Assessment of Balanced Scorecard Implementation: In the Case of Nib Bank

Abstract

This research entitled “Assessment of Balanced Scorecard implementation: In Case of Nib Bank”. The objectives of this study was to assess the practice of BSC as performance management tool, to identify the major achievements gained due to BSC implementation as performance system, to assess the major problems of BSC implementation and to make appropriate recommendations to make BSC more effective in NIB bank. The total population of the study was 410 NIB bank employees and a probability (simple random sampling) technique was employed and 202 samples were selected. The response rate was 75.74% on the other hand only with 1 top management members was interviewed by employing non-probability (purposive sampling technique). Both quantitative and qualitative research approaches were employed and closed and open ended questionnaire and interview were used as data collection instruments. To analyses the data, descriptive data analysis specifically percentage, frequency, mean and standard deviation were employed. The findings of the study revealed that Inability to automate the system, no established performance evaluation and rating system, customer oriented activity not competitive and assignment and hiring of process owners was not according to merit. The NIB bank was successful in terms of appropriate technological infrastructure, learning and continuous improvement, revised its strategy at list once a year, BSC has increased employees „understanding of strategies, BSC linked the vision with daily activities, and BSC helped the processes to achieve their objectives. On the other hand among many, the major problems of BSC as performance management system of the bank were weak or lack of commitment from the leadership, lack of adequate knowledge on BSC, kept the scorecard at the top (not shared with every member of the organization), resistance to change, inability to get sufficient information on BSC, inability to reach consensus on the designed objectives were the major ones. Therefore as a strategy the study found that all types of plans at different level requires to prepare with the participation of all leaders and employees, prepare clear vision and common value, the leaders of the bank strongly committed to implement the BSC, develop skills for leaders and employees, gave reward, reinforce and motivation for the employees and identify and remove roadblocks were used possible strategies to alleviate the challenge in the sustainability of BSC implementation.