Balanced scorecard of tata motors

Mapping, Measurement and Alignment

of Strategy using the Balanced

Scorecard: The Tata Steel Case

GEORGE JOSEPH

University of Massachusetts Lowell, USA

Received: March 2007

Revised: January 2008; May 2008

Accepted: June 2008

ABSTRACT This management accounting case provides insights into the emergence of global firms from emerging economies that have effectively adapted modern management accounting tools in strategy implementation. It is based on real-life situations and was developed using information from interviews and access to the firm’s internal processes, journal articles, and other publicly available information. It is suitable for use in second level courses in management accounting or on MBA programs. It provides insight into the use of the balanced scorecard, in particular the strategy map and measurement.

KEY WORDS: Case study, management accounting, balanced scorecard

Introduction

It was well past mid-night on a crisp January night in 2007. The Tata Head Office in

Mumbai (Bombay) was alive with restless anticipation as Chairman Ratan Tata, Managing

Director Muthuraman and a handful of key executives monitored the London auction for

the Anglo-Dutch steel firm Corus. CSN Brazil had proved to be a determined player and

had already raised the bid close to 570 pence per share, edging the total purchase price

beyond the $9 billion mark. Tata knew that this was a crucial stage in the life of Tata

Steel (TS) given the global changes taking place in the steel industry. Besides, the

company had prepared for this moment over the past few months, beginning with

Managing Director Mr Muthuraman focusing on meeting expansion goals through a

program of selective mergers and acquisitions.

While steel prices had leveled in developed countries, recent increased steel consump-

tion in emerging countries such as India and China had rejuvenated the steel industry.

However, consolidations and mergers were also beginning to re-shape the industry and

the supply chain to increase the competitive strengths of the industry. 1

Historically, the

Accounting Education: an international journal

Vol. 18, No. 2, 117 – 130, April 2009

Correspondence Address: George Joseph, Department of Accounting, College of Management, University of

Massachusetts Lowell, One University Avenue, Lowell, MA 01854, USA. Email: george_joseph@uml.edu

0963-9284 Print/1468-4489 Online/09/020117 – 14 # 2009 Taylor & Francis DOI: 10.1080/09639280802436731

‘commoditization’ of steel had made it vulnerable to economic cycles. Additionally, while

raw materials’ vendors and major customers such as automobile companies were highly-

concentrated, the steel industry was fragmented. This also made it more vulnerable to raw

material price increases combined with steel price fluctuations that often resulted in a

profit squeeze. The cost of freight had also increased, due in large part to Chinese

trade, making it necessary for companies to locate closer to raw materials. In fact, it

was now imperative for TS to adopt a global strategy to survive.

The company had adapted to the environment, while retaining its historical image for

high moral and ethical standards. The company has incorporated insights about stake-

holders’ needs through a ‘stakeholder engagement’ system in developing and implement-

ing strategy. Additionally, the Balanced Scorecard (BSC) had become critical in

integrating various components of the strategy, and communicating it throughout the

organization. After the initial adoption of the BSC, the company felt the need to strengthen

its use. In January 2004, TS invited Ted Jackson, then President of the Balanced Scorecard

Collaborative, to conduct management seminars on the use of the scorecard. Mr Sharma 2

of the Strategy and Planning Division recalled that the workshop was attended by Senior

Executives of Tata Steel and its associate companies. The concept of the strategy map was

refined and developed in some detail. Additionally, Ted Jackson also discussed the BSC

cascading process and clarified how Business Support unit scorecards differed from the

Business unit scorecards. Mr Sharma remarked that the workshop had succeeded in

adding needed momentum to the use of the BSC and increasing communication within

the organization.

Background

Steel, the basic commodity that forms the basis for several products from the construction

of buildings and tankers, to hairpins and clips, has a complex and global supply chain (see

Figure 1) and a shifting customer base.

The recent resurgence in the industry, fueled by the construction boom and increasing

demand for consumer goods in emerging countries, was an opportunity for Tata Steel. Tata

Steel (TS) had come a long way since its inception on 26 August 1907 as the Tata Iron and

Steel Company. Whilst zealously guarding an enviable reputation for high ethical values

inculcated by the founder, Jamshedji Tata, 3

TS had developed a placid culture over the

years, with a sizeable payroll and a limited steel capacity less than five million tonnes

per annum (mtpa). Liberalization of the Indian economy in the 1990s and a change of man-

agement resulted in major changes in the company. The new Chairman, Ratan Tata, set

in motion a culture of change in management without compromising the ethical base

that defined the essence of the Tata philosophy captured by the Tata Code of Conduct.

The company transformed itself from an outdated high cost operation to a low cost

Figure 1. Steel industry overview

118 G. Joseph

modern steel producer, named third in management by World Steel Dynamics. 4

It was also

increasingly becoming the preferred supplier of steel for high-end products such as auto-

mobiles. However, the steel sector was changing rapidly and globalization was the next

challenge. Fragmentation in the steel industry led to lower margins compared to other

players in the supply chain. For example, three iron ore suppliers had over 60% of the

total market share, with margins of 35%. Customers such as the automobile industry

were also highly- concentrated with the top five firms controlling 65% of the market. In

contrast, the top 10 steel firms had only about a quarter of the total global output and a

margin close to 10%. 5

This had also resulted in re-structuring of the industry, leading

to mergers to increase price stability. Chairman Ratan Tata understood the challenges:

In this changed steel scenario, Tata Steel cannot stand still. It must explore ways of enhancing its capacity domestically while also establishing finishing facilities in strategic locations inter- nationally, leveraging its low cost Indian base and the availability of domestic iron ore. The Company needs to evaluate and invest in new emerging steel-making technologies, so as to enable it to be a state-of the-art steel-making facility.

Tata Steel had begun to shop globally, purchasing NatSteel in Singapore 6

and

Ferrochrome Smelter in Richards Bay, KwaZulu-Natal, South Africa. In October 2006,

Tata Steel made a bid for the Anglo-Dutch steel giant, Corus, which specialized in high-

end steel products including aircrafts and automobiles. Ratan Tata felt that this purchase

would integrate well with the company’s global strategy. 7

Thus, Tata Steel was poised to

reap the benefits of globalization, liberalization and the growing steel demand from Asian

economies, while remaining alert to the threats of hostile takeovers, the pressures on

prices and raw materials, and the increasing competition to create value for the customer.

Role of the BSC in Tata Steel

After spending time with management at the head offices in Jamshedpur, Ted Jackson out-

lined a program for the BSC workshops. The key objectives of the workshops were to revi-

talize TS’s BSC program to make it more effective, to integrate the BSC with the Strategic

Governance process, and to create momentum using the BSC as a dynamic process.

Several key executives, including Mr Muthuraman, the Managing Director (MD),

Mr. Mukherjee, the Deputy Managing Director (DMD) of Steel, and Mr Chaturvedi,

Vice President (VP) of Flat Products, attended different sessions in the workshop (see

Figure 2 for the organization structure). There was a variety of sessions, including sessions

for strategy development, strategy maps, and cascading of the scorecard.

In the strategy session, executives reviewed key factors integral to the strategy, the

firm’s vision, values and mission. All reaffirmed the firm’s desire to remain true to

the vision of the founder, Jamshedji Tata, to strengthen India’s industrial base through

the effective utilization of staff and materials by mobilizing high technology and pro-

ductivity, consistent with modern management practices. The TS vision recognized that,

while honesty and integrity were the essential ingredients of a strong and stable enterprise,

profitability provided the main spark for economic activity. The vision also acknowledged

the need for an atmosphere free from fear, and thereby reaffirmed its faith in democratic

values. The Tata Code of Conduct institutionalized the firm’s value system. The code

included several articles that highlighted the need for transparency and mutually beneficial

relationships with different stakeholders (Elankumaran et al., 2005). 8

The Tata Code of

Conduct specifically forbids bribery and corruption in various forms. 9

The firm’s

mission was to mobilize resources to avail itself of opportunities through areas such as

emerging technologies, new business models, value creation, customer service, new

Mapping, Measurement and Alignment of Strategy 119

Figure 2. Organization structure

1 2 0

G .

J o se

p h

products, services or businesses to make the firm EVA positive. 10

Additionally, the firm

would keep in view the vision by improving the quality of life of the employees and

the communities served and upholding the spirit and values of the Tatas in nation building.

The firm placed a high priority on ‘stakeholder engagement’ and used feedback from

stakeholders to identify key areas of strategy and as a means to integrate economic,

social and environmental issues (part of the Code of Ethics) into its strategy. 11

The

engagement process (Figure 3) helped identify key stakeholders within stakeholder

groups, assess and prioritize their concerns and address them in corporate strategy.

The executives were familiar with the variety of forums to receive feedback and com-

municate with stakeholders including investor satisfaction surveys, customer conferences

and satisfaction surveys, vendor dialogues, meetings with key suppliers, employee dialo-

gues, senior citizens’ forums, and joint community meetings. Information from stakeholder

engagement, integrated with values, mission, and the competitive environment, formed

the basis for strategy development. Using this information, the executives were assigned

the task of drawing up the ‘strategy map,’ which Ted described as the ‘roadmap’ of the

strategy linking key components of the strategy in the four BSC perspectives. After

several hours of debate and heated discussions, the executives finally agreed to a map

over which there was reasonable consensus (see Figure 4). Mr Sharma recalled some of

the discussions with executives from different functional areas highlighting their contri-

butions to overall strategy. The Chief (Strategy and Planning) coordinated the efforts,

guiding discussions along the areas linked to the BSC perspectives.

While the strategy map proved to be invaluable in articulating overall strategy, Ted

Jackson emphasized the critical importance of cascading strategy to different levels in

the organization by developing scorecards at the corporate level, as well as for each

business unit and support unit. Scorecards formed an integral part of communication

and alignment of strategy. The cascading process began at the corporate level with the

Managing Director’s (MD) scorecard.

The team next worked on the outline for the MD’s scorecard (also called the corporate

scorecard) that emphasized areas where the corporate office provided the synergies to

enable achievement of organizational strategy. Muthuraman had set the financial goal

of becoming EVA positive, a target he recognized as difficult in the steel industry. He

recognized the need to emphasize quality through branding, and meeting the manufactur-

ing demands of sophisticated customers such as automobile and aircraft manufacturers to

increase margins. The global aspects of the Revenue strategy, to achieve revenue growth

and diversification into related end products through mergers, were also evident in the

scorecard (Table 1).

The BSC now needed to be cascaded to different levels in the organization. The task

would continue long after the workshop, but the sessions had set the stage for a

renewed and revived implementation of the BSC. As Mr Sharma thoughtfully summarized

the impact of the BSC, he expressed his appreciation of the overall usefulness of the

Figure 3. Stakeholder engagement process

Mapping, Measurement and Alignment of Strategy 121

Figure 4. Strategy map

1 2 2

G .

J o se

p h

Table 1. Corporate balanced scorecard

BSC perspective Corporate objectives

Strategic measures

(unit) Actual Target Benchmark Strategic initiatives

Financial

outcomes

Create incremental EVA year

on year on existing

business

Economic value

added (EVA)

(Rs. Crores)

507 10% incremental

EVA year on year

Posco China Steel (5.4%) Grow organically & through M&A (in India & overseas) to 15 mtpa by 2010

Execute overseas Fe-Cr facility

Establish global presence in steel manufacturing

Sustainable & aggressive growth

Invest in attractive new business

Divest, merge, acquire

Increase in top line

growth (%)

21 20% year on year 43% Gerdau SA Establish a low cost coastal plant to link domestic & global operations

Internal Capacity expansion

Execute Titanium Projects plans

Develop well-defined M&A framework for domestic & overseas acquisition

Market

outcomes

Move from commodities to

brand

Retail sales through

brands (%)

100% Improve brand promotion & brand positioning

Implement retail value management (RVM)

Customer

perspective

Value creating partnerships with

customers

Customer

satisfaction

index (CSI) –

(flat products,

long products,

tubes) (index)

1.06 (FP)

1.10 (LP)

1.14 1.12

Baoshan Steel

Customer value management (CVM) program with 100% OEM customers

(enterprise Accounts) by 2007

Develop customer relationship index

Internal business

perspective

Value creating partnerships with

suppliers

Continue to be the lowest cost

producer of steel

Outsource strategically

Encourage innovation and allow

the freedom to fail

Ensure safety and environment

sustainability

Improve quality of life of the

communities we serve

Corporate image

index (out of

100)

Supplier satisfaction

index

Employee cost

(% of turnover)

Corporate

citizenship index

(out-locations)

7.7

7.7

11.87

10

92

8.0

Contain at

02 – 03 levels

10

Individual and parameters for

each stakeholder group

separately benchmarked

Tata Steel is the benchmark

Improve operational excellence & sustain cost competitiveness

Improve perception – potential employees, school students, government,

financial community

Improve corporate governance practices

Implement social accountability (SA 8000)

Implement OHSAS

Collaborate with DuPont for institutionalizing safety

Learning

perspective

Manage knowledge

Enthused and happy

employees

Improve the quality of life

of the employees

Organization

learning index

Employee

satisfaction

index

441

3.8

650

3.9

Unique measure

3.89; Infosys

Bring unionized cadre in knowledge management fold

Improve knowledge sharing & knowledge Manthan

Improve workplace ambience, safety & ergonomics

Increase time spent on developing people to create leaders at all levels

Create leadership pipeline and develop global managers

Unleash people’s potential and

create leaders who will build

the future

Leadership

behavioral

index (%)

74.7 85 Unique

Source: Adapted from Tata Business Excellence Model Report.

M a p p in

g ,

M e a su

re m

e n t

a n d

A lig

n m

e n t

o f

S tra

te g y

1 2 3

workshop, particularly in the strategy map development. Business units and support units

would now need to develop their own scorecards using appropriate themes from the strat-

egy map to ensure strategic alignment. Using the stakeholder approach, the firm set about

determining areas of customer and stakeholder concerns and requirements, the focus for

further development of business unit scorecards.

Business Units: Measurements and Outcomes

Customer Outcomes

Mr Mukherjee of the Mumbai (Bombay) sales office, explained that the Sales (Flat

Products) Division used its ‘listening and learning’ activities (customer visits, satisfaction

surveys, and other ‘listening posts’ such as call centers and e-linking) to gather infor-

mation and develop measures by customer segment and product category. An example

of customer value creation was evident in the Bombay sales office where, in the midst

of hectic activity, Mr Mukherjee negotiated the next month’s supply of auto grade steel

with representatives from Mahindra & Mahindra, a major auto customer. The Bombay

office had a direct video conferencing with the production facilities at Jamshedpur and

the customer production facilities. The agreement included details of ‘technical’ and

‘delivery’ conditions, key components of the customer value proposition.

A key feature of the marketing strategy has been the development of strong relation-

ships with large customers and retailers. In line with the strategy, TS developed measures

by customer type and product segment to identify areas to strengthen relationships with

customers. Important measures in the Enterprise category included share of business, sat-

isfaction index, and awards and certificates; 12

for distributors, measures included monthly

sales analysis, complaint analysis, number of products, Brand Equity Index, and new

products introduced. Additionally, measures by product segment and product mix, as indi-

cated in Table 2, enabled the firm to develop processes to meet customers’ expectations.

Classified broadly by production into Long and Flat Products, the mix indicates the

product development strategy move from commodities to high-quality brands. The firm

also used brand names such as Tata Shaktee and Tata Steelium to differentiate their

products and to emphasize quality. Branded products, contributing about 14% to the

company’s sales, commanded a premium over non-branded products in the market,

with a higher turnover.

The customer requirements reflected the close interaction and led to innovations. As

Mr Mukherjee explained, ‘We convey the customer requirements to production in

Jamshedpur. While we try to ensure that all customer complaints are addressed and

orders are complied with in a timely manner, each customer has unique needs that we

also try to fulfill. Sometimes, we have seen major innovations from production and R&D,

as a result. Take the case of the innovation of ‘galvanized bake hardening steel’ for dent

resistant automotive use, a breakthrough in developing steel for automobile chassis.’

Internal Business Processes

TS identified several processes key to implementing strategy. ‘Operations and Fulfillment’

was one critical process that included several support processes (Table 3). 13

The con-

cerned departments used information from surveys and business plans to determine key

process requirements. These process requirements were translated into in-process and

key performance measures. Key performance measures (KPM) measured the effectiveness

of the process (outcomes) and they were linked to the BSC. However, the process owners

were particularly concerned with the in-process measures, which guided their activities.

124 G. Joseph

Improvements in these areas also generally translated into improvements in KPMs. The

control methods ensured internal and external audits of the efficiency of the processes.

The departments/business units controlling the processes usually developed their own scorecards tied to the MD’s scorecard and the strategy map. For example, the objective of

the R&D was to make Tata Steel an EVA-positive company. As MD Muthuraman put it,

‘It is the strategy that drives the research objective. R&D has a BSC that is tied to the

MD’s BSC. It contains various strategic measures in the perspectives of finance, customer,

internal business processes, people and special projects. Its performance is measured

against the metric set in the BSC.’

Learning and Growth

The support departments, particularly the HR, had also streamlined their activities to

conform to the strategic goals spelled out in the BSC. New employee orientation included

Table 2. Market segments and expectation

Products Segment Customer requirements

Flat products—

HR, CR, galvanized

Auto segment Surface quality

Order compliance

Complaint redressal

Appliances Shape and hardness

Order compliance

Complaint redressal

General Engineering Mechanical properties

Order compliance

Complaint redressal

Hot rolled products Consistency in chemical properties

Consistency in mechanical properties

Order compliance

Complaint redressal

Tata Shaktee Zinc yield ratio

Complaint redressal

Long products, TISCON: projects Weight/meter

Tiscon-wire rods Yield strength

Weldability (carbon equivalent)

Compliance to technical delivery

conditions

Complaint redressal

TISCON: retail Compliance to technical delivery

conditions

Yield strength

Complaint redressal

High carbon wire rods Compliance to technical delivery

conditions

Segregation level

Complaint redressal

Low carbon wire rods Compliance to technical delivery

conditions

Complaint redressal

Source: Adapted from Tata Business Excellence Model Report.

Mapping, Measurement and Alignment of Strategy 125

Table 3. Key support processes, requirements, KPMs and in-process measures (operations and fulfillment value creation process)

Key support

processes Key process requirements In-process measures

Key performance

measures (KPMs) Control methods Process owner

Procurement Timely availability of

products and services at

competitive prices;

Partnership with suppliers

Average lead time for placing

order; GRN cycle time;

Feedback from vendors on

timely payment; Spend

base covered by strategic

sourcing; Trends in

improvement in response

time (IT);

Savings through strategic

sourcing; Supplier

satisfaction index

Monthly reviews;

segment steering

committee

reviews

Chief

Procurement

Social

responsibility

and corporate

citizenship,

safety and

environment

Involvement in community

development and ensuring

a safe and clean

environment. Congenial

work environment.

Waste utilization; capital

investment on pollution

equipment; safety training;

expenditure on society

CCI; family planning;

water pollution, quality;

immunization; man-

days lost due to

accidents; ambient air

quality; reportable

accidents

Social audits;

compliance to

ISO 14001 and

OHSAS norms;

ISA 14001 and

OHSAS internal

and external

audits

MD; DMD

(customer

service) and

DMD (safety)

Information

management

Timely availability of data

and information at all

levels for decision-making

Trends in improvement in

response time (IT); IT

uptime

Overall CSI with ITS Internal CSI; Help

desk monitoring

CIO

1 2 6

G .

J o se

p h

Research and

development

Develop new customized

products for customers;

efficiency in operations

through better processes

R&D expenditure No. of innovations; no. of

patents; no. of new

products developed;

new product

development cycle time

R&D reviews at

apex level and

second level

Chief (R&D and

shared

services)

Shared services

mgmt

Availability of plant and

equipments; energy

consumption; availability

of electrical power

Compliance to performance

requirement of level 2

systems; power generation

stage-wise energy

consumption

Average uptime of

automation products;

specific energy

consumption; power

rate; works power cost

Internal CSI

services)

VP (shared

services)

Finance and

accounts

Timeliness; accuracy; speed

of processing

Internal CSI Cycle time for cost

reports; accuracy of

cost reports; invoice

processing within due

date; monthly accounts

submission; remittance

of salary to banks

Internal, external

audits

CFC (corporate)

Source: Adapted from Tata Business Excellence Model Report.

CCI ¼ Corporate Citizenship Index; CFC ¼ Chief Financial Controller; CIO ¼ Chief Information Officer; CSI ¼ customer satisfaction index;

DMD ¼ Deputy Managing Director; GRN ¼ goods receipt note; ITS ¼ Information Technology Services; MD ¼ Managing Director; VP ¼ Vice President.

M a p p in

g ,

M e a su

re m

e n t

a n d

A lig

n m

e n t

o f

S tra

te g y

1 2 7

the Code of Conduct, team building exercises, company policies, strategic objectives,

acculturation, and management systems and processes. Management development

training focused on a key ‘basket of competencies’ vital to the short-term/long-term growth of the firm. Training programs were developed by employee category, (e.g.

workers, supervisors, and officers) and employee life cycle, (e.g. new employee plant

visits, on the job training, special projects, and advanced training).

To cultivate a culture of innovation and knowledge management, TS employed ‘learn-

ing from failure’ sessions that led to new insights into processes and innovations.

Mr Maheshwari, Chief of Scientific Services pointed out that: ‘learning from failure

and developing an innovation evaluation method is extensively used to improve and

differentiate products.’ TS also captured knowledge at different levels from ‘tacit shop

floor’ knowledge to ‘global expert’ knowledge and communicated it across the organiz-

ation through its knowledge management (KM) portal. In line with Tata values, training

included that of disadvantaged groups, (e.g. tribal groups) and diversity training in such

areas as cultural (religious, language and social) and gender (professional and social

empowerment of women).

The firm recognized the importance of feedback and incentives to ensure the effective-

ness of training and knowledge management programs. There was systematic data collec-

tion integrated with information technology that enabled timely collection, retrieval, and

analysis of performance measurement (Table 4).

Sometimes training was not as structured, nevertheless linked to strategy. Mr. Chaturvedi

recalled how MD Muthuraman had sent him to Northwestern University’s Kellogg School

of Management (located in Evanston, Illinois, USA) for a week long program on mergers,

acquisitions and alliances. He did not realize that, in just a few months, his time there would

be put to good use during the acquisition of NatSteel in Singapore. Sending Chaturvedi to

Table 4. Key data and Information gathered for daily operations and organizational performance

(sample, not exhaustive)

Key data and information How collected

Daily operations Sales, dispatch compliance, productivity,

cost, quality

SAP

Customer complaints Lotus notes/manual Employee grievances Manual

Organizational

performance

Safety performance Safety incident reporting system

Customer satisfaction index, supplier

satisfaction index, market share

Third-party survey

Employee satisfaction index, corporate

citizenship index

Internal survey

Economic value added (EVA), profit after

tax (PAT), operating profit,

SAP

asset utilization, return on equity (ROE),

growth, revenue from branded

products, premium from branded

products

Tata business excellence model (TBEM)

score

External assessment

Source: Adapted from Tata Business Excellence Model Report.

128 G. Joseph

Kellogg was part of Muthuraman’s plan of transforming TS into a global player, something

that was increasingly taking shape.

Merger and Continuing Challenges

Looking back over the years since the initial BSC implementation and the revival after the

workshops in 2004, Mr. Sharma concluded that BSC had helped improve focus and flexi-

bility, increasing the ability of the firm to initiate new ventures and adjust to changes.

Recent financial results were also impressive. Despite price fluctuations and raw materials

increases, Tata Steel leveraged its low cost, high productivity and revenue strategy to

influence its bottom line considerably. Recent quarterly earnings indicated that Tata

Steel’s EBITDA was considerably higher than that of competitors such as Nippon

Steel, Arcelor, POSCO, JFE, and Mittal Steel. 14

However, challenges for the future

remain. The external environment in the steel industry has many uncertainties and strategy

needs constant evaluation. While the demand side appeared to have gained momentum,

there was always the concern about cyclicality of demand. Additionally, overcapacity

in the Chinese supply side could also destabilize prices.

Nevertheless, TS was now better equipped to meet these challenges. The results of the take-

over battle were in. Overnight, Tata Steel had changed from the 55th to the 5th largest steel

firm in the world with a capacity of 25 mtpa and a global reach. At $11.3 billion, the cost was

high, but according to Ratan Tata, ‘we hadn’t reached the limit we had set ourselves.’ The

immediate challenge was to integrate a much larger firm, a process that could include

many possible hurdles. However, there was now an air of confidence. As Ratan Tata

summed it, ‘the human chemistry was good. There is more going for us than against us.

When the hurdles come, we will deal with them. What we have done now is create an inte-

gration committee that will operate towards integration of both companies seamlessly.’

Suggested Questions

1. How does Tata Steel develop strategy?

2. Using the strategy map (Figure 4), organization chart (Figure 2), and other relevant

information, present scenarios where different functional area managers use the

strategy map to interact and discuss a unified strategy.

3. Strategy map and strategy implementation:

(a) How does the strategy map result in measures and initiatives in the BSC?

(b) Comment on how different perspectives contribute to the final goal of becoming

EVA positive.

4. Measurement and incentives:

(a) Briefly describe the steps in measurement that enable TS to use measures to

improve performance and increase transparency (use Tables 1 to 3, with

emphasis on Table 2).

(b) Does the nature (or type) of the measures influence the BSC implementation?

Identify the different types of measures in the TS case and indicate their

usefulness.

(c) What are potential problems/ pitfalls that may affect strategy implementation? Discuss how they may (or may not) apply to the Tata Steel case.

5. Considering the future of the merger with Corus, discuss possible ways that Tata Steel

could benefit from using the Balanced Scorecard approach.

Mapping, Measurement and Alignment of Strategy 129