ASSESSMENT OF BALANCED SCORECARD IMPLEMENTATION AT BANKS IN ETHIOPIA: THE CASE OF NIB INTERNATIONAL BANK

Abstract

This research entitled “Assessment of Balanced Scorecard implementation at Banks in Ethiopia: The Case of Nib International Bank”. The objective of this study is to assess the implementation of Balanced Scorecard in NIB, to evaluate the key performance improvement areas of the bank using BSC, to evaluate attitude of employees regarding the four perspectives BSC, to assess the importance of BSC to improve employee Performance and to identify the major challenges encountered in the implementation of BSC. The study was carried out by preparing questionnaires and interview questions in order to assess the status of implementation. The study's total population size was 857, which included managerial and non-managerial staff as well as key informants (strategic management experts) from the bank. The study used probability (stratified) sampling to select 132 respondents and purposive sampling to select 7 key informants with working knowledge of the system. The responses of 104 respondents were analyzed using SPSS version 20 and the interview results were thematically analyzed in content wise. In doing so, the findings revealed that service delivery has been improved to the expected level; corporate level key performance indicators (KPIs) are properly measuring the bank performance; after the implementation of the balanced score card, financial performance of the bank achievements in the banking industry increased; on the other hand, individual performance evaluation is carried out without reliable performance data. The study recommended that NIB conduct extensive public awareness campaigns, match individual performance to a compensation system based on accurate performance data, and conduct benchmark reviews based on industry best practices.