PRACTICES AND CHALLENGES OF BALANCED SCORECARD IMPLEMENTATION AT ETHIOPIAN WATER WORKS CONSTRUCTION ENTERPRISE

Abstract

The objective of this study assesses the practicalities and challenges of BSC implementation in public sectors in the Case of EWWCE enterprises. In order to assess the implementation status, the study has been conducted by designing five-point Likert scale questionnaires and semistructured interview questions. The descriptive research design was employed by using quantitative and qualitative data from both primary and secondary sources and then, both were analyzed by using SPSS version 20.0 software and qualitative techniques. The total sample size of the questionnaires is 155 involving managers and non-management employees of EWWCE. In this case, the study adopted probability sampling, particularly the stratified random sampling technique based on the size of positions hold (management and nonmanagement) in each department (as strata) to select 155 sample size, whereas in the case of semi structured interview the study adopted purposive sampling technique to select 4 respondents who have the working knowledge of the system. Accordingly, the findings reveal that in the enterprise, there was practically of BSC. But the implementation is not based on the system. Based on the findings the study proposes to the enterprise to conduct intensive awareness creation on how to produce relevant and sufficient KPI so as to capture full range of the objectives, to assign measurement data validation body to each measurement criteria so as to reduces clearly communication between higher level scorecard to lower levels and furthermore, to attach visibly the reward-system with performance result to effectively take advantage of the Balanced Scorecard system.