Financial Management - Balanced Scorecard for Corus Group PLC

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BSc (Hons) BNE 3                                                                                                                                             School of Engineering                                                                                   Sheffield Hallam University                     



School of Engineering



Unit S302 –Financial Management    Semester 1

  Assignment 2 – Balanced Scorecard for Corus Group PLC

Tutor                  :    Mr. David Ridley

Author                :    Petros Gerasimos Athanasatos

Deadline Date    :    Thursday 02/11/2004 (16:00)


Aim          : Analyzing and identifying the limitations of the balanced scorecard performance measure. With the assistance of this assignment, the author will cover learning outcome 2, which is to produce an alternative set of measures for the same organization-Corus Group plc (chosen in assignment 1), which contains factors other than financial factors that contribute to company performance, and suggest how such factors might be measured.


Corus Group plc was formed on 6th October 1999, through the merger of British Steel and Koninklijke Hoogovens. The Group's strategy is to focus on selected areas of carbon steel and to bridge the competitive gap between Corus and its European competitors. Post merger was identified as an issue that the Group needed to focus on, as this would provide to the company, some noticeable aspects:

  • Improvement of relationship with its customers.
  • Clear vision and strategy and translate them into action.
  • Develop feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results.
  • Build a platform for future growth opportunities.

The Group needs to adopt the balanced scorecard technique in order to achieve its objectives and become a world class company. According to Harvard Business School video viewed in a lecture during the semester (week 16-10/11/2004), the balanced scorecard views the organization from four perspectives:

  • The Learning and Growth Perspective
  • The Financial Perspective

Figure 1

Figure 1 represents a Balanced Scorecard system with its various strategies

1.   Growth, Innovation and Learning Perspective

This perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. In the current climate of rapid technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode. Kaplan and Norton emphasize that 'learning' is more than 'training'; it also includes things like mentors and tutors within the organization, as well as that ease of communication among workers that allows them to readily get help on a problem when it is needed. It also includes technological tools; what the Baldrige criteria call "high performance work systems."

The Baldrige Criteria for Performance Excellence is the basis for organizational self-assessments, for making Awards, and for giving feedback to applicants. As the business Criteria booklet states, "the Criteria are designed to help organizations use an integrated approach to organizational performance management that results in:

Thus this perspective focuses on vital areas such as employee satisfaction and retention, information systems effectiveness, subcontractor relationships, corporate citizenship and all the other things that make an organization a good neighbour and preferred employer.  

According to this perspective, the following measures are more important for Corus Group plc:

High employee turnover has always been a fact of life in many industries. Hitherto, the costs to recruit and train new employees eat away at the company's bottom line. To stay competitive, the company needs to not only attract the best possible employees for the job, but develop a straightforward strategy to retain them. Training hours per week for each employee is important for the company as it will provide the following advantages:

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  • enhance employee recruitment and retention
  • improve productivity and innovation
  • establish career development programs
  • set research and development priorities
  • improve the operation of call centres or other similar operations

Employee productivity is another issue which is important for the company. When used with the appropriate selection of other ergonomic accessories like keyboard trays, glare filters, and ergonomic chairs, a good LCD arm can help provide an ergonomically comfortable working environment. Revenue per employee could be achieved with one of the following examples:

  • Make Productivity and Utilization a corporate goal.
  • Set targets for each team ...

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