PRACTICES AND CHALLENGES OF BALANCED SCORECARD IMPLEMENTATION IN GOVERNMENT OFFICES: THE CASE OF KOLFE KERANIO SUB- CITY, ADDIS ABABA

Abstract

This study assessed the overall implementation and challenges faced while implementing the balanced scorecard system as a performance measurement, strategic management and communication system in three selected woredas of Kolfe Keranio Sub- city. The study tried to assess the challenges faced; the benefits gained and compared the practices of BSC implementation against the standard literatures of the system. A five-point likert scale questionnaires and semi-structured interview questions were designed and administered to 240 senior officers and management members of the selected woredas. The total population size of the study included management members and non-management senior officers of the stated woredas was 602.The study used purposive sampling technique to select 240 respondents who have the working experience and knowledge of BSC implementation, of which the responses of 181 respondents were analyzed. Common implementation challenges such as ineffectiveness and inefficiency of the dedicated process, lack of BSC education and training, inadequate IT support, limited organizational participation, and inadequate planning and communication were observed in the selected woredas. The study also showed implementation of BSC have been used in the selected woredas to address the deficiencies in traditional management system, to clarify and translates vision and strategy, to communicate strategy throughout the organization, to perform periodic and systematic strategic reviews, to serve as a strategic management system, to align departmental and personal goals to the strategy, to improve the quality of service , to minimize the time taken for delivering service, to increase effectiveness in meeting customers demand ,and to decrease the level of resource wastage. BSC implementation practice in the selected woredas varied across the four perspectives. The practice was good at internal process and customer perspectives, where as it was not satisfactory in the other two perspectives; finance perspective, and learning and growth perspective. The study advised the selected woredas to create intensive awareness creation activities about BSC, ensure organizational level participation, fulfill the necessary resources, increase the effectiveness and efficiency of the Public service and Human resource Office in overseeing the BSC implementation and, develop relevant IT system( fully automated) to effectively take full advantage of the Balanced Scorecard system.