ASSESSMENT OF BALANCED SCORE CARD PRACTICES AND CHALLENGES IN THE CASE OF ETHIOPIAN SHIPPING AND LOGISTIC SERVICE ENTERPRISE (ESLSE)

Abstract

This study main objective was to assess the overall practice and challenges faced while implementing the balanced scorecard system in Ethiopian Shipping Logistic Service Enterprise. In regard to this, the specific objective of the study was to analyze the ESLSE BSC’s implementation practices and to assess challenges that the enterprise faces while implementing BSC, to investigate major contribution from balanced scorecard implementation on four perspectives, and to analyze employee’s perception about BSC as performance evaluation system; thereby, propose solutions for the identified challenges. Hence, the study used descriptive method analysis and mixed approch to colecte the data by designing five-point likert scale questionnaires and semi-structured interview questions respectively. The total population size of the study was 704 involving department managers, team managers and non-management senior officers of the Enterprise. The study adopted non-probability stratified sampling technique to select 255 respondents and the usable responses of 217 respondents were returned and 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 the major challenges identified in the Enterprise. Thereby, The study recommended the Enterprise 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 effectively take advantage of the Balanced Scorecard system.