| Abstract: | Abstract
This study assessed the overall practices and challenges faced while implementing
the balanced scorecard (BSC) as a performance measurement, strategic
management and communication system in three state owned banks of Ethiopia:
Commercial Bank of Ethiopia (CBE); Construction and Business Bank (CBB) and
Development Bank of Ethiopia (DBE). The study tried to evaluate the challenges
faced as compared to the standard literatures of the system. In order to assess the
implementation status of the stated banks, the study has been conducted by
designing five-point Likert scale questionnaires. The total population size of the
study was 654 involving department managers, team managers and non-management senior officers of the stated banks. The study adopted purposive
sampling technique to select 150 respondents who have the working knowledge of
the system of which the responses of 105 respondents were analyzed. Common
implementation challenges such as limited understanding of BSC, lack of executive
sponsorship, lack of BSC education and training, inadequate IT support,
inadequate project team and organizational participation, inadequate key
performance indicators (KPIs) and lack of planning and communication were
observed in the stated banks at different level. However, lack of formal BSC
education and training, lack of planning and communication, lack of
organizational participation and inadequate IT support were the major challenges
identified. The study advised those banks to conduct intensive awareness creation
activities, ensure organizational level participation, develop strong implementation
and monitoring mechanism and back the system with relevant IT system to gain
advantage of the Balanced Scorecard system. |
