ASSESSEMENT OF BALANCED SCORECARD IMPLEMENTATION AT COMMERCIAL BANK OF ETHIOPIA

Abstract

The aim of this study is to assess the implementation of Balanced Scorecard in CBE and challenges faced while implementing the system. The study tried to evaluate performances measurement tools and challenges compared to standard literatures of the perspectives. In order to assess the status of the implementation, the study has been conducted by preparing five point likert scale questionnaires and semi structured interview questions. The total population size of the study was 3067 involving managerial and non-managerial staffs and Key informants (strategic management experts) of the bank. The study adopted probability (stratified) sampling technique to select 354 respondents & purposive sampling technique was used to select 7 key informants who have the working knowledge of the system, from those samples the responses of 278 respondents were analyzed using SPSS version 20 and the interview results thematically analyzed in content wise. In doing so the finding revealed that service delivery has been improved to expected level; corporate level key performance indicators (KPI`s) are properly measures the bank performance, after balanced score card implementation financial performance of the bank achievements in banking industry increased, in contrary individual performance evaluation is carry out without reliable performance data, the bank is not satisfactory to give adequate training on BSC to update skills and improve employees for better performance. Furthermore, the major challenges are lack of effective Information Technology support regarding performance evaluation system and failure to get information on BSC. The study advised CBE to conduct intensive awareness activities; align individual performances to reward system with reliable performance data and carry out bench mark assessments from industry best implantations.