
Name of the university:
Author’s note:

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Table of Contents
Introduction...................................................................................................................... 1
Concept of balance scorecard.........................................................................................1
How can balance scorecard be introduced in SSL?.........................................................2
Benefits of introducing......................................................................................................2
Drawbacks of introducing.................................................................................................3
Other aspects of balance relevant to SSL........................................................................4
Conclusion....................................................................................................................... 5
Reference.........................................................................................................................6

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Introduction
A small and medium sized enterprise known as Sheffield Surgical Ltd who are
dealing in manufacturing of surgical instruments. Sheffield Surgical Ltd started to
manufacture this kind of high quality stainless steel surgical instruments from the year
1967. Sheffield Surgical Ltd initially started to manufacture surgical instruments for the
National Health Service for the people of United Kingdom. However, Sheffield Surgical
Ltd expanded their business after moving their business idea into high quality stainless
dental and veterinary surgical instruments. In the last ten years having a high reputation
for manufacturing of tremendous quality of surgical instruments the company has
expanded into the modern operating environment of supplying high quality of stainless
steel surgical instruments. They have emerged as a global supplier within the last ten
years of their operation. But, the last two years, the company has stagnant sales while
the operating costs are increasing day by day. In this study, it will enable the reader
about the balance score needed to promote the sales of the company and to emerge as
the global supplier of surgical instruments. An interview was conducted in order to
recruit and implement new ideas to discuss so that the current condition of the company
improves.
Concept of balance scorecard
Balance scorecard is defined as a tool of measuring performance metric unit in
formulation of strategic management so that the malfunction can be identified within the
organization. This identification would improve the existing condition of the
organizations internal functions of the business environment which will result in the
outcomes of the external factors of the company. Balance score cards provide the
organization with a measuring tool to measure the works of the organization and
provide a strong feedback (Almohtaseb, Almahameed, and Shaheen, 2017). The
amount of data collected is of qualitative in nature. This data’s are being interpreted by
managers and various other executives who will help them to take better decisions to
promote the growth of the organization.

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Balance score card was first introduced in the year 1992. It was introduced to
reinforce a favorable working condition within the organization by analyzing four
important areas in an organization. Balance scorecard is mainly used to attain
objectives and to initiate the objectives of attaining the goal of the organization. Balance
scorecard gives indication of the factors which leads to hindrances in the growth of the
organization and will help in outlining the strategic changes needed. Balance scorecard
mainly helps the organization in development of the strategic dynamism and the
strategic objectives (Boscia, and McAfee, 2014).
How can balance scorecard be introduced in SSL?
In today’s world there is a need for the measurement of the performance
appraisal. There is a need of effective measurement of performance which acts as an
integral part of the management process. The sales Sheffield Surgical Ltd has been
grounded to a halt. Adopting the use of Balance score card will enable the management
system to find out the lagging areas of the company. The Balance score card will help
the company to provide the improvement in areas of product, process, customers, and
developing market conditions to increase their sales. Balance score card will provide the
managers of SSL with a four different perspectives to measure. Balance score cards
provide complementary traditional financial indicators which help in measuring the
active participation of the customers in their products (Nørreklit, and Mitchell, 2014).
The amount of information that is gathered through the help of Balance score card will
help SSL to create a balance between the external measures of the company. This
measurement will help the managers of SSL to reveal the trade-offs which managers
uses to measure the performance and this score cards would encourage them to
achieve their future goals. Introduction of balance score card will provide a benchmark
against which all the new projects are being evaluated.
Benefits of introducing
Sheffield Surgical Ltd (SSL) being a significant SME in the fields of high standard
stainless-steel and titanium surgical instruments manufacturer, the introduction of
balance score card is quite significant and important. The organization is already

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struggling with its performance. The manufacturing and operating units are struggling to
perform properly (Shafiee et al. 2014).
This is the right time to introduce the balance score card. It is one of the best strategic
performance and management monitoring framework that can be designed and
engineered to help the SSL group to monitor its own performance. This tool can help to
supervise the execution of its policies and strategies. In fact, as per the study this
management tool is found to be the sixth most accepted and used management tool
across the world (Singh and Sohani, 2014). The successful implementation of this
balanced score card will increase the performance in overall and have the highest
satisfaction ratings. It enables the SSL group to enhance the performance monitoring in
to the four inter related perspectives. They are primarily the Financial Perspective,
Customer Deliverables, Internal Processes and Mutual Growth.
Its Financial Perspective helps to rectify the financial objectives of SSL Group. It allows
managers to track financial improvements, success and values of the shareholders. The
clear Customer Perspective takes care of the customer requirements and objectives so
that customer requirements, satisfaction, market shares and business targets as well as
products and service performances (Sreelakshmi and Rao, 2017). On the other hand,
the Internal Process Perspective helps the management to monitor the internal
operational targets.
Drawbacks of introducing
It is always not advisable to follow the balance score card tools blindly without
understanding the perspectives of its different utilities. The various features of the tools
need to be understood thoroughly to avoid improper utilization. The most important
aspects in this regard are Cost and Time. It is accepted by several business
professionals that the BSC quite costly and highly time consuming tool. The proper
utilization of the tool requires a clear understanding of the whole process. It is quite time
consuming in nature. The affair become very costly as it involves all the important
resources. The maximum effectiveness will take time to fine tune its performance areas.
Thus it becomes a disadvantage for the Sheffield Surgical Ltd (SSL). While maintaining

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daily operational and surgical related requirements, it is highly critical to accomplish the
correct implementation of the balanced score card (Tan et al. 2017).
It is also not advisable to jump into the implementation of balanced score card with
incomplete information. The most usefulness of the BSC approach is quite dependent
on the values of various information that is the key driver of the process. It happens that
the employees remain busy in doing daily work – the famous garbage in and garbage
out concept. It is obvious that the tool can perform effectively only when the right
elements are selected for the proper review. The correct information used to properly
appraise the progress is absolutely important. (Tizroo et al. 2017)Similarly, the
employee resistance is also a critical factor to make the balanced score card a success.
Other aspects of balance relevant to SSL
Balance score card concepts offers to look into the details of an organization
strategy from the different views (Ratnasingam, 2014). These four aspects are the most
important aspects of the company. These aspects are discussed below:
Financial aspect: Financial aspect is considered to be the most important aspect of an
organization. Managers of SSL should provide necessary financial data’s to the
management on time and also should give necessary attention to it. Long term
opportunities should be looked upon in order to gain the financial stability of the
company. Several software’s can be maintained in order to depict the accurate figure of
the financial data’s. Accuracy will lead to more earning of the company and help in the
right choice of corporate systems. Implementing the right corporate system of
management will help the company in achieving the reduction of company’s data
processing cost. This will help in formulation of true and fair balance Score Card.
Customer aspect: SSL is a client oriented company delivering surgical equipments.
Sales have got stagnant due to overlooking on the performance of the customers.
Keeping a track of the existing customer’s preference will help them to identify the
potential customers which will lift up the pressure of stagnant sales.

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Innovation aspect: This aspect will lead to development of the corporate culture.
Innovation in the atmosphere of the working environment will help them to innovate
more verities in their existing products resulting in the uplift of the stagnant sales
(Sainaghi, Phillips, and Corti, 2013).
Internal process aspect: This aspect tends to aim at the business process in order to
monitor the performance of the company. Internal process will elaborately demonstrate
the works of the head of the departments. This will lead them the company with more
effluent way of uplifting the stagnant sales.
Conclusion
The above study has revealed the importance of the Balance score card in SSL.
The sales of the company have been stagnant which needs to be uplifted through
various strategic involvement. Introduction of Balance Score card holds the key to
success of the company’s progress. The managing director of the company has decided
to adopt Balance score card and to progress in the market of operation.

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