Learning from Tesco Strategy Map and Scorecard

A great lesson of how Balanced Scorecard works can be learned from global retailer Tesco. This company is known for its state of art Business Intelligence (BI) system. Balanced Scorecard is published yearly on tescoplc.com as part of Tesco’s BI system and is a must-see business performance tool. It even has its own name, “steering wheel.”

Learning Balanced Scorecard lesson from Tesco steering wheel

Source: www.tesco-careers.com

In this article, I’d like to review the Tesco’s BSC for the year 2013 and suggest some insights that any business professional might adopt in his business.

It is not classical BSC

If you ever start discussions about BSC or what BSC is, you’ll end up with some expert saying that BSC is not what you have in your company because you don’t have some important component. As was discussed before, there is no fixed recipe for the BSC.

Companies use this framework and modify it according to their needs. What is more important is that the company sees the improvement in business performance.

Tesco did the same trick. Taking a classical Balanced Scorecard as a framework method and adopting it to the needs of the company.

Tesco's Balanced Scorecard

Source: tescoplc.com

Let’s have a quick look at what was modified and what is missing:

  • In the very beginning, it is stated that there are five perspectives: community, operations, people, finance, customer. Remember that classical Balanced Scorecard suggests four perspectives that are a little bit different.
  • Another difference from the classical BSC is that strategy map is not included. If you’re checking the BSC on Tesco’s website, it is not possible to learn what strategic objectives the company has and how it is going to achieve them. Obviously, that strategy map just was not published here, and one can find a so-called “7 part” strategy of Tesco with strategic objectives and target measures. Check out this strategy map guide if you want to learn more about strategy maps.
  • Finally, as we know in classical BSC, any business objective should be aligned to KPI and action plan. It is easy to see that the publicly available BSC of Tesco does not contain all the details, such as an action plan, but comments tell us what the general vector of the company is and for sure make more sense for employees.

Let’s continue the review and find best practices that one can adopt in his own business.

From my viewpoint, one of the most important innovations is that the Balanced Scorecard (well, at least some significant part of it) is publicly available. It makes sense for company employees, it makes sense for partners and clients. I believe publishing BSC online in public access is the best way to declare that BSC is important for your company, and you are using it for performance management.

Achievement marks

Now, let’s pay attention to the marks used in the BSC. Achieved or unachieved targets are marked with a tick or a cross that gives a quick picture of what is doing well and what needs to be improved.

Achieved or unachieved targets are marked with tick or cross

Source: www.tescoplc.com

Also, a minor feature, but I think it is really nice – when the first value is introduced for 2008, it is not marked with tick or cross, it just said that it is “new.”

Online wizard will help even inexperienced users to create a professional strategy map with business goals, KPIs, and initiatives.

Strategy Map Wizard – Balanced Scorecard in 6 Minutes

Answer simple questions - build a professional strategy map in 6 minutes.

Strategy formulation and description might be a time-consuming project even for an experienced strategist. This Strategy Scorecard Wizard will make the whole process fast and intuitive. Learn more!

Start now!

More Examples of the Balanced Scorecard

Customer service strategy map with KPIs
8 STEPS To Create a Strategy Map By BSC Designer
Corporate Governance Dashboard with KPIs

Conclusions

  • It is not 100% classical BSC
  • Strategy map with objectives is available apart from BSC
  • It is published online
  • Simple marks are used to display current state and progress

Expert in Strategy Scorecards | Trainer | Author

BSC Designer is a Balanced Scorecard software that is helping companies to better formulate their strategies and make the process of strategy execution more tangible with KPIs.

If you prefer to receive posts like these by email sign up to our newsletter.

How Business Professionals Use BSC DESIGNER

Strategy map
Capture their thoughts about strategy on a strategy map
KPIs
Track leading and lagging indicators to calculate performance
Initiatives
Engage employees in strategy execution and keep team accountable
Posted in By Industry

Thank you for sharing!

Whether you are looking for a professional Balanced Scorecard software, or just researching information about Balanced Scorecard and business strategies, we recommend you to download and try our BSC Designer software (no credit card is required).

We will follow up with you with lessons about the Balanced Scorecard and will keep you informed about the trending articles on bscdesigner.com

Follow us in Social Media