PROSPECTS AND CHALLENGES OF BALANCED SCORECARD IMPLEMENTATION: A CASE OF DEVELOPMENT BANK OF ETHIOPIA

Abstract

The Development Bank of Ethiopia is one of the state owned financial institutions that implemented BSC with the notion of improving its overall organizational performance. (However, the required level of success has not been achieved due to diverse reasons. The recurring customers’ and staff complaints can be evidences to this point). The purpose of this study was, therefore, to explore the major challenges and impedimental factors encountered in the implementation process of BSC and its associated prospects at the Head office of the bank while drawing valuable recommendations. To arrive at a sound conclusion, descriptive method of research with a mixed approach of qualitative and quantitative theme was applied. Relevant data for the study was collected mainly from primary sources using interview and questionnaire. The major findings of the study revealed that strategic thinking and direction has been maintained with regard to the bank’s vision, mission and strategy; while other activities such as employees level of attitudinal change, the core intangible assets (Human Resource) use and coordination, employees’ and customer satisfaction, operational efficiency, level of management commitment and dedication, in general properly application of basic principles of BSC in DBE is found to be below expectation.