THE PRACTICES AND CHALLENGES OF BALANCED SCORE CARD IMPLEMENTATION: A CASE OF METAL INDUSTRY DEVELOPMENT INSTITUTE OF ETHIOPIA

Abstract

The purpose of this study was to assess the on the implementation of Balanced Scorecard (BSC) and recommend appropriate management development tools that fit with the newly redesigned processes so as to make the change effective and sustainable. The research was conducted at the Metal Industry Development Institute (MIDI) which started the implementation of newly designed processes. This study adopted a descriptive design employed to meet the research objectives by analyzing questionnaire, interviews, literature review and internets. The methodology used helps to acquire sufficient data and the contribution of the research was to reveal strengths and obstacles of BSC implementation indicate the required attitudinal change and suggest the role and commitment of leaders. Analysis of the collected data revealed that there was awareness on BSC but making it practical requires more than having a general awareness in their working environment. During the transformation process MIDI encountered challenges and also obtained improvements in the area of leadership, Structure, process and working environment aspects. With regard to assessing the BSC implementation, the capacity of leaders (process owners) and performers in few areas of the parameters was found to be satisfactory. In majority of the areas, observable gaps were clearly seen which required additional organizational development efforts. Further, from the transformational perspective, ultimate change result is expected in the mind set-up of leaders and employees that must show an excellent strategy, communication and performance changes in MIDI which is not yet observed so far. That is the point where everybody can say that the transformation process is effective and sustainable. In order to implement BSC system, MIDI should undertake measures like assessing existing BSC system, creating awareness on the needs to change/adjust strategies and structure, communication process and performance measurement systems, identifying and correcting newly developed BSC, conducting continuous assessment on the status of their implementation and developing integration mechanism of BSC with other organizational management systems.