Discuss why Tesco may have switched their approach away from using the balanced score-card

Task:  For many years, Tesco (https://www.tescoplc.com/investors/) used a balanced scorecard called the Steering Wheel to measure and manage the performance of the organisation. However, in 2013 Tesco reported a 23.5% fall in half year profits: http://www.bbc.co.uk/news/business-24361465 Subsequently, Tesco has stopped using the Steering Wheel and now uses a “Big 6 KPIs” strategy.

Question: Discuss why Tesco may have switched their approach away from using the balanced score-card to measure and manage its overall performance, and how the new strategy may be utilised or improved to enhance future business performance.

Guidance: Look specifically at what Tesco did in the past and what they’re doing now in terms of their different approaches relate that to the theory in terms of what the balanced scorecard is how did Tesco to actually implement that. Questions to guide in terms of the sort of things that you’ll need to think about to understand and research in order to answer the question:

  • What is the balanced scorecard?
  • What is it designed to do?
  • What are its strengths and weaknesses?
  • What are KPIs?


  • How did Tesco’s Steering Wheel apply the balanced scorecard?
  • How does the Big 6 KPIs approach differ from this?
  • Why did Tesco change the method of performance measurement? (Think about what the two different approaches were about what they were designed to do. What the limitations, particularly of the Steering Wheel might have been, and how might the big key KPIs be a better approach test goes, given the context of where the organization finds itself)
  • What do competitors do?


  • Has Tesco done the right thing in changing to the Big 6?
  • Will this lead to improved performance?
  • Are there any changes they should make now?
  • How the new strategy might be used? (Demonstrate your abilities in critical analysis).

Format of the assignment is REPORT. Include Headings, Executive summary, Introduction, Main Part, Recommendations (critical analysis) and Conclusion. Main part should be divided on: 1)         About scorecard and KPI (briefly describe a theory) 2) Why Tesco changed approach 3) How the new strategy may be used or improved.

Originality: no more than 10%. Less is better.

You can illustrate Report by using Tesco examples. Diagrams, tables:  should be placed in the Appendix.

Sources: 25-30 – academic sources only. Material should be for management, not for students.